When it comes to getting help for your finances, there are often questions about how financial advisers and experts are paid for their services. The commission-based model that many associate with financial advisers is no longer used, but still many are not sure whether they can afford to get financial help, or if it’s worth it.
There are a variety of different ways in which financial advisers are paid for our services…
This is the most common way for advisers to charge, perhaps because it most closely resembles how many used to charge under the commission model. It’s based on a percentage of the money you want advice on or managed.
You’ll usually pay an initial percentage charge for becoming a client and investing your money, then an ongoing percentage charge for each year that an adviser continues to manage your money.
Fixed Fee Per-Service
These fees are charged each time you go to the adviser for different ‘projects’, such as consolidating your pensions, or investing. These are best for people that don’t want ongoing advice and just need help with a specific aspect of their finances.
Some advisers are now moving to a model which resembles those of solicitors or accountants and charging on an hourly basis. This is how we at Greenfields charge for our services.
This is how much we currently charge based on the type of help you need, and the specific expertise required:
- £50 per hour for administration
- £100 per hour for Paraplanners / Trainee Financial Advisers
- £150 per hour for Financial Advisers
We find that this is the fairest way of charging clients for the work we do. If the client (you) has money invested with us, often a percentage fee is charged for an ongoing management and review service. In this circumstance, the hourly rates applied are dependable on the amount a client has invested with us and the service level that this enables a client to have.
The way that advisers charge may seem intimidating at first but do remember that your adviser only wants the best for you, including growing your wealth in the safest way possible!
If you would like a free initial consultation to discuss your financial affairs, contact us by email, phone, or even though Facebook!
Phone: 01258 857101
On Facebook: https://www.facebook.com/greenfieldsIFA