Financial investments - who loses

[blackydog 40]

As I get older and realise I can't work forever I have spoken to a few financial advisors, with regards to what to do with the small amount I have saved.

My conclusion (and I know they warn you about ups and downs etc) is that the only loser in the game is the investor. The IFA and fund managers will still get the fee they charge even if they lose all your money. Even with low risk, you may lose out but they still get paid.

Any IFAs want to challenge me on this?

[Marsman 10]

As I get older and realise I can't work forever I have spoken to a few financial advisors, with regards to what to do with the small amount I have saved.

My conclusion (and I know they warn you about ups and downs etc) is that the only loser in the game is the investor. The IFA and fund managers will still get the fee they charge even if they lose all your money. Even with low risk, you may lose out but they still get paid.

Any IFAs want to challenge me on this?

 

Indeed! I reckon if the end result is losing all your money I feel quite competent of doing that unaided.

[truman 10]

As I get older and realise I can't work forever I have spoken to a few financial advisors, with regards to what to do with the small amount I have saved.

My conclusion (and I know they warn you about ups and downs etc) is that the only loser in the game is the investor. The IFA and fund managers will still get the fee they charge even if they lose all your money. Even with low risk, you may lose out but they still get paid.

Any IFAs want to challenge me on this?

 

You need to pick a good IFA....

[Calahonda 11]

I’m a great believer in limiting personal financial risk to a period in your life when you have time to recover from one of the inevitable financial hiccups. Also plan to pay as little tax as possible eg; if your total pension income does not exceed £17k p/a, interest on all of your savings is tax-free, albeit you still have ISA’s to totally ring fence the tax-free status of your savings.

 

The internet has all the information that the average person would need to make an informed decision on their savings and investments. I question every renewal notice that I receive, motor renewal £435, they settled at £299 inclusive of comprehensive breakdown cover, Homeserve renewal £180, I ended up paying £100, buildings and contents cover renewal £280, I paid £150. It’s silly to shop around for the best investment deal and then give it away.

 

Also if you decide to use an IFA, you will get the same deal as going direct to the investment house, you don’t get a discount for going direct. What you will get is the benefit of their experience, and if you don’t like what they say, walk away.

[Obelix 11]

Why should the investor always be the loser? If you are investing in the stock market for a longer period of time, you will get the divedend yield plus always the underlying increase or decrease in the value of the market. Over time the market has always risen.

 

Short term gilts and bonds act mucht he same way with smaller returns. You can of course cut the middleman out entirely and invest yourself directly without even involving them.

[sgtkate 10]

Some IFAs have a profit sharing type arrangement. There is one I used to use until I decided to go it alone who tried to get me a certain percentage growth each 'period' (changes depending on risk etc) and if he failed then he didn't get his fee for that year whereas if he exceeded the target we agreed then he got a cut of the additional profit. Worked well for a time but I decided there was enough information online to no longer require his advice.

 

Also, there are lots of different funds you can invest in and just a small amount of research will show you their current expected growth targets, their previous performance, the 'risk' in the fund (more risk often offers more potential profit but also more potential loss). I'm not sure why you would *need* an IFA for investment advice unless you are looking more at pensions which are more complex.

[blackydog 40]

Some IFAs have a profit sharing type arrangement. There is one I used to use until I decided to go it alone who tried to get me a certain percentage growth each 'period' (changes depending on risk etc) and if he failed then he didn't get his fee for that year whereas if he exceeded the target we agreed then he got a cut of the additional profit. Worked well for a time but I decided there was enough information online to no longer require his advice.

 

Also, there are lots of different funds you can invest in and just a small amount of research will show you their current expected growth targets, their previous performance, the 'risk' in the fund (more risk often offers more potential profit but also more potential loss). I'm not sure why you would *need* an IFA for investment advice unless you are looking more at pensions which are more complex.

 

This ^^^^^ (bold)

[Obelix 11]

This ^^^^^ (bold)

 

You dont need an IFA for pensions either to be honest....

 

https://www.cavendishonline.co.uk/ is the lowest cost provider I know of and you can set up your own SIPP pick your funds and then leave it alone. Review it once a year and sit there and let it get on with it's job