What to do with 150K?

johnthebusdriver

What/where would the best place be to put 150k? Currently have investments with St James place but at a very hefty 5% which is £7500 to give them more money doesn't particularly appeal to me. Ideally I would just like to deposit the money and watch it grow (hopefully) really dont have the time or knowledge to be playing the stock markets which is why SJP has been ideal for me. Is there anywhere else that does the same kind of thing but not charge quite so much?

eskbanker

SJP are renowned for being high cost but if you're uncomfortable with DIY investing and are looking for assistance then you'd probably be better using an independent financial advisor.  Shop around locally to find an IFA that offers what you want at a price you're happy with:

https://www.moneysavingexpert.com/savings/best-financial-advisers/

Or DIY isn't as onerous as you might think, so research a bit more on here and elsewhere - it's quite possible to bung your money into a 'fire and forget' low-cost global or multi-asset fund on a mainstream platform and pay less than a tenth of what you currently are....

Bostonerimus1

1) Leave SJP asap.
2) Do a detailed budget so you can see where you spend your money and where you can save.
3) Pay off any high interest debts.
4) Make sure you have 6 months' to a year's cash in the bank as an emergency fund.
5) Make extra contributions to low cost index funds in your workplace pension.
6) Make contributions to low cost index funds in your ISA.
7) Make contributions to low cost index funds a general investment account

Olinda99

one important question is how old are you? 25, 50, 85  ? I am guessing not 85 as I don't think 85 year olds are allowed to drive buses! 

Albermarle

johnthebusdriver said:

What/where would the best place be to put 150k? Currently have investments with St James place but at a very hefty 5% which is £7500 to give them more money doesn't particularly appeal to me. Ideally I would just like to deposit the money and watch it grow (hopefully) really dont have the time or knowledge to be playing the stock markets which is why SJP has been ideal for me. Is there anywhere else that does the same kind of thing but not charge quite so much?

I know SJP are expensive but 5% seems very high even for them !

There is a a misconception that people who do their own investing are always 'playing the stock market' Maybe sat in front of a bank of screens at home , yelling Buy or Sell down the phone.
The reality is that most of the regular contributors to this forum, do not own individual shares and maybe make a couple of changes to their portfolio every 6 months or so. 
There are simple multi asset funds that do most of the job for you, at a cost of around 0.5% all in. 

Beddie

Just one example would be to open an account at iWeb. They are part of Lloyd's Bank. They charge an annual fee of zero. 

Then you could put the money into a risk level that's right for you. What do SJP think your risk level is? If you look at the mix of share/bonds that should give you an idea of what to choose from the range below.

A popular fund range is HSBC global strategy. The charges are around 0.2%, far cheaper than you are paying.

https://www.assetmanagement.hsbc.co.uk/en/intermediary/capabilities/multi-asset/hsbc-global-strategy-portfolios

There are many other options, but have a look at these for inspiration and come back with any questions.

wjr4

Albermarle said:

johnthebusdriver said:

What/where would the best place be to put 150k? Currently have investments with St James place but at a very hefty 5% which is £7500 to give them more money doesn't particularly appeal to me. Ideally I would just like to deposit the money and watch it grow (hopefully) really dont have the time or knowledge to be playing the stock markets which is why SJP has been ideal for me. Is there anywhere else that does the same kind of thing but not charge quite so much?

I know SJP are expensive but 5% seems very high even for them !

There is a a misconception that people who do their own investing are always 'playing the stock market' Maybe sat in front of a bank of screens at home , yelling Buy or Sell down the phone.
The reality is that most of the regular contributors to this forum, do not own individual shares and maybe make a couple of changes to their portfolio every 6 months or so. 
There are simple multi asset funds that do most of the job for you, at a cost of around 0.5% all in. 

5% is their initial charge and has been for years.

ColdIron

SJP rationalise their initial charge as the fee for their advice. Advice is valuable and doesn't come for free. Other financial advisors will levy an explicit fee for advice but due to the bundled nature of the SJP charging structure they choose to employ this outdated method

So it's important to compare apples with apples, it's not a recurring or annual fee, that is a separate charge many think is high as well but also pays for ongoing advice (which some have not received). However in the past there have been suggestions that there has been an unreasonable level of 'churn' during reviews, swap into a different fund, another initial fee

IvanOpinion

Albermarle said:

johnthebusdriver said:

What/where would the best place be to put 150k? Currently have investments with St James place but at a very hefty 5% which is £7500 to give them more money doesn't particularly appeal to me. Ideally I would just like to deposit the money and watch it grow (hopefully) really dont have the time or knowledge to be playing the stock markets which is why SJP has been ideal for me. Is there anywhere else that does the same kind of thing but not charge quite so much?

I know SJP are expensive but 5% seems very high even for them !
 

That is what one of their salesmen quoted me. Even managed to keep a straight face when saying it. 
Seemed very upset when I burst out laughing.

IvanOpinion

johnthebusdriver said:

What/where would the best place be to put 150k? Currently have investments with St James place but at a very hefty 5% which is £7500 to give them more money doesn't particularly appeal to me. Ideally I would just like to deposit the money and watch it grow (hopefully) really dont have the time or knowledge to be playing the stock markets which is why SJP has been ideal for me. Is there anywhere else that does the same kind of thing but not charge quite so much?

You do not need to 'play the market' there are ready built portfolios/products available at significantly less than you are paying SJP - simply buy and forget. Do you know if you are subject to any exit fees if you took control of your own finances?

If you really are not confident in managing it yourself then consider looking for a good IFA, who should cost you less.

Albermarle

ColdIron said:

SJP rationalise their initial charge as the fee for their advice. Advice is valuable and doesn't come for free. Other financial advisors will levy an explicit fee for advice but due to the bundled nature of the SJP charging structure they choose to employ this outdated method

So it's important to compare apples with apples, it's not a recurring or annual fee, that is a separate charge many think is high as well but also pays for ongoing advice (which some have not received). However in the past there have been suggestions that there has been an unreasonable level of 'churn' during reviews, swap into a different fund, another initial fee

Fair comment, but the OP has not mentioned what ongoing charges they are paying each year. Presumably these will be 'high end' , to put it politely.