What it costs.
One ongoing service, one fee for it, and nothing to pay until you decide to go ahead.
Book a discovery meetingBefore you pay anything
There is no charge for the discovery meeting, the first meeting, my research or the proposal meeting. If you go ahead, the initial fee below covers that work and the set up. If you don’t, you owe me nothing.
The initial fee
This is a one-off fee for the advice and for putting the plan in place. It’s a percentage of the amount I’m advising on, and the percentage falls as the amount rises.
The minimum initial fee is £750 and the maximum is £12,000.
| Amount invested | Fee on that slice |
|---|---|
| The first £100,000 | 3% |
| £100,001 to £250,000 | 2% |
| £250,001 to £500,000 | 1% |
| £500,001 to £1,000,000 | 0.5% |
| Above £1,000,000 | 0.25% |
Three examples
| You invest | Initial fee | How it’s worked out |
|---|---|---|
| £350 a month into a pension and an ISA | £750 | The minimum fee applies |
| £98,000 | £2,940 | 3% of £98,000 |
| £250,000 | £6,000 | 3% of the first £100,000, plus 2% of the next £150,000 |
What the initial fee pays for
The ongoing fee
0.68% a year of the money I look after for you. It moves with the value of your investments, so it goes up or down as they do.
What that pays for
- Me, by phone or email, when you have a question or a decision to make
- A full review every year, face to face if you’d like
- A meeting in between if you ask for one
- A check each year on your goals, your attitude to risk, your investments and how tax efficient it all is
- A cashflow forecast, kept up to date
- Changes to your investments when they’re needed
- Conversations with your accountant and solicitor
What it adds up to
Here are both of my fees together, so you can see the whole of what you’d pay me.
| You invest | Initial fee, paid once | Ongoing fee, each year | Total in the first year |
|---|---|---|---|
| £100,000 | £3,000 | £680 | £3,680 |
| £250,000 | £6,000 | £1,700 | £7,700 |
| £500,000 | £8,500 | £3,400 | £11,900 |
Other costs
My fees are for advice. The investments have their own charges: one for the platform that holds them and one for the funds you’re invested in. As a guide, these usually come to between [X]% and [Y]% a year on top.
Before you agree to anything, you’ll see all of it added up in pounds: my fees, the platform and the funds.
Protection
If I arrange life cover, critical illness cover or income protection for you, I don’t charge you a separate fee. The insurer pays me commission, and you’ll see the amount in writing before you go ahead.
How you pay
You can pay me directly, or the fee can be taken from your pension or investment. We’ll agree which before anything starts.
Things people ask about fees
“Why does the same service cost more on a bigger pot?”
More money usually means more moving parts and more riding on each decision. Some of the work is the same whatever the size, which is why the initial fee percentage falls as the amount rises. [Si to confirm whether the ongoing fee is capped, and to put this answer in his own words.]
“Nearly eight thousand pounds in the first year on £250,000. What do I get for that?”
Most of it is the one-off initial fee, which pays for the work listed above. After that my fee is 0.68% a year, which is £1,700 on £250,000 and moves with the value of the pot. Platform and fund charges are on top. You’ll see what the plan changes, with every cost beside it, at the proposal meeting, before you owe me anything.
“Do I have to take the ongoing service?”
[Si to answer. The client agreement lets someone take the initial advice on its own, or ask for one-off work at an hourly rate. If the ongoing service is part of the deal, say so here. Two draft answers are in the Alternatives document.]
“Can I leave?”
Yes. You can end the ongoing service at any time by telling me in writing. The initial fee isn’t refunded once the work is done. [Si to confirm there is no notice period and no charge from him for leaving.]
“Am I the right fit yet?”
As a rough guide, it starts to make sense once you have [£X] or more in pensions and investments, or you’re earning enough to put a serious amount away each year. If you’re not there yet, tell me anyway. I’ll tell you whether to start now or wait.
Is it worth it?
Not for everyone. If your money is simple and you enjoy running it yourself, you probably don’t need me.
The fee buys a plan, the work of putting it in place, and someone who knows your whole position for as long as you want them. If I don’t think that’s worth your while, I’ll tell you at the discovery meeting.
Questions about fees? Ask me.
Or ring 07392 686868.