Inexperienced saver - advice please

earlgrey_3

jem16 wrote: »

Haven't been invested that long.

Jem, does that mean they persuaded you to invest right at the peak? Have you calculated your current gain/loss as a result?

jem16 wrote: »

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.

Did they tell you that? Which sort of investmests would it have been "sheer folly" to have taken profits in this year? Not equities in any market in the world, not bonds, and not commodities presumably. An "absolute return" fund maybe if you could find one that actually did that? Would you like to say how much better your return over cash has been over the past year as a result of avoiding such folly and taking their advice?

Jem, I'm not for a moment suggesting that people shouldn't seek advise from financial advisers when they feel they need it. What I am saying is that they should fully understand the limitations of their expertise and that whenever any commission is involved their own best interests are entirely different from the people they sell to.

One of the things my Scots grannie taught me was to always check the teeth of a horse you're buying whether it looks like a gift or not.

jem16

earlgrey wrote: »

Jem, does that mean they persuaded you to invest right at the peak?

Nobody persuaded me to do anything. I wanted to invest with a long term view to mitigate IHT as one of my main reasons. Cash was very little use to me as a higher rate taxpayer, although obviously part of my portfolio is in cash for short term use.

Have you calculated your current gain/loss as a result?

Down 2.4% last time I looked. Not especially bothered at the moment as it is for long term planning.

Did they tell you that? Which sort of investmests would it have been "sheer folly" to have taken profits in this year?

They didn't need to tell me - I'm quite capable of working it out for myself and it was all clearly laid out for me before I agreed to the investment. My main investment is within the Investment Bond wrapper which has early encashment penalties over the first 5 years. And yes, before you ask, this wrapper was most suitable for my circumstances, all of which were taken into account.

Would you like to say how much better your return over cash has been over the past year as a result of avoiding such folly and taking their advice?

I would have lost 8% through penalty fees and gained around 3.6% after tax in cash. It would also bring that amount back into IHT possibly subjecting it to 40% tax.

Jem, I'm not for a moment suggesting that people shouldn't seek advise from financial advisers when they feel they need it. What I am saying is that they should fully understand the limitations of their expertise and that whenever any commission is involved their own best interests are entirely different from the people they sell to.

As has been said before see a fee paying IFA. Always ask to see the research as to why a particular product has been selected. If they can't or won't let you see this then go elsewhere.

I am happy that my needs have been fully met and will continue to be met. If that view changes I will do something about it. Meanwhile I am content to learn at my own pace. If I had jumped in without seeking advice I would probably be one of the many on here complaining that it's all gone pear shaped!

One of the things my Scots grannie taught me was to always check the teeth of a horse you're buying whether it looks like a gift or not.

I shall remember to look at my IFA's teeth next time.

Blah99

Lokolo wrote: »

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.

Yes, I'd contribute. The best format for me to help you is for you to post some questions (say, 5 maximum) that I and others can answer. Those answers will generate further questions and so forth. The iterative process should eventually give you enough of a grounding in principles to allow you to go off and research the rest yourself. You'll need to keep the original post updated with new questions and answers though.

Let me highlight one very, very important point. I am not an IFA, whereas dunstonh is. I have had no formal training in investment principles. I have no qualifications, and I don't work in the financial sector. I am self-taught, and I learned through reading lots and making mistakes. I am not an expert investment professional. Therefore all my answers and comments are my personal opinion based on my experience. Whether or not that's a positive or negative is up to you to decide.

jem16 - if you've got an IFA that does all that, will happily spend time explaining stuff to you and answering your questions on the informal basis you seem to imply, then they're worth their weight in gold. Buy him an xmas present!

dunstonh

Aimed also at dunstonh and blah99.

I dont mind contributing but there is little point if its going to be IFA bashing by people who think that we should have crystal balls and know the future.

jem16

Blah99 wrote: »

jem16 - if you've got an IFA that does all that, will happily spend time explaining stuff to you and answering your questions on the informal basis you seem to imply, then they're worth their weight in gold. Buy him an xmas present!

I would happily do so.

Despite suggestions to the contrary there have been many occasions where he has given me advice that has actually done himself out of a "sale".

maggiesoup

I appear to have started one.

jem16

Lokolo wrote: »

Do you know where? I can't find it

Finally found the thread.

http://forums.moneysavingexpert.com/showthread.html?t=416337

Lokolo

jem16 wrote: »

Finally found the thread.

http://forums.moneysavingexpert.com/showthread.html?t=416337

Thanks! Favourited (not a word surely?) but going to Asda