Seen IFA, But also seen neg comments on here...

atush

I just sold something that was up 7.3% in the first 32 days of the year.

darkpool

dunstonh wrote: »

No she is not.


Its closer to 7% after charges.

the calculation she was given assumed 4% annual growth, yet the return on her investment was 1%. where did the missing 3% go?

the ftse100 was 7000 in 1999, it's now about 5900. so where do you get your 7% growth after fees?

atush

According to yesterdays' ST, during the queen's reign stocks have turned 100 quid into 100K, property to over 8K, with bonds and cash (at just over 5K) far behind that.

You choose 1999 just because it is a peak year. You could easily have cheosen 1987 or sept 2001 for instance.

darkpool

atush wrote: »

According to yesterdays' ST, during the queen's reign stocks have turned 100 quid into 100K, property to over 8K, with bonds and cash (at just over 5K) far behind that.

You choose 1999 just because it is a peak year. You could easily have cheosen 1987 or sept 2001 for instance.

yeah, i did choose 1999 specifically.

over the last 100 years stockmarkets have returned circa 5% a year in real terms. do you not think an investor paying 3% a year in fees will have a lot less than someone getting the full 5%?

atush

And yes, cash returned much less in 'real terms'.

The returns listed sometimes only include capital growth for stock markets, and not the total return incl dividend income.

The article I read showed 100 quid turning into 100,000 since 1952. I imagine that is more than a 5% 'real' return.

darkpool

atush wrote: »

The returns listed sometimes only include capital growth for stock markets, and not the total return incl dividend income.

The article I read showed 100 quid turning into 100,000 since 1952. I imagine that is more than a 5% 'real' return.

no the returns more or less always include reinvested dividends.

to turn 100 into 100,000 in 60 years requires a 12.2% compound return.

if the investor paid 3% annual fees in that time he would have got 9.2% a year. so 100 over 60 years would have grown to 19,600 pounds - quite a difference.

atush

No, many newspapers use figures for growth that do not include dividend income. Andwhen they do, they don not always compound that interest income.


In any case i see you are beginning to explain on other threads your deap seated anxiety about FAs. I suggest you seek help from a psycologist ;-0

Personally, I don't feel the need to use one most times myself, but I don't hate them either.

longleggedhair

While I have noted for a number of years the good advice given by many IFA's on this site, such as dunstonh and co I am disgusted at the level of charges and bad advice being given by many IFA's purely on the basis of commision rater than client need, quite frankly its appaling, and having been around a while I never have and now, never would touch an IFA.

My advice is to manage your own affairs, its not that difficult, base it around high yielding blue chip shares, Investment trusts and high interest savings, and keep all of your money in YOUR pocket!

Linton

longleggedhair wrote: »

While I have noted for a number of years the good advice given by many IFA's on this site, such as dunstonh and co I am disgusted at the level of charges and bad advice being given by many IFA's purely on the basis of commision rater than client need, quite frankly its appaling, and having been around a while I never have and now, never would touch an IFA.

My advice is to manage your own affairs, its not that difficult, base it around high yielding blue chip shares, Investment trusts and high interest savings, and keep all of your money in YOUR pocket!

So you have never used an IFA yet you know that bad advice based purely on commission is given by many of them. Where do you get your evidence from? Clearly not personal experience.

longleggedhair

Linton wrote: »

So you have never used an IFA yet you know that bad advice based purely on commission is given by many of them. Where do you get your evidence from? Clearly not personal experience.

No not from personal experience (or regret!) if you had read my post properly you would see I was commenting on the experiences of many people who have been "screwed over" for want of a better word, two of whom have posted on this forum. I do not have personal experience and never will as I do not intend to become one of them!