IFA Charges

jem16

Seems like I've stirred up a hornets nest....sorry about that.

I wouldn't worry about that. It crops up every time an investment bond is mentioned and Ed posts a load of misinformation about it.

Husband is higher rate taxpayer. ISAs already used up. Sounds like the investment bond is a good choice. Either that or it all goes in your name but you still have the CGT problems mentioned earlier.

I'd definitely try to get the commission lowered. I only paid 1% on mine with 0.5% trail (annual) commission. With this method it was cheaper than a fee as VAT has to be paid on the fee and not the commission.

Why not ask for an exact quote on a fee rather than an hourly charge? Then you can compare it to the commission charge and see which is best.

Tiggs_2

jamesd wrote: »

Tiggs, nice to see some adviser variety here. If only for variation in who's saying that EdInvestor is wrong in this area.

lol - when there's a variety of people giving a variety of reasons why your wrong.......there's some fair old clues there!

Bonds have their miss sales no doubt.....but i have plenty of clients drawing many times the higher rate income tax threshold from their bonds on which they are only paying about 20% tax, who find them lovely and simple to live with and if they drop dead tomorrow will pay hundreds of thousands less in IHT. Used right the advantages of a bond can make any issues around commission, fees, trail redundant in respect of the savings.