Investing £200K for an income?? Please help

marrioa

Hi Mattyd

There is a website where you can browse IFAs, www.unbiased.com, I think.

If you go onto some of the comparison sites, you may get a better idea of what you'll get from your money and the charges involved. There is one called Moneyfacts and another called moneysupermarket. You could go to some discount brokers' websites as well, such as bestinvest, squaregain, Hargreaves Lansdown.

I'm not computer literate enough to provide the proper links for you - sorry.

whiteflag_3

EdInvestor wrote:

You may wish to look at the FSA site to check the charges on investment bonds.

https://www.fsa.gov.uk/tables

They are the highest in the industry.

Same rubbish, different day :rolleyes:

Mattyd_3

Well I suppose you dont get anything for nothing anymore. :rolleyes:

EdInvestor

No doubt you can avoid wasting 40,000 pounds on commission over the next 10 years if you try - that's the average for an investment bond of the size you are talking about.Asking here is a good start, keep going.

I do find it strange that IFAs continually rubbish the official information put out by their regulator, the Financial Services Authority, for the information of the public.

Perhaps you should "look under the bonnet" of one of these bonds and see what your money would actually be invested in.

The bond is only an expensive "wrapper", to enable this finagle of giving you back your capital as income and deferring tax until later.It's not actually necessary to use an expensive wrapper like this to achieve your goals: investing direct may well do the trick at much lower cost.

Mattyd_3

EdInvestor wrote:

No doubt you can avoid wasting 40,000 pounds on commission over the next 10 years if you try - that's the average for an investment bond of the size you are talking about.Asking here is a good start, keep going.

I hadnt worked out that figure :eek: Thats a hell of alot of money.

whiteflag_3

EdInvestor wrote:

No doubt you can avoid wasting 40,000 pounds on commission over the next 10 years if you try - that's the average for an investment bond of the size you are talking about.Asking here is a good start, keep going.

I do find it strange that IFAs continually rubbish the official information put out by their regulator, the Financial Services Authority, for the information of the public.

Perhaps you should "look under the bonnet" of one of these bonds and see what your money would actually be invested in.

The bond is only an expensive "wrapper", to enable this finagle of giving you back your capital as income and deferring tax until later.It's not actually necessary to use an expensive wrapper like this to achieve your goals: investing direct may well do the trick at much lower cost.

Ed -Where on the FSA site does it say £40k in commission will be paid out.

Havent you been asked many times to stop posting information which is factually incorrect?

I find it amazing that someone who appears to clued up in certain areas continues to bang on about commission when they are taking about charges.

If you can get the same funds in an "expensive" wrapper like a bond for less money than buying them outside a bond, how is the bond more expensive?

I feel you are being unfair to Mattyd, because instead of helping your biased attitude is causing even more confusion

claretmatt

Am also not sure how you come to the figure of £40,000 over 10 years. I presume you've misunderstood something down the line.

Ok..I can see where you coming from in respect to the bond, but these are totally viable investment vehicles which have good advantages. Your telling him to invest directly, but don't offer any information about what could be used and the advantages / disadvantages.

He's probably very confused now and is even considering putting all his money in a single equity company. Now that must be risky.

EdInvestor

If Mattyd wants to go this route with some of his money, he should inquire of all these IFAs how much commission he would be paying over a 10 year period at the standard rate of return set by the regulator.

Then he should go to a selection of discount IFAs such as Cavendish, Chartwell, Hargreaves Lansdown, Bestinvest, etc etc, and see what terms they can offer for the same product.

I am sure that with a bit of astute bargaining he will be able to reduce the fee substantially.

But if it were me I would still not put any of my own money in one of these products because even after hard bargaining they are still going to be expensive.

He might like to seek more help on this site where there are are more people with experience of investing large sums.

whiteflag_3

EdInvestor wrote:

If Mattyd wants to go this route with some of his money, he should inquire of all these IFAs how much commission he would be paying over a 10 year period at the standard rate of return set by the regulator.

Then he should go to a selection of discount IFAs such as Cavendish, Chartwell, Hargreaves Lansdown, Bestinvest, etc etc, and see what terms they can offer for the same product.

I am sure that with a bit of astute bargaining he will be able to reduce the fee substantially.

But if it were me I would still not put any of my own money in one of these products because even after hard bargaining they are still going to be expensive.

He might like to seek more help on this site where there are are more people with experience of investing large sums.

So we can take it that you cant back up your claims of £40k commission over 10 years!.

How anyone who reads this site regularly can take you seriously is beyond me :mad: Pathetic

equitydealer

I have always been wary of IFAs and do all my financial planning myself. I've gained a decent level of knowledge in tax, savings, equities, pensions etc to deal with everything myself.

Even if I won the Lotto tomorrow I would do everything myself! I wish...