Fee Based Financial Advice
We recently saved a client in excess of £21,000 on the monthly premiums of his plans over the term of the plans.
Some of the problems that may arise if you obtain commission based advice are:
- Conflicts of interest between you and your financial adviser, as to earn a living your adviser is limited to recommending a solution that pays a commission or may potentially be recommending a product that pays the highest commission
- You may not get some valuable but time consuming advice because it does not generate a commission paying product – e.g. inheritance tax planning or estate planning advice
- Your commission may be “supporting” other clients whose work produces lower commission but takes more of the firms time and resources
- Over the whole term of a policy an up front and pre agreed fee could well work out much cheaper than an ongoing commission
Why can’t I just go directly to the provider?
In many cases when the advice is very straightforward and the monthly premiums are small and it would be more expensive for you to pay the fee that would result, we would usually advise you to deal directly with your product providers. However many people make bad decisions on their finances and end up with poor unsuitable products because they “Go direct”.
However, if you pay a fair pre agreed fee instead the monthly premiums can be reduced potentially saving significant amounts over the term of the policy. Of course the fee is agreed with you and not the insurance company thus eliminating any company bias on your recommendations.
What’s the best way to agree fees with my financial planner?
Some financial advisers or financial planners will charge you by the hour – at Bluebond we prefer a fixed pre agreed fee arrangement when working with our millionaire clients. If we under quote – that’s our problem. If we quote too much, you can and probably will say no. At least you know up front what it’s going to cost and can make your decision.
How are Bluebond paid?
We have posted another page on how this works in the About us section of this site. The page is entitled ” How are we paid”
Any questions about fees and commissions?
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