Choice of Investment company

Albermarle

ZingPowZing said:

Financial Advisers have been "phoning it in" for a long time, in more ways than one.

What always happens when a new person takes to the board on a such a matter is that a circle of financial adviser apologists will promote the benefits of using a local IFA instead. 

and a cabal of anti IFA posters will make the same comments they always make........

[Deleted User]

Albermarle said:

ZingPowZing said:

Financial Advisers have been "phoning it in" for a long time, in more ways than one.

What always happens when a new person takes to the board on a such a matter is that a circle of financial adviser apologists will promote the benefits of using a local IFA instead. 

and a cabal of anti IFA posters will make the same comments they always make........

Which faction stands to gain? 

As a retiring police officer, the opening poster is an exceedingly attractive prospect to a financial adviser; he has an investment journey ahead that could be worth hundreds of thousands of pounds to the adviser’s firm.And the fees are the smaller half of the potential cost to the client; the opportunity cost of smoothing the bumps in the journey has its own price. For the job of the financial adviser is not to maximise a client’s wealth but to manage a client’s expectations. 

There is an alternative. Just because financial advisers and independent financial advisers have been soliciting the OP (as well they might) doesn’t mean he has to get hitched to any of them. 
As an alternative to the usual agenda on this MSE board, the newcomer could be encouraged to manage the fortune himself, or at least give over his fortune to a few reputable fund managers. Cutting his costs and fighting his corner. I think I read that somewhere.

BananaRepublic

ZingPowZing said:

Albermarle said:

ZingPowZing said:

Financial Advisers have been "phoning it in" for a long time, in more ways than one.

What always happens when a new person takes to the board on a such a matter is that a circle of financial adviser apologists will promote the benefits of using a local IFA instead. 

and a cabal of anti IFA posters will make the same comments they always make........

Which faction stands to gain? 

As a retiring police officer, the opening poster is an exceedingly attractive prospect to a financial adviser; he has an investment journey ahead that could be worth hundreds of thousands of pounds to the adviser’s firm.And the fees are the smaller half of the potential cost to the client; the opportunity cost of smoothing the bumps in the journey has its own price. For the job of the financial adviser is not to maximise a client’s wealth but to manage a client’s expectations. 

There is an alternative. Just because financial advisers and independent financial advisers have been soliciting the OP (as well they might) doesn’t mean he has to get hitched to any of them. 
As an alternative to the usual agenda on this MSE board, the newcomer could be encouraged to manage the fortune himself, or at least give over his fortune to a few reputable fund managers. Cutting his costs and fighting his corner. I think I read that somewhere.

I’ve read several concerning stories in the Sunday Times about SJP. From memory, it was stated that their advisors are on heavy commission and are pushy. Definitely avoid as they are not independent. 

Regarding the above post, I DIY and I’ve done pretty well without an IFA. However, this is someone who has recently retired with a large sum of money. We don’t know their temperament, and they obviously kniw little about investing. Reading up on investing, online and books, would be the best short term investment. 

One point to note is that large sums in bank accounts are only secure to £85,000, not sure if this applies in NI. 

Albermarle

As an alternative to the usual agenda on this MSE board, the newcomer could be encouraged to manage the fortune himself, or at least give over his fortune to a few reputable fund managers. Cutting his costs and fighting his corner. I think I read that somewhere.

FYI, I have done that many times , especially where the amounts are not huge and the situation seems simple.  In fact I did it just 5 mins ago to someone paying 2.9% via an IFA for a £100k pot.

In this case the OP appeared to be going down the FA route , potentially with SJP. They mentioned a large pot and seemed to have little knowledge, so a move  to looking for a cheaper more local IFA seemed to be the logical step. Jumping straight to DIY may have worked great and then again maybe not....

dunstonh

As an alternative to the usual agenda on this MSE board, the newcomer could be encouraged to manage the fortune himself,

I think you will find the "usual agenda" on this board is to tell people that they should either DIY or use an IFA with more encouragement to DIY by most posters.   Never to use an FA.   

FYI, I have done that many times , especially where the amounts are not huge and the situation seems simple.  In fact I did it just 5 mins ago to someone paying 2.9% via an IFA for a £100k pot.

I saw that and I suspect that person is actually using an FA and not an IFA.  The charge is more in line with their own FAs, using their own platform and their own funds.  That person is paying nearly three times as much as what an IFA portfolio could be.   So, there are parallels potentially with this thread.

coyrls

Thrugelmir said:

Companies such as Netwealth provide one off advice at a cost of £125 per hour (minimum £250). Ongoing advice 0.2% per annum (Minimum £1,000 per annum).  Both fees quoted are inclusive of VAT.  

This is what they say...

Our advisers offer restricted advice that relates to Netwealth’s products and services and does not consider the whole market. Netwealth does not provide tax or legal advice and does not advise on transfers of pensions with safeguarded benefits.

[Deleted User]

Albermarle said:

As an alternative to the usual agenda on this MSE board, the newcomer could be encouraged to manage the fortune himself, or at least give over his fortune to a few reputable fund managers. Cutting his costs and fighting his corner. I think I read that somewhere.

FYI, I have done that many times , especially where the amounts are not huge and the situation seems simple.  In fact I did it just 5 mins ago to someone paying 2.9% via an IFA for a £100k pot.

Knock yourself out. Prime example of a newcomer to the forum needlessly paying £60 per week to an adviser, potentially for another forty years. I'd sooner someone just apologised on behalf of the industry.

In this case the OP appeared to be going down the FA route , potentially with SJP. 

Or the IFA route with the other option. 

They mentioned a large pot and seemed to have little knowledge, so a move  to looking for a cheaper more local IFA seemed to be the logical step. Jumping straight to DIY may have worked great and then again maybe not....

That's the agenda I'm talking about, normalising the expectation that the newcomer to this board needs to buy ongoing financial advice from a financial adviser. Aside from calling the op "he" I'm going to make a couple more plausible assumptions about NG65. He's c fifty-five years of age and well provided with a DB pension. In other words, perfectly positioned to grow his fortune himself, given the agency to do so via a little help on this forum. 

It is something of an irony that those who occasionally debunk the mystique of the financial adviser are branded "haters" or zealots; while those who put in daily shifts on behalf of IFAs are somehow considered impartial; only one side has a vested interest and it's not mine.

Albermarle

while those who put in daily shifts on behalf of IFAs

I think you must have been reading one too many of those conspiracy theory websites !

[Deleted User]

MaybeAlbermarle said:

while those who put in daily shifts on behalf of IFAs

I think you must have been reading one too many of those conspiracy theory websites !

Maybe, but I think the general expectation following a newcomer's post touching this area is "Albermarle and dunstonh will be along in a minute." 
I understand dunstonh is an IFA, are you Albermarle, or just an admirer?

ChilliBob

Regarding my geographical point, I'm on the outskirts of London, zone 6 if you know the tube. Hence in my view anyone in commutable distance to Central London, or indeed closer is worthy of consideration, since most of it I expect will be done on a call, and if there is any face to face it can either be done locally or somewhere convenient for both parties.

I don't really want to wade into the ifa vs non ifa debate too much, I want to speak to ifas to see what ideas they have regarding tax, and just general advice. This is as someone new to investing with a large pot, quite the opposite of some who have built up over many years and gained experience along the way. 

Regarding a tax return, I did this myself last year but don't want to this year. I simply followed a recommendation, seems like a decent bloke. Based in Surrey so not local but has a small office in London should it be needed.