Helping a friend - was her 75 year old mother given wrong advice

JohnRo

Without going into the minutia it's about 2% TER (ie. total inc. adviser and platform), with returns of just over 10% (after fees) this year in that particular portfolio. The others are more complicated to describe.

jem16

darkpool wrote: »

my buy and hold portfolio has charges of about 0.1% a year.

If you want a buy and hold portfolio, it will cost around 0.2%pa via an IFA. No need for servicing if you're going to buy and hold.

we all know the typical active UT has a TER of 1.7% plus dealing charges. So it's safe to say most UTs will have charges more than 2%.

Mixing up investment styles and cost of advice again.

Please stop taking threads off topic. It's not fair on posters who are not interested in your anti IFA posts.

Spiggle

darkpool wrote: »

i agree with what you say that there are good and bad advisers. but why do you say that IFAs aren't tied to certain products? we all know IFAs don't advise on direct share holdings or property etc. they only advise on packaged financial products.

darkpool wrote: »

not if those 50,000 investments do not include direct property or shares.

you're never going to be truly independent when you get kickbacks from some product suppliers but not others....

even with RDR i'd imagine there will be ways around it.... maybe seminars for top selling IFAs in the maldives, maybe a weekend seminar in butlins for less good IFAs.

you've never said how you make your 12% a year?

darkpool wrote: »

i have 300k in financial assets, if i went to an IFA he would either suggest i put the lots into Unit Trusts (annual fees 2%) or if he thought i looked really gullible he would suggest an investment bond (annual fees 3%).

so going to a professional would cost me 5k to 8k more a year than DIY. tbh i don't spend an "extraordinary" amount of time looking after my investments.

of course i would go to an IFA if he had some arguments that showed his skills were worth it, but so far no IFA has provided any evidence to show that his skills are worth having......

BORING!!!!!

Yet again the hijackers take over the thread of someone with genuine concerns to peddle their well worn, unfounded and sensationalised prejudices.

JohnRo

jem16 wrote: »

Mixing up investment styles and cost of advice again.

That does seem to be the case, obviously the agenda is more important than the integrity.

RetiredInThailand

darkpool wrote: »

i have 300k in financial assets, if i went to an IFA he would either suggest i put the lots into Unit Trusts (annual fees 2%) or if he thought i looked really gullible he would suggest an investment bond (annual fees 3%).

so going to a professional would cost me 5k to 8k more a year than DIY. tbh i don't spend an "extraordinary" amount of time looking after my investments.

Not forgetting the initial fee, which is often huge and doesn't even buy you the services of a fund manager as it just goes to pay third parties.

When I was still working I spent perhaps an hour a week looking at investments. Now that I'm a man of leisure I spend perhaps 2 hours a week on it. I do nothing risky and never do short-term trading, so I dont need to have my face glued to a Bloomberg screen 24 hours a day, in case something moves by half a point.
I had and still have plenty of time left to do other things. I suspect that my savings (initial fees, annual fees) exceed GBP100K over the last 30 years, perhaps more. Compound this and I could be 200K better off for having DIY-ed it.

jem16

RetiredInThailand wrote: »

Not forgetting the initial fee, which is often huge and doesn't even buy you the services of a fund manager as it just goes to pay third parties.

Any initial fee is paid to the adviser for providing advice and should be no more than £2k. If you are quoted more then find an alternative IFA.

Again though, this is nothing to do with the original thread. Please keep on topic.

darkpool

RetiredInThailand wrote: »

I had and still have plenty of time left to do other things. I suspect that my savings (initial fees, annual fees) exceed GBP100K over the last 30 years, perhaps more. Compound this and I could be 200K better off for having DIY-ed it.[/QUOTE]

yeah, when you work out the savings of DIY investment it's amazing. it just surprises me that so many people here are happy giving away 2 or 3% of their portfolio each year - for no discernable advantage.

darkpool

JohnRo wrote: »

Without going into the minutia it's about 2% TER (ie. total inc. adviser and platform), with returns of just over 10% (after fees) this year in that particular portfolio. The others are more complicated to describe.

so you do agree that DIY saves 2% a year?

darkpool

Spiggle wrote: »

BORING!!!!!

perhaps you could put me on ignore?

dunstonh

so you do agree that DIY saves 2% a year?

I dont believe that there is any provider out there which will allow 2% a year to go to an adviser. So, on that basis it is not possible.

You continue to mix up investment cost, advice cost and provider/platform cost.