Are these fees quoted reasonable. 4 January 2022 at 5:47PM in ISAs & tax-free savings 2 replies 113 views

ruralrob228

I am in the fortunate position due to inheritance that we have £140k in savings at the moment we have £100k in premium bonds between my wife and myself. We are considering investing in some Stocks and Shares ISA ,something we have never done before and the broker who manges my excisting pension fund as quoted us some fees if we were to invest £30k . I am just asking if anyone can say if these seem about right ,as I mentioned investing is new to us so would just like to know we are not paying way over the top. The fees quoted are  ( copied from an email )

 Initial fee outlay would be 1.8% (£540) this can be either taken from the amount invested or invoiced directly to you.  It is a one off advice and implementation fee.

 

The 0.5% on-going adviser charge would be deducted monthly from the plan and paid to us directly by the provider. Based on a £30,000 investment the charge would be £12.50 p.m. (£150 over the year).  As it is a percentage charge this will increase or decrease with the value of the plan.  The on-going product charge of 0.25% you would also see debited each month from the your plan (£6.25 p.m. based on £30,000 investment).  The on-going fund charges of 0.47% will be deducted from within the funds you are invested in and the daily price valuation reflects these charges. 

Many thanks for any help offered.

Albermarle

and the broker who manges my excisting pension fund as quoted us some fees

Do you mean financial advisor rather than broker ? They are not the same thing .

Assuming you mean financial advisor, the fees look reasonable . In fact the 0.5% ongoing charge is low for a relatively modest sum of £30K. Presuming this is because they are already looking after a larger pension pot for you ?

The 0.5% on-going adviser charge would be deducted monthly from the plan and paid to us directly by the provide

Presume you mean paid to 'them' not to 'us' ?

Overall you will be paying 1.2% , again for an advised portfolio is not bad. but you can DIY cheaper.

dunstonh

The fees quoted are  ( copied from an email )
 Initial fee outlay would be 1.8% (£540) this can be either taken from the amount invested or invoiced directly to you.  It is a one off advice and implementation fee.

Not unreasonable for a standalone £30k investment.    However, if you are paying the adviser ongoing servicing on your pension, then you typically expect simple increments to something like this to incur no further initial charges.

The 0.5% on-going adviser charge would be deducted monthly from the plan and paid to us directly by the provider. 

0.50% is a low charge for £30k.  So I assume your pension value is higher.

The platform and fund charges are fine.