First time investment in stocks and shares - advice required

regularsaver1

dunstonh wrote: »

Halifax also are generally the worst of all the banks when it comes to investments. Nobody should see a sales rep to get advice. From next year the FSA have proposed that sales reps wont be able to give advice any more but will still be able to present their options under a sales process.

why do you keep saying they are sales reps?

they are fully qualified

some have come from being independent anyhow and some from others banks, many from HSBC?????

and some go independent also

jamesd

One fairly easy option to consider is the Halifax International Regular Saver. It's paying 10% on 100-2,000 deposited each month, can vary every month, for one year. Once the year is up the money can be moved elsewhere. It's all available immediately but with a significant interest rate drop if it's taken out before the end of the year. Can be paid into by standing order, 2,000 a month for a year say. Then the money can be put somewhere else using the best deal available at the time.

For other savings, there's no real need to lock the money up for a year to get over 6% variable. For fixed one year terms, 7% is available elsewhere.

For investments there are corporate bonds or corporate bond funds that cab pay over 8% tax free on money inside a stocks and shares ISA and getting the money moved into that as fast as the annual limits allow is probably a good idea. Many other investment options, these are just some of the more cautious ones.

If she wants to keep lots of cash then maybe using the full 3600 a year cash ISA allowance each year until she hits the maximum desired in cash is a good idea.

Many of these don't come with a passbook but there's probably some limit beyond which she doesn't really need a passbook but could either use a web site, phone call or letter to ask for the money.

a7man

Lokolo wrote: »

People on here aren't against Stocks and Shares, why do you think that? They have all been suggesting going to see an IFA...

A lot of people on this site do get confused between investing and saving, a lot of people want to invest with no risk - which isn't the case, hence why we then suggest savings accounts.

Plus, you are not allowed to offer advice on here about which shares to buy etc., only offer opinions and factual knowledge (about ISAs etc.etc.).

This is a post about Stocks and shares, yet as usual people post endless fixed interest accounts and savings accounts. She is looking for a long term investment so there are much better options for capital growth rather than just interest.

I have said that because nearly every post on here is about FI accounts, maybe its because people understand them easier and have this widespread thought that equities are a huge 'gamble' and you could lose all of your capital...which is extremely unlikely if invested correctly at low/medium risk.

a7man

regularsaver1 wrote: »

why do you keep saying they are sales reps?

they are fully qualified

some have come from being independent anyhow and some from others banks, many from HSBC?????

and some go independent also

Because the regulations will soon be changed and the majority of these bank 'advisers' will no longer be able to use the word adviser. Banks force their advisers to hit targets and sell products, admittedly many IFAs have targets too, but generally their targets are met by generating business and leads and then providing well rounded advice of the whole market rather than pushing products that they know are worse than competitors.

regularsaver1

how can it be whole of market when they can't sell every companies products?

they get paid a salary and receive commision on what they sell yes, - they are still qualified. targets are understandable in this world right.
they have to generate their own leads and business too, as well as receive leads from others and being recipcle for mortgage, bank accs, the like

why would an ifa go and work for them, as there have been many that have?

and why would one leave HSBC to work there?

and why would the qualifed advisers stay rather than go IFA route? although i know a few that have gone

dunstonh

why do you keep saying they are sales reps?

they are fully qualified

some have come from being independent anyhow and some from others banks, many from HSBC?????

and some go independent also

The FSA has issued proposals for 2009 which will see all but IFAs have their adviser status removed from them. They will be able to present options but it will not be under and advice process and they will not be able to use a title with the word "adviser" in it. The presentations will clearly have to be referred to as a sales process and the individuals will be classed as sales reps.

Most have known for years that that sales forces is all about sales and not advice and the FSA have finally realised the damage that salesforces do. So, by removing their adviser status and reducing the FOS protection that will exist for consumers that use them (IFAs will have to provide best advice and evidence it. Sales reps will have the remit that what they sell has to be better than doing nothing).

why would an ifa go and work for them, as there have been many that have?

I know many ex IFAs that have returned to tied and multi-tied status again. Most of them found being an IFA was too hard. Either from a knowledge point of view or not having enough clients to make a go of it. Banks spoon feed customers so its an easy life and you only have a small number of products to learn.

Part of the FSA proposals also include increasing the IFA minimum qualifications and many are already considering their options based on the proposals.

regularsaver1

so how can ifa's be called ifa's if they can't advice on every companies products?

i know what you mean about spoon fed to an extend as we all have to get leads for them, but i don;t think its an easy life as there are many products and reports ect and they have to self-gen too

no job in the banks are easy now-a-days

as for commision, i knew up-front what was earned on the CI policy I did the other day. do you always know this?.

a7man

You have to give out the commission, its the law.

IFAs will no longer be able to call themselves IFA's if they are multi tied in the future. However even a multi tied adviser with at least a choice of 6 products is obviously better than an adviser who only has 1.

Banks get clients because they walk through the door, IFAs rely a lot more on referrals and generating business through external opportunities.

I wouldnt say a cashiers job is particularly hard!?

regularsaver1

a7man - have you ever been a cashier?
i feel for them at times, what with some s... they get from customers

i did it several years ago, and its not easy for them and it gets harder, what with getting leads at the same time as its a sales job

it easy to assume though. and receptionist/banking hall job can be even harder

cashiers, also deal with atm's (deposits ect), coin banking, business banking deposits, foreign currency, cheque banking, float, queries, charges, leads ect ect ect ... the list goes on. its not just money in and out

just like the staff in the post office do a lot, all at their counter position -

dunstonh

so how can ifa's be called ifa's if they can't advice on every companies products?

Some companies restrict their products for sale through their own salesforce but those products are usually sub-standard and expensive. Whilst some may be missing, 50,000 funds/products is still better than the 10-20 that tied reps have.

as for commision, i knew up-front what was earned on the CI policy I did the other day. do you always know this?.

Yes. However, remuneration is not exactly a level playing field. For example, I compared an illustration I could get on a Scottish Widows product recently against one produced at LloydsTSB. On maximum commission basis as I was getting more commission but the charges were also lower to the client (and that was without discounting). Clients should notfocus on what remuneration is paid but what charges they are paying.

no job in the banks are easy now-a-days

I did nearly 10 years at a bank and a period as a bank sales rep. I know whats it like and the working environment is not one that I miss.