Advice sought

Rollinghome

Meeper wrote: »

If the mission was as intended, just to come up with some share recommendations for self-trading, I'd expect that to take a decent amount of my time, so I'd be charging something in the region of £250 +VAT in that case.

PS. I've just read Meeper's suggestion that he would recommend the OP to pay him £250 (£300 including VAT) for share recommendations for his £1000 and that would include ongoing ' reviews'.

Is he serious or completely insane? How on earth would it make sense to pay someone like him a quarter of the initial investment and expect to ever get that money back? And what sort of adviser would give worthwhile ongoing advice for £250 anyway?

Please tell me he's joking. If he can't more easily earn just £250 by investing on his own behalf then what ability or qualifications does he have to recommend share purchases for others? Does he also tarmac drives at the weekend by any chance?

westy22

I don't think the OP, 831badger, has dared come back here since all this kicked off - maybe he just wished to light the blue touch paper!

Rollinghome

westy22 wrote: »

I don't think the OP, 831badger, has dared come back here since all this kicked off - maybe he just wished to light the blue touch paper!

I don't blame him. Perhaps he was hoping to get some sensible advice here. Not to have some character calling himself a "financial adviser" suggesting it would be a good idea to pay him £300 "to come up with some share recommendations", as he put it, which would only leave the OP with an initial investment of £700.

Even worse, half this users of the board seemed either to agree or be too cowed to point out that paying £300 for 'share recommendations' for £700 would be idiotic. Using a dodgy tip sheet would make better sense.

831badger

westy22 wrote: »

I don't think the OP, 831badger, has dared come back here since all this kicked off - maybe he just wished to light the blue touch paper!

I must admit it is rather frightening on here lol...I only wanted some tips on how to get started, what to watch out for and general advice on dipping my toes in the water...

qpop

831badger wrote: »

I must admit it is rather frightening on here lol...I only wanted some tips on how to get started, what to watch out for and general advice on dipping my toes in the water...

I hope that, looking through the replies, you've found some useful pointers in the right direction.

atush

I think I gave a couple lol.

You can always strt a new thread if you have further Q's?

Ifts

831badger wrote: »

I only wanted some tips on how to get started, what to watch out for and general advice on dipping my toes in the water...

Wasn't sure if you were going to return, hang in there!

Investing small amounts of money into individual shares can be very costly with set commission charges from the brokers. Paying £300 to an adviser to tell you what shares to invest £1000 in is absurd.

Before you do anything get yourself some books to read up on investing and get a feel for trading shares by using a share dealing practice account, you will understand the charges involved with buying and selling shares.
If you do still see an adviser you will have some idea what questions to ask and wont be baffled by the terminology.

The Intelligent Investor - Is a good book IMO (currently £8.95 + free delivery).
TheBookDepository.co.uk - Good prices + Free delivery.

Practice Share Account - Have a practice first without committing real money, try it for a while and see if its something that you think you could be good at.
Here is the link for the Share Centre*: Practice trading shares with FREE practice account, you will have to register but its free.
Once you have registered you will have access to advice to help you get started and research tools so you can learn more about the market.
*I'm sure there are other companies that offer practice accounts too.

http://www.fool.co.uk/ Is a great site for investment advice/research (don't be fooled by the name!)

Always do your own homework/research before parting with your money. Good Luck

MrMalkin

I think there have been some good points made in this thread, however they seem to have been missed amongst the !!!!!fest!

831Badger, I think you should seriously reconsider getting involved in investment just yet. You should put your money in a cash ISA or something safe for now, then spend lots of time reading the books and websites recommended above and elsewhere on this site - I'm sure plenty of people will be willing to help you out here, me included. And yes, you should consider seeing an IFA aswell - comments in this thread notwithstanding they can provide a very valuable service in making sure you have an appropriate portfolio and strategy. Then when you're more comfortable you can look at building a portfolio.

Investing is a very powerful tool and has the potential to secure you a nice return, but it does carry risk. One of the worst things you can do early in your investment career is to take on too much risk (and investing in just a few shares like you seem to want to do is definitely high risk!), get bitten by the 800lb gorilla that is the financial markets, then lose your nerve and quit investing. It's better to start with a very low risk and gradually increase that level of risk as your knowledge and comfort factor grows than it is to jump and and lose your shirt at the first attempt.

831badger

MrMalkin wrote: »

I think there have been some good points made in this thread, however they seem to have been missed amongst the !!!!!fest!

It's better to start with a very low risk and gradually increase that level of risk as your knowledge and comfort factor grows than it is to jump and and lose your shirt at the first attempt.

so what would you suggest bearing in mind I would like a higher return than what my isa is returning in these times of austerity?

Meeper

I was being perfectly serious. £250 + VAT would be the fee for my time in order to carry out the work involved. If someone came to me with those requirements, and wanted not only my advice in the matter but also to take advantage of my experience and assistance in their understanding of the process, then it would take hours in order for me to do that. Is that value for money? Likely not. Inidividual could then choose to walk away. Regardless, my time is valuable, and that would be the fee commensurate with the amount of work which was involved, in my opinion.

You're all for getting rid of nasty commissions and making everything more transparent. There it is, and that's what the FSA want. You don't like it? Write to your MP. That's the way the industry is going, and there's only going to be advice for those who can afford to pay for it in the future. It's just the way it is. OP doesn't have to accept my proposal, but that's what it would cost in terms of my time.

I seek neither your good grace nor your approval. It's just the way it is.