When do you consider a wealth management company?

rajsc

Hi All,
After some advice.
We have approx 65k from a house sale and hopefully some SDLT refund money at some point.
What’s the best investment strategy??

ISA, savings account, NS&I??
When is it time to consider a wealth management company?
Is it worth it?
I know nothing about this sort of stuff....

Any advice appreciated.
Thanks in advance.

MallyGirl

It depends on what other savings, pensions, investments you have ?
how old are you?

not enough info really

rajsc

Late 30’s.
Married.
Home owner plus 1 investment property.
Pension scheme through work.
No other savings really...approx 5k.
Some debt on credit cards.

pip895

rajsc wrote: »

ISA, savings account, NS&I??

When is it time to consider a wealth management company?
Is it worth it?

If you don't have an ISA or savings account/NS&I then you should consider both + pensions as well. You need to think about the timescale you expect the money to be invested.

Get rid of any expensive debts first.

Do your research on here and you should not require further advice for that sort of size of funds.

If you decide you want advice then go with an IFA not a wealth management company!

Linton

I dont think you have nearly enough money to interest a wealth manager. A high street IFA may be able to help. I would have thought £65K is towards the lower end of when professional advice could be justified.

However before talking to any professional you need to decide what you want the money for and when you will need the cash. If it's within 5 years just stick with bank savings or similar. If its more than say 10 years you should definitely look at investing in shares held in funds. Also of significance is whether you want a steady income at that time or will spend the whole lot in one go, say on a new house.

Let us know your time scale and we may be able to suggest something appropriate.

dunstonh

When do you consider a wealth management company?

Probably never. Companies that tend to refer to themselves that way are normally not independent or if they are they are boutique firms that offer one model. And that means you have to fit them rather than them finding a solution that fits you.

Most of these companies are looking for several hundred thousand pounds and are priced for those sort of investors. They will normally be damned expensive for smaller investors.

ValiantSon

pip895 wrote: »

If you don't have an ISA or savings account/NS&I then you should consider both + pensions as well. You need to think about the timescale you expect the money to be invested.

This is far too vague and generic. What type of ISA? Does an ISA actually provide tax benefits for the individual? Why NS&I?

If the OP provides more information then we may be able to provide some guidance, but this response is potentially misleading.

OldMusicGuy

When do you consider a wealth management company? I agree with dunstonh, never. Unless you are impressed by people in smart suits that run corporate style events at golf clubs. You will get at least the same service and probably better from a good IFA at a lower cost. Or you can educate yourself using this site and other resources and manage your own wealth for nothing (that's what I do).

chrisgg

OldMusicGuy wrote: »

When do you consider a wealth management company? I agree with dunstonh, never. Unless you are impressed by people in smart suits that run corporate style events at golf clubs. You will get at least the same service and probably better from a good IFA at a lower cost. Or you can educate yourself using this site and other resources and manage your own wealth for nothing (that's what I do).

Not quite correct. Going straight to a DFM is often cheaper than going to an IFA who then recommends a DFM, especially many IFAs will simply recommend the DFM where they like their regional sales person the most/that they or their company have always used. A DFM/Wealth Manager will charge a slightly higher on going fee for a direct client than a client of an IFA, but there would be no 0.5%+ ongoing charge and no initial charge.

TheTracker

When do you consider a wealth management company?

When you've been forced to meet out of politeness, when you're gullible, or when you have several million pounds of disposable cash and you want to make sure you aren't making a mistake by not using one.