income funds...

dunstonh

He hasn't come back to us once to say - dont' forgot your ISA limit, what about doing this with some of your money.

Why would he? You have no ISAs already. So what reason would he have to remind you to utilise the allowance. The communication between IFAs and clients works both ways. Did you put in place an agreement for you to review your policies annually? Also remember that an individual can be very good at their job or very poor. That applies to any occupation or profession.

Although CC's post is useful, you do have to be wary of some of the information posted at sites like TMF. A lot of the time, there seems to be a total disregard for an individuals tolerance to risk with an assumption that everyone is the same. Everyone is different and the portfolio you choose should match your risk not anyone elses. No-one is unhappy when investments go up. Its when the markets go down that you realise whether your portfolio fits you or not.

You also have to consider the time you will need to put in on these things and if its worth it or not for you.

I have just spent the last 6 hours building a portfolio for a £28k investment. That involved researching which tax wrapper, provider, the asset allocation based on the attitude to risk and the funds. This time didnt include the data gathering of personal details or attitude to risk assesment. This is despite me being in the industry since 1988 and investing money almost every day. You have to look at the time you are willing to put into it. Im currently having a cuppa taking a break from the report which I am on page 16 at present with about another 10 to go. Probably finish around 8-9pm tonight. At least you wont need to do that part.

Do you have the time and are you willing to learn all this and then keep an eye on it.

jackieblue

dunstonh wrote:

I have just spent the last 6 hours building a portfolio for a £28k investment. That involved researching which tax wrapper, provider, the asset allocation based on the attitude to risk and the funds. This time didnt include the data gathering of personal details or attitude to risk assesment.

Do you have the time and are you willing to learn all this and then keep an eye on it.

No I don't have the time or the knowledge, but how did somebody get you interested enough to spend that time ? This man knows how much I've got sitting in a savings account, knows we are concerned about our financial future, knows the best I can come up with is remembering to put something in an ISA half-way through March. You seem to feel I lacked communication, but I laid it on the table. What more could/should I have done.

dunstonh

but how did somebody get you interested enough to spend that time ?

They pay me for the service. I give them what they pay for.

This man knows how much I've got sitting in a savings account, knows we are concerned about our financial future, knows the best I can come up with is remembering to put something in an ISA half-way through March.

If you got a plumber and he did a bad job, would you use him again? If you saw a doctor and felt you didnt get the diagnosis you wanted, would you want to see someone else? Or would you stop using plumbers or stop getting medical attention. Treat financial advisors the same. If you dont get the service you want, try another.

You seem to feel I lacked communication, but I laid it on the table. What more could/should I have done.

I don't know that at all. I wasnt there when you talked. However, I do not contact all my clients asking them if they want to fill up their ISAs every year. I don't know any IFA that does. When you do a transaction, did you request an ongoing servicing arrangement with him? He may have treated it as a one off transaction with you to contact him when it's required or when he feels there is something that has changed that may impact on you.

EdInvestor

jackieblue wrote:

I have been looking at more "sophisticated" ways of saving beyond the cash ISA I do each year and an Egg deposit account. We have such lousy pension provision and I keep reading about such things as investment trusts and unit trusts and which ones are better than others.... Don't want to keep sticking anything I've got into a straightforward interest account. Any suggestions on how to start.

Hi Jackie,

You seem to want to start building up an investment portfolio in addition to your cash savings.

This means you are thinking about taking some risks in return for hopefully getting higher returns.

IMHO, an important aspect of successful investing is trying not to lose money, as well as learning how to make it. A well-known way of reducing the risk of losses is by using a strategy called "asset allocation".

This involves spreading your money around different asset classes, so you don't have all your eggs in the same basket.

Leaving aside your home, the main asset classes are

-equities (aka stocks and shares)
-bonds (including governtment bonds aka gilts)
-commercial property
-cash

You may like to play around with this calculator which shows you how to work out what percentages you should have in each asset class, depending on your age, attitude to risk, existing savings etc.[ Commercial property comes into the corporate bonds category in terms of risk.]

After you have got a good idea on the basic asset allocation front and how it might change as you get older , you should find it a lot easier to grasp all the other stuff ( types of funds, types of tax wrappers etc), which is otherwise very confusing.

jackieblue

EdInvestor,
Thanks for your help. I've spent the last week reading many posts on the forum and I can see that my question is so similar to others. I was just a little put off by dunstonh who seems to cross t's and dot i's as opposed to give constructive advice.

Anyway I have now decided to organise a shares ISA this year. My only query is given that it seems all shares have risen by 25%+ over the least year is this a sensible time to be buying them. I know the growth was to regain what had previously been lost but to be coming in at a time when they seem to have done so well may not be a good idea. If they are a good idea and I don't have a reliable IFA, where is the best place to buy a share ISA. Even advice on which funds would be much appreciated but I know there are limits to this type of advice. Many thanks again.