Costs of financial help

Prism

I think a couple of people here need to try running their own business to see how much things really cost. I am charged out at around 3k a day but guess what... thats not my salary.

fred246

I was in a similar position with an elderly relative and someone on her told me to get a SOLLA financial adviser. When he came he turned out to be from St James Place. Ahhhhh. To be fair he went away quickly which can only mean he didn't see much profit for himself from the situation. Lifetime Annuities seem to be sold to people who are terrified of their relatives living for years which is possible but improbable. You are best just keeping the money 100% safe in savings accounts watching the £85000 limit. Maybe using National Savings Accounts. Make sure you are claiming all the benefits. Investments are really inappropriate. A lifetime annuity is a gamble you will probably lose.

AlanP_2

ZingPowZing wrote: »

Lol, another cry from the financial services industry ..

So long as the fees charged by the financial services industry outrun the benefit to its customers, these threads are are going to recur again and again. That won't change whether ZPZ is here or not.

I am nothing to do with the financial services industry, and do not use them, so an incorrect assumption there.

Can you provide a reference / link to evidence that "the fees charged by the financial services industry outrun the benefit to its customers"?

Anecdotal comments not required - real evidence that the whole industry does a disservice to its customers please.

Malthusian

fred246 wrote: »

A lifetime annuity is a gamble you will probably lose.

All insurance is a gamble you will probably lose. The question is whether the investment of not taking out insurance is worth the risk of it going wrong. Some of the most common areas where the potential reward is considered not worth the risk, despite the expected outcome being positive, include the risk of losing your house, having to feed your children from the dole if the breadwinner dies, or putting your old ma into Overmydeadbody Grove when her money runs out.

If the OP does not dismiss the option of an Immediate Needs Annuity out of hand, they will need a regulated adviser, as both the providers in the industry insist on advice due to the high-risk nature of the business. The tired old debate about whether people who work in finance do not have the right to make a profit is therefore even less relevant to them than usual.

fred246

You only have to Google prognosis of dementia and WebMD says 4 5 years from diagnosis to death on overage. Most people are at home for at least 2 years after diagnosis. The SJP adviser told us it would cost roughly 7 years of care home fees to pay for an annuity. Our relative lasted 1 year. So if we had bought an annuity we would have lost 6 years care home fees. That's why they insist on using an adviser. To make sure you couldn't claim mis selling and get your money back.

Linton

fred246 wrote: »

You only have to Google prognosis of dementia and WebMD says 4 5 years from diagnosis to death on overage. Most people are at home for at least 2 years after diagnosis. The SJP adviser told us it would cost roughly 7 years of care home fees to pay for an annuity. Our relative lasted 1 year. So if we had bought an annuity we would have lost 6 years care home fees. That's why they insist on using an adviser. To make sure you couldn't claim mis selling and get your money back.

Have you tried claiming your money back from your car or house insurance because you havent made a claim?

fred246

I pay less than £150 a year for house and car insurance. An annuity would be £200k. If I had bought an annuity I would have lost £170k. It's hardly comparable.

LHW99

fred246 wrote: »

You only have to Google prognosis of dementia and WebMD says 4 5 years from diagnosis to death on overage. Most people are at home for at least 2 years after diagnosis. The SJP adviser told us it would cost roughly 7 years of care home fees to pay for an annuity. Our relative lasted 1 year. So if we had bought an annuity we would have lost 6 years care home fees. That's why they insist on using an adviser. To make sure you couldn't claim mis selling and get your money back.

And I know a case where survival after diagnosis was over 8 years. Annuities are the insurance that that is manageable, as said above.

fred246

Yes there will always be outliers. I really feel the SJP guy was trying to see if I was unrealistic enough to buy an annuity. Once he realised I had researched all the data he knew there was no chance of me purchasing an annuity. It's common sense that the odds will be stacked in favour of the insurance company but I reckon it's something like 90% chance that they will win.

atush

I think a % fee on sums over 100K always works out expensively. And i would expect not to pay over 0.5% ongoing.

Ask for a set fee (not a %) and ongoing of 0.5%. haggle.