Lots of £ to invest - where?

arman68

I have quite a lot of money I need to invest, but I seem to be running out of good options:

* already filled icici to 35k, and switched it to their 12 months term deposit at 6.85%

* filled a b+b at 6.41% to 35k

* 2 isa (me and my wife) are getting full to max amount every year

I still have lots left, enough to fill a few accounts to the 35k safe limit. I don't pay tax on the interest. Where's the best place for my money?

Note that I managed to secure my mortgage to a fixed 4.84% rate, before they started rising, until 2009; so repaying the mortgage is not a good option.

setmefree2

Do you have a mortgage? You could come and join us on the MFW (Mortgage Free Wannabe) board. I'm sure there will be lots of people around soon to tell you why you shouldn't.:D

rainy_dave

Go and get some quality financial advice from either:

a) Independent Financial Adviser
b) Bank Personal Finance Advisor
c) Independent Broker

With the sum's you are managing you really need to be thinking about a complete risk diversified portfolio plan, and not just looking at individual products from the usual high street providers.

Top 5 Tip's

1. Define your investment goals in terms of % growth, or hitting specific financial targets by a set date.
2. Determine your own personal acceptable risk profile and build a balanced portfolio around it - this doesn't mean investing in the same products but a range that give an overall portfolio risk rating that you are happy with.
3. Maximise your personal allowance, and that of any partner before investing in taxable investments
4. Set clearly defined limits for your individual investment products, if they fall below or rise above these limits; sell.
5. Be disciplined about acting when your investments hit the limits mentioned in point 4.

I hope that this is of some use to you.

dunstonh

Go and get some quality financial advice from either:

a) Independent Financial Adviser
b) Bank Personal Finance Advisor
c) Independent Broker

a) is an investment adviser and the OP doesnt seem to want to look at investments
b) is a waste of time and money as products are expensive and poor quality and the IFA can usually offer the same products if they wanted to cheaper.
c) I assume you mean stockbroker as there is no such thing as an independent broker. Again, like IFAs, that involves investing.

rainy_dave

dunstonh wrote: »

a) is an investment adviser and the OP doesnt seem to want to look at investments
b) is a waste of time and money as products are expensive and poor quality and the IFA can usually offer the same products if they wanted to cheaper.
c) I assume you mean stockbroker as there is no such thing as an independent broker. Again, like IFAs, that involves investing.

Somewhat cynical opinions perhaps, but I'm sure they're based upon experience. Some of the bank's private client services are very commendable, although the required level of liquid assets does often place this option out of reach.

I have quite a lot of money I need to invest

The OP didn't seem to have anything specific planned, although the term accounts was used.

I have always been an advocate of IFA's and know that there are those out there who will advise on portfolio planning, even if it does not use a conventional investment product; usually by means of a fixed advice fee instead of fee/commission combinations usually associated with investment product advice.

dunstonh

Somewhat cynical opinions perhaps, but I'm sure they're based upon experience. Some of the bank's private client services are very commendable, although the required level of liquid assets does often place this option out of reach.

Its not cynical. Its factual.

Go to Lloyds and you get only Scottish Widows products. Not all the Scottish Widows products though. Only the basic ones and you pay more in charges for them too than an IFA taking maximum commission, let alone discounted. Plus the IFA has the full range of Scot Wid products. Go to Barclays and you get Legal & General products far more expensive than the IFA versions. Go to Norwich & Peterborugh and you get Norwich Union products at higher charges (and if you are in my area, the advice from the local N&P branch borders on the mis-selling if it was an IFA although they can get away with it as a tied agent). Get to Halifax and get some of the worst investment funds out there. and so on and so on.

Also bank tied agents cannot portfolio plan. They dont have the fund range and their remit for business doesnt allow them to do it. Fund choice is documented as "you chose these funds" whereas an IFA has to recommend the funds. Go to a bank and ask them to build a portfolio using sector allocation matching your attitude to risk with ongoing servicing and portfolio balancing and watch them find an excuse to sell you their cautious managed fund that does all that. Assuming they understand what was said in the first place.

The bank's private banking arms are notorious for being overly expensive and too quick to churn. I have taken many a portfolio over from a bank and whilst IFAs cannot advise on quoted investments, that isnt a problem for most. If you want discretionary management services and not packaged investment portfolios then I would use an independent discretionary fund manager over a bank any day.

Banks are great for new advisers to learn their trade. They can make mistakes on bank customers with no personal liability. They only have about 8 products with around 5-15 funds to learn. Its toy town advice dumbed down to suit simple customers. Thats harsh but that is what it is geared to do.

Even the FSA realise this as their RDR proposals have a category of adviser called "Primary advice" which is geared for the banks. Small product range, limited consumer protection to be sold on mass by salesforces to lower net worth customers.

rainy_dave

dunstonh,

I agree with the general content of what you are saying. Indeed, I agree that for an adviser to best represent a client then they should be whole of market and also be open about their charging method. Clearly this is not always the case with high street tied advisers.

My only implication was that there are some very good advisers working for the large banks' private client divisions. I agree with your comments in relation to the service you will get upon walking in and talking to a high street bank adviser.

Dave

rainy_dave

arman68 - apologies for the slight thread creep.