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

Chris105_2

not sure if this is the right forum or not - sorry if not as i am a little pc illiterate.
i have moved in with my partner who has a mortgage on his own 3 bed property and we intend to buy a property together when he sells his.

my property is a 3 bed house and i have about£6000 mortgage left. the property is worth around £200,000

i am not sure what is the best thing to do? should i rent the property out (but i have heard if i then sell it i will have to pay40% tax?)

should i sell it?
if i do should i then put all of the money into a joint property with my partner (when he sells his)?
should i invest the money? if so willi have to pay lots of tax on it?
or should i buy a property abroad.

i also will not have a great pension when i retire - should i do something with my money to improve that?

i am extremely confused as to what to do for the best for my future and also for my 2 grown up children.

Is this something a financial advisor would be able to help me with?

any suggestions /help would be greatly appreciated

mellymell_2

Hiya,
Can anyone reccomend an IFA in Liverpool/Manchester area? I am currently with someone in Cardiff, but I'm fed up of them ignoring my calls and emails-I need to get someone more attentive!

Thanks in advance!

slg_sue

Hi all, can anyone advise or tell me how to find out who to complain to about a mis selling of a mortgage by an advisor at a brokers in Swindon. The broker is still in existance. Any more info required just ask. new to site not sure what to put

lisyloo

Yes, you need to get hold of the brokers formal complaints procedure and follow it.
If you don't trust them then send the letter recorded delivery (75p) to make sure they can't say it was lost in the post.

However I would ask why you think your mortgage wsas mis-sold.

Rah

This was a good article but failed to mention the Citizens Advice Bureau.
As they provide a free service offering general advice to people on low and middle incomes, I think this would be worth mentioning in that article, as it may be useful to many people who clicked on the link to this article.

dunstonh

Rah wrote: »

This was a good article but failed to mention the Citizens Advice Bureau.
As they provide a free service offering general advice to people on low and middle incomes, I think this would be worth mentioning in that article, as it may be useful to many people who clicked on the link to this article.

I think you will find that they dont offer free advice to those on middle income. Also, they tend to refer cases requiring financial advice to local IFAs as they dont have any-one in house authorised to give financial advice.

tottenhamwin

I have inherited £18000. My IFA suggests putting it into a co fund. Initial commission is £540. On top of this there is a monthly commision of £45.
Over a 10 year period @4.3% the total deductions weigh in at £3760 and the return on my investment is £5700. Does this seem high? Any suggestions?

dunstonh

tottenhamwin wrote: »

I have inherited £18000. My IFA suggests putting it into a co fund. Initial commission is £540. On top of this there is a monthly commision of £45.
Over a 10 year period @4.3% the total deductions weigh in at £3760 and the return on my investment is £5700. Does this seem high? Any suggestions?

I assume by "co fund" you mean Cofunds?

Cofunds are the UK's biggest fund supermarket. Nothing wrong on that front.

£540 is a fair fee for a transaction for under advice. You could enquire about fee basis but I would think that you are either at that level or possibly more expensive on fee basis.

However, I believe you have read the annual figure incorrectly. Most unit trusts pay 0.5% p.a. So, on an investment of £18000, that would be £90 a year. That 0.5% is not in addition to the annual management charges but paid out of them. So, the IFA would be getting around £7 pm. Not £45.

tottenhamwin

£540 is a fair fee for a transaction for under advice. I agree but

My personal illustration :

Estimated total renewal commission paid to IFA over a one year period Paid to intermediary on a monthly basis:

0.25% or £45

Over a 10 year period @4.3% the total deductions weigh in at £3760 and the return on my investment is £5700.

This has the same effect as reducing the investment growth from 4.3% a year to 2.7%.

Am I missing something?

jem16

tottenhamwin wrote: »

Estimated total renewal commission paid to IFA over a one year period Paid to intermediary on a monthly basis:

0.25% or £45

I would read that as £45 over the year but it would be paid to the IFA on a monthly basis so £3.75pm.

If that's the case then that's half the standard normal trail commission of 0.5%.