How much does financial advice cost?

Professional independent financial advice always has a cost attributed to it - whether this is something you pay for up-front or that is paid to the adviser via commission, our in-depth guide will tell you all you need to know about how much financial advice costs.

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When it comes to managing the likes of your income, investments or retirement plan, sometimes expert guidance is essential.

Financial advisers can bring invaluable expertise to any financial decision or strategy. Though as with any type of professional service, there is a cost to working with a financial adviser or a financial planner.

Any competent financial adviser will actually strive to save you money. Plus – ensure any financial opportunities are being maximised. Even still, it’s good to be aware of how much financial advice may cost.

Here at Holborn Assets, we’ve been providing financial advice to our clients across the globe for over 20 years.

So that you can understand how fee structures work for financial advice, we’ve put together the following guide to explain the process.

What is the cost of financial advice? – Understanding fee structures

Every financial adviser will offer a different fee structure. However, here at Holborn Assets, the cost of financial advice is usually paid as a commission. This commission comes from a product or service provider when a client takes out a financial product through us.

There may also be a fixed percentage cost applied. This will be based on the client’s assets being invested into a product or service.

Sometimes there is no direct up-front cost to the client. For instance, if the adviser is purely providing advice and the client is not taking a product, an advisory fee may not be applicable.

However, this will depend on the depth of the conversation, along with the products and services being discussed. Also, whether it’s a one-off chat or an ongoing retainer.

However, rest assured that when you contact us for financial advice, we can also inform you how the fee structure will work before going ahead.

How much does Financial Advice cost?

Financial advice fee structure

Commission-based products aside, fees for financial advice will normally be applied through the following structures:

Percentage-based – Financial advisers typically charge a percentage of the asset (i.e. a pension pot). Typically, the initial fee ranges between 1% and 4%. Ongoing annual charges can range between 0.5% and 1.5%.

Fixed fees – Although less common within financial advice, sometimes a specific price will be given for a service.

💡Did you know?: Google reports that mobile searches for ‘financial adviser’ have grown by over 75% in the last two years. With rising interest rates and higher costs of living, now has never been a better time to ensure your finances are healthy. This is exactly what a financial adviser can help you with over both the short and longer terms.

What can affect a financial adviser’s fees?

In short, the type of service you require, and whether this involves one-off or ongoing involvement from our financial experts will influence the total cost of financial advice. If you’re a high net worth individual (HNWI) for example, you might benefit from a personalised wealth management for HNWI service.

We’ve covered the types of services our advisers offer below.

What do independent financial advisers offer?

A great place to start when it comes to figuring out the cost of financial advice is to understand what financial advisers actually offer. That’s because ultimately, the type of service you require, including how much input is needed (i.e. a one-off consultation or long-term guidance) will influence the cost.

Some of the financial services we provide at Holborn Assets include:

View all Holborn Assets financial advice services

Can you get free independent financial advice?

In some instances, there is no direct up-front cost to the client seeking financial advice. Though generally speaking, financial advice is a highly valued service due to the expertise required. This means that financial advisers will usually charge a fee for their services.

We also have free financial calculators for mortgages, savings and retirement on our website. While not a substitute for financial advice, they may be able to provide a starting point about the services that could be of most benefit.

How Much Does Financial Advice Cost?

What is an advantage of an independent financial adviser?

Independent financial advisers (IFA) can be instrumental in helping you solve multiple concerns. This includes planning for the future and reducing any tax, plus providing financial advice as an expat. With every decision made with expert input, your financial goals are more likely to materialise.

How to choose a financial adviser

Anyone entrusted with giving you financial advice must be fully qualified, regulated and transparent. In addition, we think it’s important that you have easy access to your portfolio online. All of this forms our ethos here at Holborn Assets, with over 20 years of experience to guide your portfolio.

💡 Read our in-depth how to choose a financial adviser guide

There’s no better advocate than our own customers who have been kind enough to leave us a review.

The question you really need to consider is how much does bad or no financial advice cost?

At some stage, most people have probably wondered ‘should I hire a financial adviser or go it alone?’

So let’s run with that second scenario. Maybe it’s related to obtaining general financial advice, advice with investments, or even retirement planning.

Whatever aspect you need help with, imagine you tried to figure it out yourself. Even though you may not have decades of experience in financial advice. Nor any of the qualifications needed even to break into the industry. You may not be up to speed with the latest regulatory changes either.

The simple fact is that without all of this information from a financial adviser, mistakes are highly likely, and can be costly. Depending on how much capital is at stake, this could have serious, irreversible consequences for your finances.

Likewise, unqualified advice poses just as much risk to your portfolio. Anyone can call themselves an ‘expert’ online these days. But if they aren’t fully qualified and regulated in financial services (specific to your country), how can this be the case? Also, what recourse will you have if such advice turns out to be unsubstantiated or flat-out reckless?

We think your hard-earned capital deserves better, and we’re sure you’ll agree. That’s why we sincerely hope just thinking about the above scenario happening to you is enough to ensure any key financial decisions are only made in tandem with experts.

Financial adviser fees FAQs

We know you may have lots of questions about the cost of hiring a financial adviser. We’ve answered some of the most common queries below.

Need more help? Please contact us so we can be of further assistance.

How are fees charged?

Financial adviser fees are typically percentage-based, meaning the total cost will depend on the value of the asset or product in question. Sometimes, a fixed fee may be given although this is less common within financial services.

How are fees charged?

A financial adviser will typically charge an amount based on the value of the product or asset. Specific fees can be discussed once a financial adviser knows more about the help required. This not only includes the asset value, but also whether the requirements will be one-off or ongoing.

How do I know your advisers will focus on my best interests?

With over two decades in business, our key focus at Holborn Assets is to provide quality, independent financial advice.

We also have a personal letter from our CEO Bob Parker, who explains further about our core principles on our about us page.

You can also get to know many of our advisers over on our YouTube channel. A highly visible team, combined with a transparent service is the very least your financial portfolio deserves.

Is it worth paying for a financial adviser?

It’s a simple fact that some financial decisions need to be made in partnership with an expert. This is especially the case when your capital is at stake. Likewise, if you want to ensure all opportunities are being maximised. Therefore, for any important financial matters, it is always well worth speaking with a financial adviser.

Key takeaways: What is the cost of independent financial advice?

The cost of financial advice will typically be charged as a percentage, with the actual figure depending on the value of the asset in question. Though it’s also worth remembering that a competent financial adviser is actually designed to save you money. This will be achieved by reviewing your current financial position ensuring this aligns with any future goals.

Holborn Assets – Award-winning financial advice is just a couple of clicks away

If you’re in search of financial advice, then make sure you have one of the leading global financial advisory groups by your side.

Holborn Assets is proud to be an award-winning group. We currently have more than $3bn under management, with more than 20,000 clients who put their trust in our unrivalled expertise.

Create or manage your financial strategy with us by getting in touch with one of our experts. For those outside of the UK, Holborn Assets has brought our highly regarded UK financial services standards to the UAE. In total, we have a presence in 18 different locations around the world.

Please send us a message and one of our advisers will be in touch shortly.

You can also keep up to date with our latest pension news and advice on our Instagram, YouTube or LinkedIn channels.

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