What to do with approx £100,000 ?

HappyMJ

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jamesd

DavidHayton, £500 for four reviews a year isn't very expensive if the investment choices being made are good. Not going to be easy to get four reviews at that price on an hourly basis with a minimum charge.

dunstonh

DavidHayton, £500 for four reviews a year isn't very expensive if the investment choices being made are good. Not going to be easy to get four reviews at that price on an hourly basis with a minimum charge.

It can be very good value for money. I did a review on a servicing portfolio vs one left unserviced (so no rebalancing. After 4 years and after all charges, the serviced portfolio was 6% higher). That wasnt just random luck. Rebalancing consistently shows better returns on balanced portfolios that an-hoc investments left to their own devices.

If the person is going to take control themselves and DIY their own investments and rebalancing then that is fine. If the person isnt going to take control and DIY then reviews to rebalance can make more money than the cost.

stars_bright

I thnk I would rather pay the £500 per year to get the experts advice, I would be worried that I didn't know enough to DIY it. I am thinking that maybe I should use 2 seperate financial advisers with half each so that the money is protected, you are only protected for £50K for each institutionj. Also it would be interesting to see which did the best over time

dunstonh

I am thinking that maybe I should use 2 seperate financial advisers with half each so that the money is protected, you are only protected for £50K for each institutionj

That is not the case. When you use an adviser, you are not investing with an adviser. The adviser facilitates the transaction. So, using two advisers does not increase your FSCS protection. Nowadays you would typically expect a platform to be used and the ringfencing of assets on a platform largely makes the FSCS protection irrelevant. Plus, you could increase your costs by splitting it as smaller investors typically get charged more than larger ones.

stars_bright

OK thanks for explaining that

property.advert

dunstonh wrote: »

It can be very good value for money. I did a review on a servicing portfolio vs one left unserviced (so no rebalancing. After 4 years and after all charges, the serviced portfolio was 6% higher). That wasnt just random luck. Rebalancing consistently shows better returns on balanced portfolios that an-hoc investments left to their own devices.

If the person is going to take control themselves and DIY their own investments and rebalancing then that is fine. If the person isnt going to take control and DIY then reviews to rebalance can make more money than the cost.

That is fine if the IFA used is an expert, actually knows his job and doesn't set out to feather his own nest over that of his clients.

That said, you don't get a lot for £500, perhaps a few hours work. A decent IFA is going to charge £150+ an hour I suppose.

My worry is that with only £500 available for servicing, just how much servicing can be performed, 4 times a year ?

dunstonh

That is fine if the IFA used is an expert, actually knows his job and doesn't set out to feather his own nest over that of his clients.

To be honest you can normally tell the ones that know. Its not complicated to explain but it should be explained. If its the type that gives no explanation and pops an application in front of you then the warning signs are there.

My worry is that with only £500 available for servicing, just how much servicing can be performed, 4 times a year ?

You dont want to over do the rebalancing. Larger portfolios may need more adjustment more frequently but £100k is fine once a year or on specific events.

Primrose

If you have no business experience I certainly wouldn't recommend using this money to set a business up, especially in the current economic environment when even clever business brains are finding it more difficult to make a profit. You say you have hardly any pension arrangements and I would certainly recommending seeing an independent financial advisor to try and put some in place. Even £100,000 these days, with inflation looming, will not provide a terribly generous pension. Don't be in a hurry to do anything with the money. It's better to take your time and explore all options until your longer term objectives are clear.

stars_bright

I am not too impressed with the financial advisor who came to the house. He emailed me wanting to come again, see my and my husbands id, show us his proposals and for us to sign up that night. I emailed him saying we would like to hear his ideas but would want to think about it before deciding. He emailed me back saying he recomended we acted sooner rather than later as we are about to start an economic recovery. It smacks a bit like a double glazing salesman and has put me off him