IFA recommendations London

newatc

When discussing IFA v DIY, it is often overlooked the possibility of poor advice and the psychological impact of realising you've been given advice that has cost you money and you've paid for it!
I've no doubt that a good IFA (and that most IFAs will be good) will give my funds a much better structure and improve my returns that might pay for the fees.
But I like the idea that when things to wrong, it is down to me and not a paid advisor.
I have to say my views are probably scarred because the only time I used an IFA, he was (I know now) useless and promptly lost about 50% of my investment value (I got about 50% of the loss back after a claim to the Financial compensation scheme).

johnadams7

newatc wrote: »

When discussing IFA v DIY, it is often overlooked the possibility of poor advice and the psychological impact of realising you've been given advice that has cost you money and you've paid for it!
I've no doubt that a good IFA (and that most IFAs will be good) will give my funds a much better structure and improve my returns that might pay for the fees.
But I like the idea that when things to wrong, it is down to me and not a paid advisor.
I have to say my views are probably scarred because the only time I used an IFA, he was (I know now) useless and promptly lost about 50% of my investment value (I got about 50% of the loss back after a claim to the Financial compensation scheme).

That is worrying me - leave where it is, in a large very secure bank. Unfortunately no tax advantage anymore, and performance is probably a bit below average. But I trust them and feel its secure. I can ring anytime and speak to them.

Or its the gamble with an IFA, going for higher risk and greater returns. The extra funds which are managed are because they are, and I believe will beat the market, plus it isn't sticking 150k in say UK equities.

Part of me says do it on your own, but I'm not sure how I could live down loosing such a sum of money.

bostonerimus

newatc wrote: »

I've no doubt that a good IFA (and that most IFAs will be good) will give my funds a much better structure and improve my returns that might pay for the fees.

If you have average common sense and grasp of maths I think you'll be able to do just as well as the average IFA. No reputable IFA will guarantee any level of investment gain, so understand you are paying for advice and maybe having them do the donkey work of portfolio management, not for superior investment returns.

Linton

johnadams7 wrote: »

That is worrying me - leave where it is, in a large very secure bank. Unfortunately no tax advantage anymore, and performance is probably a bit below average. But I trust them and feel its secure. I can ring anytime and speak to them.

If you keep your money as cash with a bank, or rather 9 different banks to keep within the £85k compensation limit, your wealth will almost certainly reduce every year thanks to inflation.

Or its the gamble with an IFA, going for higher risk and greater returns. The extra funds which are managed are because they are, and I believe will beat the market, plus it isn't sticking 150k in say UK equities.

An IFA should focus on minimising the risk of you failing to meet your objectives, not on maximising returns. With £700k trying to beat the market would probably be foolish as the pain of losing significant money would not be justified by the marginal extra pleasure of having yet another £100k.

Part of me says do it on your own, but I'm not sure how I could live down loosing such a sum of money.

You need to focus on clarifying what you need the money for. When will you spend it and what on. The IFA will structure your investments to help you achieve this. But he should also take into account tax, inheritance planning etc, issues that go far beyond choice of specific funds which is one of the least important activities in the management of large amounts of money.

With £700k it is likely that your objectives are much more complex than for example if you were simply saving for retirement in 20 years time. In my view you would be mad not to discuss your situation with an IFA,

johnadams7

Linton wrote: »

If you keep your money as cash with a bank, or rather 9 different banks to keep within the £85k compensation limit, your wealth will almost certainly reduce every year thanks to inflation.

An IFA should focus on minimising the risk of you failing to meet your objectives, not on maximising returns. With £700k trying to beat the market would probably be foolish as the pain of losing significant money would not be justified by the marginal extra pleasure of having yet another £100k.

You need to focus on clarifying what you need the money for. When will you spend it and what on. The IFA will structure your investments to help you achieve this. But he should also take into account tax, inheritance planning etc, issues that go far beyond choice of specific funds which is one of the least important activities in the management of large amounts of money.

With £700k it is likely that your objectives are much more complex than for example if you were simply saving for retirement in 20 years time. In my view you would be mad not to discuss your situation with an IFA,

It isn't an ordinary high street bank in the UK. It is invested.. No I won't spend it in the next 10-20 years. Hence why I said 250 x 2 - because that leaves some money I can access if I need it.