Inexperienced saver - advice please

Lokolo

jem16 wrote: »

Glad you clarified that.

If I made a thread about basics into Investing - would you contribute?

Aimed also at dunstonh and blah99.

Obviously I wouldn't go into advice sort of thing but mainly information on how others can learn what sort of areas you can invest in etc.

jem16

Lokolo wrote: »

If I made a thread about basics into Investing - would you contribute?

I'm only learning too. My investments are handled by an IFA.

However sounds like a good idea although there was a simialr thread on how to invest in a S&S ISA which covered a lot of the basics.

Lokolo

jem16 wrote: »

I'm only learning too. My investments are handled by an IFA.

However sounds like a good idea although there was a simialr thread on how to invest in a S&S ISA which covered a lot of the basics.

Do you know where? I can't find it

Also, do you bug him/her with loads of questions when you go?

I wish there was a CPG book on investing, those books were so useful when doing my GCSEs and A Levels!

LucyTheDwarf

Lokolo wrote: »

Do you know where? I can't find it

Me neither
Your conversation inspired me to have a butchers..

earlgrey_3

jem16 wrote: »

Investing is for a minimum of 5 years, preferably more. Were you told this at the time?

Ah, that magical 5 years that advisers love to use.

Out of interest do you know how much your investments made 5 years ago, Nov 2003, using the skills of your IFA, have made over cash and after inflation?

What about over 10 years? The FTSE is currently around 30% lower than in Nov 1998. Was that possibility mentioned to you when they told you about the 5 years?

If they are commission-based did they sacrifice their trail commission by giving you the sensible advice to take profits and move into cash a year ago? Or did they keep you fully invested to maximise commission? That's the test of good advice.

Lokolo

earlgrey wrote: »

Ah, that magical 5 years that advisers love to use.

Out of interest do you know how much your investments made 5 years ago, Nov 2003, using the skills of your IFA, have made over cash and after inflation?

What about over 10 years? The FTSE is currently around 30% lower than in Nov 1998. Was that possibility mentioned to you when they told you about the 5 years?

If they are commission-based did they sacrifice their trail commission by giving you the sensible advice to take profits and move into cash a year ago? Or did they keep you fully invested to maximise commission? That's the test of good advice.

So where did you learn all the magical investing stuff?

earlgrey_3

Lokolo wrote: »

So where did you learn all the magical investing stuff?

That's really the point. As Blah has indicated, there really isn't anything magical about it. If there was then financial advisers would invest their own money, borrow more and invest again, instead of spending their lives touting to invest your money. The most important skill for a financial adviser is salesmanship, not mastery of economics.

Sadly, no one cares as much about your money as you do - so ultimately you have to be responsible for how it's invested. If you aren't it can be expensive.

Over the 5 years up to 2007 my dog could have made good returns from shares. Any fool can make paper gains in a raging bull market. That persuaded a lot of people that their adviser had a magical touch. It's only if they advised you to take profits last year and hold on to your gains that they'd be any better at it than my dog. Most weren't.

jem16

Lokolo wrote: »

Do you know where? I can't find it

I haven't got time to look just now but I'll look later and see if I can find it.

Also, do you bug him/her with loads of questions when you go?

If I need to then yes. He's also good at explaining what he's doing and why.

jem16

earlgrey wrote: »

Ah, that magical 5 years that advisers love to use.

Out of interest do you know how much your investments made 5 years ago, Nov 2003, using the skills of your IFA, have made over cash and after inflation?

Haven't been invested that long.

What about over 10 years? The FTSE is currently around 30% lower than in Nov 1998. Was that possibility mentioned to you when they told you about the 5 years?

Of course I was.

However you neglect to mention the reinvested dividends and the fact that not everything is in equities never mind narrowly invested in just the FTSE.

If they are commission-based did they sacrifice their trail commission by giving you the sensible advice to take profits and move into cash a year ago? Or did they keep you fully invested to maximise commission? That's the test of good advice.

Adjustments were made where necessary. To do entirely what you suggest would have been sheer folly owing to the type of investment I'm in.

maggiesoup

And to the OP, it's almost as though you didn't read my last post at all. Never mind.[/quote]