Guide to paying fees

Financial Planners will undertake a full review of your financial situation to understand the complexity of your needs and to help you to establish your lifestyle objectives.

The outcome of this “fact finding” process will determine the level of involvement required by the planner, and also will indicate the most appropriate solutions to suit you and your situation. If you decide that you need the services of a Financial Planner, one of the important aspects that need to be discussed at outset is the basis on which that planner will be paid.   

There are essentially two methods of payment for Financial Planning services:

• Fees and Commission
• Fee only

Most Financial Planners tend to work on a fee basis. The production of a personal financial plan is the first step which will normally involve a one-off cost, usually charged as a fee, the extent of which is based upon the complexity of the work to be carried out. After this, to cover the additional work necessary to carry out the requirements of the financial plan, the planner will more than likely be remunerated using fees in one of the following ways:

• Hourly rates
• % of money invested
• Quoted on a project basis

Whichever option you agree with your planner, it is most important that it is decided and agreed at an early stage in the proceedings so that both you and your planner know exactly how the charges will be made for the very important services that they will be providing.