Call Richard Cook: 07770 575 122

email: richard@theinvestmentandretirementcoach.co.uk

Just HOW MUCH is Financial Advice costing you?

Many of my friends are Financial Advisers and are providing an excellent service to their clients at a reasonable cost.

But only this week I was asked to look at a half yearly statement (often issued in May and Oct) for a family friend and what I found really scared me.

Nothing complicated. Just a Pension Plan and an ISA allocated to a Model Portfolio (Cautious Risk) – total value around £250,000.

The disclosed half yearly fee was in excess of £2,200. That’s a whopping £4,400 (around 1.6%) per annum. But wait a minute… there are the Investment Manager’s fees on top of that (Typical Cautious Managed Fund around 0.5% per annum). That all tots up to in excess of 2% per annum.

Just how scary is that?


Lets try to put it into some type of perspective. The average dividend from FTSE100 companies is around 3.5% per annum. That’s 57% of your dividends going out as fees.

Is your Adviser really adding that type of value?

Is there a sensible alternative? It depends on how complicated your finances are. For a straightforward case a Portfolio of tracker funds on the Hargreaves Lansdown platform will cost you just around 0.6% per annum – that’s a saving, in this example, of almost £3000 per annum. That’s a pretty good holiday in my book.

If the best part of £400 per month was leaving your bank account to pay your adviser you would sit up and pay attention. It does not make any sense to be happily paying those fees just because you can’t easily work out how they are being deducted.

If you would like to explore this in more detail just check the “request more information” box and I will get back to you soon.

If you do nothing else, check your half yearly statement and look at what you are paying. It’s a competitive world out there and fees are not set in stone. A sensible discussion with your Adviser may provide a worthwhile fee reduction – I would be very interested to know if you do save money – please let me know.

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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

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