Independent Financial Advice
Discussion
Coming to the point in life where I'm activley gearing my business down with a view to retiring in 5 years or so, I really need to take some advice on how to structure my savings/pension arrangements to hopefully avoid starving or freezing to death in my old age.
Is anyone able to recomend a good source of advice preferably in the Camberley/Farnham area?
Many thanks.
Is anyone able to recomend a good source of advice preferably in the Camberley/Farnham area?
Many thanks.
Tip: Don't get suckered into paying any sort of annual fee for ongoing advice. No, not ever, never.
"But it's only 1% a year!" Yes, but after 25 years the adviser has taken a quarter of your money. At 2% they've got half of it.
Find someone to give you one-off advice for an immediate fee. You can always go back to them in 5 or 10 years time for an update if you feel it necessary.
"But it's only 1% a year!" Yes, but after 25 years the adviser has taken a quarter of your money. At 2% they've got half of it.
Find someone to give you one-off advice for an immediate fee. You can always go back to them in 5 or 10 years time for an update if you feel it necessary.
Panamax said:
Tip: Don't get suckered into paying any sort of annual fee for ongoing advice. No, not ever, never.
"But it's only 1% a year!" Yes, but after 25 years the adviser has taken a quarter of your money. At 2% they've got half of it.
Find someone to give you one-off advice for an immediate fee. You can always go back to them in 5 or 10 years time for an update if you feel it necessary.
this, every day. "It's only a small amount, look how much you made this year anyway." Just another way to latch onto your money. Will they have changed your investments in the year? No, what have they done? Nothing is the short answer."But it's only 1% a year!" Yes, but after 25 years the adviser has taken a quarter of your money. At 2% they've got half of it.
Find someone to give you one-off advice for an immediate fee. You can always go back to them in 5 or 10 years time for an update if you feel it necessary.
softtop said:
Panamax said:
Tip: Don't get suckered into paying any sort of annual fee for ongoing advice. No, not ever, never.
"But it's only 1% a year!" Yes, but after 25 years the adviser has taken a quarter of your money. At 2% they've got half of it.
Find someone to give you one-off advice for an immediate fee. You can always go back to them in 5 or 10 years time for an update if you feel it necessary.
this, every day. "It's only a small amount, look how much you made this year anyway." Just another way to latch onto your money. Will they have changed your investments in the year? No, what have they done? Nothing is the short answer."But it's only 1% a year!" Yes, but after 25 years the adviser has taken a quarter of your money. At 2% they've got half of it.
Find someone to give you one-off advice for an immediate fee. You can always go back to them in 5 or 10 years time for an update if you feel it necessary.
te they still get their fee!! Trebles all roundsugerbear said:
And the great thing about that annual fee is that when the advice turns out to be ste they still get their fee!! Trebles all round
What a wheeze eh?te they still get their fee!! Trebles all roundAnd the best thing is, anyone with a bit of confidence and common sense can diy, but lots of people, either think
They can't
Or
That by paying for fa, its better
Or
Just need to have their hands held
Re paying for advice - I don’t think you should do for the whole of your working life, although many people are paying fees on their pensions without any idea what they’re paying.
I got to the OPs position a year ago, when we sold our share of the business and decided to retire. Everything was a bit of a mess and it took an IFA 6 mths to sort it out. A lot of focus was on tax and IHT mitigation. They need some further thought as pensions become included for IHT.
His investment advice is very high level. Actual investment management is done by a Discretionary Fund Manager (DFM). Our SIPPs, ISAs, Trust funds and GIAs all appear as one pot. I just see the top level number (but can drill down to every detail if I want to). Our “income” just drops into the bank every month from the DFM.
A big thing for me was having someone my wife could rely on if anything happens to me. She’s not incapable, but just takes little interest in financial matters.
I got to the OPs position a year ago, when we sold our share of the business and decided to retire. Everything was a bit of a mess and it took an IFA 6 mths to sort it out. A lot of focus was on tax and IHT mitigation. They need some further thought as pensions become included for IHT.
His investment advice is very high level. Actual investment management is done by a Discretionary Fund Manager (DFM). Our SIPPs, ISAs, Trust funds and GIAs all appear as one pot. I just see the top level number (but can drill down to every detail if I want to). Our “income” just drops into the bank every month from the DFM.
A big thing for me was having someone my wife could rely on if anything happens to me. She’s not incapable, but just takes little interest in financial matters.
Sheepshanks said:
Re paying for advice - I don’t think you should do for the whole of your working life, although many people are paying fees on their pensions without any idea what they’re paying.
I got to the OPs position a year ago, when we sold our share of the business and decided to retire. Everything was a bit of a mess and it took an IFA 6 mths to sort it out. A lot of focus was on tax and IHT mitigation. They need some further thought as pensions become included for IHT.
His investment advice is very high level. Actual investment management is done by a Discretionary Fund Manager (DFM). Our SIPPs, ISAs, Trust funds and GIAs all appear as one pot. I just see the top level number (but can drill down to every detail if I want to). Our “income” just drops into the bank every month from the DFM.
A big thing for me was having someone my wife could rely on if anything happens to me. She’s not incapable, but just takes little interest in financial matters.
I suspect that is key for a lot of people.I got to the OPs position a year ago, when we sold our share of the business and decided to retire. Everything was a bit of a mess and it took an IFA 6 mths to sort it out. A lot of focus was on tax and IHT mitigation. They need some further thought as pensions become included for IHT.
His investment advice is very high level. Actual investment management is done by a Discretionary Fund Manager (DFM). Our SIPPs, ISAs, Trust funds and GIAs all appear as one pot. I just see the top level number (but can drill down to every detail if I want to). Our “income” just drops into the bank every month from the DFM.
A big thing for me was having someone my wife could rely on if anything happens to me. She’s not incapable, but just takes little interest in financial matters.
I’ve always taken an interest in how we manage our finances, & my wife worked in finance for her career, so is very capable of managing things if I pop off first.
I do wonder whether we will buy annuities when we get much older: maybe we will want to manage less, but for now we are happy doing things ourselves.
How much further thought did the planned changes to IHT actually take your IFA?
To me it felt like it simplified things: we were trying to leave my DC pot to last, but now it is all really just effectively one big pot, so drawing to maximise personal tax (trying to keep within the 20% rate) is now our key goal, as is sharing earlier with our offspring. Shuffles around how we draw from our pension v ISA…
lancslad58 said:
Do you know what your paying them?Grumbly said:
.. I really need to take some advice on how to structure my savings/pension arrangements to hopefully avoid starving or freezing to death in my old age.
never sure if folk are serious or not but I’ve come across quite a few low income folk who prob will be struggling in later life, paying fees to financial advisors behaving like vultures. Eg a friend mid 50’s earning about £32k wife £20k,
Bought their own council house about 20yrs back for £28k. pensions funds between then amounting to about £40k (work place compulsory)
They have a financial advisor, who’s just wonderful per them. I’m not sure in all that time if their Mortgage has actually gone down …. They enjoy foreign holidays, expensive trips out & regularly change cars, however he continually whines he’ll have to work until 70 as can’t afford to retire. They are both not bright & have “done the right thing” getting advice because they don’t know, but I’m not convinced their advisor of 15+years set them down an appropriate path. Of course they’ve recommended the advisor to friends & family & he’s doing the rounds, consolidating small pension pots & reinvesting them etc
mikeiow said:
I suspect that is key for a lot of people.
I’ve always taken an interest in how we manage our finances, & my wife worked in finance for her career, so is very capable of managing things if I pop off first.
My wife kind of did too - she’d get through it if she had to, but she’s never had to think about personal finance and I don’t want to knowingly put her in the position of having to deal with it on her own.I’ve always taken an interest in how we manage our finances, & my wife worked in finance for her career, so is very capable of managing things if I pop off first.
mikeiow said:
I do wonder whether we will buy annuities when we get much older: maybe we will want to manage less, but for now we are happy doing things ourselves.
The point of using a DFM is that we don’t have to manage it, it’s left in his hopefully capable hands. But without the commitment of an annuity.mikeiow said:
How much further thought did the planned changes to IHT actually take your IFA?
To me it felt like it simplified things: we were trying to leave my DC pot to last, but now it is all really just effectively one big pot, so drawing to maximise personal tax (trying to keep within the 20% rate) is now our key goal, as is sharing earlier with our offspring. Shuffles around how we draw from our pension v ISA…
The IHT changes are still just planned, so nothing has happened yet. It looked like we’d never need to touch our SIPPs, apart from the tax free amounts. I don’t want to give my kids big chunks of money just yet, hence the Trust funds. I do already buy their cars - changed them both last year.To me it felt like it simplified things: we were trying to leave my DC pot to last, but now it is all really just effectively one big pot, so drawing to maximise personal tax (trying to keep within the 20% rate) is now our key goal, as is sharing earlier with our offspring. Shuffles around how we draw from our pension v ISA…
Edited by Sheepshanks on Monday 3rd February 08:41
bad company said:
What did you end up doing?bad company said:
lancslad58 said:
Do you know what your paying them?AndyAudi said:
never sure if folk are serious or not but I’ve come across quite a few low income folk who prob will be struggling in later life, paying fees to financial advisors behaving like vultures.
Eg a friend mid 50’s earning about £32k wife £20k,
Bought their own council house about 20yrs back for £28k. pensions funds between then amounting to about £40k (work place compulsory)
They have a financial advisor, who’s just wonderful per them. I’m not sure in all that time if their Mortgage has actually gone down …. They enjoy foreign holidays, expensive trips out & regularly change cars, however he continually whines he’ll have to work until 70 as can’t afford to retire. They are both not bright & have “done the right thing” getting advice because they don’t know, but I’m not convinced their advisor of 15+years set them down an appropriate path. Of course they’ve recommended the advisor to friends & family & he’s doing the rounds, consolidating small pension pots & reinvesting them etc
Perhaps their advisor is advising them to live life and enjoy themselves while they can. Doesn’t sound like he’s got much to work with so they’re hardly going to make him rich.Eg a friend mid 50’s earning about £32k wife £20k,
Bought their own council house about 20yrs back for £28k. pensions funds between then amounting to about £40k (work place compulsory)
They have a financial advisor, who’s just wonderful per them. I’m not sure in all that time if their Mortgage has actually gone down …. They enjoy foreign holidays, expensive trips out & regularly change cars, however he continually whines he’ll have to work until 70 as can’t afford to retire. They are both not bright & have “done the right thing” getting advice because they don’t know, but I’m not convinced their advisor of 15+years set them down an appropriate path. Of course they’ve recommended the advisor to friends & family & he’s doing the rounds, consolidating small pension pots & reinvesting them etc
Ours told us to spend more.
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