Where to start/which option!!

Hi,

A good place to start is the Motley Fool; here's a link to the site map -

http://www.fool.co.uk/help/sitemap.htm

Go to the Fool School Articles section ( first in the Personal Finance box ) and start reading! If you have any questions there are two boards for newbies, Ask a Foolish Question

http://boards.fool.co.uk/messages.asp?mid=8950495&bid=50000

And Absolute Beginners-Investing

http://boards.fool.co.uk/Messages.asp?mid=8927808&bid=50014

I have to disagree with the advice to see an IFA; in my experience there are many more bad ones than good and unless you know something about the subject you won't be able to tell them apart.

HTH

Cheerfulcat

I guess you apply that to there being more bad teachers than good, more bad policeman than good, more bad doctors than good?

There are about 30,000 advisors in the UK.  I guess you must have had a busy time seeing the majority of them.

Well yes, as a matter of fact, I would say that there are more people who are bad at their jobs than are good. I wonder why you only quoted part of what I said, leaving out the bit about telling them apart...

As to my experience, I have had occasion for one reason and another to see 12 ( yes, twelve ) IFAs over the last ten years and the overall impression I have is that they are more interested in making money for themselves than in advising what's best for the investor. Not one of them has recommended an investment which didn't pay commission. They were all dismissive of the possibility that I might invest the money myself directly in shares and other assets ( which I have done, with a return of an average 20% pa; not a boast, as I know that this, and much more,is possible for anyone prepared to do some research ).

The standard IFA response at this point is to say " go to a fee-based advisor ". Well, I tried that and they actively tried to discourage me, saying that they would have to charge VAT and that it would be horribly expensive, never mentioning the corrosive effect of charges on one's investment in a
" product "...the IFA connected to a huge international firm of accountants went so far as to charge me ( when I didn't like his advice and turned down his recommendations ) not his hourly rate ( £150 an hour is the going rate, folks; worth doing some research, isn't it?) but the commission his firm would have received; so instead of £300 he wanted £2500.

There's no need to take a snidey tone, by the way, and it just confirms what I think about IFAs; they are far too arrogant. Most people would be able to handle their own finances perfectly well if properly educated and it doesn't take that much of an effort to educate oneself.

Regards

Cheerfulcat

There's no need to take a snidey tone, by the way, and it just confirms what I think about IFAs; they are far too arrogant. Most people would be able to handle their own finances perfectly well if properly educated and it doesn't take that much of an effort to educate oneself.

Oh dear, someone got out the bed the wrong side this morning.

The standard IFA response at this point is to say " go to a fee-based advisor ". Well, I tried that and they actively tried to discourage me, saying that they would have to charge VAT and that it would be horribly expensive, never mentioning the corrosive effect of charges on one's investment in a
" product "...the IFA connected to a huge international firm of accountants went so far as to charge me ( when I didn't like his advice and turned down his recommendations ) not his hourly rate ( £150 an hour is the going rate, folks; worth doing some research, isn't it?) but the commission his firm would have received; so instead of £300 he wanted £2500.

Perhaps you are trying to deal with IFAs that dont really want to deal with you. IFAs that deal with the top end of the market will usually price themselves out of the lower/middle end as they dont see a profit in that area. This can make low value transactions appear expensive on fee basis. If someone is willing to pay, then that is their choice.

I think that you are wilfully misunderstanding me. I had a sum of money to invest. I requested advice for which I offered to pay . The IFA spent roughly two hours putting together a short list of funds. I didn't like any of them and decided not to invest. Rather than charge me for two hours' work ( £300 ) he attempted to make me pay the equivalent of the commission - £2500 - which he would have got had I invested in those funds

Thanks for the clarification. £300, fair enough. £2500? thats just stupid and he would never have got away with that. The software i use has a timer built in to it which is updated as I do various tasks. Many IFAs are moving to this type of software. The advantage is that you provide a timed breakdown of work done which is then costed accordingly.

There are some damned stupid IFAs out there but you should be able to spot them a mile away. At a recent seminar i went to, an IFA was complaining as all the documentation and information for the products being discussed required access to a computer and this IFA didnt use computers and still worked on the old 3 quotes minimum standard. While you have old fools like that still around, I guess your views are going to remain.

I tend to be quite negative towards tied advisors. Expensive products, poor service and limited range of areas to advise on. However, with all the closures of the tied sales forces, it has become noticeable that clients who used to deal with the "insurance man" are not doing the pensions or life cover anywhere near the level that they used to. Some people needed that push to do something. The products may not have been the best on the market but at least they got people doing something.

pauliepie says he is 32 and hasnt got any savings or pension. Would that have happened had the old insurance man been calling on the families like they did in the past?