Savings and Investments thread

HardyAddick

golfaddick said:

HardyAddick said:

Rob7Lee said:

HardyAddick said:

Would appreciate people’s advice on how much IFAs should charge and on what basis / what % and whether a % of assets.

i have a mix of assets - pension, iSAs with HL (shares and cash) physical BTLs, plus cash on deposits. I don’t mind paying for IFA advice but it should be good obviously. I can deal with the BTLs and cash so don’t see why an IFA should charge a % on these. 

Should an IFA give general advice and how should they charge?

Are you saying the IFA is charging you a percentage of your rent/property values and a Cash ISA? Seems a bit heavy.

I’ve never been the biggest fan of the % charge on say SIPP value. Never quite understood why managing a SIPP etc worth £1m costs twice as much as managing one worth £500k.

golfies the expert here on charges, and as indicated really depends though on the service you want.

The IFA set up my pension -a Drawdown  by consolidating my work pensions about 3 years ago and charged a one off fee I was happy with. 

I now want ongoing advice on my pension and stock/share ISAs -all with HLansdown. I’m not prepared to pay % of my BTL or cash to the IFA. The IFA is coming to see me and it’s a question of what he does for ongoing advice / management and what he charges for that ongoing advice. 

Did your IFA set up your Drawdown plan with HL ?  That's very unusual as they are a client-led site rather than adviser-led and I don't believe that he can take an ongoing fee from them. 

Advisers wont take fees from non-investment assets such as Cash deposits or BTL's.

I'd be very interested in what he proposes to charge you as the company I work for are in the process of changing the fees charged & for almost all my clients this would mean an increase.....some by a big margin. 

The drawdown pension set up is with Royal London. It’s a question of what fee is fair for a pot of say £1M and what I should expect in terms of service. 

golfaddick

HardyAddick said:

golfaddick said:

HardyAddick said:

Rob7Lee said:

HardyAddick said:

Would appreciate people’s advice on how much IFAs should charge and on what basis / what % and whether a % of assets.

i have a mix of assets - pension, iSAs with HL (shares and cash) physical BTLs, plus cash on deposits. I don’t mind paying for IFA advice but it should be good obviously. I can deal with the BTLs and cash so don’t see why an IFA should charge a % on these. 

Should an IFA give general advice and how should they charge?

Are you saying the IFA is charging you a percentage of your rent/property values and a Cash ISA? Seems a bit heavy.

I’ve never been the biggest fan of the % charge on say SIPP value. Never quite understood why managing a SIPP etc worth £1m costs twice as much as managing one worth £500k.

golfies the expert here on charges, and as indicated really depends though on the service you want.

The IFA set up my pension -a Drawdown  by consolidating my work pensions about 3 years ago and charged a one off fee I was happy with. 

I now want ongoing advice on my pension and stock/share ISAs -all with HLansdown. I’m not prepared to pay % of my BTL or cash to the IFA. The IFA is coming to see me and it’s a question of what he does for ongoing advice / management and what he charges for that ongoing advice. 

Did your IFA set up your Drawdown plan with HL ?  That's very unusual as they are a client-led site rather than adviser-led and I don't believe that he can take an ongoing fee from them. 

Advisers wont take fees from non-investment assets such as Cash deposits or BTL's.

I'd be very interested in what he proposes to charge you as the company I work for are in the process of changing the fees charged & for almost all my clients this would mean an increase.....some by a big margin. 

The drawdown pension set up is with Royal London. It’s a question of what fee is fair for a pot of say £1M and what I should expect in terms of service. 

I'm currently doing one for a client. With Royal London so just need to "turn the tap on" so to speak. I didn't actually charge a fee in this case as the ongoing was only 0.3% so agreed to increase it to 0.5% in lieu of a fee (fund was way lower than £1m though - around a quarter of it !). But usually if the pension was already in a pension that could facilitate drawdown then I would charge a fee of around £500-£750 to start the drawdown process as there is a lot of work involved (FCA requirements as well as Network/Company procedures). 

As I said earlier, I usually charge 0.5%pa as an ongoing charge, although for a fund of £1m (plus anything else you might want managing) I would probably reduce that a bit.

In terms of service - the FCA say that if you are paying an ongoing fee you should (as a minimum) get an annual meeting where your investments (and the platform/provider) are reviewed to see if they are still suitable for your needs and continue to meet your attitude to risk. This will probably necessitate checking if there has been any changes to your personal & financial situation as well as completing a new attitude to risk questionnaire. Also, during the 12 months between meetings, your adviser should be available to answer any questions you may have or to make any changes to your portfolio and facilitate any ad-hoc withdrawals in a timely manner.