Large inheritance DIY vs professional

johnadams7

atush wrote: »

Still being coy about the amounts. Need a ballpark. even if high 5 fig, low, mid or high 6 fig etc. Good to see you put aside emergency cash funds.

Where is the money now where you are paying 2%?

I agree your initial proposal was a bit odd, using VLS80 and then some other things as you like could be a good idea. Lindsell train- if you like it, buy it. i hold it. if you follow this approach you could DIY, but i wont rec that until we know the ball park of your investment.

SJP is a total Dud. unless you like paying more fees that you are paying now, and are happy to pay 6% to leave.

If you dont like % fees, you can ask for a transactional set price. This will in in the K's depending on pot size, but tends to be cheaper than % for larger pots. If you want ongoing advice ie rebalancing etc, then look for 0.5%

I've answered your question re amount - would it be silly to self invest even if I split between 2 or 3 multi asset products.

johnadams7

Ballie Gifford Managed
Vanguard Lifestrategy 80
HSBC global adventurious

15-20% active funds.

Also HL offer to review portfolio and offer advice for a small fee - pointless or worth the expense?

SonOf

johnadams7 wrote: »

Ballie Gifford Managed
Vanguard Lifestrategy 80
HSBC global adventurious

15-20% active funds.

Also HL offer to review portfolio and offer advice for a small fee - pointless or worth the expense?

Why would you consider using HL's restricted FA service. They use in house HL funds (which are expensive) and use the HL platform (which is expensive).

We are now on page three of this thread and we don't appear to have got anywhere. The choice should be either use an IFA or DIY. You should not use a restricted FA service.

johnadams7

I typed a long reply and lost it.

Perhaps what I do want, is the safety of a large company that is unlikely to fold and loose everything or cause me stress, or loose sleep at night. To that end, maybe I need a competitor to St James Place. The advisor was like a salesman and tried putting me under pressure, plus I'm not prepared to pay 5% upfront. I'm still only relatively young, and therefore my friends who are wealthy enough - they all go for St James place.

That is why I was asking for recommendations for an IFA in London. Surely that can't be against the rules? I've taken the advice on board and will avoid SJP. If I can't get good recommendations, then maybe it comes down to going with a competitor to SJP, with no large upfront fee, but still large enough to make me feel safe.

I'm happy to get the results of say Vanguard minus 1.5-2% for fees. My post was to put the majority with vanguard - which is cheap and relatively safe, and then invest a small proportion in funds which are/have done very well and which I trust. This means that the majority is safe, but i'm taking some extra risk for extra reward. But only on what I can afford to loose.

The next question is timing. Do I invest now, or do I wait. Is this just gambling and speculation or what do the pro's on this site recommend?

DrSyn

johnadams7 wrote: »

I typed a long reply and lost it.

The next question is timing. Do I invest now, or do I wait. Is this just gambling and speculation or what do the pro's on this site recommend?

Watch this it and decide:-

https://www.youtube.com/watch?v=DMznHFuGJr4

AlanP_2

What do you think would happen if you chose a local IFA and 2 years later they went bust?

What risk are you worried about?

All and any IFA is a competitor to SJP as the fundamental "product" being sold is the same. In the same way as your local corner shop is a competitor to Tesco's. Personal service levels will be different, your relationship with them as an individual will be different but the bread & mile you buy is essentially the same.

johnadams7

SVS securities - something similar would be my fear with a local IFA.

The risk of being advised incorrectly, giving me little back up.

That is why when I talked about a competitor, I mentioned large and also 1.5-2% fees. I'd imagine a local IFA would be closer to 1%. If SJA is 2% and everyone is saying that is really expensive, then clearly being happy paying similar for peace of mind etc with a different firm suggests by competitor we are talking about wealth firms and not a tracker portfolio with a cheap IFA for under a percent.

DrSyn

You are at risk of being advised incorrectly anywhere you go.

If you are so distrustful of advisers, the answer is simple. Learn about investing
(a) before you see any adviser (b) DIY.

Also do not use nominee accounts but always have your investments held in your own name.

Of course this make things more complected and adds to the cost.
However if you expect to have your cake and eat it, maybe you should stick to savings accounts instead.

DrSyn

Why do you assume that paying more for financial advice is going to get you better or more appropriate advice.

The higher charges may just be paying for an office at a prestigious address in the City of London. Beautiful coloured expensive booklets. Expensive cars for the advisers. Advisers clothed in made to measure suits. Company refresher courses on "how to sell".

Perhaps when looking for an IFA you should investigate his professional qualifications, his depth of knowledge in the area you need advise on and can you get on with them. Then you can think about are you getting value fo your money.

SonOf

SVS securities - something similar would be my fear with a local IFA.

Thats like comparing oranges with apples. You do not invest in the IFA. The IFA places investments with providers/platforms.

Ironically, SJP are closer to the SVS scenario but even they are not that close.

The risk of being advised incorrectly, giving me little back up.

That is why consumer protection exists to support consumers that receive poor advice. IFAs handle over 8 million transactions a year. Yet have little over 1500 complaints at the FOS in the same period. They are the least complained about distribution channel.

That is why when I talked about a competitor, I mentioned large and also 1.5-2% fees. I'd imagine a local IFA would be closer to 1%. If SJA is 2% and everyone is saying that is really expensive, then clearly being happy paying similar for peace of mind etc with a different firm suggests by competitor we are talking about wealth firms and not a tracker portfolio with a cheap IFA for under a percent.

If you go to SJP, you are putting all your eggs in one basket. SJP being the FA. SJP being the product provider. SJP being the fund house.

You make it sound like a tracker portfolio is a bad thing? In reality, many IFAs are using hybrid portfolios nowadays where trackers are the default option for a sector unless a managed fund offers what is considered to be better potential. This way you get the best of both worlds. SJP have no way to provide that.