Do you Pay for Financial Advice?

Cotta

Hi,


Does anyone on here recommend getting a financial advisor or does anyone already have one?

Alexland

Depends if you have the time and interest to learn yourself.

IFAs do have a place in providing advice when required or at regular intervals but I am not a fan of ongoing charges.

dunstonh

Does anyone on here recommend getting a financial advisor or does anyone already have one?

Depends on the scenario, your knowledge, experience, interest in learning (or not) and the time you are willing to put in. Some people use an IFA as they dont have a clue and dont want to learn as they use their time for other things. Other people have very good knowledge but still use an IFA as they value their time elsewhere. Some people are happy to DIY and put the effort in themselves. There is no right or wrong.

Its like anything in life where you get to choose DIY or use someone. If you DIY well, it can save you money. If you DIY badly, it can cost you far more than it would have been if done professionally.

I pay for a gardener. I could "save" money if I DIY. However, it would cost me in time and I value my time more. Plus, I cant tell the difference between plants and weeds!!

greendoor665

An IFA could be useful to someone who has a 6 figure plus portfolio and who doesn't have the time, ability or confidence to manage it themselves. As I don't fall in to either of those categories so I don't use an IFA.

Cotta

I think for me having cleared some short term loans and by paying money into a regular saver each month and some to my mortgage I just feel there is more I could be doing.

ChesterDog

dunstonh wrote: »

Plus, I cant tell the difference between plants and weeds!!

Plants are the suicidal things on which you spend money and that then die even though you try to keep them alive, while weeds are the things that insist on taking over your garden and which steadfastly refuse to die, while scoffing at your efforts to kill them.

Eco_Miser

Cotta wrote: »

I think for me having cleared some short term loans and by paying money into a regular saver each month and some to my mortgage I just feel there is more I could be doing.

When you have cleared all your non-mortgage debt and have savings to cover all your planned spending plus six months worth of normal spending, you might want to start investing in 'the stock market'. Sensibly, you'd do this through collective investments, known as 'funds', rather than buying shares of individual companies and hoping they did well instead of going out of business.
Monevator is often mentioned as a good place to start your reading. So is this forum, and there is a list of recommended books here.

Audaxer

Cotta wrote: »

I think for me having cleared some short term loans and by paying money into a regular saver each month and some to my mortgage I just feel there is more I could be doing.

Unless you have a substantial sum to invest (probably at least £50k) I don't think it would be cost-effective to use an IFA.

If you want to start investing a regular sum each month and intend leaving the money invested long term, DIY investing via a Stocks and Shares ISA in a low cost passive global diversified multi asset fund with the percentage of equities to bonds of a risk level you are comfortable with, is a very good and fairly straightforward option.

This forum and the Monevator website are good sources of information to learn more about DIY investing if you are interested.

badger09

dunstonh wrote: »

I pay for a gardener. I could "save" money if I DIY. However, it would cost me in time and I value my time more. Plus, I cant tell the difference between plants and weeds!!

ChesterDog wrote: »

Plants are the suicidal things on which you spend money and that then die even though you try to keep them alive, while weeds are the things that insist on taking over your garden and which steadfastly refuse to die, while scoffing at your efforts to kill them.

A weed is just a plant in the wrong place:p

jimjames

Audaxer wrote: »

Unless you have a substantial sum to invest (probably at least £50k) I don't think it would be cost-effective to use an IFA.

I agree. For someone who is just starting out with regular saver accounts and who has limited funds available I think the likely cost of an IFA is overkill and probably unaffordable.

Cotta wrote: »

I just feel there is more I could be doing.

I guess the question is how much spare money do you have each month? There may well be more you could be doing but if you don't yet have at least 3-6 months savings for an emergency fund - and I'm guessing that if you had short term loans that isn't the case - then that should be the first priority.

The other thing to consider is the order of paying things, it can help to pay out to savings as soon as you get paid. You don't then have the temptation to spend the money and invariably if you use the "save what's left at the end of the month" routine there's never anything left over.

Treesie

Choose an IFA very carefully if you intend to do so. I have a very sour taste in my mouth left by previous IFA (now struck off!) In the last 3 years I have had a meet up with 2 IFAs both recommended. One from SJS who just wanted me to invest in a SJS pension at high fees and the other in a Clerical Medical pension which did not suit my risk profile. I've given up looking for someone whose first task is to help me.