Advice pls on investment/buy to let/commission charges

Alec68

Having received good financial advice from this forum before I am back looking for advice on a new situation.

I am soon due to retire and will be selling a house in London. After taking out costs and giving a lump sum to my offspring as deposit for purchasing their own property, I hope to be left with approx £800,000. Initially my thinking was to place that in the hands of financial advisers and / or purchase a flat to let and provide supplementary pension income.

I would be very interested on thoughts / opinions on above scheme and some idea of what percentage I can be expected to pay a financial services adviser to manage the portfolio of investments.

I would also be interested in different ideas to be considered as alternative to stock market investments and tax considerations with lump sum to offspring.

Thanks in advance for any replies.

somethingcorporate

For the sake of £800k I would spend a couple of grand on getting proper, regulated advice rather than taking advice from an anonymous forum with you having absolutely no come back.

The difference could be worth tens if not hundreds of thousands.

dunstonh

I would be very interested on thoughts / opinions on above scheme and some idea of what percentage I can be expected to pay a financial services adviser to manage the portfolio of investments.

In London (And most cities) you would expect to pay more than outside of the city. Prestige firms will also charge more typically. i would say on that amount something in the region of upto £2500 initially and 0.50% p.a. for servicing.

With that amount, you have to consider tax wrappers and using CGT allowance etc. The mixture of income and growth and maybe using capital growth to fund the income would need to be considered.

Alec68

somethingcorporate wrote: »

For the sake of £800k I would spend a couple of grand on getting proper, regulated advice rather than taking advice from an anonymous forum with you having absolutely no come back.

I can assure you that I intend to do both on the basis that many people on forums have already taken 'regulated advice' some of which is good, some less so which is why billions is being paid out in compensation due to miss selling by 'regulated advice',

Interesting that the reply below suggests a commission percentage exactly half of that already quoted by 'regulated advice'!

"A smart man can learn from smart men, but a wise man can learn from everyone”

Freecall

dunstonh wrote: »

In London (And most cities) you would expect to pay more than outside of the city. Prestige firms will also charge more typically. i would say on that amount something in the region of upto £2500 initially and 0.50% p.a. for servicing.

With that amount, you have to consider tax wrappers and using CGT allowance etc. The mixture of income and growth and maybe using capital growth to fund the income would need to be considered.

I am not sure why the on-going servicing should be so much more than the initial set up as I would have thought that the initial investigation work and determination of client's needs was where all the costs were.

dunstonh

I can assure you that I intend to do both on the basis that many people on forums have already taken 'regulated advice' some of which is good, some less so which is why billions is being paid out in compensation due to miss selling by 'regulated advice'

What billions are being paid out for regulated advice? There are certainly billions being paid out on the unregulated side but nothing to suggest issues on the regulated side.

I am not sure why the on-going servicing should be so much more than the initial set up as I would have thought that the initial investigation work and determination of client's needs was where all the costs were.

Ongoing retains liability on an ongoing basis. Initial covers just the initial set up and liability for the set up only. Plus, you would expect a bit of discounting on the initial as many servicing advisers are more interested in the servicing side.

Alec68

Thanks for the advice so far, if anyone else has some lateral thinking on this thread I would be very interested.