ADVERTISEMENT FEATURE
How much are you paying for your money to be managed ? Don ’ t settle for poor value and hidden fees .
Confusing , hidden , mysterious , expensive . These are all words that could describe investors ’ feelings towards wealth management fees . The City watchdog launched a crackdown in 2012 which improved transparency , but there is still a way to go .
Headline fees quoted by independent financial advisors , wealth managers and private banks may not include everything you pay . Things like transaction costs , custody fees and platform fees can come as unpleasant surprises .
There may also be ongoing charges for third party funds in your portfolio , and if your IFA outsources your investments to a discretionary wealth manager , this could add a layer of charges .
New EU regulations slated for 2017 will force wealth managers to break down their charges more clearly . This is good news for consumers , but it will also shine the spotlight on the huge disparities in fees across the marketplace .
Of course , you would expect to pay more for a bespoke service and active management than ‘ doing it yourself ’ which can be a false economy . The point is you should understand what you are paying for , as some estimates suggest up to 70 % of an investor ’ s real return can be swallowed up by charges *. Let ’ s look at an example . Imagine client A pays their wealth manager an annual fee of 2.5 % on an investment portfolio worth £ 1m , while client B pays 1 %. Over 10 years , Client A will shell out £ 364,335 for their advisor ’ s management fee alone , while Client B will pay £ 155,752 **. What seems like a minor difference in fees can really add up over the long term . Ask your advisor what their Total Expense Ratio ( TER ) is – anything above 2 % is on the high side .
This is where findaWEALTHMANAGER . com can help . We believe advisors should compete for your business while being open about what they can offer you and what it costs . Our users save an average of £ 22,000 every year in wealth manager fees , based on a £ 2m portfolio ***.
With findaWEALTHMANAGER it ’ s easy to shop around for good value , so you end up keeping more of your portfolio ’ s returns in the long run . Contact us to find out how .
Lee Goggin , Co-Founder lee @ findawealthmanager . co . uk
findaWEALTHMANAGER . co . uk Alpha House , 100 Borough High Street , London , SE1 1LB 0207 193 5691
Find A Wealth Manager is an Appointed Representative of Talbot Capital Limited which is authorised and regulated by the Financial Conduct Authority
* Source : The True and Fair Campaign ** Source : www . trueandfaircalculator . com / calculator *** Estimated average saving for findaWEALTHMANAGER clients with £ 2m invested through a retail fund or an IFA
19