So you have some money to invest but don’t quite know where next to turn. Do you approach a financial adviser an independent financial adviser or do you do some investment research yourself?
Many people are wary of financial advisers but the majority of advisers are on your side and they not only want your business but they want you to be a client for the long term so it is in their interests to do a good job.
The best place for financial investment advice is an Independent Financial Adviser. Don’t bother going to a bank or the local insurance guy. Seek out proper independent financial advice and make sure the firm has the necessary experience to deal with your particular set of circumstances and needs. Be upfront and ask them if they can help you.
Now obviously the independent financial adviser will expect to be paid for his work. It is a business with bills to pay. You could be given an option to pay by commission or by fee. The option is really up to you. Some people are confortable if the broker is paid by the investment company some are not. However it is agreed, the independent financial adviser will need to be paid for his time and expertise.
Now if you bought some investment products through the adviser such as ISAs or unit trusts then these come with built in charges and commission. You could negotiate the amount of commission the IFA receives if it is a very large sum of money.
Supposing you were unhappy with this situation and wanted to deal directly with the ISA investment company. Surely you could strike a deal and get a discount for going direct? Not so fast. These investment products are not designed for people to go directly to the investment house, they are designed for financial advisers and brokers and so have inbuilt charges and commission. If you go direct you will not normally benefit and will pay the full charge.
This may not seem a fair situation but there is a simple way around it so that you can benefit from discounted investment charges. Just contact an investment discount broker. These brokers specialise in offering discounted investment products on an execution only basis. They won’t provide you with any advice but if you know what you want they can arrange large discounts to reduce the initial charges on the investment products you buy.
Most commonly an investment discount broker will offer Individual Savings Accounts (ISA), unit trusts, investment bonds and sometimes pensions.
Savings are related to the amount you invest so this could add up to a tidy saving. Many investment discount broker now offer some kind of online service where you can buy your ISA or unit trust online and then be able to log in for valuation or to switch funds, all with discounted charges.
So if you know what investment product you need, contact an investment discount broker and start saving today.