IFA Charges

dawhite

I am looking at doing some retirment planning so I called an IFA to review. I have about £400k spead over 8 different pension plans. He took the usual details and advised that he could take a fee or on commission. The fee he said for him to give a report would be in the region of £6000-00, but if he went the commission route then it would be £500-00 for the report and this would be refunded if I then took up his recomendations. The £6000 seemed excessive and I am conceerned that commission will be to high and yet the £500-00 for the report seems OK. Any advise as to what charges should be and how does his recomendation sound?

:beer:

dunstonh

The £6000 seemed excessive and I am conceerned that commission will be to high and yet the £500-00 for the report seems OK.

£500 to get to report stage is quite reasonable. £6000 for the fee seems heavy (unless there are final salary pension schemes involved). but it only equates to 1.5% of the transfer value. Commission would equate to around 3% of the transfer value so fee is certainly cheaper. Although you could get cheaper than that because many firms wont be interested in the up front commission but more the natural trail commission of 0.5% pa which is £2000 a year. A fee in the £1500-£2000 range would be closer to the mark (assuming no difficult pensions or occupational pensions in there).

how does his recomendation sound?

You didnt cover that bit.

dawhite

This meeting was the initial free meeting. What he outlined was the charges for the report, and I have to agree to the £500 before he goes off to write it. After I have te report i dont have to go with him for the actions that he recomends.

dawhite

Thanks, I think I will check around with a couple more IFA's and see what they say rather than sign up with this one. Appreciate the advise!

whiteflag_3

Why dont you look for a Certified and /or Chartered Financial Planner and one that uses "Truth" financial planning software . Dont waste your time with anything less.