How Can an IFA Help You & How Much Does it Cost?

The financial life of many feels very uncertain right now. High inflation, rising interest rates with slow wage growth, housing market pressure and more means more individuals are seeking professional help with their money. The Independent Financial Advisor (IFA) community provides both expertise and support that helps millions around the country weather the storm.

For those accessing financial advisory services for the first time, however, the associated fees of accessing financial advice can initially appear high.

This article will assess in detail the type of things an adviser can help with and the costs that are typically associated with engaging an IFA.

The cost of financial advice can vary depending on a number of factors, including the type of advice you need, the complexity of your financial situation, and the experience of the adviser. However, in general, you can expect to pay between £500 and £10,000 for financial advice.

Here are some of the most common types of financial advice and their associated costs:

Investment advice: This type of advice typically covers topics such as choosing the right investments for your goals, use of tax wrappers like an ISA, asset allocation, and risk management. Investment advice for a new investment amount of £100,000 could cost anywhere from £1,000 to £5,000, depending on the complexity of your financial situation.

Pension advice: This type of advice covers topics such as choosing the right pension plan, maximising your pension contributions, and claiming your pension. As an example, advice to consolidate 3 existing pension pots with a value of £250,000 could cost anywhere from £2,500 to £10,000.

Mortgage advice: This type of advice covers topics such as finding the right mortgage for your needs, understanding the different types of mortgages, and negotiating the best interest rate. Mortgage advice can often cost anywhere from £250 to £1,500 depending on the complexity of the case.

In addition to the cost of financial advice, you may also be charged fees for other services, such as:

Ongoing portfolio management: If you choose to have an adviser manage your investments on an ongoing basis, you will typically be charged an annual fee of 0.5-1% of your assets under management. On a portfolio of £100,000 this would be £500 to £1,000 per year.

Fees for specific services: Some advisers may charge additional fees for specific services, such as reviewing your financial plan or providing tax advice. This could be a fixed fee or charged on an hourly basis and will vary from adviser to adviser.

It is important to shop around and compare fees when choosing a financial adviser. You should also be sure to ask about any potential conflicts of interest, such as whether the adviser receives commissions from the products they recommend.

Why Choose a Financial Adviser?

 There are a number of reasons why you might choose to hire a financial adviser. For example, an adviser can help you:

• Make sense of your finances: If you feel overwhelmed by your finances, an adviser can help you to understand your current situation and develop a plan to reach your goals.
• Identify and reduce your risks: An adviser can help you to identify and reduce the risks to your financial security, such as the risk of losing your job or outliving your savings.
• Maximize your returns: An adviser can help you to choose the right investments and strategies to maximise your returns and keep the risk at an affordable level.
• Save time and money: An adviser can save you time and money by doing the research and legwork for you.

If you are considering hiring a financial adviser, be sure to do your research and choose an adviser who is qualified, experienced, and trustworthy. You can find a list of qualified financial advisers in your area by visiting the website of the Financial Conduct Authority (FCA).

The Future of Financial Advice

 The financial advice industry is changing rapidly. In the past, most financial advisers worked in traditional brick-and-mortar offices. However, the rise of technology is changing the way that financial advice is delivered. More and more financial advisers are now offering their services online or through mobile apps.

This shift to digital delivery has a number of benefits for consumers. For example, it can make it easier to find and compare financial advisers, and it can also make it more convenient to access financial advice.

However, there are also some challenges associated with the digital delivery of financial advice. For example, it can be difficult to build trust with an adviser who you have never met in person. It is also important to make sure that the adviser you choose is qualified and experienced.

Overall, the future of financial advice is bright. Technology is making it easier and more convenient for consumers to access financial advice. However, it is essential to do your research and choose an adviser who is qualified, experienced, and trustworthy.

Introducing Fintuity – The UK’s  Digital IFA!

Fintuity is like a traditional IFA, only we are an online adviser which means we can offer a more cost-effective, time-sensitive and flexible service! We offer the full range of IFA services via our digital platform, at below-industry rates and at your convenience. Please do not hesitate to get in touch to see how we can assist you.

For all enquiries please visit www.fintuity.com or contact us at marketing@fintuity.com.

Please Note: All information, references and dates included in this article were accurate at the time of publishing.