Would using a financial advisor be useful?

7_week_wonder

For the first time in my life I am thinking about whether I need or would benefit from using a financial advisor.

The background (probably in a very random order) is: I’m currently a standard rate tax payer with workplace (defined benefit) pension scheme plus a deferred pension (also defined benefit) from my previous job. A conservative estimate is that I should have £25k per annum pension (including state pension) when I retire in 20 years time. I have £260k savings and investments in a mixture of cash (ISA and non-ISA), index-linked NS&I certificates, S&S ISAs (mainly trackers of various sorts) and a couple of non-ISA funds. I am trying to balance my portfolio (that’s a bit of a posh word for it) using Tim Hale’s approach. I usually save at least £1200 per month of my salary and we have no debts or mortgage. Up until now I have always looked after my own savings and investments using mainly knowledge gleaned from these boards and reading books and websites.

I was happy with this approach until my mother died unexpectedly (if you can die unexpectedly at 85) a couple of months ago. She had mild dementia and we had always assumed and planned that all her savings etc would go on care for her as her illness progressed. However this wasn’t to be, and a conservative estimate is that I will receive £200k from the estate. This is a huge (for me) jump and so I’m wondering whether it would be worth looking at everything with a financial advisor or if I should just carry on myself. What would other people do?

TheTracker

One thing is for sure. It would be useful for the financial adviser.

jimjames

I'd do it myself. That doesn't mean it's the right thing for you, you may feel more comfortable with an IFA guiding you to make sure that you've considered all the different options for making best use of the money.

BJV

The fact that you are thinking you could benefit for me would means yes. But there is no rush. You have just lost your mum so things are going to be a bit difficult.


Take your time and think about it. I am sure that there is no harm in asking for an appointment and see what they say.


No matter what you have to do what you feel comfortable with. It is your mums money and your choice.


P.s sorry for your loss.

dunstonh

The choice is either to DIY or use an IFA. If you can DIY well then you can save money. if you DIY badly then it will cost your money. its little different to using a professional or DIY in any job.

BLB53

Up until now I have always looked after my own savings and investments using mainly knowledge gleaned from these boards and reading books and websites.

If you have done OK so far, I would suggest carry on with diy - sure its a larger amount which you may not feel so confident handling but what works with smaller amounts will work with larger amounts.

Passive index funds, keep well diversified, low costs, maintain balance with asset allocation - these things are not rocket science - Smarter Investing and the likes of Monevator and diy investor uk blogs should continue to provide useful backup.