Cost of financial adviser

[Jimmy Dee]

+1

 

[plantrepair]

I'm speaking to a fee based advisor at the moment who says they take 5% of every single premium contribution and regular premium contribution and 1% of my pension fund as an ongoing annual fee. I have not had time to compare to other fee based advisers but does this seem excessive or is it just what I should expect. I will be invested in Irish Life MAPs funds.

 

[North Star]

Generally our pricing structure looks like this; subject to a minimum investment amount between pensions and investments combined;

I suggest you call a few firms and have a conversation with them, as there are plenty of different pricing models out there. Transparency on charges is vital as is the experience of the adviser and the level of service you will receive.

• Fixed price fee for financial review cash flow modelling and written report/follow up meeting or call - €750 plus vat
• For transactions/pension premiums we offer fee or commission options - but for all pension contributions we would offer a 100% net allocation rate. For investments this may vary depending if full access required or not
• On - going advice fee 0.5% of the assets we advise on - no additional charges for one off enquires or ad hoc queries

Clearly make sure you are getting value, but I wouldn't recommend that you select a firm solely on price. You are trusting us with important matters, so make sure that you are comfortable with the adviser themselves, the service model and the experience and credentials of the advisers. It would only take a couple of calls for you to find a firm where you feel that they are the right firm for you and also importantly that you are the right type of client for them.

Regards Vincent

 

[Jimmy Dee]

I'm speaking to a fee based advisor at the moment who says they take 5% of every single premium contribution and regular premium contribution and 1% of my pension fund as an ongoing annual fee. I have not had time to compare to other fee based advisers but does this seem excessive or is it just what I should expect. I will be invested in Irish Life MAPs funds.

I don't think that I have to say anything more, if this is true just work out what you get on every euro you invest after the fees using a range of return levels and see how you feel. And check out all other costs to ensure you get the full picture.

 

[plantrepair]

Apologies I should have clarified. I have no intention of using this firm as the fees are crazy. I was trying to get a handle on whether this was typical of the fee based market. Total cost of a MAPS investment for example would have been 5% on the entry, 1% to broker annually plus 0.9% fund mgt charge plus the ongoing underlying charges on a fund I would not rate. Factoring in inflation I reckon I would need a solid 10% return on the fund to break even !!

 

[Steven Barrett]

Apologies I should have clarified. I have no intention of using this firm as the fees are crazy. I was trying to get a handle on whether this was typical of the fee based market. Total cost of a MAPS investment for example would have been 5% on the entry, 1% to broker annually plus 0.9% fund mgt charge plus the ongoing underlying charges on a fund I would not rate. Factoring in inflation I reckon I would need a solid 10% return on the fund to break even !!

WOW!!! That's expensive. I occasionally come across charging structures like that when speaking to clients. They tend to be the bigger, older advising firms or else tied agents. They usually give the same reason why challenged on the cost "That's the way it is".

My fees are on my website on the top banner so they aren't hidden away. Since I put them up there, I've had less messers contacting me and people ring/ meet me with an expectation of what they are going to pay.


Steven
www.bluewaterfp.ie

 

[moneymakeover]

Generally our pricing structure looks like this; subject to a minimum investment amount between pensions and investments combined;

I suggest you call a few firms and have a conversation with them, as there are plenty of different pricing models out there. Transparency on charges is vital as is the experience of the adviser and the level of service you will receive.

• Fixed price fee for financial review cash flow modelling and written report/follow up meeting or call - €750 plus vat
• For transactions/pension premiums we offer fee or commission options - but for all pension contributions we would offer a 100% net allocation rate. For investments this may vary depending if full access required or not
• On - going advice fee 0.5% of the assets we advise on - no additional charges for one off enquires or ad hoc queries

Clearly make sure you are getting value, but I wouldn't recommend that you select a firm solely on price. You are trusting us with important matters, so make sure that you are comfortable with the adviser themselves, the service model and the experience and credentials of the advisers. It would only take a couple of calls for you to find a firm where you feel that they are the right firm for you and also importantly that you are the right type of client for them.

Regards Vincent

so let's say I have an existing occupational pension fund value 200k
Then you would charge annual fee €1000 plus vat ?

 

[Gordon Gekko]

I'm speaking to a fee based advisor at the moment who says they take 5% of every single premium contribution and regular premium contribution and 1% of my pension fund as an ongoing annual fee. I have not had time to compare to other fee based advisers but does this seem excessive or is it just what I should expect. I will be invested in Irish Life MAPs funds.

I thought the Narcos lads put Pablo Escobar out of business...

That’s highway robbery, and it’s also not “fee based”; it’s commission based.

I’ve always laughed at the idea of a contribution charge; what in God’s name is the basis for it?!

 

[Protocol]

I'm speaking to a fee based advisor at the moment who says they take 5% of every single premium contribution and regular premium contribution and 1% of my pension fund as an ongoing annual fee. I have not had time to compare to other fee based advisers but does this seem excessive or is it just what I should expect. I will be invested in Irish Life MAPs funds.

This is robbery, in my opinion.

You can get 100% allocation, and 1% AMC, and no fee, fairly easily.

But maybe without any advice.

Do your own research, ask questions here, avoid high charges.

 

[North Star]

so let's say I have an existing occupational pension fund value 200k
Then you would charge annual fee €1000 plus vat ?

We offer the option of on going investment advice and support service, where we are clear on the service offered and the costs involved. If someone doesn't want the service and they are perfectly entitled to make that choice, then obviously there is no charge. There needs to be clarity on the relationship between client and adviser. We want to avoid any misunderstanding and also people not paying for a service and then thinking they can get it for free.