Investment advice

Cassidy_uk

Hi 
I recently discussed with a financial advisor what to do with 50k I have in a low return ISA.
He said he could manage my money much better by putting it into a managed stocks and shares ISA. Their fee will be an initial 3.5 % of the total investment £1750) with an ongoing 1% management fee.
I am not sure if you think these costs are high or about average or would I be better putting my money into a do it for me platform something like Nutmeg 
Thanking you in advance 
Ron 

Moe_The_Bartender

As a % it’s high but he probably thinks it’s not worth getting out of bed in the morning for less. Whether stocks and shares are right for you depends on several things including how soon you might need the money and your objectives. Tell us more and you’ll get better replies.

csgohan4

you could do it yourself if your wiling to do some research

https://monevator.com/category/investing/passive-investing-investing/

but as above you need to have an investment strategy, do you have  enough emergency cash for example, how quick do you need to access the money e.t.c

Sailtheworld

£1750 upfront and £500/ / year ongoing - wow!

NottinghamKnight

Sailtheworld said:

£1750 upfront and £500/ / year ongoing - wow!

Fairly standard, I understand on smaller sums (<£100k). Not that I'd pay it of course but most commonly quoted numbers certainly before any negotiation. 

Cassidy_uk

Well I am about to take early retirement and I do not need to rely on the 50K so I just want it to work for me better than I am getting in its current ISA, I am willing to lock it away for 5 plus years.

Sailtheworld

NottinghamKnight said:

Sailtheworld said:

£1750 upfront and £500/ / year ongoing - wow!

Fairly standard, I understand on smaller sums (<£100k). Not that I'd pay it of course but most commonly quoted numbers certainly before any negotiation. 

I'd have to be upfront and tell the client I'd only be interested in their tiny pot if they were willing to sacrifice future performance to pay my fees. OP follow the monevator link above and start there - you might be thinking that for this money your advisor might be able to deliver some sort of outperformance to offset the fees but this won't be the case.

LHW99

You could ask an independent adviser to set up a simple S&S investment for you, and pay for the time involved, and then not continue with the annual reviews. May or may not be cheaper.

Albermarle

https://www.moneysavingexpert.com/savings/investment-beginners/
https://www.moneysavingexpert.com/savings/stocks-shares-isas/
Have you got a pension , often it is better to put more money in that ?

MaxiRobriguez

Costs seem reasonable to me if I was quoting for the work. £1,750 to work with you to assess your goals, risk tolerance, requirements etc and then 1% annually covers the cost to maintain the initial selection.

That said, it's a big chunk out of your capital and it will weigh on future gains from the investment - probably quite a lot by the time you want to start drawing on the investment.

If you can manage it yourself, you'll find it far more lucrative and (hopefully) enjoyable too. If you can't or have no desire too, then the costs are the costs and you just have to accept it.

Only other thing to note is you said you've seen a financial advisor. Do you mean an independent financial advisor or a financial advisor? The difference is important. The former will have access to whole of market investments and will be more on your side, the latter will be limited to certain products as dictated by his or her employer, and the employer will be a performance stakeholder as well as yourself.

[Deleted User]

The average financial adviser isn't much good at this sort of thing.