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New wealth - need a long term financial advisor

(7 Posts)
NotScroogeMcDuck Mon 12-May-14 20:28:14

Hi - long time MNer here. Need some advice as my DH and I are in a new and very fortunate position. We have come into some money that is going to be released in stages. It is going to be quite a substantial amount of money over the next few years.

So. We would quite like to manage this incredible good fortune wisely and not just piss it away. In order to do this, I think we need some professional advice. We need advice on everything really, like setting financial goals, figuring out investment strategies, estate planning, setting up trust funds, everything. We would anticipate getting into a long term relationship with a financial advisor who can help us as our situation changes.

Basically, what should I be looking out for? Does anyone here have a long term relationship with a financial advisor? Has anyone made a decision about this sort of thing that they regret or recommend?

SuperFox Tue 13-May-14 18:37:27


The main thing is to make sure you have an independent not one tied to a bank or somesuch and at the end of the day all they can do is advise you - so research all your decisions because they will be yours to make. There is no crystal ball so best to ask around and find someone (by word of mouth) you feel comfortable discussing personal stuff with, preferably with a well established reputable company. What works best is someone who will show you all your options but make it quite clear that it is up to you what you do with your money. Anyone who promises returns is talking nonsense btw, there is always risk.

Sign up to martin's money and fool for starters too, that will get the ground rules in place for you - pensions, isas, 6 month savings cushion etc. Make sure any money you have with one financial institution is protected by checking registration and keeping less than 85k with each institution;

Also keep it to yourself, so called friends and family can turn envy in the face of other's good fortune I have found!

Happy Days! cake wine

NotScroogeMcDuck Wed 14-May-14 17:48:56

Thank you so much. and reply.

NotScroogeMcDuck Thu 15-May-14 10:27:33

Thanks so much.

I guess one issue I have is that we need quite a lot of advice up front, but then ongoing portfolio management hopefully won't need much from us in later years. But the advisors make their money from the investments, really, don't they? So some give free advice but charge more for managing your investments, while others charge for advice but charge less for managing investments. Obviously they have to make their money and I don't begrudge them that, but I'd rather avoid being stuck with higher charges in the long run, I guess. But I don't know how to balance these things out.

Hereward1332 Fri 16-May-14 10:55:03

Since the Retail Distribution Review (RDR) last year, all advisors should charge you an up front fee for the advice, and and ongoing management fee, based on the value of your portfolio - maybe around 1% p.a. They are not permitted to take any kickbacks from product providers, which means that the charges should be transparent - and generally mean you'll pay less.

If you want advice, you can find an adviser near you on the Wealth Management Association's website. They are the main trade body for stockbrokers and financial advisors in the UK.

NotScroogeMcDuck Fri 16-May-14 14:48:04

Hereward, is that all IFAs? Am I right in thinking that wouldn't apply to, for instance, an adviser from a private bank?

Hereward1332 Fri 16-May-14 15:34:13

It applies to everyone offering financial advice (as long as they are FCA regulated). Product providers are no longer allowed to offer kickbacks for what is basically any investment business. The adviser can lever a % or fixed fee, but is not allowed to receive payment from the investment, the idea being that the advice will not be influenced by how much they will make out of it. It does make the initial fee seem daunting, but is generally better for you.

A difference might be that in banks, the range of products from which they can choose might be restricted to those issued by the bank, and the advisor might have targets to reach. They still have the same obligations though to make sure the solution they suggest is suitable for you.

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