Do you Pay for Financial Advice?

dunstonh

Treesie wrote: »

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.

It is also important to make the differential between an FA and an IFA. At least one of those you mention is not an IFA but a sales rep of the insurer.

You also say last three years. However, Clerical Medical have not had a pension retailed for about the last 8 years. Their last version (which ran for about 2005 to 2009) was actually a very well priced pension for the day. You could get charges at 0.6% and had investment options that covered virtually all risk profiles.

aroominyork

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.

There's a prize for the person who turns that into the most entertaining metaphor for financial investing.

MrsCautious

I have an IFA who takes a fee. I meet the criteria outlined above and am grateful for his sound advice to date. I was widowed young - I didn't have the confidence or to be fair the state of mind at that time, to begin to know what to do about my changed financial situation. I don't have the time, with family and work. He has been helping me for years now. I haven't followed his advice on paying off my mortgage due to higher interest rates being available. His experience comes into play with stocks and shares. I research and inform him of what I'm up to with savings. I have sought his advice since on various financial developments and he has been helpful without any charge on this - other than that we have two review meetings twice a year to catch up about investments.

My experience is IFAs can also help with critical illness and life insurance as well as shareholder protection agreements - and this is such an important area, and so worth doing. Sadly now having also lost my business partner, who was like a sister to me, the shareholder agreement put into place by an IFA has been crucial.

Wobblydeb

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.

This is where I was 7 years ago I started off with a few hundred a month into a S&S ISA, and was learning as I went. I was however willing to make mistakes and lose the money. Your mileage may vary!

Using real money is a good way to concentrate your mind though - you'll soon find out how risk averse you are, and whether you enjoy doing the research and learning that is required.

Malthusian

aroominyork wrote: »

There's a prize for the person who turns that into the most entertaining metaphor for financial investing?

Something about active fund investors who spend ages researching and toiling over their portfolio, endlessly pulling out underperforming funds, while their passive neighbour just fills their garden with gravel and pot plants and achieves better results with a tenth of the effort and cost?

Linton

Malthusian wrote: »

Something about active fund investors who spend ages researching and toiling over their portfolio, endlessly pulling out underperforming funds, while their passive neighbour just fills their garden with gravel and pot plants and achieves better results with a tenth of the effort and cost?

Ok from the other side..

The active investor who spends hours getting his garden exactly how it wants it. Choosing exactly the right species and varieties of plants and then puts in the effort to ensure there is something of interest any time of the year, that nothing is overgrowing its neighbours and nothing is deteriorating etc etc. Then there is the neighbour Mr Passive who simply has a look round the estate and buys the shrubs he sees in everyone else's garden. Minimal effort, minimal cost, the garden is just as green and at least it wont be the worst looking one around.

dunstonh

Then there is the neighbour Mr Passive who simply has a look round the estate and buys the shrubs he sees in everyone else's garden. Minimal effort, minimal cost, the garden is just as green and at least it wont be the worst looking one around.

Mr & Mrs True Passive's garden would not have any maintenance. It would be left to do whatever it does. Weeds, plants etc.

Mr & Mrs think-they-are Passsive's garden would be similar to Mr & Mrs True Passive except they would sneak out when no-one is looking and do a bit of garden management by deciding how much of each weed and plant they are going to have.

Cotta

Wobblydeb wrote: »

This is where I was 7 years ago I started off with a few hundred a month into a S&S ISA, and was learning as I went. I was however willing to make mistakes and lose the money. Your mileage may vary!

Using real money is a good way to concentrate your mind though - you'll soon find out how risk averse you are, and whether you enjoy doing the research and learning that is required.

So buying some S&Ss within an ISA wrapper is the best way to go?

Fatbritabroad

Cotta wrote: »

So buying some S&Ss within an ISA wrapper is the best way to go?

Yes assuming you have enough in ready cash to cover emergencies and are contributing to a pension

Keep_pedalling

We first used an IFA for advice 8 years ago when my wife inherited a considerable amount of money, and we have continued to pay him ever since. The advice he has given us has been sound and our investments have performed well, certainly better than that would have dome with me in charge of them. We are now in draw down rather than build it up mode, and have sufficient pensions and saving to see out our remaining years in comfort.

Although my financial knowledge has improved a great deal in the mean time and we probable could move to DIY, it's one of the things we are comfortable to pay someone we trust to do for us.