NEWS & ANNOUNCEMENTS What is the cost of Financial Advice? 5 August 2019

According to the consumer group, which talked to 108 financial advisers in the UK regarding different client situations, the difference between the cheapest and most expensive advisers can be very significant. I

n the first instance, a client had a £150,000 pension pot, £100,000 in savings and the same amount in an Isa. The cheapest quote for financial advice was £500, the most expensive £5,000 and the average cost was £2,540.

Second, advisers were presented with a parent on how to pay for university education, with the help of £60,000 in savings and £40,000 invested in stocks and shares. For this scenario, quotes ranged between £300 and £2,500, with an average of £1,060. In the last case study, IFAs were to advise a 50-year-old home owner wishing to invest a £100,000 inheritance. Financial advice costs went from £500 to £3,000, averaging on £1,980.

We work off a minimum initial fee of £1,500, but of course when comparing fees the crucial element is to compare what specific service is being provided and whether that presents good value for money.

We believe it is also important to find a firm where there is an obvious fit between the adviser and client. For example, some firms work on a more transactional basis, whereas other firms like ourselves focus on the ongoing service and the long term relationship, as we believe this produces best outcomes for clients.

Some firms may also focus on a niche area such as medical professionals, whereas other firms like ourselves mainly work with business owners and professionals.

Whatever your view on fees is, having an initial chat with a couple of firms to see where the best fit is, should be time well spent.