1.5% too much to pay an IFA?

bendix

£12000 to invest £800000?

Tell you what, OP, I'll do it for £6000 and you can invest the difference or go on the holiday of a lifetime with it.

Deal?

Rollinghome

Linton wrote: »

Anyone who uses that as an investment strategy deserves the Study's level of return!

I assume you haven't looked very carefully at the Barclays Equity Gilt Study and may not be aware of the long-term comparisons it makes between markets. You also don't state whether you are talking in real terms taking into account inflation. (The reason the FT30 is used is because other figures don't go as far back.)

You are right in that although the Study is widely used to demonstrate the advantages of equities its conclusions are questionable.

Which is exactly the point Paul Lewis is making there.

Given the level of qualification currently required to be an IFA your assumption that working with your IFA is a risk free way to becoming financially literate is a tad niave. Most will only be authorised to sell a very narrow range of investments - generally those with high charges that traditionally pay commission.

geosaver

I've seen elsewhere a figure of 0.5% being a reasonable figure to expect to be charged from an IFA on a fee-paying basis. This would therefore be £4K for an £800K investment, plus I would get any commision payments?

missile

Rollinghome wrote: »

If you scroll down to the last quarter of the page, this article by Paul Lewis of BBC Moneybox, gives a more realistic comparison of investment returns when normal costs are taken into account. http://www.web40571.clarahost.co.uk/archive/talks/20090319ThomsonReuters.htm

Many thanks for highlighting a very interesting comment :T

geosaver

feesarefare wrote: »

geosaver wrote: »

Where ? Thats not the case . Have you read the other posts on this thread that make it clear percentages are not fee.



So you are investing the full £800K?

Elsewhere in this forum. I was just trying to get a ballpark figure, I know it will depend a lot on the actual investments that are made.

I wanted advice on what to do with the £8ooK whether it be all investment, some cash savings or whatever.

The message I'm getting here is that if I'm not prepared to do some of my own research, I better not enlist an IFA. I'm too busy with my business to spend a lot of time doing research which is why I wanted an IFA. Maybe my best approach would be to just keep it in cash savings.

Linton

geosaver wrote: »

......

The message I'm getting here is that if I'm not prepared to do some of my own research, I better not enlist an IFA. I'm too busy with my business to spend a lot of time doing research which is why I wanted an IFA. Maybe my best approach would be to just keep it in cash savings.

Then you have been reading the wrong replies. There are a number of bitter people here with axes to grind.

If you dont want to spend any time managing your wealth the best approach is to employ a professional. With £800K I would suggest that you need to be talking to a specialist wealth manager rather than someone with a small office over a high street shop.

Unless you genuinely have no interest in increasing your wealth and dont mind losing a bit, one of the worst things you could do is to keep it in savings where you have no chance of matching inflation with your higher rate tax.

I believe you would find it valuable both personally and financially to understand what is happening to your money but that is your choice.

geosaver

feesarefare wrote: »

geosaver wrote: »

I really dont think you are. Quite rightly some people have advised that not all IFAs are the same and some may not be qualified to manage an investment portfolio.(although current regs allow them to!)

Why do you have a problem with just finding an IFA that charges an hourly rate ? I dont know what business your in but I wouldnt mind being in position where Id be prepared to pay £12K for a few hours work because I couldnt be ar*ed looking for a fairer deal.

No, the message was I should do some research so I would understand the investment market, I was hoping the IFA would be able to advise me on that.

So, it's not a question of "couldn't being whatever you said" (why do forums always degenerate into bad language?) I was just asking what a reasonable amount to be paid would be.

geosaver

Linton wrote: »

If you dont want to spend any time managing your wealth the best approach is to employ a professional. With £800K I would suggest that you need to be talking to a specialist wealth manager rather than someone with a small office over a high street shop.

Where do I find a specialist wealth manager? Is there anywhere I can find a list of such people with proven track records?

Linton

geosaver wrote: »

Where do I find a specialist wealth manager? Is there anywhere I can find a list of such people with proven track records?

Dont have any experience of this, I have the time and inclination to manage my own affairs but ....

Google of "wealth management" comes up with lots of well known "rolls royce" and lesser names offering to do what you appear to want. It might be worthwhile ringing a few to get reactions as to whether £800K would be sufficient to interest them and likely costs.

At the other end of the range there's yellow pages for Financial Advisors who explicitly include Wealth Management in their scope. I dont think I would go there for £800K but perhaps our resident IFAs may think different.

Bit like looking for a plumber really!

2010

geosaver wrote: »

Where do I find a specialist wealth manager? Is there anywhere I can find a list of such people with proven track records?

A proven track record is what they did in the past not in the future.

There`s no sure-fire formula for making your money grow.