Would appreciate some of the esteemed group's views/thoughts/advice on the above.
Due to various events and factors my financial position is starting to look far more positive and I need to start making some longer term plans with some significant (to me) sums. However I have an inherent distrust of 'Financial advisors ' after various scandals over the years most of which a bit of common sense has enabled me to avoid.
However I think I now need to pay for a 'bit of nous' but do not have a clue how to engage someone who is good / trustworthy blah blah.
I do have some acquaintances who call themselves FAs but to be honest I don't want them knowing my business and I am therefore reluctant to open up a discussion.
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Are you a member of a professional body or trade union? These can often point you in the direction of someone suitable.
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You should NOT use any friends or acquaintances. The last thing you need with money is blurred lines.
You should get two or three recommendations and interview them. Normal stuff, why should you use them, what will they do for you, etc. etc.
You then must make sure you stay up on everything. And if they tell you something that you do not clearly understand, ask again. And again if necessary.
Some good advice, and website recommendations here:
www.moneysavingexpert.com/savings/best-financial-advisers#find
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We've got one found online via a social forum relating to work. Charges much less than others and does a top job. Makes quite a bit of money for us, so busy that he's stopped taking on new customers.
As above ask plenty of questions. In terms of costs now it's much clearer how much they make and how much the investment fund charge. But still don't be scared to ask, so I'd agree with No FM2R, don't pick one you are friends with it could cause issues.
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For most people, when it comes to financial provision for their later life, the important thing is to do something, rather than nothing.
The second most important thing is to stay clear of unregulated investments and the people who push them. I mean things like, fine wine, classic cars, art, brazilian hardwood plantations, storage units, holiday lodges, you get the idea. Some of the people who push these (who are not IFAs themselves) will actually introduce you to a tame IFA so they can flog you a regulated wrapper (usually a SIPP).
It's perfectly reasonable to use an adviser, but my view is that you need to know 'something' so you can ask the right questions. If you are genuinely naive, do some reading - it will help you to ask the right questions, and form a better opinion of the advisers you consider.
Have a look at monkeywithapin.com/ and download the free book to see if you have any enthusiasm for it. There's more to it than that of course, but you might also start to get a sensation of the level of risk you are happy with.
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Details supplied on 20-8-15. The advisers are approved by the FCA but I guess they all have to be nowadays.
Key Facts
Insurance. Offer products from a range of insurers
Mortgages. Offer from whole markets
Investments. Independent advice
Insurance – as investment. Based on analysis of market
Mortgages – as investment. Based on analysis of market
Payments by client
Investments.
-“Wealth Management Serviceâ€: investment portfolio reviewed monthly, re-jigged quarterly. Initial cost 3% of investment, plus 1% fee per annum. No extra charge for annual face-to-face meeting. Ongoing cost, same rates per annum.
-Insurance. No fee, commission comes from lender
-Mortages. £395 plus commission hey get from lend
-“Financial Management Serviceâ€. As above but with less supervision. Still 3% but 0.50% annual fee
The mortgage fee seems very reasonable but the other charges would hurt me. Purchase money is paid direct by the client to the provider.
Most such outfits offer a one-hour free session to sort out matters. If such is offered it is best to send in advance all relevant details to get the best value from the encounter, including existing investments and mortgage, plus investment aims and horizon.
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>> but my view is that you need to
>> know 'something' so you can ask the right questions.
>>
That's a vital rule of life, I have found.
I have often over my personal and working life needed the advice of specialists on a whole host of subjects - financial, pensions, architect, builder, medical, personnel consultants, etc.
It's very satisfying working with an expert and using his expertise fruitfully, but you need to do enough of your own research in order to have meaningful conversations and get the best from the relationship.
The important thing is to remember that you are in charge. It's his job to explain things to you sufficiently so that you can then make the final informed decisions. If they don't like that, find another who does.
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Many thanks folks just back from Mexico so will digest some of this and take it from there.
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>> Due to various events and factors my financial position is starting to look far more positive
>> Many thanks folks just back from Mexico
Ah I see. A fruitful time with the drugs cartel, clearly.
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Interesting to see how the market has gone these past ten days....I cannot decide if this presents a buying opportunity or if there is further to fall. And I'm just an amateur who likes to dabble.
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Possibly or perhaps the sunken treasure we found on our introductory scuba diving sessions in Playa del Carmen !
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You can do worse than invest in a FTSE-100 index tracker fund. Most funds out there try to beat the market; some do; some don't. At least you're not paying thousands to an IFA. I have a couple of friends who are IFAs. They know nothing...
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> I have a couple of friends who are IFAs. They know nothing...
Typically I think they do a good job of explaining the different options available, how to progress or deal with each option, and the implications of each.
Its choices that I typically wouldn't take their word for.
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I briefly tuned to Radio 2 this afternoon, (SW in pm). There was a some crackpot giving financial investment advice on a property purchase based on the callers star sign. Maybe if you want sound advice that is the direction in which you should look.
Do astrologers have to register with the FSA?
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IFAs, or at least the guidelines they use, are usually good at highlighting needs (emergency cash, other cash savings, future income requirements and how much you need to save to meet your objectives etc) and will point to conventional asset allocations for investments. They will also as part of their fact finding determine the investor's risk appetite, although I don't think this always works very well. Low risk investments are not usually ideal for young people's pension savings for example.
I have been disappointed with the IFAS I have spoken to. One 'explained' that managed funds are better than trackers because "the trackers have to hold all the bad companies as well as the good ones, so it's obviously better to have a manager who can avoid the rubbish ones". I would suggest not going near an IFA unless or until you understand why that is utter tripe - then you can act dumb and ask the question!
To Mapmaker's point on trackers...I am a fan of passive investments myself and I have some, but they work better IMO for those (or those elements of your investments) with longer horizons.
This is a great book that explains passive investing very well - Tim Hale's Smarter Investing.
www.amazon.co.uk/dp/0273785370
It's more technical and detailed than Monkey with a Pin, but you might as well read that first as it's free (and good).
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Property.
The right sort of course.
Foxtrot Oscar to stuff I don't understand or can't control.
And before the home counties sounds orf about not being able to control the prop' market it's done well for us for nearly 40 years.
As for ruddy air shows.............now that's a bad investment.
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Financial Advice/Advisor - Alastairw
