IFA Charges

redmalc

I have an IFA who looks after my pension and S&S isa,s for myself and my wife, currently there is 600k in total but I am due to retire later next year and I have the option to move another pension to my IFA which would take my total investment with him to 900K .
what should I be looking at for him to charge me with the additional pension investment.

thanks

fred246

£50 to check it over would be about right. What does a dentist charge for a check up? They are far more qualified than an IFA.

thegentleway

For some sums you are looking at 0.5% per annum.

NottinghamKnight

We're told that the prevalent figure for large pots is 0.5% per year, so that would give a charge of £4.5k on the total pot and £1.5k on the additional sum. 

redmalc

Thanks for the comments, 0,5% is the quote I have received

Alexland

Should be aiming for 0.5% on the total not just the additional scope. Still it's a lot of money to be spending.

fred246

The 'prevalent figure' is obviously a total, complete and utter rip-off! Just because IFAs keep charging it doesn't mean that it is a reasonable figure. IFAs are just chancers. If people keep paying it they will keep ripping everybody off. They won't reduce their charges. It's up to the customers to get them down. Offer far, far less. If they know what they are doing it won't take 1 hours work. They will still do it. Come on customers, push those silly fees down to 'fair days work for a fair days pay' level.

thegentleway

fred246 said:

The 'prevalent figure' is obviously a total, complete and utter rip-off! Just because IFAs keep charging it doesn't mean that it is a reasonable figure. IFAs are just chancers. If people keep paying it they will keep ripping everybody off. They won't reduce their charges. It's up to the customers to get them down. Offer far, far less. If they know what they are doing it won't take 1 hours work. They will still do it. Come on customers, push those silly fees down to 'fair days work for a fair days pay' level.

Seems like you’ve identified a huge gap in the market. Why don’t you start your own IFA firm and offer financial advise at reasonable figures? 

garmeg

fred246 said:

The 'prevalent figure' is obviously a total, complete and utter rip-off! Just because IFAs keep charging it doesn't mean that it is a reasonable figure. IFAs are just chancers. If people keep paying it they will keep ripping everybody off. They won't reduce their charges. It's up to the customers to get them down. Offer far, far less. If they know what they are doing it won't take 1 hours work. They will still do it. Come on customers, push those silly fees down to 'fair days work for a fair days pay' level.

Jesus wept.

fred246

Would like to see a 'breakdown' on the £4.5K. How much of that is the 'getting out of bed fee' and how much is the 'putting on spectacles fee'?. £4.5K is a complete and utter joke.

zagfles

fred246 said:

Would like to see a 'breakdown' on the £4.5K. How much of that is the 'getting out of bed fee' and how much is the 'putting on spectacles fee'?. £4.5K is a complete and utter joke.

I'm not one to stick up for IFAs but a lot of the cost will be compliance, indemnity insurance etc - due to past misselling scandals the financial services industry is tightly regulated and getting things wrong can be very costly. Basically a lot of the cost will be paying for their mistakes! And those of others through insurance.