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  • FIRST POST
    • Cotta
    • By Cotta 3rd Oct 17, 10:26 AM
    • 2,514Posts
    • 992Thanks
    Cotta
    Do you Pay for Financial Advice?
    • #1
    • 3rd Oct 17, 10:26 AM
    Do you Pay for Financial Advice? 3rd Oct 17 at 10:26 AM
    Hi,


    Does anyone on here recommend getting a financial advisor or does anyone already have one?
Page 1
    • Alexland
    • By Alexland 3rd Oct 17, 11:00 AM
    • 752 Posts
    • 473 Thanks
    Alexland
    • #2
    • 3rd Oct 17, 11:00 AM
    • #2
    • 3rd Oct 17, 11:00 AM
    Depends if you have the time and interest to learn yourself.

    IFAs do have a place in providing advice when required or at regular intervals but I am not a fan of ongoing charges.
    • dunstonh
    • By dunstonh 3rd Oct 17, 11:13 AM
    • 89,901 Posts
    • 56,578 Thanks
    dunstonh
    • #3
    • 3rd Oct 17, 11:13 AM
    • #3
    • 3rd Oct 17, 11:13 AM
    Does anyone on here recommend getting a financial advisor or does anyone already have one?
    Depends on the scenario, your knowledge, experience, interest in learning (or not) and the time you are willing to put in. Some people use an IFA as they dont have a clue and dont want to learn as they use their time for other things. Other people have very good knowledge but still use an IFA as they value their time elsewhere. Some people are happy to DIY and put the effort in themselves. There is no right or wrong.

    Its like anything in life where you get to choose DIY or use someone. If you DIY well, it can save you money. If you DIY badly, it can cost you far more than it would have been if done professionally.

    I pay for a gardener. I could "save" money if I DIY. However, it would cost me in time and I value my time more. Plus, I cant tell the difference between plants and weeds!!
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • greendoor665
    • By greendoor665 3rd Oct 17, 1:03 PM
    • 44 Posts
    • 91 Thanks
    greendoor665
    • #4
    • 3rd Oct 17, 1:03 PM
    • #4
    • 3rd Oct 17, 1:03 PM
    An IFA could be useful to someone who has a 6 figure plus portfolio and who doesn't have the time, ability or confidence to manage it themselves. As I don't fall in to either of those categories so I don't use an IFA.
    • Cotta
    • By Cotta 3rd Oct 17, 3:49 PM
    • 2,514 Posts
    • 992 Thanks
    Cotta
    • #5
    • 3rd Oct 17, 3:49 PM
    • #5
    • 3rd Oct 17, 3:49 PM
    I think for me having cleared some short term loans and by paying money into a regular saver each month and some to my mortgage I just feel there is more I could be doing.
    • ChesterDog
    • By ChesterDog 3rd Oct 17, 4:05 PM
    • 808 Posts
    • 1,475 Thanks
    ChesterDog
    • #6
    • 3rd Oct 17, 4:05 PM
    • #6
    • 3rd Oct 17, 4:05 PM
    Plus, I cant tell the difference between plants and weeds!!
    Originally posted by dunstonh
    Plants are the suicidal things on which you spend money and that then die even though you try to keep them alive, while weeds are the things that insist on taking over your garden and which steadfastly refuse to die, while scoffing at your efforts to kill them.
    I am one of the "Dogs of the Index".
    • Eco Miser
    • By Eco Miser 3rd Oct 17, 4:23 PM
    • 3,226 Posts
    • 2,989 Thanks
    Eco Miser
    • #7
    • 3rd Oct 17, 4:23 PM
    • #7
    • 3rd Oct 17, 4:23 PM
    I think for me having cleared some short term loans and by paying money into a regular saver each month and some to my mortgage I just feel there is more I could be doing.
    Originally posted by Cotta
    When you have cleared all your non-mortgage debt and have savings to cover all your planned spending plus six months worth of normal spending, you might want to start investing in 'the stock market'. Sensibly, you'd do this through collective investments, known as 'funds', rather than buying shares of individual companies and hoping they did well instead of going out of business.
    Monevator is often mentioned as a good place to start your reading. So is this forum, and there is a list of recommended books here.
    Eco Miser
    Saving money for well over half a century
    • Audaxer
    • By Audaxer 3rd Oct 17, 4:42 PM
    • 652 Posts
    • 294 Thanks
    Audaxer
    • #8
    • 3rd Oct 17, 4:42 PM
    • #8
    • 3rd Oct 17, 4:42 PM
    I think for me having cleared some short term loans and by paying money into a regular saver each month and some to my mortgage I just feel there is more I could be doing.
    Originally posted by Cotta
    Unless you have a substantial sum to invest (probably at least £50k) I don't think it would be cost-effective to use an IFA.

    If you want to start investing a regular sum each month and intend leaving the money invested long term, DIY investing via a Stocks and Shares ISA in a low cost passive global diversified multi asset fund with the percentage of equities to bonds of a risk level you are comfortable with, is a very good and fairly straightforward option.

    This forum and the Monevator website are good sources of information to learn more about DIY investing if you are interested.
    • badger09
    • By badger09 3rd Oct 17, 5:32 PM
    • 5,583 Posts
    • 4,894 Thanks
    badger09
    • #9
    • 3rd Oct 17, 5:32 PM
    • #9
    • 3rd Oct 17, 5:32 PM

    I pay for a gardener. I could "save" money if I DIY. However, it would cost me in time and I value my time more. Plus, I cant tell the difference between plants and weeds!!
    Originally posted by dunstonh
    Plants are the suicidal things on which you spend money and that then die even though you try to keep them alive, while weeds are the things that insist on taking over your garden and which steadfastly refuse to die, while scoffing at your efforts to kill them.
    Originally posted by ChesterDog
    A weed is just a plant in the wrong place
    • jimjames
    • By jimjames 3rd Oct 17, 5:52 PM
    • 12,238 Posts
    • 10,775 Thanks
    jimjames
    Unless you have a substantial sum to invest (probably at least £50k) I don't think it would be cost-effective to use an IFA.
    Originally posted by Audaxer
    I agree. For someone who is just starting out with regular saver accounts and who has limited funds available I think the likely cost of an IFA is overkill and probably unaffordable.

    I just feel there is more I could be doing.
    Originally posted by Cotta
    I guess the question is how much spare money do you have each month? There may well be more you could be doing but if you don't yet have at least 3-6 months savings for an emergency fund - and I'm guessing that if you had short term loans that isn't the case - then that should be the first priority.

    The other thing to consider is the order of paying things, it can help to pay out to savings as soon as you get paid. You don't then have the temptation to spend the money and invariably if you use the "save what's left at the end of the month" routine there's never anything left over.
    Last edited by jimjames; 03-10-2017 at 6:09 PM.
    Remember the saying: if it looks too good to be true it almost certainly is.
    • Treesie
    • By Treesie 4th Oct 17, 5:04 PM
    • 51 Posts
    • 8 Thanks
    Treesie
    Choose an IFA very carefully if you intend to do so. I have a very sour taste in my mouth left by previous IFA (now struck off!) In the last 3 years I have had a meet up with 2 IFAs both recommended. One from SJS who just wanted me to invest in a SJS pension at high fees and the other in a Clerical Medical pension which did not suit my risk profile. I've given up looking for someone whose first task is to help me.
    • dunstonh
    • By dunstonh 4th Oct 17, 6:46 PM
    • 89,901 Posts
    • 56,578 Thanks
    dunstonh
    Choose an IFA very carefully if you intend to do so. I have a very sour taste in my mouth left by previous IFA (now struck off!) In the last 3 years I have had a meet up with 2 IFAs both recommended. One from SJS who just wanted me to invest in a SJS pension at high fees and the other in a Clerical Medical pension which did not suit my risk profile. I've given up looking for someone whose first task is to help me.
    Originally posted by Treesie
    It is also important to make the differential between an FA and an IFA. At least one of those you mention is not an IFA but a sales rep of the insurer.

    You also say last three years. However, Clerical Medical have not had a pension retailed for about the last 8 years. Their last version (which ran for about 2005 to 2009) was actually a very well priced pension for the day. You could get charges at 0.6% and had investment options that covered virtually all risk profiles.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • aroominyork
    • By aroominyork 4th Oct 17, 7:05 PM
    • 300 Posts
    • 72 Thanks
    aroominyork
    Plants are the suicidal things on which you spend money and that then die even though you try to keep them alive, while weeds are the things that insist on taking over your garden and which steadfastly refuse to die, while scoffing at your efforts to kill them.
    Originally posted by ChesterDog
    There's a prize for the person who turns that into the most entertaining metaphor for financial investing.
    Last edited by aroominyork; 05-10-2017 at 1:25 PM.
    • MrsCautious
    • By MrsCautious 4th Oct 17, 11:17 PM
    • 1,107 Posts
    • 13,286 Thanks
    MrsCautious
    I have an IFA who takes a fee. I meet the criteria outlined above and am grateful for his sound advice to date. I was widowed young - I didn't have the confidence or to be fair the state of mind at that time, to begin to know what to do about my changed financial situation. I don't have the time, with family and work. He has been helping me for years now. I haven't followed his advice on paying off my mortgage due to higher interest rates being available. His experience comes into play with stocks and shares. I research and inform him of what I'm up to with savings. I have sought his advice since on various financial developments and he has been helpful without any charge on this - other than that we have two review meetings twice a year to catch up about investments.

    My experience is IFAs can also help with critical illness and life insurance as well as shareholder protection agreements - and this is such an important area, and so worth doing. Sadly now having also lost my business partner, who was like a sister to me, the shareholder agreement put into place by an IFA has been crucial.
    Last edited by MrsCautious; 05-10-2017 at 4:25 AM.
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    • Wobblydeb
    • By Wobblydeb 5th Oct 17, 11:40 AM
    • 896 Posts
    • 1,399 Thanks
    Wobblydeb
    I think for me having cleared some short term loans and by paying money into a regular saver each month and some to my mortgage I just feel there is more I could be doing.
    Originally posted by Cotta
    This is where I was 7 years ago I started off with a few hundred a month into a S&S ISA, and was learning as I went. I was however willing to make mistakes and lose the money. Your mileage may vary!

    Using real money is a good way to concentrate your mind though - you'll soon find out how risk averse you are, and whether you enjoy doing the research and learning that is required.
    I've got a plan so cunning you could put a tail on it and call it a weasel.
    • Malthusian
    • By Malthusian 5th Oct 17, 12:09 PM
    • 3,458 Posts
    • 5,291 Thanks
    Malthusian
    There's a prize for the person who turns that into the most entertaining metaphor for financial investing?
    Originally posted by aroominyork
    Something about active fund investors who spend ages researching and toiling over their portfolio, endlessly pulling out underperforming funds, while their passive neighbour just fills their garden with gravel and pot plants and achieves better results with a tenth of the effort and cost?
    • Linton
    • By Linton 5th Oct 17, 12:43 PM
    • 8,632 Posts
    • 8,608 Thanks
    Linton
    Something about active fund investors who spend ages researching and toiling over their portfolio, endlessly pulling out underperforming funds, while their passive neighbour just fills their garden with gravel and pot plants and achieves better results with a tenth of the effort and cost?
    Originally posted by Malthusian
    Ok from the other side..

    The active investor who spends hours getting his garden exactly how it wants it. Choosing exactly the right species and varieties of plants and then puts in the effort to ensure there is something of interest any time of the year, that nothing is overgrowing its neighbours and nothing is deteriorating etc etc. Then there is the neighbour Mr Passive who simply has a look round the estate and buys the shrubs he sees in everyone else's garden. Minimal effort, minimal cost, the garden is just as green and at least it wont be the worst looking one around.
    • dunstonh
    • By dunstonh 5th Oct 17, 12:54 PM
    • 89,901 Posts
    • 56,578 Thanks
    dunstonh
    Then there is the neighbour Mr Passive who simply has a look round the estate and buys the shrubs he sees in everyone else's garden. Minimal effort, minimal cost, the garden is just as green and at least it wont be the worst looking one around.
    Mr & Mrs True Passive's garden would not have any maintenance. It would be left to do whatever it does. Weeds, plants etc.

    Mr & Mrs think-they-are Passsive's garden would be similar to Mr & Mrs True Passive except they would sneak out when no-one is looking and do a bit of garden management by deciding how much of each weed and plant they are going to have.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • Cotta
    • By Cotta 5th Oct 17, 4:29 PM
    • 2,514 Posts
    • 992 Thanks
    Cotta
    This is where I was 7 years ago I started off with a few hundred a month into a S&S ISA, and was learning as I went. I was however willing to make mistakes and lose the money. Your mileage may vary!

    Using real money is a good way to concentrate your mind though - you'll soon find out how risk averse you are, and whether you enjoy doing the research and learning that is required.
    Originally posted by Wobblydeb
    So buying some S&Ss within an ISA wrapper is the best way to go?
    • Fatbritabroad
    • By Fatbritabroad 5th Oct 17, 9:45 PM
    • 194 Posts
    • 95 Thanks
    Fatbritabroad
    So buying some S&Ss within an ISA wrapper is the best way to go?
    Originally posted by Cotta
    Yes assuming you have enough in ready cash to cover emergencies and are contributing to a pension
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