Long term view what do I look for?

Sesamehead

I am looking for a long term savings plan, for 10 years. In an acrimonious post divorce atmosphere there is no opportunity for discussion with the other party. In approx 11 years time, when the youngest child of the family is 18, the former marital home must be sold. I have the option to buy out the 60% share. I don't think a mortgage will be an option then but I would like to see what can be done now, to try to secure a return in 10 years time, which might, with luck, provide a fund to buy out the share. The house value now is £300,000. The current mortgage value is £80,000 meaning that I would need to find £132,000 in today's money. Any ideas for a product that might help?

blinko

depensding on your level of risk for a 10 years savings plan the stock market might be the best option as it usually outperforns savings accounts, or leave it in a savings asccount and fill up ure isa allowace each year

dunstonh

The days of the old 10 fixed savings plan are over. ISAs in either cash or equity guise are the best options. Equity does not have to mean stockmarket in case you are not that high up the scale.

Sesamehead

Thanks. Any suggestion who I should talk to to set something up, ISA wise, I don't feel comfortable with the bank. Are independent Financial advisors really independent? Do they charge a fee?

Incidentally I've remarried, the house (& mortgage) we now live in is in my spouses name. Can we release any equity from this house to buy the other house? My spouse is agreeable to this. The mortgage for this house is £60,000 and will run for another 21 years. This house has increased in value from £80,000 to approx £140,000 - currently.... any way to try to tap in to this?

Thanks for any ideas.

dunstonh

Are independent Financial advisors really independent? Do they charge a fee?

IFAs have no tie to any provider of financial services products. You shouldnt have any reason to doubt this as the research the IFA makes on your behalf is available to you.

I would be less worried about independence and more the quality of the research. The minimum standard is to compare 3 providers and recommend the best of the three. I wouldnt touch any IFA that is using that standard of research.

Personally, I would use an IFA that is owner/partner as they are more likely to be around long term and they are financially liable for their advice. Employee IFAs are not normally financially liable for advice. My opinion is that IFAs who are financially liable for advice and/or have a stake in the company are more likely to take more care in their advice. That is my personal view only. Maybe right, maybe wrong.

If you are after a cash ISA, then expect to pay a fee for the advice. Personally, i think couldnt do much better than read many of the posts in the ISAs section here. If you are after an equity ISA, then if you know what you are doing, then you could use a discount IFA. Some are mentioned on here regulary. Some may operate local to your location. If you need advice on equity ISAs, you can choose to pay a fee or let the IFA take commission. Comission will vary with different IFAs. Some will take maximum entitlement, some will take less and you will have lower charges (just like shopping at Safeway or Tesco and the different prices you get).