Need help investing / saving £450,000

Wilkins

doughnutmachine wrote: »

Lol, it's funny, I think going to an IFA with 450k is bad advice. If the OP goes to an IFA the IFA will charge an initial 3% then an annual 0.5%. Or £13,500 and £2250.....


All for dumbed down advice that's designed so that the client cant sue the IFA.

Where do you get those figures from? It's contradicted here (which OP should read):


http://www.moneysavingexpert.com/savings/how-to-pay-for-financial-advice#cost

jimjames

doughnutmachine wrote: »

Lol, it's funny, I think going to an IFA with 450k is bad advice. If the OP goes to an IFA the IFA will charge an initial 3% then an annual 0.5%. Or £13,500 and £2250.....


All for dumbed down advice that's designed so that the client cant sue the IFA.

You seem determined (yet again) to peddle out incorrect figures. IFAs do not generally use % fees but an agreed sum.

There may not even be any ongoing fees.

Rather that suggesting 20 shares why not use a tracker fund? Far cheaper and less hassle than trying to select 20 shares but still not necessarily what the OP should do in their circumstances.

doughnutmachine wrote: »

(a) holding shares directly also reduces the costs associated with fund management. Lol, I've not actually seen any worthwhile evidence that all those fund managers etc can actually add value.

SO why not use trackers that do not have managers paid to find shares. I'd think anyone who has no investment knowledge would be very hard pressed to find 20 shares that beat a tracker long term.

ViolaLass

doughnutmachine wrote: »

The OP wants investments for her and her daughters future. That means she has to invest in the stockmarket (450k isn't really enough to buy property).

That's a very limited section of the country you're considering if nearly half a mill isn't enough to buy at least a couple of properties.

doughnutmachine

jimjames wrote: »

You seem determined (yet again) to peddle out incorrect figures. IFAs do not generally use % fees but an agreed sum.

why don't you have a look at this (post 212)? it seems to back up my 3% initial fee and 0.5% annual fee?


https://forums.moneysavingexpert.com/discussion/287063


*cough* what is 3% of 450k then? is it not £13,500?

doughnutmachine

ViolaLass wrote: »

That's a very limited section of the country you're considering if nearly half a mill isn't enough to buy at least a couple of properties.

I think commercial property is a good investment. But 450k isn't really enough for that....


I think the only sensible residential property investment is buying whole blocks of flats.... but 450k isn't enough for that.


to be fair 450k is a good sum for investing in land zoned for residential.... but that type of investment isn't suitable for amateurs

Wilkins

doughnutmachine wrote: »

why don't you have a look at this (post 212)? it seems to back up my 3% initial fee and 0.5% annual fee?

Not really, since that case there would involve legal fees. Obviously, OP should ascertain fees up front and can choose to not to engage any given IFA.

grey_gym_sock

doughnutmachine, you're just being an argumentative ****. again.

the aim is supposed to be to give constructive advice.

gadgetmind

jimjames wrote: »

You seem determined (yet again) to peddle out incorrect figures. IFAs do not generally use % fees but an agreed sum.

Sorry, but only a week ago we had someone here wanting to put £500k into an investment bond and the IFA was quoting 3% up front and then ongoing management fees of around 0.5%.

And this isn't a one off, we still case after case after case of real world IFAs coming up with these sorts of figures.

I'm not anti-IFA just anti those who refuse to wave bye-bye to their 3%-5% up front and 0.5% trail for investing in a portfolio of high TER active funds.

doughnutmachine

grey_gym_sock wrote: »

doughnutmachine, you're just being an argumentative ****. again.

the aim is supposed to be to give constructive advice.

yeah fair one, best advice any person with a six figure sum to invest is to be told "go to unbiased.co.uk and get a good IFA".


Lol, you cant expect any person on MSE to have the gumption/ ability to invest that money themselves!!! Far better to give a 5 figure sum of money to an IFA and he'll choose some nice safe Unit Trusts for you, and he'll then charge a couple of grand a year to do some unbelievable hard stuff like "rebalance" the portfolio once a year.

gadgetmind

However, I do think the OP needs to look at mainly using assets other than cash for the bulk of this money, which means they either need to learn the fundamentals of investing (one book, 3-4 hours, job done!) or use an IFA. Or even better, do both.