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September 27 2020 4.17am

Financial Guidance Thread

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View the.universal's Profile the.universal 04 May 20 5.39pm Send a Private Message to the.universal Add the.universal as a friend

Originally posted by Tom-the-eagle


My post actually contained no flaws, respectfully unlike what you have just posted.

To correct you:

Buyers do not pay estate agents fees, vendors do.

Landlords do not pay tenants bonds, tenants do.

100% mortgage relief IS available if purchasing through a limited company.

Whilst I take your point about possibly being tricky to buy a place for 500k with 100k deposit. This was more for example than anything.

You would be far more likely to purchase 5 x 100k properties using 20k deposits for each.

25 years as a landlord and property developer has made me a bit. I also know a handful, probably more who have becomes millionaires due to property. Not sure I know any or many who have become relatively rich through stocks and shares although maybe this is just due to the company I keep.

Hope this helps.

Agree on your points around estate agents fees, plus mortgage interest relief if through a limited company. My point around tenants bonds is there is a (small) fee to administer these and significant fines if this is not done correctly.

Regarding your post having no flaws, if you believe that buying a 」500k property with a mortgage of 」400k outstanding gives you assets of 」500k then we値l have to agree to disagree on that point.

 


Vive le Roy!

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View martin2412's Profile martin2412 Flag The Big Wide World 04 May 20 6.10pm Send a Private Message to martin2412 Add martin2412 as a friend

GM - If I were to go to a financial advisor with details of all of my pensions, savings, mortgage details etc., and asked him/her to go through that lot and save/make me money, how much could I expect to pay for that on average ?

 

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View Tom-the-eagle's Profile Tom-the-eagle Flag Croydon 04 May 20 6.21pm Send a Private Message to Tom-the-eagle Add Tom-the-eagle as a friend

Originally posted by the.universal

Agree on your points around estate agents fees, plus mortgage interest relief if through a limited company. My point around tenants bonds is there is a (small) fee to administer these and significant fines if this is not done correctly.

Regarding your post having no flaws, if you believe that buying a 」500k property with a mortgage of 」400k outstanding gives you assets of 」500k then we値l have to agree to disagree on that point.


Assets of 500k
Equity of 400k

Therefore at the same rate of appreciation (property and stick market) the property assets increase at five times the rate as 100k worth of shares.


 


"It feels much better than it ever did, much more sensitive." John Wayne Bobbit

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View Goal Machine's Profile Goal Machine Flag The Cronx 04 May 20 7.24pm Send a Private Message to Goal Machine Add Goal Machine as a friend

Originally posted by martin2412

GM - If I were to go to a financial advisor with details of all of my pensions, savings, mortgage details etc., and asked him/her to go through that lot and save/make me money, how much could I expect to pay for that on average ?

Hi Martin, firstly any Financial Advisor will offer a free initial consultation, which is a getting to know each other meeting/conversation.

During that meeting, the Advisor should be able to work out a rough plan of what needs to be done and must transparently explain all the charges to you.

Each Advisor will charge differently, some will charge a percentage fee, others will charge a flat monetary fee. It often depends on the type of work being carried out. i.e. a complex tax planning job would be more expensive than a more basic investment recommendation.

The charge would only relate to any actual recommendation that is made and implemented by the Advisor.

To try and give a basic example, lets assume you have several old workplace pensions dotted around and a few savings accounts. The total value combined is 」400,000. The recommendation might be to transfer all these plans into one provider, which will reduce the admin charges, build a strategy to help you reach your retirement goals and include a personalised review of your investments. Typical charges might be:

Initial: 1.5% - 2% (」6,000 - 」8,000)

If you are receiving an ongoing service, which would be optional, you could expect to pay between 0.5% - 0.75% (」2,000 - 」3,000) per annum.

The hope is that any investment growth/tax savings would more than cover these fees.

Usually the best way (from a tax efficiency point of view) to pay the fees is by paying it directly from the savings pot. This way there is no need to arrange a separate payment/cheque to the Advisor.

It's important to mention, that if you have ongoing investments, there will be additional charges for the administration (approx 0.25%) and the investment (can vary from 0.2% to 0.9%). Again, these would be paid automatically from the savings pots by the provider. These two charges are levied by the product provider and the Investment Manager, not the Advisor, and sadly cannot be avoided.

Hope that clarifies?

Edited by Goal Machine (04 May 2020 7.27pm)

 

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View the.universal's Profile the.universal 04 May 20 7.50pm Send a Private Message to the.universal Add the.universal as a friend

Originally posted by Tom-the-eagle


Assets of 500k
Equity of 400k

Therefore at the same rate of appreciation (property and stick market) the property assets increase at five times the rate as 100k worth of shares.

Ok, I see your point of view. I知 not hear to have a row with anyone, I get enough of that at home :0). Have a good evening.

 


Vive le Roy!

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View cryrst's Profile cryrst Flag Chatham 04 May 20 8.04pm Send a Private Message to cryrst Add cryrst as a friend

Originally posted by Tom-the-eagle


Assets of 500k
Equity of 400k

Therefore at the same rate of appreciation (property and stick market) the property assets increase at five times the rate as 100k worth of shares.

Tbh tom you are that example who has made dosh.
It would be daunting to a newbie to invest that amount of money. I'm sure property is and will be going forward the money maker. Frightening though to take that chance even though it's pretty much a gimee.


 

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View Tom-the-eagle's Profile Tom-the-eagle Flag Croydon 04 May 20 8.50pm Send a Private Message to Tom-the-eagle Add Tom-the-eagle as a friend

Originally posted by the.universal

Ok, I see your point of view. I知 not hear to have a row with anyone, I get enough of that at home :0). Have a good evening.

Ditto mate. Always found you a top poster.

Enjoy your evening too with your Mrs

 


"It feels much better than it ever did, much more sensitive." John Wayne Bobbit

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View the.universal's Profile the.universal 04 May 20 9.12pm Send a Private Message to the.universal Add the.universal as a friend

Originally posted by Tom-the-eagle

Ditto mate. Always found you a top poster.

Enjoy your evening too with your Mrs

Cheers mate, you too.

 


Vive le Roy!

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View martin2412's Profile martin2412 Flag The Big Wide World 04 May 20 9.18pm Send a Private Message to martin2412 Add martin2412 as a friend

Originally posted by Goal Machine

Hi Martin, firstly any Financial Advisor will offer a free initial consultation, which is a getting to know each other meeting/conversation.

During that meeting, the Advisor should be able to work out a rough plan of what needs to be done and must transparently explain all the charges to you.

Each Advisor will charge differently, some will charge a percentage fee, others will charge a flat monetary fee. It often depends on the type of work being carried out. i.e. a complex tax planning job would be more expensive than a more basic investment recommendation.

The charge would only relate to any actual recommendation that is made and implemented by the Advisor.

To try and give a basic example, lets assume you have several old workplace pensions dotted around and a few savings accounts. The total value combined is 」400,000. The recommendation might be to transfer all these plans into one provider, which will reduce the admin charges, build a strategy to help you reach your retirement goals and include a personalised review of your investments. Typical charges might be:

Initial: 1.5% - 2% (」6,000 - 」8,000)

If you are receiving an ongoing service, which would be optional, you could expect to pay between 0.5% - 0.75% (」2,000 - 」3,000) per annum.

The hope is that any investment growth/tax savings would more than cover these fees.

Usually the best way (from a tax efficiency point of view) to pay the fees is by paying it directly from the savings pot. This way there is no need to arrange a separate payment/cheque to the Advisor.

It's important to mention, that if you have ongoing investments, there will be additional charges for the administration (approx 0.25%) and the investment (can vary from 0.2% to 0.9%). Again, these would be paid automatically from the savings pots by the provider. These two charges are levied by the product provider and the Investment Manager, not the Advisor, and sadly cannot be avoided.

Hope that clarifies?

Edited by Goal Machine (04 May 2020 7.27pm)

Thanks GM. Food for thought.

 

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View cryrst's Profile cryrst Flag Chatham 04 May 20 10.28pm Send a Private Message to cryrst Add cryrst as a friend

Originally posted by Tom-the-eagle

Ditto mate. Always found you a top poster.

Enjoy your evening too with your Mrs

Didnt you meet up yet to share 'uhum things

 

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View Tom-the-eagle's Profile Tom-the-eagle Flag Croydon 04 May 20 10.50pm Send a Private Message to Tom-the-eagle Add Tom-the-eagle as a friend

Originally posted by cryrst

Didnt you meet up yet to share 'uhum things

Ha ha, wrong thread.

I知 still waiting Universals PM..

 


"It feels much better than it ever did, much more sensitive." John Wayne Bobbit

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View the.universal's Profile the.universal 04 May 20 11.00pm Send a Private Message to the.universal Add the.universal as a friend

Originally posted by cryrst

Didnt you meet up yet to share 'uhum things

Harder to do while observing social distancing

 


Vive le Roy!

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