Suggested Isa

DAB1209

Thanks for advice

Lokolo

Unfortuantely you have given way too little details.

For example, you have said you have going to have investments with Cirilum and Threadneedle, but have not said what the actual investments are.

You have also not said how long you are willing to tie the money up for.

And finally - you realise these are investments and not savings yes?

DAB1209

Thanks for advice

Lokolo

OK well investments can lose value as well as gain. Usually over the longterm investments do better than savings, but this isn't gaurenteed and you can come out with less than you put in.

The IFA should have done a risk profile with you to determine what funds should be used (so whether you can deal with big jumps in value, or smaller, and how long you can tie up the money for).

It seems they are middle of the park funds which are OK. The Cirilium Moderate A's performance is quite good compared to benchmark, but has only been going a few years. It's also a MM fund which spreads the risk a bit.

The other fund you haven't given enough detail but I think its Thread Needle UK Equity Ret, which hasn't been going a long time either so can't really comment on that.

How much are you being charged?

DAB1209

Thanks for advice

Lokolo

ISAs can be Cash, Investments or Both.

If you wanted a savings pot there would be no point going to an IFA as you can choose your own savings place.

When you say a familiar brand, do you mean like HSBC/Halifax etc? As banks don't tend to specialise in investments but instead cash (loans, savings etc.). The 2 funds are run by big investment companies.

The charges are quite high for the funds. How much is the IFA charging though? (he will paid for the services, either comission or fee)

DAB1209

Thanks for advice

DavidHayton

DAB1209 wrote: »

Yes risk profile was done,I wrongly assumed the isa was a savings pot and wasnt looking at it as investment.

4% initial charge for single payment
0.500 yearly

I think im worried as was expecting isa to be with a brand im familar with

Hi!
I would go back to the IFA and ask them lots of questions about what they have recommended, and why they are recommending it. On all investments there is a chance that you can lose money, but hopefully - on average - over a longer period - you will make more than you would in a savings account. Have they made this clear?

BTW their charges of 4% + 0.5% pa on £20,400 are £810 upfront and £105 pa every year, so don't worry about taking up their time ... you will have paid for it.

Best wishes
David