Soldato
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Does Reddit count? Asking for a friend..
Who uses a financial advisor?
- Thread starter jsmoke
- Start date
The mantra is "time in the market is more important than timing the market".
Read the book "The Easy Path/Way To Wealth". Basically, 'on average' (read: some people still make an absolute disgusting killing, some lose everything) people who spend their day seeking short-term gains, on the whole end up making less (as you have to pay their management fee) than those who simply throw their cash into a low fee fund offered by Vanguard/others.
As always do your own research before investing any money
But yes - Vanguard are cheap, solid, easy to use and decent returns on most of the funds.
A lot of the funds are minimum buy-in of £100 a month. So a punt of £100 a month to pay and forget is the first step on the ladder.
Associate
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I don't, but know a few people who do. Generally speaking exchanging 0.1% - 0.3% profit for sound financial planning and assistance on large investments usually pays off.
Most IFA's aren't worth it unless you're making over 80K+ p/a or 150K+ to invest though. At least according to what I've heard.
Most IFA's aren't worth it unless you're making over 80K+ p/a or 150K+ to invest though. At least according to what I've heard.
Usually a financial advisor doesn't advise on particular stocks: in fact, if they do I'd say that's a pretty good sign you should get a different one. Financial advisors are more about recommending how to plan your finances to ensure financial security in the future, and for anyone with a lower amount of money to invest, they should be recommending balanced funds not individual stocks
There are zero stock pickers who are consistently better than the market. Zero. It's just luck they're charging you far. The difference between investing in stocks, and gambling at a casino, is that in the stock market the average stock value increases (+dividends, don't forget those) so you win on average whereas in a casino you lose on average. For any low amount of money, such as:
You're going to be best to put it into a FTSE tracking fund with the lowest fees you can find, rather than risking it on particular stocks.
Man of Honour
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I had a mate in the early 00s who was a Financial Adviser and very wealthy, the first question he asked was "Can you afford to lose this money?".
It's an old thread that has been bumped. The OP, despite the title of the thread, was probably thinking of stockbrokers rather than financial advisors. Though now most of the thread is about IFAs.
Not sure that's true rather the people who seem to be able to beat the market are simply not incentivised to work in a sales role as stockbrokers picking stocks for individuals - they're incentivised to work in fund management or other buy-side firms. A stockbroker's incentives are more skewed towards bringing in and holding onto clients rather than being great at investing, most of their day is spent on the phone with clients like most salespeople.
Permabanned
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i'm still bitter about my mum demanding a 3rd of my wages till I moved out tbh!
What lesson was being taught?
What lesson was being taught?
Associate
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Well if moving out would cost you more, then you are being offered a fair bargain.
If it’s cheaper, then it teaches you to shop around.
Assessing a client's "capacity for loss" is one of the important parts of creating a sound financial plan for them.
Couple of my relatives - well more like 2nd cousins or something - their parents made them give them all their earnings until they moved out and got about 1/3rd back - I'd have said **** that. Now their parents wonder why there is a rift between them.
Soldato
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Crazy, but in a way I can't blame some parents for making it expensive for their working kids to stay at home - they'll find out how expensive the real world is once they move out and 2/3rds of their income can easily go on just living expenses
.My parents were so easy on my brother he'd still be living with our parents now, and annoying them as he does, if he hadn't found a wife previously (now divorced). When his relationship failed recently he even suggesting moving back. Dad is 85 now. Older brother is 53
. Luckily he's now adapted after the initial shock of knowing he'd have to do everything himself now.
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Personally and I've known people when younger but dont want to drag the thread off topic but I'll say just I'm amazed at the lack of self awareness and hypocrisy with parents why theres a rift between them and their kids as you said.
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Soldato
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I always thought it was a good idea that if you are going to take money away from your kids as rent/expenses to put it aside for a car or deposit for a house for them. They'll never be able to save up otherwise. If the family is hard up to start with then obviously that's different.
Man of Honour
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Neither of my daughters paid a penny (now 34 and 32) but none of them wasted their money either and both have nice homes.
Just waiting for around 12 women to turn up because we're having an hen party for the eldest, she has no idea.
All outside and socially distanced.
Soldato
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They sound far more sensible than most of the people I know including my younger self ha. You obviously taught them well!
Soldato
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Why an FTSE tracker over something tracking the Russell Index or S&P500? Both of which generally outperform the FTSE even after taking into account reinvested dividends.
It teaches you that life is expensive, and it's not such a terrible shock when you finally get your own place and then have to spend 90% of your wages...
Soldato
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Apologies for the necro but I thought it's better than starting another thread with basically the same title...
I am debating whether I should look into an IFA - have just gotten a new job and it's going to come with tax considerations that I really have never dealt with before, plus a bunch of equity in the new company which vests over several years and although I've been trying to research my options myself I don't want to make any mistakes so it would be good to run it by someone who knows what they are talking about
The only advice I got from friends was basically "a lot of IFAs will give advice for free then try to sell you stuff so you can just take the advice then tell them to **** off"... but I'm unsure if that's actually true?
I am debating whether I should look into an IFA - have just gotten a new job and it's going to come with tax considerations that I really have never dealt with before, plus a bunch of equity in the new company which vests over several years and although I've been trying to research my options myself I don't want to make any mistakes so it would be good to run it by someone who knows what they are talking about
The only advice I got from friends was basically "a lot of IFAs will give advice for free then try to sell you stuff so you can just take the advice then tell them to **** off"... but I'm unsure if that's actually true?