Is it worth getting a Financial Advisor

Cannonball2134

I agree with @Richard1212, the decision to work with an IFA or a wealth manager ultimately depends on your individual needs and preferences. If you are looking for independent advice, an IFA may be the right choice. If you want comprehensive financial services and have complex financial needs, a wealth manager may be better. 

In either case, i would recommend checking the reviews of anyone you use, and comparison sites are often great for getting in front of a few different IFA or wealth managers. 

ColdIron

Avoid 'wealth managers'

SieIso

eskbanker said:

SieIso said:

I am generally reasonable with money matters but I have been looking at my portfolio including my investments, pensions etc and I am not sure I am maximising and managing them well enough.

I also want to get my kids off to a good start and I am just feeling stuck overall. Is a financial advisor a good option?

If you share a paragraph or two on here outlining the size, composition and strategy of your portfolio, plus your objectives, risk tolerance, etc, plus whatever is concerning you about this, then you might get one or two pointers, including whether or not an IFA would be beneficial?

Just updated the original post with more information.

Albermarle

Apart from the CHIP cash which you have earmarked for a property purchases, otherwise you seem very 'cash heavy'
£50K in PB's and £85K with Raisin.
Cash interest rates are better than they have been for some time, and maybe will even beat inflation next year.
However historically investments have beaten cash in the long term, so you probably need to reduce cash and increase investments.
For money that may be needed in the medium term. Longer than say 7 years, but before retirement you may want to consider adding to your S&S ISA.
For retirement money then pension is a better bet due to tax relief. Currently you are putting in 20% which is pretty good, but would be better if the fund of £77K was higher, especially if you have any ideas about retiring early.  So consider a lump sum pension contribution and/or increasing your contribution and live off the cash savings as a top up.
Make sure you are familiar with how your pension is invested. Very often no investments choices have been made and your money will be in their default investment fund, which may or may not suit your needs.
I am not an advisor but I think approx that is what an IFA would suggest and manage for you.

eskbanker

SieIso said:

eskbanker said:

SieIso said:

I am generally reasonable with money matters but I have been looking at my portfolio including my investments, pensions etc and I am not sure I am maximising and managing them well enough.

I also want to get my kids off to a good start and I am just feeling stuck overall. Is a financial advisor a good option?

If you share a paragraph or two on here outlining the size, composition and strategy of your portfolio, plus your objectives, risk tolerance, etc, plus whatever is concerning you about this, then you might get one or two pointers, including whether or not an IFA would be beneficial?

Just updated the original post with more information.

Your update doesn't really clarify objectives though - you mention a short term requirement for significant cash but don't really indicate what you anticipate using the rest for, and when.

The initial impression is that you're very cash heavy, with at least twice as much in cash savings than in your pension and investments - this is unlikely to be optimal if you're planning ahead for 10-20 years but might be appropriate if you foresee significant expenditure in the short to medium term?

SieIso

eskbanker said:

SieIso said:

eskbanker said:

SieIso said:

I am generally reasonable with money matters but I have been looking at my portfolio including my investments, pensions etc and I am not sure I am maximising and managing them well enough.

I also want to get my kids off to a good start and I am just feeling stuck overall. Is a financial advisor a good option?

If you share a paragraph or two on here outlining the size, composition and strategy of your portfolio, plus your objectives, risk tolerance, etc, plus whatever is concerning you about this, then you might get one or two pointers, including whether or not an IFA would be beneficial?

Just updated the original post with more information.

Your update doesn't really clarify objectives though - you mention a short term requirement for significant cash but don't really indicate what you anticipate using the rest for, and when.

The initial impression is that you're very cash heavy, with at least twice as much in cash savings than in your pension and investments - this is unlikely to be optimal if you're planning ahead for 10-20 years but might be appropriate if you foresee significant expenditure in the short to medium term?

I think you have in some ways addressed my point. I am not sure what I should be doing, I did not realise my portfolio is too cash heavy. I pay £200 per month into my S&S account but again I am not sure if this account suits me and the same applies to my pension.

I had planned to kill off my current mortgage in March 2024 when it is up for renewal - hence some of the cash with other amounts on the potential new house but this has been plodding along for a year or two.

I just feel stagnant regarding my finances and I am not sure what to do, things like my pension and S&Ss I do not fully understand and I felt a Financial Advisor might help.

Albermarle

I just feel stagnant regarding my finances and I am not sure what to do, things like my pension and S&Ss I do not fully understand and I felt a Financial Advisor might help.

An alternative is to learn more yourself about these things. It is not rocket science, but it helps if you are reasonably numerate with a reasonably rational outlook about risk etc and you are prepared to spend some time on it.

Reading this and the pensions forum can help, as it has helped many who are now regular contributors.

Plus there are books, info on the internet etc

Clearly it does not suit everybody, in which case you could be better off paying an IFA. Or do what the majority do and just stumble blindly along.....

El_Torro

One thing you mention in your opening post is that you want to get your kids off to a good start. If they are under 18 you can open Junior ISAs for them. Either in Cash or Stocks & Shares (which one is better will depend on how close they are to 18). Remember though that they will be able to access their money when they turn 18, which you may or may not want. 

I agree with other posters in saying that it looks like you are currently holding too much cash. Your pension could probably do with a boost. One way to boost it is to increase your monthly contributions in your workplace pension and if this means you don't have enough take home pay you can always spend some of your cash savings. ISAs are also a useful investing tool alongside pensions, since you can access the money in ISAs whenever you want. 

To answer your original question about whether you should consult an IFA: A lot of improvements can be done to your portfolio relatively easily, without the need to pay someone else to do it. It really depends on your capacity and willingness to learn about such things. Personally I'm happy managing my own finances. Tell me something is wrong with my car and I'll go straight to a mechanic though. IFAs are very useful for some people, less so for others.

wjr4

Richard1212 said:

If you are really rich, you need a Chartered Wealth Manager----and I reckon if you are so rich, you would already have a Wealth manager---if not, I am happy to recommend my own Wealth Manager, who is invaluable to me, via private mail if you are seriously considering the option.

I have mixed views about IFAs, because , as I have said on this forum before, some of them can call themselves "IFAs" by just having got a certificate after a 6 month correspondence course ( and most people probably know more about what to do with their money than those sort of IFAs). 

An important factor , too, is that ----as the titles suggest-----an IFA gives ADVICE and then leaves you to arrange any further management of a portfolio etc. A Wealth Manager gives ADVICE and then MANAGES your assets , which is a great way to avoid the sheer hard work in managing wealth.

This is incorrect. 

1) an IFA & chartered financial planner give the same advice. It’s just an additional qualification. You can still get terrible chartered financial planners. 

2) you can’t become an adviser after a 6 month course. 

3) an IFA also manages wealth. So that’s completely incorrect. 

wjr4

Cannonball2134 said:

I agree with @Richard1212, the decision to work with an IFA or a wealth manager ultimately depends on your individual needs and preferences. If you are looking for independent advice, an IFA may be the right choice. If you want comprehensive financial services and have complex financial needs, a wealth manager may be better. 

In either case, i would recommend checking the reviews of anyone you use, and comparison sites are often great for getting in front of a few different IFA or wealth managers. 

I’m concerned that people on this forum think an IFA and wealth manager are different. Wealth managers are usually just sales people from companies like SJP. IFAs are completely independent and also manage wealth.