Hargreaves Lansdown Financial Advisors

Chris75

TakeCareOfThePennies wrote: »

................... If Chris75 is really talking about a high-value portfolio (i.e. denominated in millions) then he would certainly be better off seeking out one of the rare breed of decent regional/national firms who have regular and substantial experience in dealing with portfolios of such sizes.

How to find a rare decent regional/national firm. I really only know of the people that advertise.

TakeCareOfThePennies_2

Chris75,

I have sent you a PM (hopefully at least, because it's not showing in my sent items !).

(For others wondering, no, I have no association. I don't work in the financial sector. Just didn't fancy publishing info publicly for various reasons since they are firm(s) that don't have big marketing budgets and quite like being word of mouth ).

saver861

Chris75 wrote: »

How to find a rare decent regional/national firm. I really only know of the people that advertise.

Personally, I'd be keeping a significant distance from this. By all means help for sure, but if the deceased recommended you to sort it out, without your knowledge, then thats more than casual.

I don't know what 'very high value' is but if we are talking in the region of a million then this has been built up somehow. If the deceased has been with HL all the time then it sounds like he has done well. Presumably there may have been an advisor involved also, if so, my first port of call would be to try to set up a meeting with him or her. At least they will be fully familiar with the content and history.

It does sound like your friend has very limited knowledge and changing advisers and platforms at this stage is not going to help. They can done that later if need be - getting things straight first would be a good place to start.

In addition, no doubt you will want your friend to remain a friend, no doubt too, you will be aware of the old adage, to lose a friend give him a lend, to lose a customer give him credit ... not sure where financial advice comes into that rhyme but it fits in there somewhere!!

Chris75

Saver 861


It isn't quite as bad as it sounds. We are talking family. The person who built up the money was a canny investor who as far as I know did it all on his own. There is no advisor to go back to. As I said I am known in the family as the money man. The problems that I have - to list a few:
1. No clear or perhaps conflicting investment objectives
2. As time has elapsed CGT issues
3. No clear thoughts on any income required
4. A belief that the original investor would have "done it right" and therefore it must still be right.
5. An assorted collection of over 30 shares, unit trusts, investment trusts that as residuals of a will have no clear structure or coherence & which probably made more sense when they were purchased than they do now.


Despite all the above + others I would like to make sure that the end result was not a mess so whilst my instinct is to distance myself I am trying to help.


I just remember my motto " No good deed goes unpunished".


Sticking with HL was my way of trying to limit the changes.

naedanger

Hargreaves_Lansdown_representative wrote: »

"Unlike HL which sell their own product, most IFAs will not have their own product range and will use product providers who have no direct link to that IFA. So, if the IFA closed, the investments would not be affected one bit."[quoted from previous poster]

You are incorrect. Hargreaves Lansdown Financial Advisers are independent (IFAs) and use 3rd party products from providers where there is no direct link, as well as own products.

So the quote was not incorrect. You have just admitted your IFAs do use your own products (as well as those of other providers).

Porcupine

You sensibly don't want to offer advice, but perhaps you can advise about advice? In other words, set up a meeting with a local advisor, with the inheritor and you being present (by phone/video conference if necessary). Go through whatever they do for new clients (discussion of options, fees, reviewing the portfolio). Once you're done, take whatever plan they give you and discuss it with your friend. Test it to see if it makes sense. Simply having a second person in the meeting can be enough to give confidence in someone who doesn't know what they're doing.

It's a bit like taking a knowledgeable friend along when buying a used car: the dealer is still responsible for faults in the car, but the friend is there to check on whether what the dealer says makes sense and tallies with the car, and they might be able to spot things the dealer missed. But doesn't mean they have liability if the dealer was lying.

xylophone

If your relation is accustomed to HL and HL are Independent Financial Advisers, then I would have thought it best that at least for the time being, he/she sticks with HL?

Why not make sure that you are fully familiar with the portfolio and then arrange to be present at a meeting between the IFA and your relation.

I have to say that I am rather puzzled about the relation having to sell shares to meet this month's bills - how was he/she managing before the inheritance?

At all events, I would have thought that establishing how much the relation needs by way of income would be essential, as would rearranging the portfolio to produce an on going income.

One idea might be to sell sufficient of the portfolio to cover income needs for this year and deposit the money in a high interest current account - does the relation have the most suitable account for his/her needs?

This would give time for matters to be better arranged.

saver861

Chris75 wrote: »

It isn't quite as bad as it sounds. We are talking family.

Family - usually more amicable - or not as the case may be.

Chris75 wrote: »

The person who built up the money was a canny investor who as far as I know did it all on his own.

Except clearing the decks for after he had passed.

Chris75 wrote: »

There is no advisor to go back to. As I said I am known in the family as the money man. The problems that I have - to list a few:
1. No clear or perhaps conflicting investment objectives
2. As time has elapsed CGT issues
3. No clear thoughts on any income required
4. A belief that the original investor would have "done it right" and therefore it must still be right.
5. An assorted collection of over 30 shares, unit trusts, investment trusts that as residuals of a will have no clear structure or coherence & which probably made more sense when they were purchased than they do now.

In one sense this would be an immensely interesting 'project' to sort out. However, if there is substantial sums involved, it has the capacity to fall 'jam side down', and certainly I would not want to be the one at the end of a pointing finger. On top of that, point number 4 could be the biggest barrier to any change or progress.

In simple terms, there are three requirements.
1. The immediate requirements. Income, day to day living expenses. Thats the first thing that needs sorting out.
2. The short term. Requirements for the foreseeable future. Plans, changing circumstances.
3. Long term planning.

I would be getting the facts and figures for No 1 down on paper as soon as. From there it is a case of allocating immediate cash or other means to deal with this and to get some breathing space.

From there, it is strategy. What you have currently is a can of spaghetti and with someone who does not know how to use a fork, that is, if they have no financial wisdom.

Chris75 wrote: »

I just remember my motto " No good deed goes unpunished".

That should be the case, it don't always pan out ...

Chris75 wrote: »

Sticking with HL was my way of trying to limit the changes.

Yes that would be my idea too. Many people on here make considerable issue of the charges on HL - and they make their justifications. However, trying to sort out this mess and ensure the most cost effective charges etc is a step too far at this stage, imho.

kidmugsy

Chris75 wrote: »

As I said I am known in the family as the money man.

Me too. I'm aware of my limitations - whether aware enough, though, Lord knows.


I think your scheme sounds reasonable - after all, your friend can reverse it if he's not happy with it.

I thought xylophone's suggestion was good - would Santander 123 be a good bank account for this purpose?

My only hesitation would be that even the use of IFAs might benefit from diversification, but you have to start somewhere.

bowlhead99

I don't think the use of IFAs would benefit from diversification. To manage the portfolio for the person's objectives they would each need to keep taking into account what advice the other was dishing out and the investor was accepting; tax exemptions and limits would have to be managed cohesively etc etc.

Too many cooks.