Are FA worth the money?

Allaraa

I have 2500k to invest and the FA (not even an IFA wants £2500) I am getting fed up with the run around and thinking of bunging it all in high interest accounts or bonds, which at the moment seems about a similar return, however can they really get me more? 
Is managing money that hard I need a FA? Could I do it myself? I want an income and am 57 and work part time

Exodi

Allaraa said:

I have 2500k to invest and the FA (not even an IFA wants £2500) I am getting fed up with the run around and thinking of bunging it all in high interest accounts or bonds, which at the moment seems about a similar return, however can they really get me more? 
Is managing money that hard I need a FA? Could I do it myself? I want an income and am 57 and work part time

I presume you mean £2500 and not 2500k!

EDIT: In hindsight (and reading other comments!) it's most likely intended to be £250k!

You can get more on your money but returns are correlated with risks. If that is all the savings you have, I wouldn't personally be taking any risks and would accept the ~4% you might get in a savings account (or maximise it a bit by cycling ~7% regular savers).

flaneurs_lobster

Do you really have £2,500,000 to invest? Or a quarter of a million pounds? Or some other sum?

Write it down without abbreviations.

JoeCrystal

More likely to be £250,000 come to think of it as it is 1% fee.

Mark_d

Allaraa said:

I have 2500k to invest and the FA (not even an IFA wants £2500) I am getting fed up with the run around and thinking of bunging it all in high interest accounts or bonds, which at the moment seems about a similar return, however can they really get me more? 
Is managing money that hard I need a FA? Could I do it myself? I want an income and am 57 and work part time

You have £2.5m to invest?   I presume this is possibly from lottery winning or a generous inheritance?

I would certainly recommend going to an IFA.  The recommendation will need to account for any debts you have, any savings/investment you have, your attitudes to risk, what you would like to happen after you die....

If I was given £2.5m I'd invest it in the villa I would like to retire to

Albermarle

JoeCrystal said:

More likely to be £250,000 come to think of it as it is 1% fee.

I would guess that was the case.

OP assuming you meant £250K then first point is that a advisors job ( independent or not) is to invest your money appropriately and in line with your objectives/future plans.
Going for high growth, means taking on more risk, which is usually more appropriate for people under 50, rather than over 50.
Another objective would be for your money not to run out too soon and to be tax efficient.

Bostonerimus1

Allaraa said:

I have 2500k to invest and the FA (not even an IFA wants £2500) I am getting fed up with the run around and thinking of bunging it all in high interest accounts or bonds, which at the moment seems about a similar return, however can they really get me more? 
Is managing money that hard I need a FA? Could I do it myself? I want an income and am 57 and work part time

IMO, FAs and IFAs are not worth the money, but I DIY. If you can't be bothered to manage your own finances or learn how to do it, then an IFA is probably required. But it's perfectly possible to invest your own money inside tax wrappers like DC pensions and ISAs and in general investment account. Companies like AJ Bell, H&L and Vanguard offer accounts and investment funds to meet most requirements. People often get intimidated by personal finances and don't seem able to sit down and learn the things they need to do, but it just takes a little common sense and some basic maths. 

So,
0) Do a budget and spend less than you earn.
1) Put 6 months to a year's spending in an emergency cash account in the bank.
2) Pay off all high interest debt.
3) Contribute to your work place pension, if it is DC buy low cost index funds.
4) Contribute to your ISA, buy low cost index funds.
5) Contribute to a general investment account, buy low cost index funds.
6) Save for a house deposit.

Linton

Allaraa said:

I have 2500k to invest and the FA (not even an IFA wants £2500) I am getting fed up with the run around and thinking of bunging it all in high interest accounts or bonds, which at the moment seems about a similar return, however can they really get me more? 
Is managing money that hard I need a FA? Could I do it myself? I want an income and am 57 and work part time

We do need to know how much money you really have

If you consult anyone it should be an IFA not an FA. I is for Independent.  IFA's are regulated and must be able to  provide advice using products from across the market.

FAs can only provide regulated on a limited range of products, usually their employer's. They can best be regarded as salesmen.

Nothing stopping you managing your own money.  If you do something foolish (putting it all in high interest bank accounts would probably be foolish if you want good long term returns)  then you are responsible for the consequences.

IFAs should be able to advise you on  what investments are most appropriate for your circumstances, needs and wishes. So they don't just choose funds, they can also advise on other relevent factors such as taxation, optmising for your beneficiaries etc.  If their advice is inappropriate they can be sued for the financial loss incurred.
.

If you have or get the skills to choose appropriate investments and manage them over time then DIY can be both worthwhile and enjoyable. If you dont,  then paying an IFA £2500 can be a much better option. It is much the same in that way as with any other tradesman.

dont_use_vistaprint

Linton said:

Allaraa said:

I have 2500k to invest and the FA (not even an IFA wants £2500) I am getting fed up with the run around and thinking of bunging it all in high interest accounts or bonds, which at the moment seems about a similar return, however can they really get me more? 
Is managing money that hard I need a FA? Could I do it myself? I want an income and am 57 and work part time

We do need to know how much money you really have

If you consult anyone it should be an IFA not an FA. I is for Independent.  IFA's are regulated and must be able to  provide advice using products from across the market.

FAs can only provide regulated on a limited range of products, usually their employer's. They can best be regarded as salesmen.

Nothing stopping you managing your own money.  If you do something foolish (putting it all in high interest bank accounts would probably be foolish if you want good long term returns)  then you are responsible for the consequences.

IFAs should be able to advise you on  what investments are most appropriate for your circumstances, needs and wishes. So they don't just choose funds, they can also advise on other relevent factors such as taxation, optmising for your beneficiaries etc.  If their advice is inappropriate they can be sued for the financial loss incurred.
.

If you have or get the skills to choose appropriate investments and manage them over time then DIY can be both worthwhile and enjoyable. If you dont,  then paying an IFA £2500 can be a much better option. It is much the same in that way as with any other tradesman.

Why would you not consider an FA’s input? For example you have a big relationship with a very large organisation like HSBC or Barclays and they have experts albeit on their own products and services but still a vast amount of options including offshore tax treatment, why would you not consider their advice compared to say an IFA who would not fully understand the complexities of your situation

Allaraa

it is 250k not 2.5 million- just a typo.

Allaraa

I have a house with no mortgage and no debts. I am 57 and would just like to invest  money for an income, either now or in a few years ( 3 at the most)