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any financial advisors/investment type people about??(11 Posts)
Firstly have any of you had dealings with Edward Jones of London? I am dealing with a perfectly nice chap who knocked on the door - seems to be new to the area/job. anyhow,
I've asked him to sort out life insurance, he's come back with what I think is a good policy, it's £37 per month thru legal and general. It will provide £180K upon death/critical illness, as a lump sum plus a monthly income of £1300 payable to whomever DS is with (ie his guardian) so they don't actually have to provide for him - the idea is it would cover towards rent, clothing food etc etc. This is all set in stone until he's 21, those payments would continue. (of the lump sum £150K is a mortgage - which i'm hoping to get within the next 5 years) and £30K would be for his university fees.
Anyhow does that sound good to you/anyone?, whilst i'm in accounts myself, when you start talking investments/the best life insurances/cover etc it goes a bit beyond me, (hence going with a professional)
Also, i've taken on more hours in work, which will provide me with approx £400 p/m extra, I was intending to put that with some other money, & invest approx £500 per month, plus put a little bit extra each month into an ISA for me, bank savings & also DS's child trust fund. but for the main psrt it would be £500 for me to invest (ideally)
My long term goals are to get a pension, I want to be able to provide the money for DS to go to uni, to save a good deposit for a house, but to achieve long term financial security for DS. (also also be able to live comfortably during my retirement)
I'm 27, so time is on my side, i'm a medium risk person really, I would invest and wouldn't mind too much if the markets dropped and I lost some money, however long term I would like to see a fairly good/modest growth/return.
Anyhow, I hope this is making sence to someone! lol.
also with ISA's, if I get one through my bank, (as my parents suggest) it will be free I assume, however will it be as good a return as an advisor could get for me/I know I would pay an advisor but how much of a 'cut' out of your monthly investment do they take?
also if I chose to go it alone, how easy/hard is it to buy stocks/pensions etc on your own - i'm literally clueless about this side of finance. (a cousin does it in the city for HSBC, some division or other and is quite high up with the stock markets, but tbh I don't want him knowing the ins and outs of my finances)
TBH I wouldn't ever use someone who knocked on the door
I assume you have checked his credentials and that he is FSA registered etc?
i've looked at the website briefly yes, the firm is big in london by all accounts.
might be worth checking on the moneysavingexpert forums to see if anyone else has used them
This guy probably knows less about it than you do.
Buy life insurance on line using one of the coparison sites - moneysypermarket, comparethecuterodent, whatever takes your fancy.
Buy and sell shares using an online broker, your bank may have one (First Direct do). Or use the Motley Fool (see later) share dealing service.
Don't even look at ISAs until you are putting your maximum amount into pensions - no interest rate is going to be as good as the 25% day one bonus (or 66% for the higher rate taxpayer) for pension contributions.
But this is not the best place to ask - ask the fool.
southbelle, also check out Martin Lewis' Money Saving Expert website.
He discusses insurance and pensions.
I am no financial person myself but can certainly recommend an experienced financial advisor and insurance broker. CAT me if you are interested.
The premium for your insurance sounds a little high, considering how young you are, but that could be because of the critical illness component, which is very expensive. Consider whether you need such a high critical illness component.
As you are in paid employment, you should consider life insurance cover together with and death-in-service benefits and long term sickness cover. This could reduce the amount you actually need to be covered by privately and thus reduce the amount of premium.
By putting the maximum amount into premiums, I assume this to mean investing in the maximum amount that is matched by your employer. You have the option of making additional voluntary contributions (I do), for more 20/40% upfront tax relief. One thing to bear in mind that under current rules, when the time comes for you to retire, only 25% cash can be withdrawn from the pension pot tax-free. You are potentially taxable on the rest you draw from the pension. So as far as pensions are concerned, it is tax-free in but partially taxable out.
That is why you can and should still consider ISAs, particularly if you need to draw on that investment prior to retirement eg for DS. You contribute to ISAs out of taxed income (ie you are taxed upfront) but all gains thereafter are tax-free.
Afaik, Edward Jones are big and have offices around the UK. Having used 3-4 of their advisors, I would say it depends on the individual advisor. And someone who goes doorstopping would probably just be starting out.
I believe their commissions are higher than average, not sure. But it sounds like you could do with handholding since you will need all round financial advice as well as assistance in picking the right funds that suits your risk profile and financial goals and needs.
Don't buy ISAs through your bank, unless it is a cash ISA and you have compared rates. For stocks and shares ISAs, better to consult a financial advisor who knows the whole market, not just the funds tied to a particular bank.
It is difficult to do this kind of stuff unless you know what you are doing. By the sounds of it you need a good financial adviser and one which you can use in the long run who can advise you over the long term hopefully. (Maybe this guy can do this for you)
Firstly with him you need to check his credentials on the FSA website and you can see if he has had any complaints upheld against him. You can ask him to provide you with references if you like. Any decent Financial Adviser should be able to get a client or two to provide one.
Fifth paragraph down you have specified four goals (Pension, University Fees, Deposit for a house and long term financial security for your son)
You need to rate them in order of priority and decide how much money to allocate to them.
Personally speaking if you want a house that is where the majority of the money will go. You will need to see what you can afford and what kind of deposit you need. That is your target amount to save. This money ideally should go into a Cash ISA as you do not want to risk this money. Lose this and you lose your deposit.
You can afford to speculate more for the University fees as you have a longer time span to save for.
Pension wise you can look at Stakeholder pensions which are low charging but are limited in fund choice.
When you look at life assurance, what you have been recommended does not sound a bad deal though you can always double check on various web sites or contact other IFA's to get a comparative quote.
If you invest in ISA's the IFA should be able to give a choice of funds and be able to tell you why he recommends them. yes there is usually a charge in them and the illustration that he will provide you with will tellyou what that will be. Generally on a regaular monthly contribution they are quite low.
Anyway given what you have said I would speak to at least one other adviser and see what they say, that way you are shopping around and you can get a feel of what is right for you.
lastly if you want to cut down on charges ask to pay a fee, that way you pay for the advice you are given and there should be no on going charges.
In response to Critical illness, I would seriously consider it while you are young as after 30 the rates go up considerably. It is expensive but you are four times more likely to get a serious illness than to die.
Permanent Health Insurance is a cheaper options as it pays an income as opposed to a lump sum. If you claim often this can be changed to a lump sum anyway. What is £40 a month when you look at it? You have already said you have disposable income of £500 approx.
thanks guys, will have a proper look/reply tonight. am running late for work, am slightly more concerned about this company the more I read on money saving sites.
have asked my cousin to look into them (investment banker for HSBC) and see if any of his collegues have heard of them as he said he hadn't. am awaiting a call.
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