Discussion
Mrs BC and I have been using the same IFA for many years. He’s been pretty good and manages our pensions, offshore trusts and some other funds totalling over £2.5m.
The firms standard fee has just increased from .6 to .75%. We negotiated a discount to .3% years ago which they now want to increase to .5%. Does that seem reasonable to the PH experts?
The firms standard fee has just increased from .6 to .75%. We negotiated a discount to .3% years ago which they now want to increase to .5%. Does that seem reasonable to the PH experts?
Edited by bad company on Thursday 5th December 16:31
Edited by bad company on Thursday 5th December 22:56
bad company said:
Mrs BC and I have been using the same IFA for many years. He’s been pretty good and manages our pensions, offshore trusts and some other funds totalling over £2.5m.
The firms standard fee has just increased from 6 to 7.5%. We negotiated a discount to 3% years ago which they now want to increase to 5%. Does that seem reasonable to the PH experts?
3% in addition to whatever the various funds are charging? That's £75k, and sounds very punchy unless there is a lot of active management or a lot of complexity in the trusts (accounting etc).The firms standard fee has just increased from 6 to 7.5%. We negotiated a discount to 3% years ago which they now want to increase to 5%. Does that seem reasonable to the PH experts?
Does he deliver value/exceptional returns? Better than someone cheaper would? Ultimately that's the bit that matters more... but oddly very few seem willing to see their fees based on such metrics.
bad company said:
Mrs BC and I have been using the same IFA for many years. He’s been pretty good and manages our pensions, offshore trusts and some other funds totalling over £2.5m.
The firms standard fee has just increased from 6 to 7.5%. We negotiated a discount to 3% years ago which they now want to increase to 5%. Does that seem reasonable to the PH experts?
On what basis are you considering your ifa to be 'good' what is your comparator? The firms standard fee has just increased from 6 to 7.5%. We negotiated a discount to 3% years ago which they now want to increase to 5%. Does that seem reasonable to the PH experts?
The fee appears to be exorbitant, unless you have made an error...
bad company said:
Mrs BC and I have been using the same IFA for many years. He’s been pretty good and manages our pensions, offshore trusts and some other funds totalling over £2.5m.
The firms standard fee has just increased from 6 to 7.5%. We negotiated a discount to 3% years ago which they now want to increase to 5%. Does that seem reasonable to the PH experts?
Surely it depends on how they have performed for you over the years?The firms standard fee has just increased from 6 to 7.5%. We negotiated a discount to 3% years ago which they now want to increase to 5%. Does that seem reasonable to the PH experts?
If you put in £100k 10 years ago and now have £2.5M, then the fee sounds fair enough.
You really need to give more info for anyone to decide what is 'reasonable'
Lunacy.
1% plus fund fees is what I pay. Works out to around 1.5% total. At 7 figures they charge something like 0.7%.
Includes tax planning, wills, inheritance arrangements, expat stuff (I’m an expat). Presumably it wouldn’t cover the costs of complex instruments - never had to try. What’s clear that your fees are extremely high.
1% plus fund fees is what I pay. Works out to around 1.5% total. At 7 figures they charge something like 0.7%.
Includes tax planning, wills, inheritance arrangements, expat stuff (I’m an expat). Presumably it wouldn’t cover the costs of complex instruments - never had to try. What’s clear that your fees are extremely high.
I am very busy , however as you appear to have accumulated a fair bit of wealth , yet you display a lack of attention to detail and accuracy. I will make an exception and look after your funds for you .
Edited to add. I can't find out how to do the smiley face . I am only pulling your leg .
Edited to add. I can't find out how to do the smiley face . I am only pulling your leg .
Edited by cliffords on Thursday 5th December 17:04
alscar said:
bad company said:
In which case whilst the company are increasing their fees by 25% they appear to be increasing yours by 60% ?
Treating you equally fairly would appear to indicate your new rate should be .375% not 0.5%.
bad company said:
alscar said:
Good point. I’m just pondering speaking with alternative IFA’s though I’ve been with the current one for a long time and he’s been pretty good.bad company said:
Mrs BC and I have been using the same IFA for many years. He’s been pretty good and manages our pensions, offshore trusts and some other funds totalling over £2.5m.
The firms standard fee has just increased from .6 to .75%. We negotiated a discount to 3% years ago which they now want to increase to 5%. Does that seem reasonable to the PH experts?
Another reference point: For a client with ~£1.5mThe firms standard fee has just increased from .6 to .75%. We negotiated a discount to 3% years ago which they now want to increase to 5%. Does that seem reasonable to the PH experts?
Edited by bad company on Thursday 5th December 16:31
Platform 0.08%
Funds (OCF) 0.23%
Fund transaction costs: 0.05%
Adviser costs: £7,200
Total ~0.85%pa.
Hopefully your adviser adds some genuine value other than managing money
I've paid an IFA a one-off fee for pension advice which i felt was competitive (~£800) - optionally, (which i declined) he wanted 1% for ongoing advice in terms of which funds I should keep my pension in.
The “sell” that the cost of his advice would be offset by the higher gains by being managed. However, there’s no guarantee of that happening and when I offered to pay a higher commission based on the net gain over doing nothing – he wouldn’t do it.
The “sell” that the cost of his advice would be offset by the higher gains by being managed. However, there’s no guarantee of that happening and when I offered to pay a higher commission based on the net gain over doing nothing – he wouldn’t do it.
Gassing Station | Finance | Top of Page | What's New | My Stuff