£40,000 commission?

whiteflag_3

paul5046 wrote: »

For 1.3 mill wouldn't you want tax advice and maybe legal advice as well. Can IFA's do all this or would you need an accountant and solicitor as well.

your correct, but you couldnt you get all the advice required - legal /tax / investment and still have change out of £10K?

paul5046

whiteflag wrote: »

your correct, but you couldnt you get all the advice required - legal /tax / investment and still have change out of £10K?

I dont know. My number one aim would be getting great advice and service, the price would be second. If you lost 10% from bad advice, thats 130k. An awful lot of money.

whiteflag_3

paul5046 wrote: »

I dont know. My number one aim would be getting great advice and service, the price would be second. If you lost 10% from bad advice, thats 130k. An awful lot of money.

would that be £130K in unneeded tax or investment loss ?

IF your saying the more the investment adviser charges, the better the advice then I think thats madness!

jem16

whiteflag wrote: »

IF your saying the more the investment adviser charges, the better the advice then I think thats madness!

I got the impression that paul5046 was saying that the quality of the advice is first and foremost and fees are secondary.

A good adviser and one you can build a good trusting relationship with is worth paying for. However it doesn't follow that the more you pay the better the advice.

Lokolo

jem16 wrote: »

I got the impression that paul5046 was saying that the quality of the advice is first and foremost and fees are secondary.

A good adviser and one you can build a good trusting relationship with is worth paying for. However it doesn't follow that the more you pay the better the advice.

Surely not if they're sh*t at their job?

dunstonh

It is worth noting that the commission in the product is no different to what is paid if you see an adviser at a bank or building society or other tied salesforce. So, whilst we all agree that there should either have been discounting or done on fee basis, it is no worse that what a bank would have done. Indeed, the bank would have been worse as they tend to take full initial commission rather than initial and trail and their cut would have been £91,000 compared to £40,000.

So, the pricing is poor for an IFA but perfectly normal for a salesforce.

willt

Not all banks charge an upfront fee / commission

dunstonh

willt wrote: »

Not all banks charge an upfront fee / commission

Nor has the IFA making this recommendation. The £40,000 is not an explicit charge. It is funded by NU out of product charges, such as the annual managment charge and allocation rate/establishment charge.

This is not an initial charge. It is a commission payment. The product itself would have around 103.5% allocation.

whiteflag_3

dunstonh wrote: »

Nor has the IFA making this recommendation. The £40,000 is not an explicit charge. It is funded by NU out of product charges, such as the annual managment charge and allocation rate/establishment charge.

This is not an initial charge. It is a commission payment. The product itself would have around 103.5% allocation.

yes,but come on the recomendation is rubbish! its the same amount of work for investing forty grand! this guy should be on rougue traders .

its madness, no one can defend that its three hours work !

dunstonh

whiteflag wrote: »

yes,but come on the recomendation is rubbish! its the same amount of work for investing forty grand! this guy should be on rougue traders .

its madness, no one can defend that its three hours work !

We have already said that early on in the thread. It is typical of a salesforce/tied agent style recommendation and its being "retailed" at the same price you would get it for if you bought from a bank.

I just felt a little bit of context needed to be put in there.