Views on advisors

Sebo027

If nothing else, you should do your own research to have atleast a basic understanding of where you are putting your money, or where your financial adviser is putting your money, if you decide to go down that route. If nothing else it will stop you wondering whether you have made the right choice, whether he or she has made the right choice with your money, whether you can trust what they are telling you, etc. You owe it to yourself. 

AnotherJoe

^^^^^^^^^ this from Seb027.

Get yourself educated so you know if you have a decent IFA. (and frankly, after a few years, your main reason for an IFA ought to be tax and the like, not which investments)

An adviser has no more idea which investments will do well than you. Though they will be able to advise on appropriate risk levels, though i think theres always an inherent issue with an adviser verging on the side of caution to avoid getting blame or just client panic, and if the client is also too cautious, then you end up being far too cautious overall which is just as risky as being too gung ho.

BrockStoker

AnotherJoe said:

^^^^^^^^^ this from Seb027.

Get yourself educated so you know if you have a decent IFA. (and frankly, after a few years, your main reason for an IFA ought to be tax and the like, not which investments)

An adviser has no more idea which investments will do well than you. Though they will be able to advise on appropriate risk levels, though i think theres always an inherent issue with an adviser verging on the side of caution to avoid getting blame or just client panic, and if the client is also too cautious, then you end up being far too cautious overall which is just as risky as being too gung ho.

Well said AnotherJoe. Excellent points, especially the last!

waveneygnome

From my experience:

When I was younger (in 30's), really struggled to find a local IFA that would take me on (not wealthy enough client....although none would actually say this....they just didn't return calls/were not interested.

Went DIY for basics, tracker, isa etc.

Once I'd built up some decent funds in the basics (now in mid 40's), was looking to move things up a gear, however I did too much research.  I got totally blinded by the choice/options available.......I saw potential/opportunities everywhere but got paralysed by the analysis.

Asked around friends......they either never had an IFA or all seemed to use SJP........which I have read enough on here to know to steer clear of. 

Finally found an IFA (INDEPENDENT being the important point), and he has been excellent.  Looked at the whole picture.  Put me into investments I'd have never thought/heard of, and the performance has been great - far greater than my std trackers - covering his fees (1%) multiple times over.

So my advice would be:  assume you know nothing;  go seek out some IFA's, have an informal chat with a few;  choose one you click with.  Don't get too hung up on charges.

MaxiRobriguez

I went straight into DIY but that decision felt easy enough because:
1) I knew my risk appetite well 
2) I knew I wanted to create a mostly passive portfolio
3) I was investing via my salary sacrifice pension to avoid HRT so my choices were somewhat limited to certain funds.

It wasn't particularly difficult to do and it has helped keep me interested throughout such that most bedtime reading now is stock markets.

Since then I've ventured into single stock investing which is a little harder as it does test the risk appetite and reaction to losses etc but still going it alone.

Perhaps it's bravado but whenever I've spoken to someone in the financial industry then I don't feel like they would do better for me than I would do for myself. That's not a slight against the industry, I'm still young and low on capital (relatively speaking against most on here) so the people within the industry that are well established and at the top of their game aren't going to speak to me.

Linton

Many people who suggest not using an IFA  have steadily built up their portfolio from scratch gaining experience over many years and learning from mistakes made early on when the money involved was not significant.

Your case appears very different, you dont have the experience and you are getting a large lump sum.  I would suggest a good IFA is essential.  The advice you will need is how to manage your money to maximise your long term security and minimise tax.

Which particular funds are chosen is pretty unimportant.  Another factor that is often raised but is relatively unimportant in my view is maximising returns as opposed to getting sufficent returns to meet your needs.  Appropriate sacrifice of returns to ensure security is good investment management.  Establishing what is appropriate is something a good IFA will help you achieve.

Once you have a long term framework established and have some years experience of how investments behave you may reasonably consider managing things yourself

Audaxer

Linton said:

Which particular funds are chosen is pretty unimportant. 

Do you mean that if you have a good balanced asset allocation, the funds that make up that allocation are not that important?  

Linton

Audaxer said:

Linton said:

Which particular funds are chosen is pretty unimportant. 

Do you mean that if you have a good balanced asset allocation, the funds that make up that allocation are not that important?  

Yes, appropriate allocation is far more important than the particular funds chosen to provide that allocation.  Of course this is assuming a rational choice of funds - eg not perversely obscure or idiosyncratic. 

DiggerUK

Well ChilliBob, you've had a number of views to compare. I have no time for sexed up sellers of financial services and products and I am convinced you can make your own way. This is a money saving site, not a money squandering site. The fees you will have to pay are best kept in your pocket.

Think on this as you search the site.....you will find account after account of people disappointed with their close encounters with financial advisors of all stripes, but no moans from those who DIY'd, saved a fortune and made their own way.
Best of fortune..._

dunstonh

 but no moans from those who DIY'd, saved a fortune and made their own way.

Some may be too embarrassed.  I have taken on DIY investors who realised they couldn't do it or didn't want to do it and fairly consistently, you find what they have is above their risk profile and/or fashion invested and/or investing in DIY platform own brand funds that are more expensive than adviser arranged portfolios.

DIY does not mean you will save money if you DIY badly.