IFA or use H-L?

mantisgb

I have spoken with the IFA that organises my pension through work. I have around £6k to invest and thought I might put some into my pension to improve my retirement income. He proposed that whilst putting some into the pension would be a good idea he also suggested using stocks/shares ISA allowance as a better way of planning for retirement.

I have looked at his key facts and compared with going to someone like Hargreaves Lansdown it appears that I'd be giving up 3% initial fee that I otherwise wouldn't have to pay (H-L reimburse you the 5% initial fee for the fund I'm looking at, Octopus Absolute Return Acc.) I appreciate that his advice shouldn't be free but I think I would be more comfortable doing my own research anyway (obviously I have taken some advice already, as I would tend to agree that using ISAs makes sense rather than putting all my spare money into my stakeholder pension which won't perform (potentially ) as well).

Anyone recommend a good starting point for researching funds and shares? I hope to max my ISA allowance every year as well as up my pension payments and would like to have a fairly diverse range of funds and risks.

Going back to the question - do you think I should go with the IFA or work it out for myself?

Lokolo

If you want to learn and research yourself, do it yourself, nothing stopping you!

Although there isn't a lot of information out there.

Once you've learn the bits and basics (difference between Acc and Inc, which are higher risk than others etc.), then its just trying to pick the right ones then.

mantisgb

Actually - is there a good monthly magazine which you would recommend or website/service that you find most of your facts from?

I have used Morningstar before and then share.com where I already have some shares, but I like the idea of a printed magazine to read for some reason (old fashioned :rolleyes:)

Lokolo

HL send a quarterly mag with some news articles and fund performance data free when you have an account with them.

I don't know of any magizines or anything, one of the other regulars on here might though.

mr_fishbulb

Lokolo wrote: »

HL send a quarterly mag with some news articles and fund performance data free when you have an account with them.

They also send them to anyone who's address they have even if they haven't opened an account

H-L magazine just seems to be whatever funds they are flogging that month. But it can be a good starting point. Look at the sector the funds are in that they recommend - They are often hot topic sectors (whether that means missed-the-boat is up to you). If you think the sector looks good, then look at all funds in that sector and research.

Don't let it skew your portfolio though - try and keep it balanced. This is easier said than done though when you are just starting out.

pete80

mantisgb wrote: »

Actually - is there a good monthly magazine which you would recommend or website/service that you find most of your facts from?

I have used Morningstar before and then share.com where I already have some shares, but I like the idea of a printed magazine to read for some reason (old fashioned :rolleyes:)

When I first started picking out unit trusts some years ago I took out a subscription to What Investment, which could be bought at WH Smith or ordered at your local newsagent, also a bit cheaper if bought on direct debit.

It also has performance tables, reviews of new UT and OEIC launches etc, not a bad magazine for when you are starting out.

RayWolfe

The Observer do a magazine called Money. I used to get it when I first started and found it very helpful. I, with many years of experience, now use the Internet for my research. H-Ls website is useful as is Citywire, Trustnet and Morningstar.

dunstonh

You are looking at your options as HL or IFA. When in reality it is advice versus no advice, or IFA vs DIY.

I have spoken with the IFA that organises my pension through work. I have around £6k to invest and thought I might put some into my pension to improve my retirement income. He proposed that whilst putting some into the pension would be a good idea he also suggested using stocks/shares ISA allowance as a better way of planning for retirement.

So, the IFA has recommended an alternative to what you wanted to do (and it sounds reasonable). Therefore already potentially making you better off.

Now you also have the moral issue that you have used the adviser for some advice but plan to do it elsewhere. Its a bit like those tacky Dixons adverts that tell you to go to John Lewis to do all the research and get the service but then leave and buy the TV from Dixons instead. Everyone has their own morals.

Also, if the IFA has done good for you, then you could burn your bridges with them if you need advice in future. The IFA may feel once bitten, twice shy when dealing with you again.

H-L reimburse you the 5% initial fee for the fund I'm looking at, Octopus Absolute Return Acc.

What made you choose that fund?
What made you look at fashion investing rather than conventional investing?
Why are putting 100% into one fund?

mantisgb

dunstonh wrote:

What made you choose that fund?
What made you look at fashion investing rather than conventional investing?
Why are putting 100% into one fund?

All good questions. I'm definitely not comfortable about taking advantage of this IFA. I went to him to ask about putting money into my pension and he volunteered a lot of information about it being a good idea to consider investing in a stocks ISA. I have decided to put some money (not all by any means) into the Octopus fund because I like their approach (there is probably some term to describe their rules of engagement to the market, I don't know the jargon) to investing and trust that they will outperform the FTSE over a medium term.

Not sure what you mean by fashion investing?!

dunstonh

Not sure what you mean by fashion investing?!

Its investing with whatever is flavour of the month and tending to go into it with overkill.

Nearly always ends in tears because the bulk of any growth has occured in the past and by the time they become "fashionable" its too late and the investment is often ripe for a drop.

Tech stocks are a good example. The media promoted those at around 90% of their peak and look what happened after that. Property funds got a bit carried away a few years back. Absolute funds and unconstrained funds seem to be the current flavour of the month. Some have already lost money with the likes of Arch Cru.

donglemouse

a couple of free regular magazines you might want to read for views on funds etc by discount brokers can be found at the following (albeit do your own research, make up your own mind at the end of the day or seek professional advices as appropriate etc)

-chelsea financial services http://www.chelseafs.co.uk/documents/ChelseaViewpoint24.pdf

-pantheon investments
http://www.pantheonfinancialinvestments.co.uk/docs/Newsletter%20Sept%20Oct%202009.pdf

i have no interest/connection to the above but as an investor who doesn't take professional/ifa advice i find them a useful read

i also find fundsnetwork website useful for information on specific funds performance etc