Got IFA..fee based ?? ok?

ipri

hi...how does a fee based relationship work?...? per hour or for items of advice? ta

dunstonh

Depends on what services you are buying and what you agree.

By the hour is one option, fixed charge for a transaction is another. It can also be a hybrid of fee and commision. Such as the NMA IFA model which is typically 1% plus 0.5% trail for investments with a minimum and maximum on that 1%. (the 1% can be higher depending on what stage the firm is at on moving from transactional to new model and what they can afford or what they can get away with. 1.8% is the average but that includes all IFAs).

The new term that is under consultation at the moment is "customer agreed remuneration". You discuss the fees and agree the fee and how it is paid. It may come in part from commission, it may come from you writing a cheque. It may be a bit of both. As you have posted this in the pensions section, then the hybrid option is often best pension contributions get tax relief and taking the fee from the pension means you are getting tax relief on the fee.

ipri

Thanks...I believe they are fee based...I have nhs superann. pension...expecting advice on tax...incone splitting..? mort payoff options..ian

EdInvestor

Perhaps you need an accountant rather than an IFA.