Wealth Management

[KM-Tiger]

Was talking to a friend who will shortly receive a significant inheritance. We are talking an 8-figure sum.

While some of this is earmarked for investment in their business, the question of what to do with the rest is wide open.

A quick search reveals that the world and his wife are offering Wealth Management or Financial Planning, but how to sort the sheep from the goats?

Bit of a long shot, but does anyone here have experience of this or can recommend?

 

[Mark T Jones]

I have several investments that might interest them

But seriously, it's a big, serious question - I'd say the answer lies in sitting down with a handful and 'interviewing them'

The biggie, for me would be how they manage expectations. Instantly reject anyone who issues unsubstantiated assurances/guarantees - listen to the ones who talk about risk.

And spread the risk.

 

[MikeJ]

I use Barclays Wealth, who are generally pretty good. My pension is with Investec, but I'm thinking of dumping them as their returns aren't great.

When that money hits their bank account, they'll get a call from the bank manager who'll point them towards their own financial advisors. They need to be looking at tax planning and inheritance planning, as well as investment planning.

 

[AndEde]

Was talking to a friend who will shortly receive a significant inheritance. We are talking an 8-figure sum.

While some of this is earmarked for investment in their business, the question of what to do with the rest is wide open.

A quick search reveals that the world and his wife are offering Wealth Management or Financial Planning, but how to sort the sheep from the goats?

Bit of a long shot, but does anyone here have experience of this or can recommend?

Hi, I have contacts at a few wealth management firms so I can out you onto a few of them if you would like.

 

[Socio South West]

If you look at the lifestyle that most 'Wealth Advisers' lead you can see what exorbitant commissions they earn from your investments with them.
An investor's return from them is rarely anything like that level, and usually tailored so it is just above what you would get from a decent bank investment, and quite often you lose money, especially when the 'management charges' are taken into account.

However much you have to invest I strongly contend that there are better ways to do it than through these modern day bandits.

 

[pentel]

Make sure your friend understands the cost of using a wealth advisor.

1% or 2% p.a doesn't sound a lot however it is 1% or 2% of the total amount invested.
So it they make a 10% return they are charging you 10% or 20% of that return, and in years of loss they still charge you.

Might be worth considering opening an investment account with someone like A J Bell and investing a relatively small amount in a world tracker eft or fund to track if the advisor is earning their fee.

 

[WaveJumper]

Lots and lots of research is my advice and fully checkout whats out there, I am professional trader so will not offer any direct advice but just as an example look at what many of the trading platforms out there have to offer and pick a risk level that suits

IG Smart portfolios

IG Smart Portfolios are affordable, transparent and globally diversified, and built exclusively with market-leading iShares ETFs from BlackRock.

www.ig.com

 

[JEREMY HAWKE]

I use Barclays Wealth, who are generally pretty good. My pension is with Investec, but I'm thinking of dumping them as their returns aren't great.

When that money hits their bank account, they'll get a call from the bank manager who'll point them towards their own financial advisors. They need to be looking at tax planning and inheritance planning, as well as investment planning.

I have spoken to them and the gave me a free umbrella a bloody great big one I was over the moon

 

[WaveJumper]

I have spoken to them and the gave me a free umbrella a bloody great big one I was over the moon

They got you covered then

 

[pentel]

I use Barclays Wealth, who are generally pretty good

Unfortunately I did not find this to be the case for me.

 

[KM-Tiger]

Thanks one and all. You have given us plenty of food for thought.

 

[Gettingthereslowly]

Try and find an Independent Financial Advisor (IFA).......many of the Wealth Managers are not independent - they are tied to selling a specific brand/range of funds.

They will have to pay for the advice, but most IFAs will give them a free chat - its as much about them finding out about each other/feeling comfortable with each other.

One of the biggest 'values' an IFA can give is the bigger picture / inheritance tax planning / succession planning.........as well as advising on the right funds for the circumstances.

 

[Mark James]

Bitcoin

 

[Lisa Thomas]

I can recommend some great investment managers. DM me if of interest.

 

[KM-Tiger]

Try and find an Independent Financial Advisor (IFA).......many of the Wealth Managers are not independent - they are tied to selling a specific brand/range of funds.

You make a very good point, and perhaps this is a good example of drill/hole or sausage/sizzle.

What is actually needed is good sound independent financial advice. Dressing that up as 'Wealth Management', and where it may not be truly independent, is marketing rather than substance.

Beginning to see the wood from the trees. Thank you.

 

[Porky]

8-figure sum to come in, now that's the sort of problem i would like to have drop on me.......

First stop is your accountant or someone with a good history and background in tax planning.
After that HL, AJBell, IG all offer HNW portfolio services to spread investment.

Banks are ten a penny IMO, all want your money, i use private banking with Virgin, 5.09% interest, 5.25% Over £500K and in your case 5.50% on your cash whilst thinking about what to do with it:-

Private Savings Account | Savings | Private Banking | Virgin Money UK

Credit cards, Mortgages, Savings, ISAs, Investments and Insurance – Our quest to make banking better starts here

uk.virginmoney.com

And HNW portfolio services from HL i think are as good as any:-

Our Services

Investment services for UK investors, including ISAs, SIPPs and a number of other services aimed at helping you get more from your investments.

www.hl.co.uk

With £10m liquid cash to come in i suspect you will get decent service from Coutts, nothing to lose to see what their service and investment offerings might look like:-

Private Banking

Private Banking Services – From helping entrepreneurs to landowners, and professionals to entertainers, we’re proud to be by your side. Speak to Coutts today.

www.coutts.com

Most IFAs i have ever come across make a packet off the back of someone else. Frankly you can design your own portfolio but then I'm not yet in the £10m+ Investment bracket perhaps different rules apply once you get in that league.. Your bank put you on their Christmas card list

Good luck