Financial Advisor Fees

[Maydup]

Is 1.75% a reasonable fee to pay for financial advice for investing £300k? Some is pension pot and some is cash, all needing to provide long term income.

[sapelesam]

I pay my advisor by the hours worked, I know she will probably round up a bit but it has always seemed fair.

[Buenchico]

My friend (who's not short of a bob or two) pays his financial adviser £2000 per year to keep an eye on his offshore investments. So over £5k for one-off advice might be rather steep. Negotiate and/or shop around!

[237SJ]

I`ve just had a look at a work related facebook page where people were talking about pensions. When asked, someone said rough fees were 1 - 2% for investing their pension pot and after that they could either manage the money themselves or pay about £200 per annum for an FA to do it.

[woofgang]

When my DH got his retirement lump sum (not huge) we looked at how to invest it....we the found that many IFA's and investment firms who charge to manage your money make the same charge even if the investment(s) go down in value! essentially they can pee your money away against the wall and charge you for the privilege....so be careful!

[johnny37]

when my wife retired she received a quote from her FA. She also obtained a better quote herself from an internet. Obviously he was only seaching a limited panel of providers. He also seemed somewhat miffed to be losing the commision. Makes me wonder why FAs earn such high fees for what seems to be very little work. She eventually agreed to allow him the act for her. He got his (and a lifetime of fees and commssions) but i dont recall him rewarding my wife. I just dont trust them at all. It baffles me that users cannot work directly with providers and benefit from the commission or a least share the income 50/50. Try negotiating or take your business elsewhere.

[Maydup]

Its difficult isn't it? I dont trust any of them! But this one is not new or unknown to me, Just encouraging me to invest more strategically than I am doing at the moment. Its a one off fee for moving the money to a better performing provider and the on going commission fee is lower cost to me than the current one. I feel reasonably safe, and have negotiated the fee to a fixed sum now of £5k regardless of the capital which is dotted around all over the place but have nothing to compare it with.