Are FA worth the money?

dunstonh

dont_use_vistaprint said:

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

HSBCs in house proposition doesn't retail the whole HSBC investment range.  That is only available to IFAs.    

I just looked at HSBCs charges and they are higher.  So, an IFA can retail HSBC investments cheaper than HSBC (or potentially more if you went to an expensive one).

HSBC is not the lowest cost investment range.  It was for a while but that is no longer the case.   But if you limit yourself to a method that only retails HSBC then that is all they are looking at.  They are not looking at other options from the marketplace.

Why do you think an IFA would not understand the complexities of the situation?    Its usually the other way around.   Banks used to the training grounds for new advisers who would then go on to become IFAs.   Indeed, it was often referred to as doing your time with a bank or insurer before moving on to become an IFA as that was the progressive career path.

dunstonh

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

Most IFAs apart from a few prestige city firms would not refuse services on £250k

LHW99

Maybe an annuity would provide what you want? There are threads here on that:

https://forums.moneysavingexpert.com/discussion/6630118/considering-an-annuity-with-another-provider-is-an-ifa-really-needed-to-do-this#latest

https://forums.moneysavingexpert.com/discussion/6629120/annuity-5-increase-per-year-or-rpi#latest

An IFA could help with that.

Albermarle

dont_use_vistaprint said:

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

As the OP said - it is 250k not 2.5 million- just a typo.

So offshore tax issues will not be relevant.

Yorkie1

Allaraa said:

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) 

Do you mean that you want the income in 3 years' time, or that you might want to invest in up to 3 years' time?

It might make a different to responses.

QrizB

Yorkie1 said:

Allaraa said:

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) 

Do you mean that you want the income in 3 years' time, or that you might want to invest in up to 3 years' time?
It might make a different to responses.

And how long do you want the income to last? A few years to bridge to eg. state pension age? The rest of your life?