How much will IFA charge to set up PPP

KKB201

At the moment I am investigating the option of starting a PPP to maximise the tax uplift during my remaining couple of years as a higher rate tax payer. I would be looking at a £35K lump sum to start followed by £1.8K per month for the next 2 years. Assuming that a PPP is the way forward, what would be a reasonable charge for an IFA to levy. The only IFA that I have spoken to so far reckons on between £2.5 - £3.0K. This sounds a lot; however, I do tend to the view that you get what you pay for and that the tax benefit in this case would more than offset the cost.

I would be grateful for any thoughts you may have on this estimate. Thanks.

KKB201

saverjustice

I dunno, offer him £250

dunstonh

what would be a reasonable charge for an IFA to levy.

Are you after transactional advice or servicing or lifetime planning?
what sort of investment portfolio are you looking to get?
What sort of IFA would you look to use (city based, with plush offices or local rural firm)?

Like any business area, you will get wildly different figures with diferent firms. Some will be priced to attract larger investors. Some to attract investors wanting servicing. Some will be greedy. Some will be too cheap. Personally, on your transaction, I cant see any more than £2000 being necessary or even half that depending on the type of service you want.

saverjustice

dunstonh wrote: »

Are you after transactional advice or servicing or lifetime planning?
what sort of investment portfolio are you looking to get?
What sort of IFA would you look to use (city based, with plush offices or local rural firm)?

Like any business area, you will get wildly different figures with diferent firms. Some will be priced to attract larger investors. Some to attract investors wanting servicing. Some will be greedy. Some will be too cheap. Personally, on your transaction, I cant see any more than £2000 being necessary or even half that depending on the type of service you want.

I suppose you would say that..

Loughton_Monkey

If all you want to do is to invest in a pension for a couple of years to save 40% tax, then one has to wonder what 'value' an IFA can bring to the party anyway? The value in what you are doing is virtually all wrapped up in the tax relief rather than any 'investment growth'. A bit like paying a 'personal shopper' to help you get a couple of tons of topsoil and a quarter acre of turf?

saverjustice

Loughton_Monkey wrote: »

If all you want to do is to invest in a pension for a couple of years to save 40% tax, then one has to wonder what 'value' an IFA can bring to the party anyway? The value in what you are doing is virtually all wrapped up in the tax relief rather than any 'investment growth'. A bit like paying a 'personal shopper' to help you get a couple of tons of topsoil and a quarter acre of turf?

Spot on Monkey

saverjustice

Why can't I just say "Spot on"? Why is that too short?

Loughton_Monkey

saverjustice wrote: »

Why can't I just say "Spot on"? Why is that too short?

Minimum of 10 characters or something.