Financial Advice

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bcreek
bcreek Posts: 3 Newbie
in Pensions, annuities & retirement planning
I am seeking advice on how best to setup a solid savings plan now for retirement and firmly putting money away over the next 20+ years - am 41 now. Previously I have managed my finances independently investing through a trading ISA but am at a stage now that I want to hand over to a 3rd party to manage and grow. I just need to optimal plan for maximising my retirement income likely to be 60-65. I make over 6 figures annually and do have some money behind me e.g. up to 100k plus healthy equity in my sole property. Am just not sure who to speak to e.g. is it an independent financial adviser, my bank, a business? Generally I think I'm more keen to engage an adviser who can help me setup a plan and put me on the right path then I will go it alone. However, if there is rationale for paying an adviser ongoing who can better maximise my money then I'm open.

Any general advice, direction or feedback is appreciated...
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Comments

  • 232607
    232607 Posts: 158 Forumite
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    Seek the advise of an IFA.
    Whatever you do don’t take the advise of your bank.
    They have a shady history of poor practices & no doubt they’ll have their own interests at heart rather than yours.
  • fred246
    fred246 Posts: 3,620 Forumite
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    iFAs have a history of shady practices and have their own interests at heart.
  • Spreadsheetman
    Spreadsheetman Posts: 436 Forumite
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    fred246 wrote: »
    iFAs have a history of shady practices and have their own interests at heart.
    That is a ridiculous generalisation. Sure, there are bad apples in every barrel, but there are plenty of good and ethical IFAs around. Several post very helpful advice on this board.


    (and no, I'm not an IFA myself - but I do use one and have received very good advice)
  • bcreek
    bcreek Posts: 3 Newbie
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    yeah that's sort of what unnerves me - does sound like IFA is the way to go but there are so many out there I just don't know where to start, or how much you can trust in the individual...
  • bcreek
    bcreek Posts: 3 Newbie
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    do you use them as part of a regular service or just to put you on the right path - in which case you wouldn't necessarily engage them much thereafter?

    Does the IFA provide the advice or are they specifically engaged in managing your finances and deciding where to invest, then taking a fee of that growth?
  • 232607
    232607 Posts: 158 Forumite
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    fred246 wrote: »
    iFAs have a history of shady practices and have their own interests at heart.

    I was more alluding to the fact the banks on mass have previously engaged in practices that have best been morally wrong, at worst illegal.
    The vast majority of IFS's will have the interest of their clients as a priority, whilst obviously needing make a living themselves.
  • dunstonh
    dunstonh Posts: 116,371 Forumite
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    fred246 wrote: »
    iFAs have a history of shady practices and have their own interests at heart.

    Yet the figures do not support that. Still, you can say all sorts of rubbish on the internet.

    And of course IFAs have their own interests at heart. Nobody goes to work out of love. How many times have you handed your pay back to the employer?
    does sound like IFA is the way to go but there are so many out there I just don't know where to start, or how much you can trust in the individual...

    You can trust them fine. IFAs have the lowest complaints stats of any distribution channel. No industry in any area can claim perfection but 0.5% of FOS complaints are about IFAs (most get rejected) and IFAs handle millions of transactions a year.
    do you use them as part of a regular service or just to put you on the right path - in which case you wouldn't necessarily engage them much thereafter?

    You can do either ongoing or transactional one off or ad-hoc.
    Does the IFA provide the advice or are they specifically engaged in managing your finances and deciding where to invest, then taking a fee of that growth?

    Performance fees are not a good idea. They create bias and positive periods outnumber the negative. So, it would actually end up costing more. It is also a method that is not typically facilitated by providers. Normally, for ongoing, it is x% p.a.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • bostonerimus
    bostonerimus Posts: 5,617 Forumite
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    Read a few books on investing and use your pension and ISA for the tax advantages. Keep things simple and invest in a few equity and bond funds. I would use an inexpensive globally diversified index tracker portfolio.
    “So we beat on, boats against the current, borne back ceaselessly into the past.”
  • tacpot12
    tacpot12 Posts: 7,968 Forumite
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    You should ask the IFA what evidence they can provide that their discretionary management option is better than the DIY option or an irregular or regular review A good IFA will be able to demonstrate the return they achieve on each of their model portfolios. (They will have a model portfolio of each category of risk and/or investment aim). You will have to decide for yourself what return you can achieve if you self-manage - you need to be very strict with yourself here - it is very tempting to believe that you can outperform the IFA; but can you really do so given the fact that they do the work on a fulltime basis?
    The comments I post are my personal opinion. While I try to check everything is correct before posting, I can and do make mistakes, so always try to check official information sources before relying on my posts.
  • xylophone
    xylophone Posts: 44,412 Forumite
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    https://www.moneyadviceservice.org.uk/en/articles/choosing-a-financial-adviser

    https://www.telegraph.co.uk/pensions-retirement/financial-planning/choose-independent-financial-adviser-ifa-much-should-pay/

    https://adviserbook.co.uk/
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