IFA charges

jem16

djbdjb wrote: »

thanks...yes I think I'll look around for a fee based arrangement or at least a lower percentage ...1% up front and 0.5% seems reasonable to me.

To be honest with the amount you are investing 1% would still be too high - that's £5k. You should be looking for £2k or less.

dunstonh

djbdjb wrote: »

thanks...yes I think I'll look around for a fee based arrangement or at least a lower percentage ...1% up front and 0.5% seems reasonable to me.

1% plus 0.5% p.a. is ok but you should look for a cap on that 1%. As Jem says, £2k is a good cap to look for. Your value to a servicing IFA model is the 0.5% p.a. Not really the smaller amount up front.

Remember its like any profession. You get greedy firms and you get good value firms.

yelf

people have to realise that IFAs dont just get paid for the work they do in a transaction / financial plan: they get paid for the years and years of work and experience that enable them to give the advice. Picasso could paint a picture in 5 hrs, but it took him a lifetime to paint that piicture.

Rose_Crow

Sorry to hi-jack the post, but I have a related question.

I'm looking at starting a pension, and need some advice. Any idea roughly how much I can expect to be charged by a IFA?

Thanks!

dunstonh

Any idea roughly how much I can expect to be charged by a IFA?

How long is a piece of string?

For starting a pension on a transactional basis (as servicing isnt really needed until you build up a large enough sum), probably anything from £100 to £1000. The fee can be collected via the commission system (so you avoid paying by cheque) and for many plans that would be cheaper than the commission option or even indeed a nil commission stakeholder pension.

If you are paying a larger contribution, the service you need may be different and that may require servicing rather than transactional advice. Or your affairs may be more complicated or need a wider review.

Lokolo

grn.w.nv wrote: »

Sorry to hi-jack the post, but I have a related question.

I'm looking at starting a pension, and need some advice. Any idea roughly how much I can expect to be charged by a IFA?

Thanks!

Also you should look to see if you company as their own pension scheme as they might contribute to it?

jem16

Lokolo wrote: »

Also you should look to see if you company as their own pension scheme as they might contribute to it?

His/her previous thread confirms no employer pension at the moment.

https://forums.moneysavingexpert.com/discussion/comment/37969948#Comment_37969948

Loughton_Monkey

dunstonh wrote: »

How long is a piece of string?

In my experience, it is always exactly twice the length you get by measuring the distance between one end and the middle.

For IFA's though, don't forget to take off a % or two! [Don't get upset, DH. It's because IFA's can always stretch it further can't they?]