help with our finances

diane118 · #1 (**permalink**) 01-13-2005, 07:41 AM

hi please could someone help us my husband took early retirement 3 years ago and we have a financial adviser from his old firm come to advice us as to where to invest he sorted it out for us so as not to pay any tax to put it in this insurance bond. He rang us up the other day and said it wasn't performing good and he would come around to sort it out and put it in a different company will we have to pay him for his services to do this, or can we do it ourselves and save money last time when he signed us up for the bond he said the company who we were investing in payed his fee please could someone help many thanks Diane

terry1156 · #2 (**permalink**) 01-13-2005, 08:27 AM

Can you give us some more specific information? How much retirement money are we talking about? Do you trust this advisor? What does he want you to invest in? Does he get a commission if you purchase this new investment. The more specific you can be, the better we can give you advice and possible options.

Momtwo · #3 (**permalink**) 01-13-2005, 09:55 AM

I think I would get away from this advisor. It sounds like he is switching your investments a lot in order to make more commissions. I also would be leary of putting anythin into insurance or annuities.

Tree0164 · #4 (**permalink**) 01-13-2005, 11:52 AM

He is looking for a commission.

Do not sign any papers unless you are fully understanding what you are signing.

Is this an annuity? If so what out for surrender charges.

It sounds like you might be from outside the United States?

diane118 · #5 (**permalink**) 01-14-2005, 01:53 PM

hi thanks for your help we come from the uk and we invested £40.00 in an Investment Portfolio Bond with Friends Provident for 5 years we dont know yet what company he wants us to invest it in yet till he comes to see us on Thursday, he said that friends Provident payed his fees not us, he is an independent adviser and he was sent from Vauxhall motors where my husband was made redundant as they shut down in Luton where we live hope i have given you enough information thanks. Diane

terry1156 · #6 (**permalink**) 01-15-2005, 02:35 AM

Since I'm in the US and not the UK, I'm not sure how much help I can be. However, it doesn't sound good to me...it seems like he wants you to change to get a commission.

My advice: If you don't understand how the bonds work, sell them and invest in something you do understand. You should never invest in something you don't fully understand how it works.

Also, if you say that you don't understand and he says "don'tworry, trust me" it's time to throw him out of the house. A reputable sales person will keep explaining until you fully understand everything.

Don't sign the day he comes. get all the information and say you will get back to him. This will give you time to do more research.

Tree0164 · #7 (**permalink**) 01-15-2005, 03:06 AM

Most of these sales agents are independent. He is just looking to move your investments around to gain a commission. He is going to make it seem like he is in your best interest.

Call the company directly that you have the money in and learn about it as much as you can. What is it in invested in? Are there charges if you withdraw now?

Knowledge is power. Research and do not sign anything right away. I wish I could help you more but I am not familar with the UK finanical world.

amomof4 · #8 (**permalink**) 01-15-2005, 09:48 AM

You can invest on you own and save the commission. There are a lot of trade sites that sell stock for as low as $4 per transaction. Note that isn't per stock, but per transactions.

I would suggest the book "Your Money or Your Life". They have a recommendation where to put your money in for retirement. If your are retired, you probably shouldn't be in the stock market.

Also, everytime you buy and sell out of an IRA, you pay taxes on gains. This includes when a mutual fund buys & sells.

I would dump the financial advisor. He works for commission, so he doesn't have your interest at heart. He serves his own interest. The more you buy & sell, the more he makes.

diane118 · #9 (**permalink**) 01-16-2005, 11:51 PM

hi thanks alot for your help diane

terry1156 · #10 (**permalink**) 01-17-2005, 07:17 AM

I hope that things work out. It's a good chance for you to learn more about investing so that you don't have to rely on the word of others when you aren't sure of their motives. Please post here if you have any more questions and everyone will try to help out the best we can.