IFA Charges

redmalc

Good Morning All
Our IFA looks after our pensions and S&S Isa,s , total combined value is 750k,  what sort of charge should I be expected to pay him for this service
thanks

dunstonh

Our IFA looks after our pensions and S&S Isa,s , total combined value is 750k,  what sort of charge should I be expected to pay him for this service

no initial charges on top-ups or any other tasks and around 0.50% p.a. (the most dominant fee at that level)

artyboy

dunstonh said:

Our IFA looks after our pensions and S&S Isa,s , total combined value is 750k,  what sort of charge should I be expected to pay him for this service

no initial charges on top-ups or any other tasks and around 0.50% p.a. (the most dominant fee at that level)

I hope you don't mind me piggybacking here, but is 0.5% also fairly standard for any amount beyond that (specifically thinking around the £2-3m level...)?

And one more - are IFAs typically happy to act jointly for husbands/wives, ie work on the basis of shared financial goals and objectives? Possibly a daft question!

redmalc

Many Thanks for your comments , i am currently paying 0.65%

dunstonh

I hope you don't mind me piggybacking here, but is 0.5% also fairly standard for any amount beyond that (specifically thinking around the £2-3m level...)?

Some firms may have a cap/collar arrangement with a maximum fee.  Others may taper their fee with extra tiers with higher amounts. e.g. 0.4, 0.3 etc

However, the cost of very high value investors can lead to more specialist advice and investment options which are non-maintream  (VCTs, EIS, SCARPS etc).   This leads to increased costs for their liability insurance.  For example, 5 people with 1 million each is less risk than one person with 5 million.   So, the costs may not taper away as much as they would at lower levels.

And one more - are IFAs typically happy to act jointly for husbands/wives, ie work on the basis of shared financial goals and objectives? Possibly a daft question!

Jointly is the best way.  It makes financial planning more suitable and you would expect joint values to dictate the charging level.  Not individual values.   Most households share their needs and finances.   Although a small number will operate individual finances.  It is up to the client to decide how they do it.