Some Investment Advice If possible

rabbit87

rabbit87 said:

2. Split your money into chunks of £80000 and put it in 1 year fixed bonds with interest between 5% - 6% making sure it is FSCS protected.

£75000 or bit less is probably better aim for around 4 accounts so that its easier to keep track of them.

rabbit87

Sorry to keep posting seperate posts but cant seem to edit my previous ones. Probably the best bit of advice I could give as a begginer to another beginner is never open a fixed interest account for longer than a year. That is probably the main thing I got right(I also got a lot wrong). When savings interest rates were 2% i nearly locked away money for 2 years to gain a tiny bit extra which would have been a disaster now that interest rates are over 5%.

eskbanker

rabbit87 said:

Sorry to keep posting seperate posts but cant seem to edit my previous ones. Probably the best bit of advice I could give as a begginer to another beginner is never open a fixed interest account for longer than a year. That is probably the main thing I got right(I also got a lot wrong). When savings interest rates were 2% i nearly locked away money for 2 years to gain a tiny bit extra which would have been a disaster now that interest rates are over 5%.

Long fixes lose (relative to short ones) when markets are increasing, but of course the converse applies when rates are dropping, so the gamble can go either way, i.e. generalising based on your specific experience isn't meaningful!

Eco_Miser

rabbit87 said:

Sorry to keep posting seperate posts but cant seem to edit my previous ones.

You'll be able to when you've built up your post count a bit more.

rabbit87 said:

Probably the best bit of advice I could give as a begginer to another beginner is never open a fixed interest account for longer than a year. That is probably the main thing I got right(I also got a lot wrong). When savings interest rates were 2% i nearly locked away money for 2 years to gain a tiny bit extra which would have been a disaster now that interest rates are over 5%.

That's great advice when interest rates are going up, but terrible advice when rates are about to fall.

I once had a substantial sum earning about 4% over available fixes, for over 4 years, having got a 5 year fix just before rates crashed.

rabbit87

eskbanker said:

Long fixes lose (relative to short ones) when markets are increasing, but of course the converse applies when rates are dropping, so the gamble can go either way, i.e. generalising based on your specific experience isn't meaningful!

Yeah I understand what you say your right. But I think it is meaningfull because you cant know whether interest rates will go up or down so its a gamble. And when you are starting out the less you gamble the better hence 1 year fix seems better.

If your on the wrong side of that gamble with a longer fix thats going to be very demorilising if its your first attempt at saving seriously and might damage your confidence for future. So the safer the better I say.

InvesterJones

rabbit87 said:

eskbanker said:

Long fixes lose (relative to short ones) when markets are increasing, but of course the converse applies when rates are dropping, so the gamble can go either way, i.e. generalising based on your specific experience isn't meaningful!

Yeah I understand what you say your right. But I think it is meaningfull because you cant know whether interest rates will go up or down so its a gamble. And when you are starting out the less you gamble the better hence 1 year fix seems better.

If your on the wrong side of that gamble with a longer fix thats going to be very demorilising if its your first attempt at saving seriously and might damage your confidence for future. So the safer the better I say.

The gamble is the same. Either you gamble that rates won't decrease and go shorter term, or you gamble that they will and go longer. It's no safer to go 1yr because if they decrease you won't be able to fix again at the rate you had. If you want to spread the risk, then split it and do both.

rabbit87

That's great advice when interest rates are going up, but terrible advice when rates are about to fall.

I once had a substantial sum earning about 4% over available fixes, for over 4 years, having got a 5 year fix just before rates crashed.

True. So the next question is how can you tell if they are going to go up or down? I dont think you can. We can only guess and so called experts are just guessers in a smart suits. That being said if true. My theory is you want to limit the damage if interest rates go against you thats more important.

eskbanker

rabbit87 said:

eskbanker said:

Long fixes lose (relative to short ones) when markets are increasing, but of course the converse applies when rates are dropping, so the gamble can go either way, i.e. generalising based on your specific experience isn't meaningful!

Yeah I understand what you say your right. But I think it is meaningfull because you cant know whether interest rates will go up or down so its a gamble. And when you are starting out the less you gamble the better hence 1 year fix seems better.

If your on the wrong side of that gamble with a longer fix thats going to be very demorilising if its your first attempt at saving seriously and might damage your confidence for future. So the safer the better I say.

There's no right or wrong answer here, but personally I'd say that it's important to recognise that you can never optimise your choices so as to win all the time, so anyone looking to fix needs to understand that it is a gamble and vanishingly unlikely to be absolutely the best outcome, versus all the other permutations of fixing for different periods at more favourable times.  Anyone failing to recognise this might consider the logical conclusion of your line of argument and stick to notice or easy access accounts, or maybe even investing for genuinely long term money....

Richard1212

Going back to earlier posts from and regarding Financial Advisers, an IFA like Dunsonh can be called an IFA after as little as 3 -6 months correspondence course even if he has worked as a postman all his life ( no offence to the great work they do) and has no financial background. My comparison with an aromatherapist is quite accurate, except I believe aromatherapists need slightly more course work and exams. 

A Wealth Manager is very different ( and perhaps dunsonh can tell us what subject his 2: 1 University degree was in, and what postgraduate work, and which University) . Here are exact quotes from online summarised in one paragraph :

QUOTE > " Usually wealth managers enter their career by taking part in an employer-based training or a graduate scheme. You'll need a 2:1 degree or higher, preferably in a business, finance, economics, management or a maths based subject. However, you will then need to have a good level of previous experience, and an in-depth knowledge of the finance industry.  Chartered Wealth Manager is the mark of an up to date, experienced and qualified financial sector professional. You will become part of an elite group of CISI Chartered Wealth Managers, similar in standing as other Chartered professionals with a specific occupational role, such as Chartered Surveyors. The Chartered Wealth Manager title is separate from CISI membership designations and should be added underneath your name on business cards and letterheads; it will formally demonstrate your professional competence to employers, colleagues and customers and set you apart from the competitors. The Chartered Wealth Manager Qualification is recognised by Ofqual as the CISI Level 7 Diploma in Wealth Management on the Regulated Qualifications Framework (RQF). On the European Qualifications Framework this equates to a level 7 qualification." <UNQUOTE.

IFAs are not even much use for a punter with a few hundred £s. Wealth Managers, as clearly explained above, are for clients with real wealth and for those who want the excellence that brings a great deal more wealth to the wealthy. 

The facts are clear and I won't be explaining them again or responding to the desperate IFAs or their users on this site. If anyone wants to increase real wealth and manage it well , I am sure they can find a Wealth management team as good as mine by googling and then investigating their backgrounds etc. All the best to real investors who rely on professional excellence to make their fortune rather than those who use the IFAs fresh from their 3-6 month "training".

inkydolphin

I would advise the OP to go to an aromatherapist for advice. What could possibly go wrong?