I am not without sympathy for regulated financial advisers. Regulatory and compliance costs are huge and compliance makes it very difficult to treat each client as an individual. Far too many advisers hide behind “risk profiling” which means that clients with the same risk profile are lumped together in the same model portfolio regardless of personal circumstances and objectives.
But even more worrying is the extent to which fees have not only increased but been “hidden” from clients. They will all be disclosed somewhere but rarely all together in a format which makes sense.
Only last week a prospective client told me he had negotiated a reduced fee with his adviser of 0.65 % per annum. That’s the first lesson – don’t be afraid to negotiate!
Unfortunately that was far from the total picture. In addition to the adviser’s fee there was a platform fee, a discretionary management fee, VAT, and fund manager’s fees, all adding up to more than 2% pa. That’s a big cost which will have a huge impact on results.
Yes, I know low cost and value for money are not the same thing. All I ask is that you find out exactly what you are paying – and don’t accept any waffle – decide whether it is truly value for money.
At the other extreme you can use one of the “no advice” services such as Hargreaves Lansdown – a portfolio of Tracker Funds will cost less than half of what you are paying your IFA.
I’m not saying that’s the right answer for you, but at least ask the question and find out what you are paying. There are plenty of good, competitively priced advisers out there and you may have just struck lucky.
If you don’t want to ask the questions yourself my IFA Service and Fees Report will cost you just £270.
Text IFA REPORT to 07770 575122 and I will let you know how it all works. Depending on the size of your portfolio you could be thousands of pounds better off in no time at all.
This is your money. You worked hard for it. It should be working hard for you, but it can’t if too much is going out in fees each and every year.
This document and our on going services are not personal advice. We'll give you all the help and guidance you need to make your investment and retirement decisions, but we can't advise you. If you're not sure whether you need regulated financial advice we can put you in touch with a suitably qualified and experienced regulated adviser. Because we are not regulated by the Financial Conduct Authority you will not have access to the Financial Ombudsman Service in respect of any complaints. If you use one of the "no advice" on line services to handle investment transactions they will be Regulated and you will have access to the Ombudsman and The Financial Compensation Scheme in respect of their services. The value of investments/pension plans can fall or rise depending on market performance. The Retirement Team and The Investment and Retirement Coach are trading names of Capture Success Ltd Reg No 01825075 Tel 07770575122