Parafox Posted 13 May 2015 Posted 13 May 2015 Has anybody used one? Do they charge a fee or a percentage of something? I'm planning to retire in November and I need to know what's best to do with a lump sum. We still have an outstanding amount on an endowment mortgage. I can't work out whether it's more prudent to pay that off using a lump sum pension payout or to leave it and let the lump sum accrue some interest in an ISA or whatever? I have no idea when it comes to personal finances.
Itsthejoeker Posted 13 May 2015 Posted 13 May 2015 Invest it in me and get a 1% return, less risk than investments, better return than a bank!
ADK Posted 13 May 2015 Posted 13 May 2015 You can probably ask a straightforward question on an internet forum and get free advice.
Rob1742 Posted 13 May 2015 Posted 13 May 2015 i have a list of people that you need to try and avoid. Mass murderers, peodophiles, rapists and financial advisors. Not necessarily in that order. I have done okay recently and the leaches are the most revolting people in society. With regards your issue. The best thing to do it pay off any debt that you have, as debt it always more expensive than the benefit of savings. So clear your mortgage first or any other debt. You can't get good interest in any account these days, even ISA's, so just pay your debts off if you get any lump sum. I have many examples of these people giving horrific "guidance", just to get a product sold. PM me if you want, but going to a financial advisor just lines their pockets
MooseBreath Posted 13 May 2015 Posted 13 May 2015 With regards your issue. The best thing to do it pay off any debt that you have, as debt it always more expensive than the benefit of savings. So clear your mortgage first or any other debt. This normally, but with it being an endowment mortgage, I'm sure that must complicate matters. First step should probably to be to post the details candidly on a forum known for its expertise with regards to saving money.
Rincewind Posted 13 May 2015 Posted 13 May 2015 I had to make a quick decision when I found out I still had a pension I thought was gone because it was frozen. Went to CAB who brought in a free advisor. They can't tell you which co. to use but they can say what type is best. My brother previously gave me advice before but he was moving house at the time and I never wanted to bother him. When I saw him lasthe said I probably made the right choice. Not easy when there are several options. I have no family (wife children) which narrowed it down. An adviser should really be independant and not favour any single scheme. I used Canada Life but it depends on circumstancs.
Bayfox Posted 14 May 2015 Posted 14 May 2015 Try santorini financial planning if you do feel the need to speak to someone. Based in barrow upon soar, fellow city fan. No I'm not on commission.
brisfox Posted 14 May 2015 Posted 14 May 2015 The best advice is to speak to an Independent Financial Adviser (an IFA), Most IFA's will charge a fee but many will offer a free initial talk. You should not make a decision on things like pensions unless you speak to somebody who is diploma qualified. Pensions are very complicated things, don't guess, get the right advice!
Kitchandro Posted 14 May 2015 Posted 14 May 2015 The best advice is to speak to an Independent Financial Adviser (an IFA), Most IFA's will charge a fee but many will offer a free initial talk. You should not make a decision on things like pensions unless you speak to somebody who is diploma qualified. Pensions are very complicated things, don't guess, get the right advice! This is true. There's a difference between regulated advisers and unregulated ones who charge a fortune in commission and can do whatever they like.
Crinklyfox Posted 14 May 2015 Posted 14 May 2015 Has anybody used one? Do they charge a fee or a percentage of something? I'm planning to retire in November and I need to know what's best to do with a lump sum. We still have an outstanding amount on an endowment mortgage. I can't work out whether it's more prudent to pay that off using a lump sum pension payout or to leave it and let the lump sum accrue some interest in an ISA or whatever? I have no idea when it comes to personal finances. I've used a Financial Advisor before but would be cautious about doing so again. Financial products attract commission, and in my limited experience some financial products which don't appear that good attract a large commission, so if you get an unscrupulous FA then you could be sold a product that isn't right for you. I'm not saying that all FAs are like that, but it's worth being aware. The amount you owe from the endowment mortgage will most likely attract more interest than you can get from savings products. I too owed money after my endowment mortgage matured and made the decision to pay it off. Fortunately I was able to do it from savings, I didn't have to raid my pension. Having retired I am reliant on my pension, and find that having a guaranteed regular income gives me peace of mind. I may have been able to make a little more by buying shares or other investments but I would be constantly worried about market crashes and the shares losing their value. If you're not a worrier like me then it may be an option for you. Some retirees use their pension money to purchase a property (buy to let) then rent it out, this can give you a better annual return on your capital than an ISA but you either have to manage the property yourself or pay someone else to do it - getting good tenants is essential.
Bellend Sebastian Posted 14 May 2015 Posted 14 May 2015 There's some good sense in this thread, but some of what folk are saying is a bit out of date. New investment products (including pensions) do not pay commission anymore. If you're sold/advised to take out a product, the adviser will tell you what the fee for that work is, and you can either pay that out of your own pocket, or it can be deducted from the premium/contributions to the product. Life assurance products (critical illness, mortgage protection etc) do still pay commission. Although I'm sure there are still financial advisers around that have charlatan like tendencies, it's a bit difficult to get away with now because a) you have to have a minimum level of qualification to give financial advice now (which isn't that easy to get), unlike not too many years ago when anyone could just say they're a financial adviser and b) you have to be authorised by the Financial Conduct Authority, and trust me, they're quite demanding as a regulator. The changes in the industry in the last few years have sorted out the wheat from the chaff to a large extent and if it has a dodgy reputation it's based on what it was like 20 years ago rather than what it's like now. It's important to appreciate that good, genuinely independent advice isn't free. Bear in mind that any company or individual offering advice will have the usual business overheads plus stuff like fees to the regulator (not cheap) as well as Professional Indemnity insurance so that you can be compensated if they mess things up for you, so the actual profit on the fees charged isn't usually that massive. A lot of people still think that your bank is where you go for financial advice, but they've always been a bit shit at it (just ask the Ombudsman who they get the most complaints about) and a lot of them don't do it anymore anyway (because of the regulatory hassle, or it's not profitable enough), or if they do they're tied agents offering a limited range of products and not independent. Like with any professional, don't pick someone out of the Yellow Pages, get a recommendation. All advisers aren't the same - a lot will only want to deal with individuals with six figure sums to invest (which is easier to make a profit from) and not be interested in the average punter, but some will charge a relatively modest fee for a really comprehensive service which as well as recommending pensions and investments will help with managing your household budget, which some wouldn't do in a million years. A good adviser is worth their weight in gold, and to be honest, it's one of those things that most people know absolutely f*** all about, but are more than happy to offer down the pub advice, some of which is absolutely terrifying
Raj Posted 14 May 2015 Posted 14 May 2015 http://www.dynamic-wealth.co.uk/ Another fellow city ST holder...Calum Cameron
casablancas Posted 14 May 2015 Posted 14 May 2015 So I'm not good with what to do with money but I'm pretty good at saving. I have close to 10k saved and un looking at what to do with it. Is it worth taking a chunk off my mortgage or investinging it into something other property or summat. Any advice.
Tommy G Posted 15 May 2015 Posted 15 May 2015 http://www.polearnold.co.uk/financial-management/index.php/our-team/ Know this guy personally as used to work with him. No better
Vicki Vixen Posted 15 May 2015 Posted 15 May 2015 Has anybody used one? Do they charge a fee or a percentage of something? I'm planning to retire in November and I need to know what's best to do with a lump sum. We still have an outstanding amount on an endowment mortgage. I can't work out whether it's more prudent to pay that off using a lump sum pension payout or to leave it and let the lump sum accrue some interest in an ISA or whatever? I have no idea when it comes to personal finances. Parafox, if you want basic help about retirement options, the government provides a free service which launched earlier this year https://www.pensionwise.gov.uk/. This includes face to face guidance if you want it. You might want to try that first, then if you need more help you can find an adviser but obviously then it starts to cost you.
Merging Cultures Posted 15 May 2015 Posted 15 May 2015 Call this guy, Steve Goodger Tell him Gareth put you in touch.
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