How Much Does an Independent Financial Adviser Charge?

Independent Financial Adviser Charge

Obtaining Independent Financial Advice generally will come with an associated cost. But how much does an Independent Financial Adviser charge?

If you are obtaining Independent Financial Advice for the first time, the whole process will be new to you and it is expected that you will have quite a number of questions regarding the process and advice received. A key question that is heard many times and expected to be discussed ahead of any advice being given or processed is how much does an Independent Financial Adviser charge?

For many, the initial stage of obtaining financial advice is to understand the purpose of a Financial Adviser. By understanding the purpose, it is often easier to understand why there are charges associated with the service they offer.

An Independent Financial Adviser has the ability to provide a professional, regulated service. Giving independent, non-biased advice for how best to manage your financial situation with your best interest in mind. By utilising an Independent Financial Adviser, you are

  • Accessing regulated, professional advice.
  • Saving time.
  • Eradicating emotional decision making.

It is a professional service offered to individuals of all ages and salaries which aims to prevent individuals worrying about mistakes, misinformation and making irrational decisions; not to mention allowing individuals to have more time to spend on the things they enjoy in life.

When you require professional assistance, often we seek without hesitation a Doctor for health issues, a Builder for home improvements, an Electrician for electrical works. We are fortunate to live in a country with a health system that offers health advice and treatment at no cost to us. However, for the majority of professional advice and assistance, there is a cost involved.

How much does an Independent Financial Adviser charge?

Looking at the costs and charges helps us to recognise the value for money and potential return on your investment. These are broken down to ensure clearing when looking to see how much does an Independent Financial Adviser charge.

Initial Fee

The initial arrangement between yourself and your adviser will come with an associated fee. This fee, like all other charges should be discussed and understood ahead of any work commencing on your behalf. The Initial fee is the primary amount to be paid to the adviser to generate your investment report. Your bespoke document, detailing the ins and outs of how, why and where your finances will be invested. Furthermore, this fee should cover the actioning of the report, should you feel this is the best course of action for you.

The Initial Fee is most often based on the sum of money being invested. For some Financial Advisers this could be a sliding scale, a percentage or fixed amount.

Ongoing Fee

The ongoing fee is to cover the ongoing management of your portfolio. Even if you are not in weekly, or even monthly contact with your adviser. You should feel assured that they are managing your portfolio regularly. This includes reviewing the financial markets as well as how, why and where your finances are invested. The ongoing fee also supports the cost of running an independent, regulated advisory firm; from insurances and professional associations as well as salaries and liability costs.

Independent Financial Advisers will generally issue their Ongoing Fee in accordance with your invested amount. Similarly to, but generally less than the Initial fee. This again could be a sliding scale, a percentage or fixed amount. Again, you should have a full understanding of your Advisers fees prior to going ahead with their service.

Can I ask about fees upfront?

Absolutely. It is encouraged you ask how much does an Independent Financial Adviser charge. Only by having all the information, including costs, associated with working with an adviser can you make an informed decision as to whether you wish to proceed or not.

How do The Harvest Partnership Ltd charge their fees?

The Harvest Partnership Ltd ensure you fully understand the charges associated with their service provided before going ahead with any work. This is to ensure you feel confident and knowledgeable regarding the service.

The Initial Fee and the ongoing fee is discussed in your initial meeting. This will ensure you have full clarity as to the amount you will be paying and the service you can expect in return.

Should the cost affect my decision?

Undoubtably, the cost will play a part of whether you choose to proceed with the advice and report with your chosen Adviser. Consideration must be paid to how much does the Independent Financial Adviser charge and whether the cost, both initial and ongoing fees are acceptable to you and whether the fees offer value for money and potential return on your investment.

Whether this is the first time you will be approaching a Financial Adviser for support with your finances or whether you have dealt with advisers before. It is essential you understand the whole process and have the opportunity to ask all of your questions regarding the process and advice received. Additionally, it is essential you understand the fees charged by a Financial Adviser and take the time to ask the questions regarding this.

Would you like further advice?

If you are looking in to Financial Advice and are concerned about the associated fees, call The Harvest Partnership Ltd on 0208 313 0337 or visit our Contact Us page. The team would be more than happy to arrange a no obligation meeting with our Independent Financial Advisers and give you the opportunity to discuss all your questions and any concerns.