IFA fees
Comments
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I agree that it is a lot cheaper to go down the DIY route, but not everyone has the confidence and knowledge to manage a portfolio of £375k themselves. In these cases it would be worth going through a good IFA with reasonable costs.I'm paying about £400 pa in platform fees to self-manage a SIPP portfolio of c£375k. I also pay about £2000 in fund management charges via the fund AMCs, but I bet the IFA costs exclude any fund manage charges -something else to check.
If the IFA has excluded Fund Management Cgarhes, then they are proposing to charge you about £6500 pa for the same service that I provide to myself for £400. This means that their advice has to produce £6100 more income per annum to avoid costing you money over the DIY option.
£400 pa in platform charges is really cheap for a portfolio of that size. Do you mind me asking what platform you have your SIPP on?0 -
I'm paying about £400 pa in platform fees to self-manage a SIPP portfolio of c£375k. I also pay about £2000 in fund management charges via the fund AMCs, but I bet the IFA costs exclude any fund manage charges -something else to check.
If the IFA has excluded Fund Management Cgarhes, then they are proposing to charge you about £6500 pa for the same service that I provide to myself for £400. This means that their advice has to produce £6100 more income per annum to avoid costing you money over the DIY option.
That is a very simplistic route of looking at it, I could in theory service my own car on an annual basis and only pay for the parts, thus saving on garage markup and labour.
Do I have the skill level or the inclination to do it, or is it more cost effective someone who knows what they are doing carry it out. It will take less time, and if I have any issues I don't have to spend my weekends and evening tinkering, I can just take the car to the garage.
It is not all about costs for some, for some people the peace of mind knowing that they do not have to analyse morning star or calculate their annual allowances for draw down is worth the extra %. In my retirement, I want to enjoy my time and monitoring spreadsheets is not my idea of fun!
It is horses for course, but I feel that sometimes working purely on costs is disingenuous to the question0 -
I agree that it is a lot cheaper to go down the DIY route, but not everyone has the confidence and knowledge to manage a portfolio of £375k themselves. In these cases it would be worth going through a good IFA with reasonable costs.
£400 pa in platform charges is really cheap for a portfolio of that size. Do you mind me asking what platform you have your SIPP on?
I agree 0.1% is a great rate? Who is this with0 -
Typically, these guys roll up at your house driving a E class Mercedes. Ask him where his customer's Mercedes E class are. You'll never have one if you're giving away your money like that, for certain.
Are you really still jealous of others that work hard to get to where they are? You could you have more if you worked harder.
Plus, the Mercedes E class is only around £35k. It's hardly an expensive car.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
You could you have more if you worked harder.
Plus, the Mercedes E class is only around £35k. It's hardly an expensive car.
There are only a certain number of hours available for work - 24 a day if you never stop ...
It seems to me that you should remember that for many, many people the cost of £35,000 would indeed represent an "expensive" car and for very many others that sum represents more than they could hope to earn in a year......0 -
There are only a certain number of hours available for work - 24 a day if you never stop ...
It seems to me that you should remember that for many, many people the cost of £35,000 would indeed represent an "expensive" car and for very many others that sum represents more than they could hope to earn in a year......
Does that allow them to be rude about people that can afford it?
And, if you recall the other thread where JS displayed his jealousy, he measured the individual by their car. The more expensive the car, the lesser they were as a person.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Does that allow them to be rude about people that can afford it?
No, certainly not but who said that it did?And, if you recall the other thread where JS displayed his jealousy, he measured the individual by their car. The more expensive the car, the lesser they were as a person.
But two wrongs don't make a right?0 -
I am a well paid professional person. Well paid people always have financial advisers buzzing around them. I remember a meeting when one adviser was telling us that they were no longer allowed to be paid commission but had to work hourly. "I charge a very competitive £200 an hour". I remember watching us all splutter. It was rare for us to get paid that amount.
They seem to have got around it by charging a percentage like estate agents. "I'll take a few photos and put it on a website. That will be £4K" sounds awful. 1% commission doesn't sound bad.0 -
The adviser claimed his rate was competitive. You spluttered at his rate. What was the rate being charged by the other professional advisers with whom he was competing? If the market rate was £100, you are right, £200 is not a competitive rate, and you were right to splutter. But I suspect the market rate for regulated financial advice was not as low as £100.I am a well paid professional person. Well paid people always have financial advisers buzzing around them. I remember a meeting when one adviser was telling us that they were no longer allowed to be paid commission but had to work hourly. "I charge a very competitive £200 an hour". I remember watching us all splutter.
Don't confuse what you get paid, with what the business needs to charge for its services during its chargeable hours to get enough money in the door to pay you what you get paid plus employer's NI (and other costs of employment), renting or maintaining an office and other premises costs, training, infrastructure / technology, support staff and any employees or management in the background who are not getting charged out at a rate per hour, regulatory compliance, sales and marketing etc and a profit margin to compensate the owners of the business for their capital tied up in the business and the risks that the income doesn't cover the outgoings.It was rare for us to get paid that amount.
I don't earn anything like as much as £200ph but my employer couldn't afford to employ me if they could only charge me out at as little as £200ph.0 -
The adviser claimed his rate was competitive. You spluttered at his rate. What was the rate being charged by the other professional advisers with whom he was competing? If the market rate was £100, you are right, £200 is not a competitive rate, and you were right to splutter. But I suspect the market rate for regulated financial advice was not as low as £100.
Most don't charge an hourly rate as most consumers dont want hourly rates. Fixed fee or percentage is the most common. However, where it is charged, it is typically around £125 to £150 an hour.They seem to have got around it by charging a percentage like estate agents. "I'll take a few photos and put it on a website. That will be £4K" sounds awful. 1% commission doesn't sound bad.
It would be nice if it was like that. However, it's not. So, pointless making comparisons like that.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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