Investment advice who to trust?

Icecold_2

Hi

We have recently inherited a large sum of money and need to invest it...we don't want to take risks but would like to get a reasonable return

The problem is who to trust for advice? The bank are falling over themselves to advise us but not sure I trust them.....you read and hear so many horror stories of investments gone bad

We have absolutely no clue about investing,, stock/shares/bonds etc etc so are easy prey for bad advice

We would like to try buy to let as a way of generating an income, general accounts only seem to offer minimal interest

We want to control our investments ourselves so we know what is happening to our money but feel very naive at present

Wondering what course of action more experienced investors might recommend?

Thanks for reading :beer:

bigfreddiel

trust yourself and no one else -if you dont understand the advice, feel uncomfortable, feel you're being ripped off -then walk away and start again

Annisele

Icecold wrote: »

We don't want to take risks but would like to get a reasonable return

What do you mean by "reasonable return"? If you mean "more than I could get in a savings account", then unfortunately that's not possible without taking risks. (Buy to let is not a low risk venture.)

Even if you do leave all the money in a savings account, it's still at risk. Ignoring the risk of the bank failing (because I assume you'll stay under the FSCS limits), over time inflation is almost guaranteed to erode the value of cash deposits.

"Large sum of money" also means different things to different people. I can quite see why you wouldn't want to be specific on a forum like this, but if you're talking £1,000 you might as well just stick in in the highest paying cash ISA you can find. If you're talking over £10 million, go and find yourself an independent financial adviser who specialises in high net worth clients.

Icecold_2

Annisele wrote: »

What do you mean by "reasonable return"? If you mean "more than I could get in a savings account", then unfortunately that's not possible without taking risks. (Buy to let is not a low risk venture.)

Even if you do leave all the money in a savings account, it's still at risk. Ignoring the risk of the bank failing (because I assume you'll stay under the FSCS limits), over time inflation is almost guaranteed to erode the value of cash deposits.

"Large sum of money" also means different things to different people. I can quite see why you wouldn't want to be specific on a forum like this, but if you're talking £1,000 you might as well just stick in in the highest paying cash ISA you can find. If you're talking over £10 million, go and find yourself an independent financial adviser who specialises in high net worth clients.

_______________________________________

Yes see your point re how much money .... It is several hundred thousand so we want to be careful and protect our future my husband is disabled so the future is uncertain regarding his ability to work.....I understand what you are saying re inflation eroding the savings it's why I feel so strongly we need to make good decisions

brasso

You can keep pace with inflation in a standard bank savings account.

If you want your money to grow, you need to take some risk.

Your best bet is probably to see an IFA but don't just go for the first one you see in the phone book. Talk to a few and see who you trust. Be very clear what their charges are.

What they will tell you is stuff you could learn yourself from a couple of books and a bit of research but many people seem unwilling or unable to do that.

At all costs, avoid the advice of the 'friend of a friend' who urges you to buy gold or invest in wine. The last thing you need is crackpot advice. So see an IFA.

Totton

I would try and get some recommendations from friends as to decent IFA's who can look at your whole financial position rather than just one area such as best savings or investment suggestions. Once an IFA has recommended investments (if they do) then I would suggest reading the managers reports to get a feel for how they invest and if you are happy with them. For example if you were advised to put a sum into something such as Personal Assets Trust (PNL.L) then go to their web site and see what they invest in and how they report on their work - e.g.. http://www.patplc.co.uk

I am not advising you to go for PNL, it's just an example of the type of information that is easily available to investors and much more informative than simple monthly fact sheets that are often cited as info. sources.

Best wishes for your future,
Mickey

bigfreddiel

brasso wrote: »

You can keep pace with inflation in a standard bank savings account.

i need to find this bank - where is it

Retail Prices Index 3.3% (January 2013)
RPI annual inflation stands at 3.3 per cent in January, up from 3.1 per cent in December 2012 (Ad-hoc), England. Last updated: 12 February 2013

i need at least 6.6% just to stay even!

fj

bigfreddiel

Icecold wrote: »

_______________________________________

Yes see your point re how much money .... It is several hundred thousand so we want to be careful and protect our future my husband is disabled so the future is uncertain regarding his ability to work.....I understand what you are saying re inflation eroding the savings it's why I feel so strongly we need to make good decisions

with that amount i wouldn't trust any advice on this forum (except mine of course) see a professional

fj

fiesta04

bigfreddiel wrote: »

with that amount i wouldn't trust any advice on this forum (except mine of course) see a professional

fj

Professional what...Jockey or tennis player, because surely you are not actually suggesting to see an IFA??? :rotfl::rotfl:

Sorry couldn't contain myself.

F4

xylophone

Buy to let is not an easy option - with a disabled spouse, do you really wish to take on the responsibilities of a landlord?

You may well need to look to your tax position.

Do you have children?

Have you made wills?

What is your pension situation?

Interest rates on all forms of deposit are low at the moment but you will wish to keep an emergency fund - if you and your spouse have not opened a cash ISA you could do so now for this tax year - Coventry are offering 2.8% at 60 days notice.

The next tax year begins on 6 April.http://www.hmrc.gov.uk/budget-updates/march2012/new-rates-tables.pdf

After contributing your allowances for the two tax years you would have tax free interest on close on £23000.

After that, you might want to consider your own housing situation - making the existing home more suitable for your spouse or perhaps moving?

You might wish to have a browse here for an independent unrestricted financial adviser.http://www.unbiased.co.uk/

jimjames

Icecold wrote: »

Hi

The problem is who to trust for advice? The bank are falling over themselves to advise us but not sure I trust them.....you read and hear so many horror stories of investments gone bad

We have absolutely no clue about investing,, stock/shares/bonds etc etc so are easy prey for bad advice

Don't touch any advice from banks - it will only cover their own products. As mentioned an IFA will be able to advise on all product/options for you which may be worthwhile based on your second statement.

Shares might seem risky but are actually more flexible and could give better returns than BTL with far less hassle.