Fixed Bonds

Mumum

Thank you for your reply Masonic. I was originally set on fixed bonds, hence this thread. The more I read, however, it seems the £35,700 will depreciate over the 10 or so years until it would be needed for my son. I had hoped fixed bonds would, over time, keep the money in line with inflation so that it would still at least be worth the same equivalent. This appears not to be the case however. It has been suggested that smoothed funds or global low cost index bonds would be a better option but I’m confused as to how safe they are as I’m new to this and trying to learn. I was thinking that an independent
financial adviser would tell me the best way to invest it.
I do have tomorrow a high-street financial adviser (one of the building societies I rang couldn’t help but offered to arrange a meeting with a high-street financial adviser who they have teamed up with). Looking at their charges
though (3% of amount invested plus half of first year gains plus other ongoing charges) I can’t see how they would make more money than the fees they would charge given the small amount invested (at least not
without the high risk investments which I want to avoid). I also have a call back from Skiptons financial advisers tomorrow to discuss options but both advisers are not independent are they, as per your earlier advice. I’m both concerned about risk and about depreciation so I’m guessing it’s striking a balance so I thought an independent financial adviser would be the one to help, but then I started being concerned about their fees versus what any low risk investment of the relatively small sum would gain. Apologies if this post seems muddled. It’s because I am!

Malthusian

Don't bother with either Skipton's salespeople or the ones recommended by the tied adviser. If you are going to take advice it should be an IFA.

Not many IFAs will offer full ongoing advice for £35,000, but if you ask them about one-off transactional advice on how to invest £35,000 you should have more luck.

"3% of amount invested plus half of first year gains plus other ongoing charges" is an absolute rip-off. I very much doubt they would pay you if the markets went down in the first year.

The other option is to buy a globally diversified multi-asset fund on a DIY basis.

masonic

To echo Malthusians comments, please don't take advice from a bank or building society about investments. You will almost certainly end up in a rip-off product.

An IFA will ensure that you invest the money in a manner that's suitable for your objectives and risk tolerance. As you have acknowledged, taking some risk is necessary, the alternative is certainty that the spending power of the money will by eroded. You are probably some way from understanding investments to the degree you could make a decision yourself, so going down the advisory path seems worth it.

The other hurdle will be identifying a suitable investment account that can be held in a trust (which would be on you if you tried to do it yourself), but the adviser should be able to help with that.

tucker17

I see a post about a Nicholas Sharpe and Merrion Capital investment Manager,  i wish they had reported this as i invested￡28,000 with him and a Scott Mason only to find out just over a week ago that they had cloned this company so there goes my ill health pension lump sum