Investments taken out by an IFA for a client
Discussion
b
hstewie said:
hstewie said: I'd try and separate out planning from advice and when speaking to IFAs there are different meanings of the word "advice".
If you have £20K in cash that you don't expect to need and you know your own risk levels it could be as simple as go to somewhere like Vanguard and open an ISA and drop the money in a LifeStrategy fund that's on your level of risk - job done.
So for example as a layman I would see planning as someone explaining how it makes sense to use your ISA allowance before putting money into taxable accounts (usually) whilst "advice" might be a nice man or woman sitting in your house and suggesting you put your money into a particular named fund.
If you have multiple homes and kids and pensions and a general tangle of finances where you don't even know where to start then you might need some help with planning.
I think where it falls apart personally is that if you need some initial help with planning and understanding options the model of many IFAs is that you're expected to hand them 1% of every penny you have invested forever whilst they "manage" it for you.
As I said above I'm not saying they're all bad and I'm not saying nobody needs them.
Simply that it depends on your situation and also how much time you want to put in to understand things as in if you spent a few hours understanding the basics that could save you thousands in fees over the years.
An excellent summary! If you have £20K in cash that you don't expect to need and you know your own risk levels it could be as simple as go to somewhere like Vanguard and open an ISA and drop the money in a LifeStrategy fund that's on your level of risk - job done.
So for example as a layman I would see planning as someone explaining how it makes sense to use your ISA allowance before putting money into taxable accounts (usually) whilst "advice" might be a nice man or woman sitting in your house and suggesting you put your money into a particular named fund.
If you have multiple homes and kids and pensions and a general tangle of finances where you don't even know where to start then you might need some help with planning.
I think where it falls apart personally is that if you need some initial help with planning and understanding options the model of many IFAs is that you're expected to hand them 1% of every penny you have invested forever whilst they "manage" it for you.
As I said above I'm not saying they're all bad and I'm not saying nobody needs them.
Simply that it depends on your situation and also how much time you want to put in to understand things as in if you spent a few hours understanding the basics that could save you thousands in fees over the years.
Gassing Station | Finance | Top of Page | What's New | My Stuff