Nervously wondering how to start investing and find a financial advisor

[Ijsbear]

The whole finance industry is rather overwhelming and I'm not sure where to begin. Got in the region of 30k sitting in the bank doing nothing at all and I should probably invest it, but how to begin?

I've no idea how to find a good financial advisor - any tips?

There are lots of facebook groups and instagram groups on this subject, all supporting each other and giving each other ideas. Have a look at The Female Money Doctor, Mr Moustache, Mamafurfur for a start and then take it from there.

It's fun!

I was in a similar position a few months ago, I’d never had a lump sum before. I’ve put 30k in a stocks and shares Isa (20k in Feb and 10k a couple of days ago). I’ve also been buying and selling Bitcoin with the remaining 20k.
So far so good.

thanks very much!

You need an Independent Financial Adviser (IFA) to advise you. Depending on your personal financial circumstances there may be tax implications you aren't aware of, so you need to speak to a professional.

Have a look at meaningful money website.

Have you paid off your mortgage or any other debt? Do you have cash savings if the boiler breaks etc?

You can learn the basics.

As has already been mentioned, there are websites, podcasts and youtube channels from UK financial planners which give you a great foundation of knowledge.

1. Pension - are you paying in to a workplace pension, getting an employer contribution.

1. ISA - are you using your annual ISA allowance to invest for the mid-long term?

1. Cashflow and Emergency fund - do you have control over your spending, having £30k indicates that you probably do but you have not mentioned what debts you have got. How much of that £30k do you need instant access to as your emergency fund? 3-6 months of expenses is usually the suggested amount though everything in personal finance is very personal situation dependent.

meaningfulmoney.tv/UG4 is a good podcast/video episode to start with to learn about investing.

Before you pay someone do a little research yourself. Figure out how much risk you are willing to take.
I don't think I would be keen to pay someone else. Also always take time to consider their 'advise' and are they independent and don't earn any commission.
We have invested in vanguard stocks isa's

@expectopelargonium

You need an Independent Financial Adviser (IFA) to advise you. Depending on your personal financial circumstances there may be tax implications you aren't aware of, so you need to speak to a professional.

I disagree. For £30k you really don't need an IFA.

I've been looking for advice over the the past few months and have the following bookmarked for when I get my arse into gear.

First: Generally speaking they’ll want you to have life, critical illness and/or sickness cover.

Second: 6mths in cash for emergencies.

Third: maxing out pension contributions
(the poster I copied it off accidentally missed out a 4th step, but when she noticed, she said 'don't spend all your money' was probably a good 4th step).

Fifth: investments, max out tax free options and then index linked funds. Thereafter property and businesses to ensure a good return.

Sixth: pay off mortgage.

5 & 6 can be a bit contentious. Lots of people like the satisfaction of paying a mortgage off but funds are earning far more than the interest on a mortgage is currently costing so for the moment investments over debt freedom seems to be the preferred advice.

For example, your objective might be to retire at 60 and maintain a certain standard of living. How much will you need to meet the bills? Maybe you'll be buying a boat and need capital for that.

Look at what your existing assets are and what the shortfall might be. You can then start to see a direction of travel. An adviser can help you come up with a suitable financial plan to help you move towards those objectives and can make recommendations for you to make best use of your existing assets and future accumulation.

Search for Damien's Money MOT and do that first. That will cover much of what a financial advisor will ask you.

With £30k you could at least stick it in premium bonds, which should generate a couple of hundred a year in prizes, or more. I have around that amount and have won about £1200 within the past year.

All risk free - don't start investing until you understand the risks, have paid off any high interest debt and have a decent sized cash pot first.

I think you'll be lucky to find an IFA to advise on a 30k pot - most don't start getting interested in having you as a client until you're at about £100K.

The good news is that you're more than capable of making your own decisions, and there's loads of good guidance out there - but you need to work out your own approach to risk, and understand the timescale over which you need the money.

Risk is largely about whether you're in a position to lose any of your capital. If you aren't, then 'risk-free' investments like premium bonds etc. will keep your money 'safe', but the upside is limited. With inflation, you're likely to lose value over time. The more risk you take, the more the potential advantages. You might consider investing in a Vanguard fund that tracks the market for example, and this could be done inside or outside an ISA.

The other issue is timescale. If you need the money in the next couple of years for a house deposit, then don't put it at risk. But beyond 5 years or so, the stock market is more than likely to out-perform cash - so if you're happy to ride the inevitable ups and downs, then it's a better option.

@HermioneWeasley

Have you paid off your mortgage or any other debt? Do you have cash savings if the boiler breaks etc?

I'm very lucky in that my home is mortage free and I have no debts.

I'm ex pat so I can no longer pay into my ISA, only withdraw which I'd prefer not to.

My pension state is parlous, I will have only the state pension. Serious health issues mean I am not able to work and receive disability benefits. Not a good situation at all.

I actually have 50k free but I want to keep 20k entirely risk free so I'm only going to invest up to 30k.

Im going to read the varius sites and look at the meaningfulmoney site.

Ideally I'd like some of it in long term investments and some in short. Managing to get some sort of supplement to my monthly income would be fabulous, if that's feasible.

Due to the Natwest closing my bank account because I'm in the NL, I've got an appointment with a local bank to talk about an international account. Is it a good idea to ask about handing the bank 10k or so to invest? (I really am a newbie at all this)

You are not in the UK so getting some guidance from someone who knows about investing in the country you are in would be useful. A local bank might do that but I would see if there are any ex pat groups so you can get some guidance from people who have been in the same situation and have found a solution.

UK based websites will be handy to learn the general things about investing but not about what types of account to use as the accounts available in the UK are not available for you to add new money.

do you plan to retire in the UK or NL or elsewhere? Look up the pension rules carefully. if you can get a SIPP in the UK, that is a very good way to get money into a pension & get long-term investments in the UK.

okay, not heard of SIPP before but that looks like a really good way to go.

thanks for all the advice.