What/Where to invest?

Touser

Thanks lisyloo,

I don't suppose you have the web link to this article/thread on the ISA board?

dunstonh

If you really dont know then you should be using an IFA. Based on what you have said so far on this thread, it could still be very many options.

DIY is for people that know what they are doing. If you don't know you have the choice of still doing it yourself or getting a professional (as in any area). If you get it wrong going DIY you have no FOS protection. If the adviser gets it wrong you do.

The cost of advice on £5000 will be around £90 on average. If you had done that in March, and had taken the charge from the investment (which is the most common way), you would now have covered that advice charge and be in surplus.

jem16

Touser wrote: »

Thanks lisyloo,

I don't suppose you have the web link to this article/thread on the ISA board?

It may be this one.
http://forums.moneysavingexpert.com/showthread.html?t=450268&highlight=hl+multi+manager

I have to agree with dunstonh though - if you are going to pay extra to have a multi-manager fund you may as well pay for advice from an IFA who would pick funds suitable for you rather than just a broad fund of funds.

lisyloo

It was this one.

http://forums.moneysavingexpert.com/showthread.html?t=416337

One of the problems with IFAs is that you get no on-going support.
They are only interested in helping you initially and not usually whilst they get on-going commission.

With a fund of funds then the manager will keep managing it.

Once your IFA has been paid (largely up front) then you are unlikely to hear from them again.

Now I don't know if this complaint is justified as I'm not sure whether they are paid for on-going support, but my understanding if that they continually get commission (although often structured mostly up front).
Because of this they are very interested in new customers but very lax (often non-existant) at offering any on-going support.

Of course you can always contact them again for support but this would be on the basis of them getting more commission not off the back of on-going commission from your initial investment.

But thanks for the ideas guys.
We have some good FAs at work with our pensions scheme and they may be a good contact.

dunstonh

One of the problems with IFAs is that you get no on-going support.

That is incorrect. NMA IFAs and investment IFAs do give ongoing support.

Once your IFA has been paid (largely up front) then you are unlikely to hear from them again.

There are about 30,000 advisers out there. There are very many that will be exactly like you so but others of us get our remuneration not on upfront basis but ongoing basis and to keep that, you need to give the service ongoing. That is the whole idea of NMA IFAa rather than old model IFAs.

Now I don't know if this complaint is justified as I'm not sure whether they are paid for on-going support, but my understanding if that they continually get commission (although often structured mostly up front).
Because of this they are very interested in new customers but very lax (often non-existant) at offering any on-going support.

An employed IFA who doenst get paid trail commission (thats mostly your salesforce advisers) isnt likely to give much in the way of ongoing as they get paid nothing to do so. However, others of us get paid on keeping business and growth on investments.

Of course you can always contact them again for support but this would be on the basis of them getting more commission not off the back of on-going commission from your initial investment.

If you have a relationship with an IFA you would be surprised at the level of freebie advice you get.

lisyloo

An employed IFA who doenst get paid trail commission (thats mostly your salesforce advisers) isnt likely to give much in the way of ongoing as they get paid nothing to do so. However, others of us get paid on keeping business and growth on investments.

But some of them (like people who advise on pensions) get paid for the full term of the contract (which may be 40 years).
I've seen the commission before (as it's declared to customers these days) and I realise it's heavily front loaded often but they ARE being paid for 40 years. In my 17 years experience most of them do very little after the initial sale.

But yes I agree the solution is to find one that's not like this.

My company ones have been pretty good and do show up regularly so I will talk to them. (they are called Foster Denovo BTW in case that rings any bells).

jem16

lisyloo wrote: »

My company ones have been pretty good and do show up regularly so I will talk to them. (they are called Foster Denovo BTW in case that rings any bells).

From their website, they look to be the kind of large salesforce that dunstonh says to try and avoid. They appear to have brances all over England.

"For clients who want a higher level of service with more frequent reviews, valuations and analysis, we offer a 'bespoke' service in return for a monthly fee. Your adviser will be able to provide more information on this."

Sounds like they want to charge you extra for something they should be providing.

dunstonh

But some of them (like people who advise on pensions) get paid for the full term of the contract (which may be 40 years).

Nowadays they dont. Employed advisers or old model tend to get a one off up front payment. Even where ongoing commission is taken, it can often only equate to a few pounds a year with modern pension contracts. Only on SIPPs or fund supermarket pensions or where there is an explicit charge do you tend to see ongoing commission nowadays. A £50pm stakeholder providing ongoing commission would pay nothing up front and £2.30 a month for as long as the premium is paid or they can take around £100 up front as a one off.

From what Jem says about that company, it does appear to be a salesforce. So you get salesforce service.

I've seen the commission before (as it's declared to customers these days) and I realise it's heavily front loaded often but they ARE being paid for 40 years. In my 17 years experience most of them do very little after the initial sale.

The business models of IFAs has changed a lot in the last 5 years. Many of the old model up front commission basis salesforces have closed or scaled down. Many believe that model is not sustainable due to it's reliance on up front commission.

lisyloo

From their website, they look to be the kind of large salesforce that dunstonh says to try and avoid.

I must admit now I am pretty confused.

First of all I shouldn't do it DIY and should get some advice.
Then I've finally found some FAs that I think are good and I shouldn't use them ???

I don't know it's enough to make you stick your money inot a cash ISA :-))

Dukie_Boy

HI lisyloo
i have investments with HARGREAVESLANSDOWN We have just
received their latest Investment Times paper
their webb page is https://www.H-L.co.uk
For APLICATION FORMS,QUERIES & DISCOUNTS
0117 900 9000 OR O845 345 0800
May be of some help to you

Good Luck
Dukie Boy