Fees
I believe fees should be transparent, fair and charged in a way that results in advice that has my clients’ best interests at heart.
Naturally, you want to understand how much financial advice is going to cost you. Financial planning and financial advice firms charge in different ways.
Percentage Based Fees
This is the most common way for firms to charge and it applies to initial and ongoing fees. Initial fees are charged when new financial products are established, such as the setting up of a new pension or investment. The amount charged will vary between 1% and 3%.
Ongoing fees cover the cost of providing ongoing review services to make sure you are still on track to achieve your priorities, the risk you are taking with your pension and investments is still appropriate and the financial products you have are still suitable. The amount charged varies between 0.5 and 1.5% pa (but sometimes can be higher).
Fixed Fees & Project Fees
Some firms choose to work on a fixed fee basis for initial and ongoing services. Depending on the complexity involved and the services provided the fees will range from £500 to over £10,000 for initial advice. Fees for ongoing services will range from £750 to over £10,000.
Hourly Rates
Hourly rates are less common but can range from £50 to £75 per hour to cover administration costs to £250/hour or more for advice costs.
How I Benefit My Clients
Through the provision of services I provide my clients benefit in the following ways:
- They achieve their goals and priorities sooner,
- They have peace of mind,
- They are clearer about their financial situation,
- They make better decisions on matters that have financial implications,
- They invest more efficiently and effectively,
- They receive an unbiased point of view and are held accountable for their actions and decision making,
- They are better informed,
- They know their spouse, partner and children will be financially secure and looked after.
- They have access to someone they can trust.
Click here for more information on the value I add.
The Fees I Charge
As outlined below I charge a combination of fixed fees and percentage-based fees. Fees are based on the value provided, the expertise required to provide the advice, the nature of the advice and the complexity involved.
Compared to other firms I will be more expensive for lower levels of wealth (£100,000 and lower) and provide greater value for higher levels of wealth, particularly at £500,000 and above.
My fees are provided upfront so you know what you will be paying in advance of receiving any advice. Here’s how I charge, depending on the type of service you require:
Retirement planning clients
Advice objectives
You are looking to simplify and clarify your financial life to achieve your goals.
You are aware you don’t have the requisite knowledge, expertise or time and wish to form a relationship with a trusted expert to act as a guide for your finances.
You wish to understand what your financial future looks like, understand your options and have assistance in implementing the required actions necessary to achieve your goals. You seek the assurance of knowing you have an expert available on an ongoing basis to help you stay informed, ensure your money is working appropriately and to make adjustments as necessary.
Services
You will benefit from a highly personalised service that helps you to identify your lifetime priorities and understand whether you are on course, financially, to achieve them.
Where needed, we assist with the implementation of any financial products that will help with the realisation of lifetime priorities. Financial products we recommend may include:
- Pension & retirement income plans
- ISA and investment accounts
- Life assurance contracts
- Trusts
Pensions and investments are managed according to ‘evidence-based’ principles founded on academic research and in line with client risk tolerance and risk capacity.
Before any financial products are established you can expect to be guided through a thorough process to ensure your unique situation and objectives are understood and you understand the advice that is provided.
Ongoing meetings are held at least annually to ensure lifetime priorities remain on track to be achieved. Contact is available throughout the year as required.
What this service does not provide
Recommendations for banking, general insurance or mortgage products.
Neither does it provide complex tax computation or tax mitigation services (outside of pension and ISA investments).
All recommendations are on a ‘best advice’ basis; implementation activities are not done ‘to order’.
Fees
All advice starts with planning (because how do I know what you need if we don’t know where you want to get to?) Read more about our financial planning philosophy here.
The planning fee is £2,500 and is offset against any implementation fees where they are provided.
Implementation fees are simply 2% of the value of any investments made with a minimum of £2,500 and a maximum of £5,000.
Ongoing fees are tiered based on portfolio value starting at 1% of invested assets reducing to 0.75% between £500k and £1m and 0.25% over £1m. The minimum fee is £1,500 pm, and the maximum is £10,000 pa.
Fees are deducted from the portfolio where it is possible to do so.
A proposal detailing the specific fee will be provided following an initial meeting and before any advisory services are carried out once your situation and requirements are fully understood.
If you would like more detail on the services and fees and to see specific examples you can request our Service Charter by emailing andrew@neliganfinancial.co.uk.
VAT
Where the establishment of a financial product is provided or is expected to be provided by the client at the implementation stage VAT is currently not applicable.
Where only the financial planning stage is provided VAT is applicable.
This also applies to ongoing services.
Specific and specialist advice clients
Advice objectives
You have specific questions and more complex issues that require specialist advice. You are looking for a solution to an immediate need which may require the implementation of a financial product.
Examples include advice regarding the pension Lifetime Allowance or Annual Allowance or Inheritance Tax Planning.
Services
You will benefit from a highly personalised service that helps you solve the immediate, specific issue you have. Advice and recommendations will also be considered in the broader context of your lifetime priorities and objectives.
Where needed, we assist with the implementation of any financial products that will help with the realisation of lifetime priorities. Financial products we recommend may include:
- Pension & retirement income plans
- ISA and investment accounts
- Life assurance contracts
- Trusts
Pensions and investments are managed according to ‘evidence-based’ principles founded on academic research and in line with client risk tolerance and risk capacity.
Services may also include a thorough analysis of the advantages and disadvantages of transferring a Defined Benefit pension to a personal pension. Or, how to generate a retirement income that minimises tax, meets income needs and provides long-term financial security.
Recommendations will be given on a ‘best advice’ basis.
Before any financial products are established you can expect to be guided through a thorough process to ensure your unique situation and objectives are understood and you understand the advice that is provided.
Ongoing meetings are held at least annually to ensure lifetime priorities remain on track to be achieved. Contact is available throughout the year as required.
What this service does not provide
Recommendations for banking, general insurance or mortgage products.
Neither does it provide complex tax computation or tax mitigation services (outside of pension and ISA investments).
All recommendations are on a ‘best advice’ basis; implementation activities are not done ‘to order’.
Additionally, this service does not provide a ‘sign-off’ for pension transfers or pension fund withdrawal under the ‘pension freedom’ rules without a thorough analysis of the pros and cons of the objective.
If you would like more detail on the services and fees and to see specific examples you can request our Service Charter by emailing andrew@neliganfinancial.co.uk.
Fees
The planning fee is £3,500 and is offset against any implementation fees where they are provided.
Implementation fees are simply 2% of the value of any investments made with a minimum of £2,500 and a maximum of £5,000.
Ongoing fees are tiered based on portfolio value starting start at 1% of invested assets reducing to 0.75% between £500k and £1m and 0.25% over £1m. The minimum fee is £1,500 pa, and the maximum is £10,000 pa.
Fees are deducted from the portfolio where it is possible to do so.
A proposal detailing the specific fee will be provided following an initial meeting and before any advisory services are carried out once your situation and requirements are fully understood.
Where applicable annual fees are subject to future increases but will be communicated in advance.
VAT
VAT may be applicable depending upon whether it is intended by a client for Neligan Financial to establish a financial product and this intention can be evidenced.
