400k

ps2659

Hi
Looking for general advice for my uncle he told me he has approx. 400k invested in stocks and shares ISAs he is considering seeking the help of an IFA and and wonders what the costs would be if he lets them take over his investments, just a general guide from the lowest charge to the most expensive. He also has other investments but at this moment is interested in making sure he does not get overcharged, I realise there may be other questions to answer however he just wanted to know roughly the charges they would make to be fair charges.
Thanks

xylophone

And your uncle might wish to ring round a few IFAs for quotes.

https://www.unbiased.co.uk/

dunstonh

400k invested in stocks and shares ISAs he is considering seeking the help of an IFA and and wonders what the costs would be if he lets them take over his investments, just a general guide from the lowest charge to the most expensive

I would estimate initial charges of zero to £20,000 as the range.
ongoing advice charges would typically be between 0.5% to 1.0%.

Ideally, if its mainstream, then you should be targeting zero to £2000 as the ideal range. Zero may sound strange but many firms will take on a portfolio of that size with the ongoing servicing being the bit where they earn their money.

Consumers prefer to pay a percentage which is why percentages are most commonly used. However, the popular model is a fixed amount initially and a percentage ongoing.

IFAs have to be whole of market by definition. Any form of restriction means they cannot be called an IFA and the their terms of business will have to state the restrictions. They cannot use the term independent anywhere if they are not independent.

Kelouba

IFA's are never independant no matter what they say. They will always sell you the product that pays the most commission.

HappyHarry

IFA's are never independant no matter what they say. They will always sell you the product that pays the most commission.

Please tell me this is a wind up?

jimjames

Kelouba wrote: »

IFA's are never independant no matter what they say. They will always sell you the product that pays the most commission.

Have you heard of RDR?

bigfreddiel

Kelouba wrote: »

IFA's are never independant no matter what they say. They will always sell you the product that pays the most commission.

Despite their bad reputation with the public they must now charge a fee.

fj

TH1878

Kelouba wrote: »

IFA's are never independant no matter what they say. They will always sell you the product that pays the most commission.

Spot on. The only flaw I can see with your assertion is that commission has been banned on investment business for over 2 years which pretty much makes all of it wrong.

dunstonh

Kelouba wrote: »

IFA's are never independant no matter what they say. They will always sell you the product that pays the most commission.

You have made 22 posts in 9 years. Are they all us incorrect and rubbish as that?

ps2659

Thanks to all for the replies, I called yesterday to see my uncle as he has had a quote from the IFA, the ISAs held are split between my uncle and aunty but totalling just over 400k, I do hope someone can advise in general if you think the charges are reasonable or not.
1. To provide a review of there financial circumstances for both platform held ISAs - £450.00
2.After review should they need to rebalance that will be approx. £225.00 for each ISA they hold, they probably have 14 different ones each.
3.An ongoing charge of 0.5%per annum chargeable at 0.25% every six months, all fees quoted do not include VAT
Thank in advance.

xylophone

2.After review should they need to rebalance that will be approx. £225.00 for each ISA they hold, they probably have 14 different ones each.
3.An ongoing charge of 0.5%per annum chargeable at 0.25% every six months, all fees quoted do not include VAT

:eek:

I fear that my reaction would be "Blow that for a game of soldiers" -
has your uncle tried getting quotes from other IFAs?