IFAs fees

Cool-customer2015

Hi can i ask how much would an IFA charge in %, initial and ongoing, and would this only cover cash savings? i am having different figures so i wanted to know so i can haggle hard for something reasonable. many thanks

MX5huggy

They charge % fees based on funds under their management, so probably nothing to do with your cash savings as you probably won’t have those with them. The fee will depend on the value of the funds you have with them and to some degree the potential in the growth in value. Managing £1m does not take 10 times the effort of managing £100k so the fee for the later might be 2% whereas 1% on the 1m.

Linton

First thing is that an IFAs primary role is to work with investments - eg funds, pensions etc.  Not cash savings.  All the information one needs for cash savings is readily available on the net.  Though an IFA could explain when cash savings are appropriate and when investments would be better.

What would you want an IFA to do? How much money is involved?  The more money you need advice on the lower the % that the IFA would be happy to accept.  Getting an IFA interested in pot sizes less than say £50K-£100K may be difficult.

The sort of figures given on this forum assuming a reasonable pot size are something like an initial 3% of total pot size and 0.5%/year for ongoing support if that is what you want.

Many IFAs seem to have more than enough work on their books so hard haggling may not get you very far unless perhaps you have £millions to manage.

Albermarle

They would not normally charge for cash savings, although they will advise you on what they think the correct amount to keep in cash savings.
The initial charge will be to set up an investment portfolio of some kind, maybe in a pension, that will be based on your age, objectives, risk tolerance etc. It can be between 1 and 3 % approx of your funds.. Then there is a charge if you want them to manage the investments on an ongoing basis of between 0.5% and 1% depending on fund size.

 so i can haggle hard for something reasonable. 

No harm in negotiating, but be aware that most are quite busy and may avoid anybody they see as a potentially difficult customer. Also if you have less than say £250K you may find it difficult to get much flexibility. Depends in which area you live to some extent.

Beddie

Cool-customer2015 said:

Hi can i ask how much would an IFA charge in %, initial and ongoing, and would this only cover cash savings? i am having different figures so i wanted to know so i can haggle hard for something reasonable. many thanks

I think it would be best for you to have a chat with one, their initial meeting is usually for free. Then they can cover what they can do for you in general terms and how much it costs. As others have said, they primarily handle investments, pensions etc. not cash savings.

dunstonh

Hi can i ask how much would an IFA charge in %, initial and ongoing, and would this only cover cash savings? i am having different figures so i wanted to know so i can haggle hard for something reasonable. many thanks

Its no different to other services. Some will be cheaper. Some will be damned expensive.

IFAs generally don't deal in cash savings as there is little more than looking at comparison tables on this website and its pointless using an IFA to do that.

Haggling is difficult. The FCA don't like firms that set a higher price and then give a lower one after haggling as it means they havent got their pricing model right to begin with.  Discounts for valid reasons are fine though.