HSBC Premier Account

johnsg

Hi
I'm thinking of opening a HSBC Premier account to get some financial advice. I'm recently retired with pension and lump sum. I have a life plan but am completely new to investing other than high street type options.

Are HSBC likely to be a decent place to start? I'm guessing that a large high street bank should be a better risk than a less well-known small Financial Advisor?
J

eskbanker

No, a high street bank is likely to be one of the worst places to start - they will only be interested in selling their own products, which, as well as fundamentally being a tiny chunk of the market, are unlikely to be the best ones in terms of cost and return. The quality of advice available with a Premier account is likely to be proportional to how much you're paying for that advice!

If you have a sizable sum (e.g. six figures) then it may be worth your while engaging with an Independent Financial Adviser - you can find ones local to you at comparison/review sites like https://www.vouchedfor.co.uk/ or https://www.unbiased.co.uk/.

Or if you're talking about a smaller sum, you may find it just as effective to post details of your circumstances on here and the knowledgeable posters will usually be happy to offer guidance.

However, it's unlikely that you'll get so much traffic in this 'ISAs & Tax-Free Savings' sub-board, and it would be better posted in the main Savings & Investments one - admins will hopefully move it for you....

johnsg

Thanks,
I think my idea was to be with a large institution rather than go with a smaller advisor, hoping that bigger established institution was likely to be better?

Given Brexit and the uncertainties we're all probably reading about I'm just wondering if risking savings for 8% is really worth just banking them safely for maybe 2%.

J

Alexland

Eskbanker has given you some good feedback so I suggest you read it again.

HSBC financial advice will be extremely limited and unlikely to give you very good value for money. In addition there may be some areas where they cannot provide you full advice for your needs. An IFA would give you access to the whole financial services market and investment options and be able to help you with any tax planning and inheritance planning needs. An IFA is likely to be significantly better qualified than an HSBC advisor who will have only received basic training in how to sell their products and meet compliance requirements.

Look at the IFA website to find one https://www.unbiased.co.uk/ the initial meeting should be free and no obligation.

p.s an annual return delta of 6% can make a huge difference. For example £100k invested for 10 years at 2% will be nearly £122k but at 8% would be nearly £216k - almost double. However an IFA will assess your risk tolerance and find suitable investment products aiming to achieve your realistic goals.

Alex.