Do You Need Financial Advice? When To Get It, When Not To Get It Discussion Area

innovate

You are unlikely to get more interest in a savings accounts than the interest you pay for your debts. Therefore pay all your debts off before you start saving.

Susan1942

I would sime advice on which ia the best source to take money from.
I do have an IFA but he is not interested in seeing me as I do not have any added money to invest.
Last year I called him as I wanted to take some money out to finance a new kitchen. When I called him by telephone his answer on just take it from anywhere you like. The only contact I have had with him over the past few years is just to
say that the name or the address has change
In the past I feel that he advised me to put money into Standard Life with profit fund He then said I needed to have some property in my portfolia and invested £30000 about 4 years ago This feel to £21000 but was advised to leave it. Currently is now £31500
My problem is that I have loat all confidence in him the fact he has not seen me for few years although he said he would review my investments on an annual He does get some money f rom the various bonds etc that I have.
Currently I have a dilemma in that I am going to loan or gift about £9000 to my son as a deposit for a house he wants to buy.
Yesterday I called and got current values for my investments The dilemma is where do I take this money from ?? Should I take it all from the same source or should I take a bit from perhaps maybe 2 sources.
I have a cash Isa A stocks and shares ISA Neither of these has a great deal of money I have a flexible bond with Scottich Mutual and a bond with AXA sunlife The worst performing investment is with Friends Provident. Should I take the money from the worst performing bond or elsewhere I want to keep money in the Cash ISA so that I have ready cash when I can get it instantly. I do not take any money from any of my investments only have taken a lump for say my kitchen and to pay for the cost of my sons wedding. I will not be able to put anything I take money from back My pensions etc needed to finance my everyday living I save a bit of money by standing order to my cash ISA I also like to have holidays and I can finance this from my pensions. Should I get another IFA as I no longer wish to stay with the current one. My Son lives in NI They own a house but want to move nearer to my DIL family. They have agreed a rental with a young couple who live across the road from them. They need to move out of the house they are in. The agreed rent will cover the current mortgage and they have a 2 year contract sorted with them Move 1st May. They hope to buy a house they are interested in for £90 to £10000 Thus house cost £279000 4 years ago They will sell the rented house when the market picks up They have negative on ir currently . They also can remortgage on the new house. They will pay the money back to me although I am not too concerned as I do have enough money and at 71 the money would come to them in the long term. I am all over the place so should I just stick a pin in or just throw all in the air . I am widowed and also I don;t want to discuss this with my Daughter1 Would appreciate any advice you can give them, Sue

dunstonh

I do have an IFA but he is not interested in seeing me as I do not have any added money to invest.

The retail distribution review which came in on 1st Jan has seen many IFAs no longer willing to offer advice to smaller investors. It is not economic for them to do so and being turned away is more ethical than charging you amounts that are unsuitable for small values.

My problem is that I have loat all confidence in him the fact he has not seen me for few years although he said he would review my investments on an annual He does get some money f rom the various bonds etc that I have.

There are effectively two types of service. Transactional and ongoing. How much are you paying for an ongoing service? probably nothing. Possibly £155 a year. That is not enough for a full ongoing service. Smaller values then tend to see a "as required" style service where you will be seen when you want to be seen but not charged for it again. Realistically, you are looking at paying around £500 a year or more to get proactive servicing. That would be daft to pay on a £31.5k investment.

Yesterday I called and got current values for my investments The dilemma is where do I take this money from ?? Should I take it all from the same source or should I take a bit from perhaps maybe 2 sources.

A question like that to a financial adviser today is not as easy as it perhaps once was (especially on investment bonds where there are tax issues to consider). So, whilst you may be looking for a quick answer, the adviser would have to obtain new personal information, do a tax and charges calculation and report it to you (typically in writing as it is advice). If you are paying for servicing you would expect that without charge. However, if you are not on a servicing contract then you would expect to be charged for it.

Should I get another IFA as I no longer wish to stay with the current one.

Depends on the value of your investments as to whether it is cost effective to do it or not. On £31.5k it is not. You dont mention the values of the overall investment pot.

Susan1942

Thank you for the information and for the swift response. I have accidentally posted twice and this follows the advice you gave me

On the issue of how much it is in excess of £100,000 This may not be a lot of money to some people but is my saving and I am just am trying to make a decision.

Don't think I would have the courage to call him and that I no longer want him to continue to my IFA What I do know is what one company was that the fee they pay him is based on their business and can't advise me. Everyone said yes he get ongoing money from my investments. What has been said is that they will write to him. Others say call him and discuss why he has made no contact with me for several except last year when he just said take it from wherever. The property I live is mortgage free and really other than the fact that housing prices are depressed and also I don't want to move. I could down size but for now don't want to do that either . I am sorry for the double post and the fact that I can't how to delete or find the respond button. Thanks to all who have given food for thought.

Sue

dunstonh

Hi Sue, im very concerned that you need courage to make enquiries about your own money from an IFA. They should have been in contact with you over the last year to explain how they plan to deal with you in the future.

No they shouldnt.

Susan1942

I think I am just going to make a decision on the fact that one company told me yesterday that I can take 5% but as I have not withdrawn or taken any money from it means that I can take the 5 years plus I have without tax implications. I think that I am just going to ask the Companies that I have money with to remove him from my investments. I do not wish him to have any other financail gain from my money.
The reason I used him in the first place was when I moved from Scotland to England he was the husband of a friend of my daughter's Somone she met at NCH when expecting Not sure if they still use him or not but my Daughter said if you are not happy then just change. I also have money which I can have instant access to but it is money that I want to be able to go out and buy things pay for my cruises etc I did spend a lot of money when I bought this apartment I spent about £35,000 on it as well as paying for my Son's wedding. I think I am just going to keep an eye on the value of my investments and just do without a Financial Advisor. Had a very good one in Scotland that I would have trusted my life with. He is no longer available.Right from the beginning I have always been uneasy with his advice.
Because his wife was a friend of his wife I just was too timid to look elsewhere. He is no longer married to that wife and I don't think his wife is still in contact with my Daughter. I would like to thank everyone for all the input into my question. I just do a quick add up every so often I have a magic figure in my head and when addes up I am happy I can afford whatever. I tend to be generous and give freely to family and friends as I see a need so money is not that important to me. Thanks again

Sue

doughnutmachine

feesarefare wrote: »

Had a client last week whose previous IFA had been paid £17k over the last three years and he had no idea about it.

tbh, when i hear stuff like that it puts me off going to any type of financial adviser.

gadgetmind

dunstonh wrote: »

No they shouldnt.

Not even out of professional courtesy?

dunstonh

gadgetmind wrote: »

Not even out of professional courtesy?

A transactional client who did a one off transaction years before isnt going to notice anything different. A servicing client will continue getting the service they had before. A few tweaks here and there which you address in the course of your routine servicing.

However, my point was that feesarefare said "They should have been in contact with you over the last year to explain how they plan to deal with you in the future." That is wrong. There is and has been no requirement to do any such thing.

gadgetmind

There's no requirement to remember a girl's name and call her as promised, but only a cad would do otherwise.