St James Place Investment

Kavanne

bigbloke45 wrote: »

Blowsy. I'm guessing you have a connection with SJP somehow. Would this be correct?

I was wondering this too, only cause I am wondering if he knew my dad, as that would be kind of awesome

jack_spratt_2

earlgrey wrote: »

I think you are being a little naive. (No doubt an IFA will come along and pat you on the head with a 'thankyou' for your post as usual. )

A company adviser is paid commission by his company. A so-called "Independent Financial Adviser", unless there is an an arrangement to rebate all of the commission, is paid by the fund management companies to flog the punters their products. Some investments pay more handsomely than others and you can guess which the advisers like best.

Most independent advisers are former company salesmen who found they were very good at selling and decided to go it alone.

It's like buying a computer from PC World rather than directly from Dell. The PC World salemen will have a wider range to offer than the Dell salesman but don't kid yourself that both aren't salesmen hoping to maximise their commission.

Your comments are spot on unless you pay the IFA by a fee that is correct the company that he or she puts your investments through will pay him commission

You will get good tied agents and good IFA just because they are an IFA does not mean that they will always give you the best advice


I think you have to take your time and just trust your instincts

trumpet675

I would suggets the most important aspect is the advice, the investment options and route will be logical if the advice is correct and understood.

dunstonh

trumpet675 wrote: »

I would suggets the most important aspect is the advice, the investment options and route will be logical if the advice is correct and understood.

Very true. However, assuming that best advice is given, then you need the best products at the best price and thats where tied agents fall down.

sandsy

Whatever advice route you take, when they present you with a product illustration, it is important to look at the charges - the amount that you won't get because it is being taken out of your investment and/or the returns on your investmenrt to cover the costs of product manufacture and adviser remuneration. These are normally expressed as the amount by which your return is reduced relative to an assumed growth rate of 6%. There will also be a table which shows you the expected cash amount of charges for the first 5 years and every 5th year thereafter.

Make sure you are comfortable with the funds that are recommended and that you know and understand the underlying risks vs reward. Ask about the charges relating to different funds.

Ensure you ask about any penalties that might apply if you termniate the contract early.

Arthurian

I'd split the money into two and put it into the best savings accounts you can find on the "Banking and Saving" section of moneysavingexpert. But then, I'm very keen on not risking my capital.

dunstonh

I'd split the money into two and put it into the best savings accounts you can find on the "Banking and Saving" section of moneysavingexpert. But then, I'm very keen on not risking my capital.

You are still taking risks though. You are not taking investment risk but you are replacing it with shortfall risk and inflation risk. 100% into any one option is often never the best way.

Arthurian

Current best savings rates beat inflation, but I concede they need watching to ensure they stay that way, and there could conceivably be a time when it would be necessary to switch to investing instead. I see no shortfall risk with savings - what you see is what you get, compared to investments.

dunstonh

I see no shortfall risk with savings - what you see is what you get, compared to investments.

it depends on the objectives of the individual. Someone using their savings for income would see a large shortfall compared to what they are used to and that could require capital erosion to keep the income level set. Those that are planning for 20-30 years down the road and only using cash are unlikely to get any real terms growth so either they have to pay more or be at risk of shortfall.

Many objectives will be fine with cash. Others need some investments.