Is it worth having a Financial review from the bank?

[ZRPMs]

Well, I'm not sure if I should give in. The bank are hounding me to have a financial review from a wealth management firm. I'm not well off at all but I have a bit of savings. It would seem they have got a sniff of it and want a cut. Eeerrr, I mean, They are eager to help me look after it efficiently.

I have a loose plan for what is in the bank, but always open to other idea's. They could be better than what I've come up with, as my financial knowledge is buy no means extensive. 

They have given me a list of what info they would like and this is not limited to the amount in the bank. They want to know 

    1, What bank accounts I have and the amounts they contain with a total for all the accounts and any cash I may have.

    2, What investment's I have, including any pensions. Again with totals for each and a grand total.

    3, Any asset's that I may own. Property, Collectables, Art, etc. With estimate values. Less any debt secured with it ie mortgages, Loans. Then a grand total less any fees that might be incurred in their disposal.

    4, Anything of value not included in the above. 

    5, Any and all sources of income with totals

    6, Then, any debts, like overdraft, unsecured loan, credit/ store cards

    7, Any dependants/ maintenance payments 

    8, Finally any and all outgoings and expenditures.

Not too much is it? It's not like they required the colour of my undercrackers. Now the sceptical in me feel as if it's just a fact finding exercise. Has anyone had one of these reviews? and if so was it any good or just a waste of time?

[Anteater]

It's basically an opportunity for the bank to get marketing info and to sell you stuff. Unless you're really clueless I'd stick with https://old.reddit.com/r/ukpersonalfinance for any sub-IFA help (read the flowchart there first).

And if you do want an IFA I'd stick with fee-only ones. But even the fee-only ones all seem to want an ongoing percentage for managing your money rather than just charging a sensible rate for advice.

Edited January 9, 2023 by Anteater

[ZRPMs]

6 minutes ago, Anteater said:

But even the fee-only ones all seem to want an ongoing percentage for managing your money than just charging a sensible rate for advice.

As my gut felling is directing me. The fee's they would charge would be better spend here on the forum. Your also right about the marketing. Just reading a piece about Halifax and Lloyds wanting to create a two tier banking system. Those that them make money from, and those that need to be sent else where.

[Petra]

24 minutes ago, ZRPMs said:

Well, I'm not sure if I should give in. The bank are hounding me to have a financial review from a wealth management firm. I'm not well off at all but I have a bit of savings. It would seem they have got a sniff of it and want a cut. Eeerrr, I mean, They are eager to help me look after it efficiently.

I have a loose plan for what is in the bank, but always open to other idea's. They could be better than what I've come up with, as my financial knowledge is buy no means extensive. 

They have given me a list of what info they would like and this is not limited to the amount in the bank. They want to know 

    1, What bank accounts I have and the amounts they contain with a total for all the accounts and any cash I may have.

    2, What investment's I have, including any pensions. Again with totals for each and a grand total.

    3, Any asset's that I may own. Property, Collectables, Art, etc. With estimate values. Less any debt secured with it ie mortgages, Loans. Then a grand total less any fees that might be incurred in their disposal.

    4, Anything of value not included in the above. 

    5, Any and all sources of income with totals

    6, Then, any debts, like overdraft, unsecured loan, credit/ store cards

    7, Any dependants/ maintenance payments 

    8, Finally any and all outgoings and expenditures.

Not too much is it? It's not like they required the colour of my undercrackers. Now the sceptical in me feel as if it's just a fact finding exercise. Has anyone had one of these reviews? and if so was it any good or just a waste of time?

Just panic them … drop a hint that you’re going to move ‘your assets’ elsewhere 🤔😮🫢

[ZRPMs]

@Petra My dad said cheeky barstools. Pull your cash out. Unfortunately I would have to give them notice and fill in reams of forms. The daily limit that can be withdrawn without prior arrangement is £2500. Its ridiculous. 

[Petra]

1 minute ago, ZRPMs said:

@Petra My dad said cheeky barstools. Pull your cash out. Unfortunately I would have to give them notice and fill in reams of forms. The daily limit that can be withdrawn without prior arrangement is £2500. Its ridiculous. 

To be guided to any sort of ‘wealth management’ people means that to the bank you are considered to be someone with a decent amount of money somewhere, they certainly wouldn’t be contacting me! You need to get your money somewhere else!🤔

[Anteater]

5 minutes ago, ZRPMs said:

@Petra My dad said cheeky barstools. Pull your cash out. Unfortunately I would have to give them notice and fill in reams of forms. The daily limit that can be withdrawn without prior arrangement is £2500. Its ridiculous. 

I'd just tell them no thanks. It's not like another bank will necessarily be any better.

[modofantasma]

13 minutes ago, Petra said:

Just panic them … drop a hint that you’re going to move ‘your assets’ elsewher

Don't think they're concerned... I've closed 2 banks completely for different reasons this past year and they did next to nothing to keep me. Halifax are on their last warning... Have stopped me making a couple of payments recently for relatively low amounts and I've had to contact them to avoid my account being put on hold. 

More money to be made from those who are paying interest on loans and debt I think. 

[modofantasma]

In terms of the original post I would personally not arrange such an appointment. Ultimately they'll be trying to sell you something and or collect some data 

[ZRPMs]

Just now, modofantasma said:

In terms of the original post I would personally not arrange such an appointment. Ultimately they'll be trying to sell you something and or collect some data 

Yes I think your right. They've told me the review is free. What the saying. If something is free, you're the product. 

[modofantasma]

1 minute ago, ZRPMs said:

Yes I think your right. They've told me the review is free. What the saying. If something is free, you're the product. 

Sounds like some sort of fact finding consultation yes. Maybe there will be some value to you perhaps for an extortionate fee, perhaps not but  remember free advice is worth every penny too. 

[SiCole]

If you are personally interested in sorting this, get a local well respected and independent Financial adviser. I did recently and was quite eye opening. You will most likely make or save a lot more than the costs.

Do not be doing it on a banks advice as they get commission and you ultimately want people working in your best interest. 

[ZRPMs]

2 minutes ago, SiCole said:

If you are personally interested in sorting this, get a local well respected and independent Financial adviser. I did recently and was quite eye opening. You will most likely make or save a lot more than the costs.

Do not be doing it on a banks advice as they get commission and you ultimately want people working in your best interest. 

To be honest. I have been thinking about updating the will. It would most likely be a good idea to have a review, but as you say. A local IFA that could help with the will would be the best course of action.

[James32]

10 minutes ago, ZRPMs said:

thinking about updating the will.

👋 can I or am I in it?

[Pete]

Anyone qualified to conduct a proper ( thorough ) financial review - sounds as if the bank is following the rules - has to know everything about you.
Then you will be asked about your plans, expenditure, etc. AND your attitude to risk building in all the contingencies so that you can sustain a certain standard of living.
This is mandatory these days.
The financial advisor will then provide a summary and tailored advice which you can accept, or not, as you please.
Ultimately the bank or financial advisor is hoping you will accept their recommendations which usually means they will take a small slice of your wealth for the advice which can be many thousands of pounds for really very little work.
How they make their money is through trail commissions over many years taking a small percentage of everything but it adds up.
Over the years to follow this can be a considerable sum but hopefully your portfolio still increases in real value but low risk also means struggling to keep pace with inflation.
Then if your pot grows really well and if you own a property in the SE of England ( or London ) you will likely need to plan for Inheritance Tax.

[ZRPMs]

@PeteThat sound reassuring that they seem to want to be thorough. Its just the connection to the bank. It does make sense that I take some time to talk to an IFA. I know the accountant has mentioned as much. I have asked he for advise in the past but he has refrained from agreeing to doing a review. He has said that whilst he could and would help with the tax side of any investment. He's not able to give investment advice or recommend a product that would be best for me. 

It seams to all be getting a bit heavy. Sums aren't super big but I would like to be able to be comfortable in to the fossilization stage of my life, and be able to help the little ones out as the get older.

@James32 I've given it a bit of thought and not that you need it but I'll put your name on this as a back up for you

[ArgentSmith]

A decent Bank should let you have access to your money and respect your privacy. A financial advisor is just a salesman and will only recommend products he/she sells. It cracks me up when I hear people talking about what their Financial advisor told them to do.

[Roy]

Agreed. I hate to think how much money my bank has made from me ☹️

A funny story: At the end of last year, I tried to send a TSF member a four figure payment for something I've wanted for a long time. The payment was cancelled and my online app locked. Just a message to call a UK number.

I called the number and a young lad answered and we went through the usual interrogation  KYC process.

Once he was happy that I am me, my mother still had the same maiden name (?) and I could tell him the last transaction I made, to the penny, he said he might consider accepting the transfer.

But first, he had to ask me the reason I was sending the money. What was I buying? I bit my tongue and told him. Ok, he said, but how do you know the seller. What is your relationship? A friend or family member?

Umm...well...I know him through a precious metals' forum, but he is a Premium Member...and has great feedback!

😊

[ZRPMs]

3 hours ago, ArgentSmith said:

A decent Bank should let you have access to your money and respect your privacy

Sadly, This is how they all are now. I have a business account with another bank and their daily cash unannounced limit is £3,000. The reason they give for the limits, it to ensure they have enough cash for other customers. They're a bank for crying out load, and the privacy only counts if they can't sell your data.

 

2 hours ago, Roy said:

The payment was cancelled and my online app locked.

Up until now I've been ok on this front. I do believe the daily online single payment limit is £4,000 with multiples up to £12,000. An in branch basc transfer limit is £20,000, Whilst larger amounts can be transferred instantly via chaps there is a cost for this. My latest bucket list purchase had to be sent over two days and the checks they did. They even when on companies house list to check them out. They really didn't want to send the cash. Its mine, do as I ask.

However the banks operate under a different assumption. When we open an account in a bank and deposit cash. We, the customer, see this as our cash. The bank and the legal system see it differently. The customer opens a bank account and deposits cash. The bank see and use the account as no more than a ledger. The cash, having been deposited, is treated as a loan to the bank from the customer. Ownership of the cash transfers to the bank. This is why there is a government backed compensation scheme to install confidence in the banking system, the FSCS. The Financial Services Compensation Scheme, it's the UK's statutory deposit insurance and investors compensation scheme for customers of authorised financial services firms. The first £85,000 per person, per UK banking licence, is protected by the Financial Services Compensation Scheme (FSCS). However, be careful, The Halifax is part of The Bank of Scotland, which in turn is owned by Lloyds. This means that if you were fortunate enough to have £85,000 in each, a total of £255,000. Only one, or a proportion of each up to £85,000 would be covered. The other£170,000 you would have to whistle for. As they all trade under one banking licence. I'm tell you it's all part of the illusion. "You'll own nothing and be happy". The wording is subtle, but there is a big difference between what we are lead to believe and what is true. 

Any who, Sorry for the bank rant. Thank you to all. I think i know what I'll do now. I just need to find an IFA, one who's not tied to a small group of firms and can truly give me independent advice. I know I'll have to pay but it may be cheaper in the long run. Things are a little messy and I want to make sure that I'll be ok as I enter my fossilization stage and that the little ones will be ok. 

[LawrenceChard]

11 hours ago, modofantasma said:

Don't think they're concerned... I've closed 2 banks completely

Was Northern Rock one of them?

BCCI?

😎

[screamingeagle]

13 hours ago, ZRPMs said:

Sadly, This is how they all are now. I have a business account with another bank and their daily cash unannounced limit is £3,000. The reason they give for the limits, it to ensure they have enough cash for other customers. They're a bank for crying out load, and the privacy only counts if they can't sell your data.

 

Up until now I've been ok on this front. I do believe the daily online single payment limit is £4,000 with multiples up to £12,000. An in branch basc transfer limit is £20,000, Whilst larger amounts can be transferred instantly via chaps there is a cost for this. My latest bucket list purchase had to be sent over two days and the checks they did. They even when on companies house list to check them out. They really didn't want to send the cash. Its mine, do as I ask.

However the banks operate under a different assumption. When we open an account in a bank and deposit cash. We, the customer, see this as our cash. The bank and the legal system see it differently. The customer opens a bank account and deposits cash. The bank see and use the account as no more than a ledger. The cash, having been deposited, is treated as a loan to the bank from the customer. Ownership of the cash transfers to the bank. This is why there is a government backed compensation scheme to install confidence in the banking system, the FSCS. The Financial Services Compensation Scheme, it's the UK's statutory deposit insurance and investors compensation scheme for customers of authorised financial services firms. The first £85,000 per person, per UK banking licence, is protected by the Financial Services Compensation Scheme (FSCS). However, be careful, The Halifax is part of The Bank of Scotland, which in turn is owned by Lloyds. This means that if you were fortunate enough to have £85,000 in each, a total of £255,000. Only one, or a proportion of each up to £85,000 would be covered. The other£170,000 you would have to whistle for. As they all trade under one banking licence. I'm tell you it's all part of the illusion. "You'll own nothing and be happy". The wording is subtle, but there is a big difference between what we are lead to believe and what is true. 

Any who, Sorry for the bank rant. Thank you to all. I think i know what I'll do now. I just need to find an IFA, one who's not tied to a small group of firms and can truly give me independent advice. I know I'll have to pay but it may be cheaper in the long run. Things are a little messy and I want to make sure that I'll be ok as I enter my fossilization stage and that the little ones will be ok. 

Paying for independent expert advice (especially taxation advice) was the best thing I ever did for my personal wealth. Ensure that they get no commissions and you can at least be comforted in the fact that your interests should align. I actually found that the best thing to use experts for was structuring my assets/investments and the actual decisions in what to invest in rests with me (along with any annoyances for poor performance).

[JohnA1]

On 09/01/2023 at 23:02, ZRPMs said:

Not too much is it? It's not like they required the colour of my undercrackers. Now the sceptical in me feel as if it's just a fact finding exercise.

Another opinion might be that it will also go straight to the 'wealth and asset registry' that is being compiled behind the scenes.

A friend of a friend of a friend mentioned it, don't quote me😉

They make it look like salesmanship (which it might partially be) so people volunteer information that is kept for future use. Confiscations most likely, but for the greater good I'm sure. 

They plan to abuse our good-will, use it against us whenever suits them.

 

The less they know the better in my view.

People I don't trust asking me to snitch on myself?🤣

 

[ZRPMs]

Well, A quick update. The financial chap has been. I divulged what I thought was sufficient. Quite a long conversation. It was a little tense when He asked my honest opinion of advisors, but he didn't hold it against me.

Only new info was the access to the different funds. We agreed on some points, strongly disagreed on others. All in all some food for thought. Randomly the conversation touched on Freemasonry. Possibly useful for setting up what I had in mind and saving quite a bit of the leg work. 

Well there you have it. I'm not too disappointed. More of a confirmation that I seem be be heading the right way. 

Thanks to all that have given tips and points of view. If anyone has experience of financial MOT's and how they turned out. I would appreciate what you can share. 

[Stacktastic]

On 26/01/2023 at 14:52, ZRPMs said:

Well, A quick update. The financial chap has been. I divulged what I thought was sufficient. Quite a long conversation. It was a little tense when He asked my honest opinion of advisors, but he didn't hold it against me.

Only new info was the access to the different funds. We agreed on some points, strongly disagreed on others. All in all some food for thought. Randomly the conversation touched on Freemasonry. Possibly useful for setting up what I had in mind and saving quite a bit of the leg work. 

Well there you have it. I'm not too disappointed. More of a confirmation that I seem be be heading the right way. 

Thanks to all that have given tips and points of view. If anyone has experience of financial MOT's and how they turned out. I would appreciate what you can share. 

I know of a non woke advisor if you need the details. 

[ZRPMs]

8 minutes ago, Stacktastic said:

I know of a non woke advisor if you need the details. 

I've either been unlucky, or I'm afraid they are all more interested in selling the commission based products rather than give me actual financial advise. This last ones best advise was to consolidate my accounts and investments and put them with his firm. As you can imagine I've not actually followed that nugget of advise.