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What will a financial adviser do for me?
Comments
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With the amount of investment capital you've been discussing and the process required to get that capital invested sensibly, I'd suggest that you've been massively overcomplicating something that only needs to be a relatively simple and straightforward endeavour given the circumstances you've described.
Simple and straightforward doesn't mean garbage, it means picking a single, well managed, global multi asset fund. It won't break any investment records but that's not the aim, it's to get an approximate market return which is all that most long term investors can realistically hope for unless they're prepared to start gambling.
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Said as early as post #12
OP, don't wish to come across as harsh, but that paralysis by analysis doesn't seem to be getting better:(0 -
Both.
The IFA will decide how to invest what you want to invest. They will charge you an implementation fee for deciding how and where to invest your £, then investing it. They will then charge you a percentage each year of the value of your investments. I have no experience (yet) of this. Though if they are like everything else in life, there may be a looser correlation to quality of service and charge than hoped for.
If the IFA invests in funds, the managers of those funds will charge an ongoing % of the value of the fund that is placed in their fund.
So you pay a % to both IFAs and fund managers, unless you go DIY, when you only pay the fund management fee.
As I said, "confusion".
An I.F.A. can only charge ongoing fees if there is ongoing service and in that case it can be described as something like "Wealth Management" although those who need wealth management are not necessarily wealthy. By way of an example, just going to an I.F.A. for insurance will usually result in a one off arrangement fee and an annual review which is free and without obligation.
Fund Managers provide ongoing management of the fund they manage and so have ongoing fees.0 -
The figures are approximately as follows:
£16k in non-wrapped investment, to be put into the S & S ISA later*
£16k in S & S ISA*
£4k in LISA
Cash ISA I have to be kept as it is at the limit of £15240
SIPP £3k*
*All invested in the funds chosen as per the IFA's model
I would have thought:
£4k in LISA*
Open S & S ISA with £13k (to keep my investment total at around £40k) transfer cash ISA to it so £33k in total*
£3k SIPP*
*All invested in the funds chosen as per the IFA's model
In my example all the investments are wrapped and there's no faffing about transferring the non-wrapped portfolio to the S & S ISA later. It's done and can be left alone.
Oh, and the portfolio chosen by the IFA has commodities, not shares in commodities as I wrongly claimed earlier. Not a great %, but waiting for the figures to be sent.
The ongoing charges from the IFA could be between 2.2% and 2.9% by my reckoning. This includes access to software by a huge asset management firm allowing for the currency hedging. . I am waiting for clarification.
Am I right in thinking I should be able to know what % WILL be paid, and not 'between x and y%' figures?
Growth of the model portfolio was 14% over last year,. It hasn't existed long but the growth which which have accrued has been calculated to have been: 25% over last 3 and 55% over last 5.
Can I give a breakdown of the asset and country allocations without breaching any confidences? I don't want the IFA to be reading this and his back to be got up!
Nearly half of the exposure is in the UK. Not too enamoured by that.
Molly - I hear you, but this is, at this stage, the most monumental investment decision of my life and bear in mind 3 weeks ago I didn't know what a bond yield is!0 -
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OldMusicGuy wrote: »Called him/her "bowElhead" instead of "bowlhead". They may not take kindly to that......:rotfl:
Oops!!
:rotfl: 0 -
with regards to your returns, you can't get fixed figures, only estimates. Because as any one who knows his stuff will tell you, the markets are subject to change. And if we have another 07/08, everyone will lose money. Infact there are some people who say that another crash is just around the corner.
But then they have been saying that for a while now.
It's up to you, it's your money.0 -
OldMusicGuy wrote: »Called him/her "bowElhead" instead of "bowlhead". They may not take kindly to that......:rotfl:Oops!!:rotfl:
Don't worry. He doesn't bear a grudge for long:D0 -
Don't worry. He doesn't bear a grudge for long:D
*Hides* :eek:
Can I post the fund's composition for comment (even 'Ooh! That's nice!') without breaching confidences?
I think the total ongoing charge is between 2.79% and 2.29%. There are two figures because I have been quoted two AMCs, one of 0.75% for a 'more involved' service (which the IFA says I probably won't need) and a lower one of 0.25%. Waiting for clarification on this.
That's incredibly high!0
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