How Much Does a Financial Adviser Cost?
Around 9% of adults in the UK receive regulated financial advice, which means that the vast majority of people have never received it, never paid for it, and probably aren't aware of the various types of advice, the fees involved, and how those fees can be paid. The reality is that there are a wide range of charging structures that will suit different types of people better than others, so it's important that you find the right adviser for you and your situation.
You can download a copy of our fees document, which is taken from our larger 'client services & engagement document' by clicking the PDF image here.
Common Questions
How much does financial advice cost?
For financial planning or advice related to pensions, investments, and inheritance tax, most firms will charge 3 fees which are split into two categories: initial fees and ongoing fees. Initial fees might be one charge, or split into a planning fee and an implementation fee, and represents value for the initial advice being given. Ongoing fees are paid in return for an ongoing service, and are typically charged as a percentage of the funds an adviser manages for you, but some firms operate on "fixed fees" which might represent better value depending on the complexity of your situation.
The first meeting is usually free and carries no obligation. Most good advisers will provide a clear breakdown of their fees before you agree to work together.
You can read more about the advice process here.
At Wilfredson's, we operate on a fixed "financial planning" fee, a low percentage implementation fee, and a tiered percentage ongoing fee which we feel offers incredible value compared to the market.
Is paying for financial advice actually worth it?
It depends. If your situation is straightforward, a single pension, no business, no property beyond your home, then there is plenty of information freely available online which will help get you into a good position.
Good advice is worth multiples of the fees paid where the decisions are often time-gated, irreversible, or the numbers are large whereby each decision compounds at a greater magnitude than with smaller numbers.
Great examples are deciding how to take a pension, extracting money from a company tax-efficiently, working out what you can safely spend without running out of money, and inheritance tax planning. These are the areas where getting it wrong is more expensive than paying for advice, and hard or impossible to undo.
At Wilfredson's, we pride ourselves on giving our families value many times in excess of the fees we charge in a fair, transparent, and mutually-beneficial way.
How much money do I need before advice makes sense?
You might struggle to get an adviser to consider working with you if you have less than £250,000 in investible assets, unless you are expecting a windfall or if you're a high earner.
Otherwise, anybody can benefit from good financial advice. It's less about a threshold and more about complexity. Somebody with a business, three pensions, and a blended family needs advice more than someone with twice the money in one pension.
That said, fees will be a drag on your investment portfolio, so they can be difficult to justify below a certain level. If we think that applies to you, we'll always let you know at the first meeting rather than charging you money you can't afford to pay.
Do you charge for the first meeting?
No. We will typically have a short telephone call to understand your problems or concerns and see if we can help, before arranging the first meeting, where we'll discuss your circumstances in more detail, explain how we work, and agree whether or not we can work together. Everything up to that point is free, and you're under no obligation to continue at that stage.
What's better - fixed fees or percentage fees?
It really depends on the numbers. a fixed fee of £10,000 a year would be incredible value on a £3m portfolio, but terrible value on a £100,000 portfolio! Equally, 1% for a £2m portfolio would be more difficult to deliver value than 1% on a £50,000 portfolio.
You need to run the numbers for your personal situation and see which adviser and which service gives you better value - it isn't all about the cost.
Regulated advice also carries a high level of protection for you. Read more about it here.
The most important thing for us is to deliver exceptional value in excess of our fees.
To find out more, get in touch.
