Inherited shates

[Marmitelover55]

I have inherited a share portfolio which is worth about £50k. I don't know a huge amount about stocks and shares but do know that it is not very well diversified as all shares are either in banks (mainly uk) or insurance companies. I would like to diversify but don't know anything about what would be a good mix. I'm seeing our IFA later in the week but not sure if he would be able to give this kind of advice. Any tips would be welcome please.

[Marmitelover55]

*oops shares not shates.

[OurBlanche]

Your IFA will be able to talk through your options, and there are quite a few of them!

First thing is to understand the current holding - you say it lacks diversity, others would say it is sensibly invested for a stable, but not necessarily humongous return.

So you may need to chat to a few people before you decide what to do, who to give it over to, to manage it yourself, etc etc.

But think of it as an exciting opportunity to 'play' the markets and learn what it really is all about.

I am quite envious

[originalmavis]

Set up an account on a tracking site and input the shares to see how they do. I can't think of the top of my head who we used to use (it will come back to me). Funds network? I'll check.

Remember if you sell there will be fees associated and there may be iht due. It sounds like 'safe' portfolio, although some banks have taken a pounding recently.

Do you get dividends? A cheap way to buy shares is to have any dividend payments reinvested automatically.

See what the ifs says - they can't really advise you what to buy, but may well guide you to invest the money into Isa's.

[Marmitelover55]

Thank you for your replies. The IHT has already been paid. I should be getting the certificates through in the next couple of weeks. The shares originally belonged to my grandfather who died before I was born and they were inherited by my mother who recently passed away. There were a lot more originally but I feel very fortunate to receive these (although very unfortunate to have lost my beloved mum).

My brother has advised me to open a nominee account with Barclays as I think this makes the shares easier to sell? I haven't done this yet though.

I watched with horror as the shares went down after the referendum vote but see they have gone back up again. I know RBS features and that my mum lost a lot during the banking crisis - I don't want to repeat this.

Yes taking dividends as additional shares sounds like a good plan - will need to understand the tax implications!

[Kaelle]

Hi Marmite, please don't do anything quickly until you get proper advice from a diploma'd financial adviser, or even one who is chartered. They will have a regulated obligation to advise as to what's in your best interest. They will help you choose the best way to go, and most importantly where NOT to go. If you have a £50k portfolio, you shouldn't worry about spending a bit to get good advice, although some will have a first meeting with no charge. Please do not get "pub advice" which is the industry's term for "hearsay". Let me know how you get on...

[Marmitelover55]

We saw our IFA last night. He is commission based. I had to press him for advice on the shares and he then recommended a stocks and shares isa from st James' place £16k each this year and then another £18k in total the following year. He will get commission. I can see its a lot more diversified but am a bit unsure... The shares are worth a bit less now than they were on 31st may inspite of stock market increases. I do feel uncomfortable about the uk focus and lack of diversification.

[originalmavis]

The £ took a bash after Mays Brexit announcement on Sunday, and i yhink it eill be up and down for a while. SJP is a solid place to trust your money.

[Kaelle]

I agree. Just because an advisor is commission based is not a bad thing. It's good that you're with SJP - me too - they don't charge by the hour so you should never be afraid to pick up the phone to talk to them. And yes, the £ is at an all time low, but have you had a look at the FTSE? It's going up because more people are buying UK stocks while the £ is low. And Marmite, diversifying will definitely decrease your risk - one of the premiere rules of investing. You don't pay the SJP commission directly; it comes out of the upfront charge, which all advice-based providers charge (and even most non advice-based). View it as the price you pay for having it available immediately. Next thing is, don't fret about it. It's best viewed as a long term investment.

[Marmitelover55]

Ok thanks - will go ahead

[Hoppinggreen]

Be aware that your adviser is probably largely tied to SJP. It's quite a complicated set up between the advisors and SJP which I can go into if you like.
Give this its possible other platforms would be more advantageous but your adviser will steer you to SJP.

[Marmitelover55]

Yes he is tied to SJP. Our old money purchase pensions are now there too. Yes I would be interested in more detail please.

[Sunseed]

Please be aware that many SJP investments also have exit penalties for 6 years!!!! Did he tell you this? And not just on the initial investment..... It applies to any subsequent contributions you make and the clock starts again for those. SJP are an expensive operation when you actually delve into their charges properly.

[Hoppinggreen]

Yes, SJP charges tend to be higher than average.
Doesn't mean you need to avoid them but just be aware.
The way it works is that the Financial Adviser will sell part of their business to SJP. As a result they use SJP for all their compliance and most of their investments. This means that they are still officially " independent" but are not really.
In some cases the FA company will keep all of their equity but pay a monthly fee to be part of the SJP network, again they are independent but are more likely to use the SJP funds than any others.
As I said this isn't necessarily a problem but something to be aware of.

[kath6144]

We use Hargreaves Lansdown, you can have a S&S ISA within your account, but you can also have a share account, into which you could transfer your portfolio of shares. Then if you wanted to sell some, the money could be transferred from share account to ISA account.

You dont really need to pay for advise, DH and I have always done everything ourselves, just making sure of diversity of shares and funds.

[user1475682553]

Dead easy - don't bother with an advisor

simply buy a low cost tracker

[Marmitelover55]

Thanks everyone - I have opened an account with Hargreaves Lansdown today and will transfer the shares into there for now.