Ifa

Elis83

Hello, I am considering getting advice from an IFA. my income including basic salary and benefits etc is slightly above 100k. I am starting to have savings on one hand and stock options from my company. I hired a tax accountant for my tax return as I was confused and he ended up saving me money! So I'm thinking Is it reasonable that I would also hire a financial advisor? Do people in my situation normally get professional advice?I'm unsure about investments etc and I opened a SIPP and a ISA account. Most importantly what shall I expect to pay an IFA? ANY advice appreciated 

dunstonh

 So I'm thinking Is it reasonable that I would also hire a financial advisor?

It depends on your objectives and whether you need one or not.

Do people in my situation normally get professional advice?

Some do. Some don't.  IFAs do generally get used by people with more wealth.

Most importantly what shall I expect to pay an IFA? 

It depends on what services you are after and how much is involved.

Albermarle

 Do people in my situation normally get professional advice?I'm unsure about investments etc and I opened a SIPP and a ISA account. Most importantly what shall I expect to pay an IFA? ANY advice appreciated 

You do not mention any pension connected with your employment ?This is usually a very important part of any financial planning .

Many regular contributors to this forum prefer to DIY their investments , pensions, savings etc  but it depends on your level of knowledge and interest in the area. 

The cost of an IFA will also depend on what level of funds you are talking about . 

Elis83

Thank you for all the answers! All very helpful. Yes I also have a pension from my workplace, I know there's about 64k in there, but I dont know if I should do anything with it like if I should invest it? 

Elis83

I'm not even sure how.much money I should leave in cash vs how.much I should invest, considering I'm not saving for anything big like a house. Or also I dont know if I should start investing for my child. All these are types of questions inward hoping the ifa would help with, but I'm not sure this is what people use them for,  and I'm beginning to think probably this is not the typical case

LHW99

Elis83 said:

Thank you for all the answers! All very helpful. Yes I also have a pension from my workplace, I know there's about 64k in there, but I dont know if I should do anything with it like if I should invest it? 

Normally a workplace pension puts contributions ("invests") in a default fund if you don't make a specific choice. Its usually middle of the road, shouldn't lose all your money over the long term, won't shoot the lights out and will just chug along.

Maybe you should look into exactly what you do have, since if you decide to use an IFA it helps if you know a bit about what / where your money is already.

enthusiasticsaver

From the sound of it you are in a fortunate position as you are a higher earner and personally given you do not appear to be well informed on investments and tax efficient ways of saving and investing.  You can of course put some time into researching if you wish to.  I would make a  start on finding out what your pension is invested in.  I started DIY investing in a general multi asset fund a number of years ago but now we use an IFA solely for the reason that I wanted the additional confidence we were invested in the right things for us once we retired. Most of them charge on a percentage basis.  You may also need to speak to a few to find one you are happy with.  Personal recommendation is good. 

Thinking about your financial objectives is a good idea and a good IFA will help with that.  If you have children then investing for their future certainly sounds sensible.  You should also be maximising pension contributions given you earn a lot and presumably are a higher rate tax payer.  How much cash you keep aside depends on your circumstances.  Some people say 6 months expenses as an emergency fund on the assumption that if you lost your job you would still need to pay your bills.  Personally we have always kept around £10k in easily accessible money on the grounds it is there should we need an emergency house  repair, car replacement, private health costs etc etc. Others are content with less or more.  It is an individual decision.  

bostonerimus

Before you do anything take the time to understand your workplace pension. Find out what type of pension it is, Defined Contribution or Define Benefit and how much you and your employer are contributing. Then take the time to investigate SIPPs and ISAs and the basics on investing. It really isn't difficult. Here is a link with some information

https://www.bogleheads.org/wiki/Investing_from_the_UK

I would also 
1) do a budget to understand and control your spending
2) save at least 6 months spending in the bank for emergencies
3) pay off all high interest debt, everything except mortgage and student loans.
4) contribute to a workplace pension, ISA and/or LISA if you qualify and want to buy a house.
5) invest in low cost diversifed multi-asset funds or a portfolio of a few index funds
6) keep things simple, stay with well known reputable companies and don't follow "hot tips" or fads.

Elis83

Thank you!! Everyone is saying look into my work pension,  I'll do that!! For the rest, sounds like I'm in the right direction.  I have a sipp and isa with AJ bell you invest.  But only started c investing 1k of my funds,  as a test to learn and I chose one of the an bell funds with supposedly not high risk.  

Elis83

I might come back with more questions I appreciate all the answers you gave me!

Albermarle

Just to add that if even if you do employ an IFA , it will still be better if you improve your basic knowledge in this area as suggested in previous posts .
It is like going to a garage with your car , the more you understand about cars , the more you can understand what the mechanic is telling you and the better you can make any necessary decisions. Same with an IFA.

Some more links that might help .

Investing in stocks for beginners: how to get started - MSE (moneysavingexpert.com)

Pensions: Everything you need to know for retirement - MSE (moneysavingexpert.com)

By the way depending on exactly the sort of pension you have , it will probably be very beneficial to add more to it as you will get higher rate tax relief, which is  very generous .