Questions And Answers

Nick

Initial commission is negotiable ask them to do it for less! Annual reviews’ depend on what type of contract its or how they will report this information to you will you have 24/7 online valuations?
Steve Fairtarde IFA

I would negotiate if you have chosen to pay by fee, I would also find out what the hourly rate is for reviews, if you are being told the returns are circa 8% is there a downside and are you prepared to take a risk with your capital?

Kind regards

Thanks Steve and Carl, I'm not sure about the 24/7 review, i'll ask, also i scribbled down the hourly rates some where and i'll get those back to you. From what i understand the risk is acceptable on my capital.

Thanks for the help guys

The first question to answer is , is this investment right for you and your circumstances. Secondly what are the 'Total' charges, the IFA initial fee may only be a part of this. If the total set up cost is £1,200 (2.4%) it does not appear unreasonable, cheapest is not always best especially when requiring quality financial advice. The third is do you think the IFA/Product can deliver. Alan

Nick, you have asked an IFA for advice but do not appear to tust his advice, I agree that on £50,000, 2.4% (£1200) is reasonable and within the general fee based area of 2-3%.
On going advice is always difficult to work out, My client agreement (presume you have signed one) clearly states what the service schedule is, (based on a percentage of total funds under management) and the hourly charge for any additional work,administration, adviser etc.
Also check to see if your adviser has diploma status,or is working towards it, beyond 2013 he will not be able to advise if this has not been attained