Costs: using us versus other advisers

Few financial advisers and wealth managers openly publish their fees (view ours here) but a FCA December 2020 report established average upfront advice fees of 2.4% and annual costs as per below. The FCA report didn't cover average adviser platform charges (where applicable) so we've estimated these based on our own research.

Typical adviser and investment fees are based on FCA averages. Platform fees are estimates. All figures illustrative and could vary in practice.

The chart above compares estimated annual charges for a £400,000 portfolio. Based on these assumptions using our service would save £7,600 in upfront advice costs and £4,400 a year in total charges. Over 20 years we estimate this would make a difference of £222,900 (assuming an average annual return of 6% before charges).

Why focus on costs?

Costs can make a major difference to investment returns, as the above example shows. And, unlike stock markets, they are firmly under your control.

Neglecting costs is as good as putting your money in someone else's pocket.

Spending a few hours to ensure good cost decisions now is likely to be time exceptionally well spent, the benefit over time could run into tens or even hundreds of thousands of pounds!

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How much might you save in fees?

Use our simple calculator to estimate how much we might save you versus a typical financial adviser.

Sum invested: £


All figures are estimates (may vary in practice) and rounded to the nearest £100, based on the below assumptions:

  • Our initial and annual fees as per our rate card, with combined fund/platform charges of 0.65%
  • Typical adviser costs of 2.4% initially and 2.2% annually
  • Average annual growth of 6% before charges

Cost examples

Here are a few real life examples of how we've cut charges whilst improving advice and service.

Pension

Mr A has an £800,000 pension (SIPP) in flexible income drawdown invested across a portfolio of funds.

His previous adviser charged him 1% a year, with total annual costs (including fund and SIPP fees) of 2.1%, equivalent to £16,800.

We more than halved total annual costs to 0.95%.

Client is saving c£9,200 a year

Client also happy that we're more pro-active monitoring investments and drawdown income

Shares ISA

Mrs B has a £380,000 shares ISA portfolio invested via a portfolio management service.

Her previous adviser charged her 1% a year, with total annual costs (including investment and platform fees) of 2.35%, equivalent to £8,930.

We more than halved total annual costs to 1.1%.

Client is saving c£4,750 a year

Client also benefiting from a more comprehensive financial planning service

Shares ISAs & general investment account

Mr & Mrs C have a £650,000 portfolio spread between shares ISAs (£220,000 and £180,000) and a general investment account (£250,000).

Their previous adviser charged them 0.9% a year, with total annual costs (including fund and account fees) of 1.85%, equivalent to £12,025.

We more than halved total annual costs to 0.9%.

Clients are saving c£6,175 a year

Clients are enjoying a better level of service, including more efficient use of their ISA, capital gains tax and dividend allowances

Multi-manager shares ISAs with DIY platform

Mr & Mrs D have shares ISAs worth £425,000 (£225,000 & £200,000 respectively) using the platform's own multi-manager funds.

The platform was charging them 0.45% a year for the platform and an average 1.35% for the multi-manager funds, totaling 1.80% a year and equivalent to £7,650 (no advice fee, as no advice given).

We reduced their total annual costs to 0.95%.

Clients are saving c£3,600 a year

Clients are also benefiting from financial planning and investment advice

How much do Bestinvest, Chase de Vere, Hargreaves Lansdown, St James's Place and others charge?

Whilst most financial advisers do not openly publish their fees, firms including Bestinvest, Brewin Dolphin, Chase de Vere, Hargreaves Lansdown, Nutmeg, Quilter, St James's Place and Vanguard do. We've put together details and comparisons of what they charge here.

Can we help?

We expect to save you a lot of money versus comparable services. To arrange an initial 10–15 minute chat call us on 0203 397 7280 or click below.

Call me back
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6 Riverside Court
Bath
BA2 3DZ

0203 397 7280
hello@candidfinancialadvice.com

Candid Financial Advice Limited is authorised and regulated by the Financial Conduct Authority. FCA number 630986. Registered in England and Wales, company number 8261124, 6 Riverside Court, Bath BA2 3DZ.

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