Paying for financial advice - how much???
Discussion
We had a financial advisor come round tonight to have an initial chat about our circumstances before preparing a report for us. It's something we could use as we've never really had any sort of finances to speak of before but now we're getting into a better position. The guy seemed to know his stuff and I think I would have confidence in him (albeit I've only met him once).
Anyway, point is, at the end of the meeting he told us his fees... £200 an hour!!! Now, I'm guessing it will take him a good few hours to do all the admin to get us set up but is it worth it? Our investments would have to make a fair bit to cover the expense. He did say some of it could be ofset by commissions on the products we take up but I imagine it would still cost us a bit to start off with... and he drives a rather expensive looking BMW (sorry, it was dark so I didn't see what flavour it was!)
Anyway, point is, at the end of the meeting he told us his fees... £200 an hour!!! Now, I'm guessing it will take him a good few hours to do all the admin to get us set up but is it worth it? Our investments would have to make a fair bit to cover the expense. He did say some of it could be ofset by commissions on the products we take up but I imagine it would still cost us a bit to start off with... and he drives a rather expensive looking BMW (sorry, it was dark so I didn't see what flavour it was!)
Caddyshack said:
He should have given you a terms of business of and IDD (inital Disclosure document) but suffice to say that £200 per hour doesnt sound right unless its big investment and he is going to rebate all of the commision...send me a P.M. and I can hep you find someone at £0 per hour on commision only basis OR much lower than that on an hourly basis.
I have been Financial Advisor for over 11 years and know enough people to find someone very good that wont be far fom you.
You do not have to pay him anything up to now!
I have a much better car than a BMW though!
I have been Financial Advisor for over 11 years and know enough people to find someone very good that wont be far fom you.
You do not have to pay him anything up to now!
I have a much better car than a BMW though!
We got a Key Facts statement laying out all the charges which sounds like it's the IDD. It all seemed legit... just very expensive! I wouldn't say our investment is even that big, but we need just about everything we have sorting out.
He kept using the analogy of comparing Porsche's and Fiesta's i.e. you get what you pay for.
Tiggsy said:
Thats depends though - if you invest a million pound into, say an Investmnet Bond and the IFA takes a commision you may get a 102% allocation with the adviser earning upto £70k......on a fee basis if the adviser worked for, say £10k you are £60k better off....simple as that.
That makes sense, if only we had a million pounds to invest!
That all seems to make sense now, I really just wanted to check that it was the norm to be charged that amount. I appreciate that good advice costs money, goodness knows we already pay enough for our solicitors and accountants! Just a bit of a novice when it comes to finances (but hopefully not for long!)
The comment about his car was a bit flippant, I took it as confirmation that he must know what he's talking about and be doing well, I would be happy to pay the fees if I thought he would do as well for our investments. Sweeping generalisation I know, must try harder in future not to stereotype!
The comment about his car was a bit flippant, I took it as confirmation that he must know what he's talking about and be doing well, I would be happy to pay the fees if I thought he would do as well for our investments. Sweeping generalisation I know, must try harder in future not to stereotype!
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