Investing today

[davecoop]

Hello everyone,
Just wanted to get other people's perspective on if they believe now would be a good idea to invest with a wealth management company ?

[Alaric]

Just wanted to get other people's perspective on if they believe now would be a good idea to invest with a wealth management company ?

Most users of this site would prefer to make their own investment selections rather than pay a recurring percentage of their wealth over to a wealth management company. Holding cash for a while during times of turbulence can make sense.

[csearle]

Hello everyone,
Just wanted to get other people's perspective on if they believe now would be a good idea to invest with a wealth management company ?

Hi, welcome to The Lemon Fool.

I agree basically with Alaric, but of course holding as cash will also shrink your wealth, just maybe not as much as other investments if they tank.

Having said that I'm pretty much fully invested in equities (as usual) because I am convinced they will be the best vehicle to ride this and other global storms.

Chris

[dealtn]

Hello everyone,
Just wanted to get other people's perspective on if they believe now would be a good idea to invest with a wealth management company ?

Now is as good a time as any to start. I wouldn't ever pay anyone else to do this, but am happy to pay others elsewhere for things I am not as skilled at myself.

[mc2fool]

Hello everyone,
Just wanted to get other people's perspective on if they believe now would be a good idea to invest with a wealth management company?

Welcome to TLF.

It's never a good idea to invest with a wealth management company. The purpose of a wealth management company is to increase their wealth!

[BullDog]

Hello everyone,
Just wanted to get other people's perspective on if they believe now would be a good idea to invest with a wealth management company?

Welcome to TLF.

It's never a good idea to invest with a wealth management company. The purpose of a wealth management company is to increase their wealth!

Couldn't put it better myself.

[88V8]

Just wanted to get other people's perspective on if they believe now would be a good idea to invest with a wealth management company ?

Hello and welcome.

What are your aims? Long-term growth? Income? Your time horizon?

What you are likely to get from a Wealth Management co is managed mediocrity. When things are good, they will underperform, when things are bad they might if you are lucky, outperform.

If you don't want to manage your own money - and be aware when reading these boards that for many on here, investment is also a hobby - then unless you have a very large pot, for growth you might as well buy a tracker.

V8

[Kantwebefriends]

I've never paid anyone for investment advice, nor do I expect to, but I have paid for legal and tax advice. Well worth it.

[Urbandreamer]

Can I add my 2p worth.

Both I and my wife have used a wealth management company.
I would agree with Alaric and disagree with many of the posts afterwords.

There is a significant, but not unreasonable, cost to using such a company. In my opinion the cost reflects the effort involved, but not the results.

I personally believe that it's not that difficult to achieve the same results yourself at a lower cost. You have significant advantages in that you know your objectives and can't be sued for misunderstandings or claimed misunderstandings.

I have found that I enjoy the DIY investment route, my wife that she doesn't. I'd recommend those that don't like DIY to pay a plumber, electrician, decorator or wealth manager. I'd also recommend that they find out if they would enjoy those activities, if they haven't tried them.

Is now a good time to invest? I'd argue that there is never a "bad or good" time and that the time to invest is when you can do so. In particular recent events may cause questions about the alternative, ie keeping the value in £'s.

[1nvest]

Investing Today.
Hello everyone,
Just wanted to get other people's perspective on if they believe now would be a good idea to invest with a wealth management company ?

As the FT100 is up from that 1st October post date, we can categorically say that it would have been a good time to have invested "now", at least up to the present time

Depending upon fees, having others advise you can save you from self-harm. Like with computer security risk the greatest investing risk sits between the keyboard and back of chair. Many buy in at the wrong time (greed), capitulate later (fear) to end up worse off than had they just deposited the money into cash accounts. Or concentrate investments that later endure large hits. In that context having a manager could end up saving you from yourself. If on the other hand you feel competent enough to reduce/avoid such risks - then pocketing the fees you'd otherwise pay and going down the DIY path is reasonable.

[John123ab]

The bit that irks me is they charge you a percentage of your wealth rather than a percentage of the profits they achieve for you or a fixed amount every year. So basically you still get charged for poor performance and if your pot happens to be larger than someone elses then you pay extra for the same service. Tell me in what other industry does this happen? It's shocking really.

[dealtn]

Tell me in what other industry does this happen? It's shocking really.

Well lots of industries have % commissions. Estate Agents, Auctioneers, Football, Music, FX, ...

[John123ab]

Tell me in what other industry does this happen? It's shocking really.

Well lots of industries have % commissions. Estate Agents, Auctioneers, Football, Music, FX, ...

Not being charged different amounts for the same service. Well, maybe estate agents to a degree but then they are an unscrupulous bunch anyway.

[dealtn]

Well lots of industries have % commissions. Estate Agents, Auctioneers, Football, Music, FX, ...

Not being charged different amounts for the same service. Well, maybe estate agents to a degree but then they are an unscrupulous bunch anyway.

Er, yes. The higher the contract value the higher the remuneration.

Have you ever been an estate agent, worked for one, or owned one? I suspect you know very little about them or the industry.

[Urbandreamer]

Not being charged different amounts for the same service. Well, maybe estate agents to a degree but then they are an unscrupulous bunch anyway.

Er, yes. The higher the contract value the higher the remuneration.

Have you ever been an estate agent, worked for one, or owned one? I suspect you know very little about them or the industry.

Or dealt with any of the other industries mentioned. Seriously the way that musicians and authors are paid is really complicated, but does have different % rates of remuneration.

Have a good look around John, isn't the VAT on your chocolate biscuit a percentage? What of regulated industries price rises (ie train tickets)? How about state pension increases? The use of percentages is everywhere and the amounts charged changes. Ie income tax bands where different percentages are charged on different proportions of your income.

Ps, I understood that those who pay 20% and those who pay 45% income tax receive the same service from the state. Think about it for a while.

[John123ab]

Sorry guys. You're not convincing me. An IFA would be offering me virtually the same service if I have a portfolio worth 100k or 1m. No excuse for it not to be roughly the same fee.

[SebsCat]

Sorry guys. You're not convincing me. An IFA would be offering me virtually the same service if I have a portfolio worth 100k or 1m. No excuse for it not to be roughly the same fee.

I think there are a few aspects where portfolio size should be a determining factor in the fee. First off, IFAs can - and, indeed should - be sued if they give the wrong advice to a client. I don't know whether IFAs are required to have professional indemnity insurance, but if they do the cost for this will be proportional to the portfolio size. If they don't have insurance then the financial risk to the IFA is also going to be proportional to the amount being advised on. Secondly, the amount of work required to give good advice is likely to depend on the portfolio size. For a £100k portfolio there's not going to be a great deal of income, CGT or IHT tax to consider. OTOH with a £1m one it is likely to be an issue. Whether either of these or any other issue justifies a straight % fee is another matter entirely! But I do think that it is reasonable that the fee should be higher for larger portfolios.

Caveat: I've never paid an IFA for advice and my limited interaction with them makes me believe that no reasonably intelligent person should have anything to do with them unless they are of the mindset that they desire to pay others to do what they can do themselves...

[dealtn]

Sorry guys. You're not convincing me. An IFA would be offering me virtually the same service if I have a portfolio worth 100k or 1m. No excuse for it not to be roughly the same fee.

Negotiate a fixed fee then!