Some Advice on getting an IFA?

sho_me_da_money · 31 January 2008 at 12:09AM

Can i just ask -

How do i appoint an IFA?

Is it wise to appoint and check out more than 1?

Any tips on how to spot a good IFA? - (my mate said - the one thats the richest is usually the best)

Thanks

dunstonh · 31 January 2008 at 12:17AM

The term IFA covers multiple types of adviser. The best ones typically specialise in certain areas. You also get general practitioners, some of whom can be very good and ideal for the average person but may lack the skills for more complicated transactions.

What sort of transaction and amount are you looking at?

sho_me_da_money · 1 February 2008 at 7:17PM

Anyone have any iput please?

dunstonh · 1 February 2008 at 9:21PM

I must be invisible.

sho_me_da_money · 1 February 2008 at 9:52PM

Oops sorry I thought i had replied to your first post (obviously not)

Well i have a saved 4.5K right now and i will be saving about £7-800 per month hereafter.

Im not sure if i should put it into an ISA or help my parents buy their council home under the Right to buy scheme.

I have no idea what the best plan is for me and my family (my money is theirs money and likewise). I was seeking advice on how we could make the most of the cash - to save or put into a property?

At first i was thinking putting £3K into a mini cash ISA with Icesave.

I could easily save another £3K by this years due date so i was planning on getting my younger brother to open the same ISA account in his name and hold another sum their. And then perhaps do the same the following year.

Or is it best to put the money against a council propterty, which my parents get a £26K discount on. I would imagine the house after the discount wouldbe in the region of £70K.

What is the best option in your opinion and what type of aan IFA do i need if any?

dunstonh · 1 February 2008 at 10:00PM

IFAs are investment advisers. Not savings account advisers. If you are looking to invest, then an IFA would be able to help you. If you are looking at savings options then there is little an IFA can do to help you that you cant do yourself. We would just open moneyfacts and give you the same data on savings accounts that you can get yourself from the internet.

It would be a bit like getting an electrician in to change a lightbulb and being charged a £100 default call out charge.

If it is investment options that you are looking at, the amounts arent really going to be cost efficient for a specialist investment IFA to really consider so you would almost certainly be looking at a general practitioner IFA. Any on the www.unbiased.co.uk website will be fine for you.

Judging by your wording though, it sounds like savings accounts though.

sho_me_da_money · 2 February 2008 at 1:06AM

So you think i should save the £700-800 per month into a regular savings account?

Or should i put he money into the property?

Maybe i should do a split and put some money into a stocks and shares ISA?

Im just trying to figure out, which of the above options is the most fruitful for me in the next 3.5 years.

jem16 · 2 February 2008 at 10:59AM

3.5 years would be too short to invest the money. You should really be looking at investing over 5 years as a minimum.

If you put the money into your parents' property it will be locked into that. Do you not want to save for a property of your own or do you already have one? Other than that it is really your decision as to whether to save for yourself or help your parents out.

sho_me_da_money · 2 February 2008 at 7:41PM

Well grandma left her house to me and my brothers basically so yes we do have a house so paying for the council home and reapirs and all costs would be for our parents really. They earn nothing so im not sure if we are even allowed to pay for it for them?? obvipously the paperwork would be in their name and thats no problem, we just wanna finance the cost for it.

Was just doing some maths on this -

So IceSave pays 6.1% interest on a mini ISA which means that i will be making £180.00 over the year providing that sticks.

Now if i was to put the money into say a house then the question is - Would that house be worth more than £180.00 in the first year and the answer seems to be Yes.

The other thing to look at is - is it worth be going in for the house now or should we wait for the slump in the housing market?

The rule with a council home is - no matter what you cannot sell for at least 5 years (to make sure the discount sticks)

So should i just stick with an ISA for the time being and then keep my peepers out on the slump, when it happens i should then exerciss the RTB scheme?

Im kinda dissapointed as ive just learned that the IceSaver isnt the best ISA, which i opened this morning. Northern Rock, Bradford and Bingley and ScarBorough Building Society offer betters rates

So i think ive jumped the gun a lttlle too early however, any ISA is better than my money sat in a Basic Abbey account making NATTA!

So do you dudes think that im thinking staright with regards to the above?

Some Advice on getting an IFA?

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