How Much Does A Financial Adviser or Independent Financial Adviser Cost

So many of my customers over the years have asked how much do you cost?  My answer is always the same – there is no one stop shop solution for anyone as we are all different and have varying amounts and different goals.  We also all want different things from life whether that’s retirement on a cruise ship or a home for our loved ones.  Everyone is different.

So, you may already have a financial adviser or you could be looking for one and doing some research before getting financial advice from the person you pick to help with your finances.  A big step and no doubt you will be cautious and want what’s best for you and your loved ones.

To try to simplify how a financial adviser would charge you advice can be broken down into four parts, this is quite typical of either a restricted or independent financial adviser. Maybe with some slight changes, ‘Consultation’, ‘Advice’, ‘Implementation’ and ‘Ongoing Service’.

You will find a consultation meeting is typically at your advisers cost, this is because you are both getting to know each other, to see if you can work together or if the financial adviser can help with your needs.

Lets keep this simple – A financial adviser could charge you directly meaning your pension pot has the full amount invested or he/she could take the fee from the pension giving you slightly less to invest.  But, this is very much dependent on a number of factors and will be very much advised on an individual basis.  A number of factors come into this – time spent on the project, complexity of the work undertaken, and administration etc.

Looking at Corcillium Wealth Management as an independent financial advice firm we can charge up to 4% for advice and implementation (please note this will be on a case by case basis), the ongoing advice fee is typically around 1% but again this is dependent upon the advice or service needed going forwards.

In order to provide some comparison for you.  A well known brand, St. James’s Place have advertised on their website the implementation costs (advice and product as listed on their website 20/06/23) are shown as a maximum of 4.5% + 1.5% (6%) for a pension and bond or 4.5% + 0.50% (5%) for an ISA or collective investment https://www.sjp.co.uk/charges/pensions-charges. As you can see it really depends on the company and the type of financial information given. It can often be down to the discretion of the adviser to some degree as well.

Additionally, something to be mindful of is something (potentially) called transaction costs, these are running costs (and in the example above) where a fund manager buys or sells assets within the fund, these could add a large additional expense / running costs to the funds chosen in your portfolio, please make sure you are aware of these ‘extra’ costs when running comparisons.

Reputable independent financial advisers will offer bespoke financial advice and an ongoing service to each of their clients based on your current circumstances, current and future goals, timescales, attitude to risk, use of tax breaks and overall needs rather than an off the shelf portfolio that is built for the masses.

As I said at the very beginning of my post it really does depend on a number of factors and I am sure will you have not gotten much further than when you arrived at the page.  The 1 thing I can assure you of is that Corcillium Wealth Management is a registered introducer or 2plan wealth management, an independent financial advice company with the ability to look at the whole of the market to ensure we get you the solution that works for your needs.

If you would like an informal, no pressure chat with an IFA why not call me (Leon) today on 01483 654135 or email directly to leon.alden@2plan.com for a quick and guaranteed response.