How Much Does An Independent Financial Advisor Cost?

[ganesh]

Always being recommended especially concerning pensions, how much does an IFA actually charge?

[boxtops]

It depends where you go. The local company I chose didn't charge me at all for the first consultation - and then didn't charge me a fee when I arranged something via them, but the company took a commission from the finance company - that's how they got their income, not from the client.

[ganesh]

Isn't that worrying though, he cannot be independent if he gets commission from certain 'companies' that he suggests you invest in. I'm rather more interested in general views on whether to top up pensions, isas, property or what and which is tax-efficient etc which all does my head in when looking at it all and why I need someone who just understands it all and can advise. I'm not really 'OK' with stocks and shares in random companies, I know that much! Just wanted to know how much they charged.

[boxtops]

The company didn't point me in any particular direction, they just showed me a number of scenarios - the word "independent" in IFA has to be the clue. It was my decision where I went with. They reviewed my whole situation (and mine was re retirement options, too) and if I'd chosen to do nothing, they wouldn't have charged me.

When I did sign up for my chosen option, the paperwork I had to sign showed very clearly the amount of commission they would get out of the deal (and tbh it wasn't that much in the scheme of things).

There was no suggestion of stocks and shares investments - I'm not into that side of things either.

[Peter Pedant]

havent you done this before Ganesh

anyway they are now obliged to tell you before hand
and you can certainly ask

[ganesh]

NO I haven't Peter, I have always made my own financial decisions ( and made lots of mistakes, I'm sure) and not always had much money to 'play' with anyway. Coming up to retirement in a few years and beginning to receive letters and wondering what to do re pensions and stuff. Never used a broker for mortgages and always researched myself but all this pension stuff is over my head, and no-one seems to want to say ( including them on their business web-sites) how much it costs.

[jno]

yes, the rules have changed, I think they do charge now. But ask.

[Booworm17]

My husband is an IFA and yes they do charge now and they have to be totally transparent. Best thing to do is ring round a few or e mail and find out. Make sure they have a current SPS certificate (certificate of professional standing) it has to be updated annually to show they've kept up with training requirements and also registered with FSA.

[Peter Pedant]

excellent answer boo-boo thx

[bert_h]

Mine charged one per cent of the sum whose investment he was advising me on. It was well worth it.

[Old_Geezer]

So you told them you were investing 10p, then later invested your £250,000 off your own bat.

[Booworm17]

Independent should actually mean truly independent as well and that he will search the whole of the market for you. A good IFA will do an "Attitude to Risk" assessment with you to explore your attitude to risk and find out if you are an adventurous investor or a play it safe investor and then he will take great care to invest your money exactly in line with your attitude, you would be given all the information, my husband is very very good at explaining things in layman's terms and cutting the jargon out.

[ganesh]

So, what if you don't have 'an investment figure' in mind, and you just need more general advice pre-retirement on whether to put some of your 'spare' monthly income into topping up your pension, or isas, or premium bonds or saving for a property etc. Do they do this too or am I barking up the wrong tree?

[bert_h]

Old_Geezer: // So you told them you were investing 10p, then later invested your £250,000 off your own bat. //

Of course not, the advice given will depend on the amount available.