Is it worth getting a Financial Advisor

Albermarle

wjr4 said:

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. 

Maybe worth while reading some of the posters previous posts. He tends to trot out the same stuff on a regular basis.

PloughmansLunch

wjr4 said:

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

You can qualify to use Chartered Wealth Manager as a title here:
https://www.cisi.org/cisiweb2/cisi-website/study-with-us/wealth-retail/chartered-wealth-manager-qualification

At 609 hours it's not quite a 6 month course, but I suppose if you only did a few hours a day you could stretch it out.

wjr4

Albermarle said:

wjr4 said:

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. 

Maybe worth while reading some of the posters previous posts. He tends to trot out the same stuff on a regular basis.

Noted, thank you!

wjr4

PloughmansLunch said:

wjr4 said:

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

You can qualify to use Chartered Wealth Manager as a title here:
https://www.cisi.org/cisiweb2/cisi-website/study-with-us/wealth-retail/chartered-wealth-manager-qualification

At 609 hours it's not quite a 6 month course, but I suppose if you only did a few hours a day you could stretch it out.

They might gain the qualification but you still need to go through the regulator and internal compliance training before you can advise. It isn’t as simple as just passing some exams. 

dunstonh

PloughmansLunch said:

wjr4 said:

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

You can qualify to use Chartered Wealth Manager as a title here:
https://www.cisi.org/cisiweb2/cisi-website/study-with-us/wealth-retail/chartered-wealth-manager-qualification

At 609 hours it's not quite a 6 month course, but I suppose if you only did a few hours a day you could stretch it out.

The CII, the most commonly used exam board, have the notional Ofqual ‘Total Qualification Time’ at 600 hours to level 6 chartered status.   However, that is on top of the level 4 qualifications already sat and passed and you need to do it on top of the working day.  and its the shortest combination of options to get it.  Further study time will be needed for any units required to meet any specialisation they want to have or their firm/employer requirements.

Chartered is the key thing for high net worth individuals.   Chartered Financial Planner (whether IFA or FA) is what the CII allow you to use.   Chartered Wealth Manager (whether IFA or FA) is what the CISI allow you to use.  other exam boards are also available.

caper7

What is considered high net worth? 

Albermarle

caper7 said:

What is considered high net worth? 

There is no fixed definition.
I think in terms of financial advice, a 'normal' IFA should be comfortable dealing with family assets say up to at least a Couple of Million Pounds ( excluding the family home) assuming that most of this will be in mainstream products like pensions, cash savings, Stocks and Shares ISA's and other mainstream regulated investments.
Much more than this then some more specialised knowledge may be useful especially in the area of tax planning and venture capital type investments, offshore etc .

SieIso

El_Torro said:

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.

I increased my pension contributions from 8% to 9% in January and my S&Ss investment contributions from £100 to £200 per month. My issue with both the pension pot and the S&Ss is that I don't really understand what their invested in.

My kids are 3 and 1.