IFA charges on a £50 k investment.

IFA charges on a £50 k investment.

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Buster73

Original Poster:

5,042 posts

152 months

Thursday 14th May 2015
quotequote all
What sort of charge should I be paying on a £50k investment possibly spread over a few funds after taking her advice.

Up front fee and ongoing trail commission .

Any pointers in the right direction would be appreciated .


Petrus1983

8,521 posts

161 months

Thursday 14th May 2015
quotequote all
Buster73 said:
What sort of charge should I be paying on a £50k investment possibly spread over a few funds after taking her advice.

Up front fee and ongoing trail commission .

Any pointers in the right direction would be appreciated .
The company I use (which admittedly is very good) charges 2% initial plus 1% amc. For that I get great service and last year a 14% return whilst keeping 20% in cash. This year we hit 12% by mid April and went into a managed defensive fund to sit it out. Pm me if you want more info. I think your biggest problem is a lot of people won't deal with £50k but at the same time mine probably would for the right person.

Buster73

Original Poster:

5,042 posts

152 months

Thursday 14th May 2015
quotequote all
Petrus1983 said:
The company I use (which admittedly is very good) charges 2% initial plus 1% amc. For that I get great service and last year a 14% return whilst keeping 20% in cash. This year we hit 12% by mid April and went into a managed defensive fund to sit it out. Pm me if you want more info. I think your biggest problem is a lot of people won't deal with £50k but at the same time mine probably would for the right person.
£50 k not enough like ?

It's not a cash transaction FYI .

Petrus1983

8,521 posts

161 months

Thursday 14th May 2015
quotequote all
Don't take it personally! My local bank where I use to live had a minimum of 5m Euros. I think Coutts is circa £250k at the moment, could be higher.

davepoth

29,395 posts

198 months

Thursday 14th May 2015
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Petrus1983 said:
Don't take it personally! My local bank where I use to live had a minimum of 5m Euros. I think Coutts is circa £250k at the moment, could be higher.
True enough. £50k seems to be the absolute low limit for IFAs and there are a few locally (Bath) that don't like to go that low; I'm not fully sure of the reason but I believe it's because they can't realise their investment strategy on that amount of money.

Simpo Two

85,148 posts

264 months

Thursday 14th May 2015
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Buster73 said:
£50 k not enough like ?
I photographed the wedding of a woman who ran some kind of investment outfit in the City. They start at £1M.

darreni

3,759 posts

269 months

Thursday 14th May 2015
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davepoth said:
True enough. £50k seems to be the absolute low limit for IFAs and there are a few locally (Bath) that don't like to go that low; I'm not fully sure of the reason but I believe it's because they can't realise their investment strategy on that amount of money.
It's more a case of time spent vs reward.
If you have £500k cases queuing, then the 50k ones won't get a look in.

Craikeybaby

10,369 posts

224 months

Friday 15th May 2015
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Ahhh, maybe that is why I've not been having much luck getting my IFA to set up a stocks and shares ISA He's been pretty good at the other stuff he sorted out and I've put a lot of new business his way too.

OscarIndia

1,126 posts

171 months

Friday 15th May 2015
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Petrus1983 said:
Don't take it personally! My local bank where I use to live had a minimum of 5m Euros. I think Coutts is circa £250k at the moment, could be higher.
Coutts have just changed their fee structure, my Manager informed me that my £250k would attract a minimum charge of £5k fees per annum. As it sits in an income fund he thought this was excessive and has handed me the reins of administering it.

dodgydave

97 posts

182 months

Saturday 16th May 2015
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Why don't you put it with Hargreaves Lansdowne and choose 5 funds yourself. Cost 0.45%, plus fund charge of between 0.11 to 1.00%
I recently took a load of money away from my IFA and wished I had done it years ago.

ellroy

7,005 posts

224 months

Saturday 16th May 2015
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At that kind of level I'd agree with Dave to some extent, find a cheap online broker,but if you're not overly confidentt buy something that's managed for you, either active multi-manager type or passive, rather than try and make fund selections you're not completely happy with. That way your decision is more simply about your main aim and your risk appetite.

It's the ongoing buying and selling to reflect future needs and market changes that are the bits most amateurs forget about.

Buster73

Original Poster:

5,042 posts

152 months

Saturday 16th May 2015
quotequote all
Got the charges down to 1.5 % and .5% trail commission .

I'm relatively happy with that , thanks for the replies.

DoubleSix

11,691 posts

175 months

Saturday 16th May 2015
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Craikeybaby said:
Ahhh, maybe that is why I've not been having much luck getting my IFA to set up a stocks and shares ISA He's been pretty good at the other stuff he sorted out and I've put a lot of new business his way too.
Many IFAs aren't qualified to advise directly on equities. You might need an investment adviser/stockbroker.

Craikeybaby

10,369 posts

224 months

Saturday 16th May 2015
quotequote all
DoubleSix said:
Craikeybaby said:
Ahhh, maybe that is why I've not been having much luck getting my IFA to set up a stocks and shares ISA He's been pretty good at the other stuff he sorted out and I've put a lot of new business his way too.
Many IFAs aren't qualified to advise directly on equities. You might need an investment adviser/stockbroker.
He said he can do it, and does it for a colleague, just being a bit crap in getting back to me, have set up something else through an online broker now.