Originally Posted by
downsizer
Is it worth employing an IFA.....I have cash sitting around not doing much and I'm thinking of investing it....what do I get that I have to pay someone for that I couldn't suss out myself?
Three separate elements to this, in my view:
1. Tax, investment vehicles etc. Is it more efficient to invest money in a pension, ISA, property, pay off the mortgage etc?
2. Within the investment vehicle (ISA, pension etc), what's the money actually invested in? Fixed income, equities, managed funds, ETFs, cash deposits etc. What's your risk appetite? How do you manage those investments on an ongoing basis?
3. Is your financial planning realistic? Is your long-term spending plan in line with what's funding it? Is there something you've forgotten to factor in? Future changes in spending, contingencies, legacies etc
If you're confident you have all these elements covered, you may not need an IFA. There's loads of information on all of this online, some of it's accurate, and if you have the time to research it and the critical thinking to sort the wheat from the chaff, there's no reason you can't do it yourself; that's my preferred approach. If you're uncertain, or don't want to do the research, a good IFA will most likely be worth the fees.
Don't put all your eggs in one basket, and beware of any investment strategy, fund or fund manager that claims it beat the market, there's almost certainly a catch. Google "Neil Woodford" for a salutary example.
Edit: There's a pretty well-understood relationship between risk and reward in the financial markets. If you find something offering high rewards at low risk, the most likely reason is that some of the risk is hidden.