Fair Fees

 

At Leabourne, we’re open about the way we charge. We will provide you with a clear fee proposal that you will need to agree before we commence any work for you.

The fee proposal is based on the complexity of the task and the time it is likely to take. The tables below will give you an indication of the possible cost of each piece of advice.

The way we charge also makes us very different to most other advisers. The normal ‘fee’ basis used by advisers is to charge 3% of your pension or investment for any initial work. How much you pay is therefore very dependent on how much you have to invest. You may not even be aware of the ’fee’ as it usually comes directly out of your pension or investments.

At Leabourne we are happy to facilitate taking the fee from your investments, but it would only be for the agreed amount. We usually advise clients that the direct fee is better for them as it allows their investments/pensions to grow from a higher starting point.

Advice Fee Range
Untangling Your Finances £500 – £750
Savings and Investment Strategy £600 – £900
Pension Savings, Forecasts and Advice £1,225 – £1,575
How to Take your Retirement Income £1,050 – £1,400
Pension Consolidation (two pensions) £600*
Protection Advice £450 – £750
Full Financial Plan £1,575 – £1,925

*£150 per extra pension

 

Implementation Fee
Setting up a Personal Pension or SIPP £375
Consolidating Pensions £500
Setting up a SIPP with Commercial Property £1,050
Setting up an Annuity £450
Setting up an Income Drawdown Pension £650
Setting up an ISA or General Investment Account £375
Setting up a bond or GIA within a Trust £625
VCT’s or EIS’s £900
Setting up a life assurance policy £300
Setting up a Critical Illness or Income Protection Policy £375
Setting up a Care Fees Plan £1,200

If you require advice that includes a specific product recommendation, then you will not need to pay VAT whether or not you take up our advice. If you require more general advice that does not include a specific product recommendation, then VAT will be chargeable.

 

Some Examples and Comparison with other Financial Advisers

To help you make the right decision for your financial future, see below examples of how you could be charged.

Example One. You have 4 different pensions. You’d like to know if they will provide for you with enough income in retirement. You also want to know whether to consolidate them into one and if so which one.

Leabourne Fees are based on time Most other advisers fees are based on a % of your investment
Step One: Assess likely income from the 4 pensions and compare with income needed £1,225 The value of your 4 different pensions is £150.000
Step two: Assess whether to merge the pensions and how £900 The adviser will usually charge a fee equivalent to 3% of your investment
Step Three: Merge the pensions £500 This will come out of your pension ‘pot’
Total Cost £2,625 £4,500

 

Example Two. You are about to retire and need advice on which is your best retirement option – buying an annuity or some form of flexible drawdown. You will then need help setting up the chosen option.

Leabourne Fees are based on time Most other advisers fees are based on a % of your investment
Step One: Compare possible income with each option and recommend the best solution for your circumstances £1,250 The value of your 2 different pensions is £100.000
Step two: Setting up either an annuity or an income drawdown plan £650 The adviser will usually charge a fee equivalent to 3% of your investment
This will come out of your pension ‘pot’
Total Cost £1,900 £3,000

 

 

Fees for On-going Support

Once your plan/policy or pension is set up and in place, or your investments have been made it is a good idea to make sure that everything is on track with regular review meetings. At the outset we will have agreed the level of on-going service you require. This could include regular review meetings or access to an adviser as and when needed.

As with our initial fee, we base the cost of each of the support options on the number of hours we estimate that we will spend on each review and other forms of contact with you.

Support Options Offered by Leabourne

Service Classic Premium Ultimate
Annual Financial Review Report
Annual Review Meeting
Findings & Recommendations
Ongoing Provider admin
Ongoing telephone support
Ongoing email support
6 monthly interim review report
6 monthly review meeting
6 monthly findings & recommendations
Market monitoring
Personal telephone alert
Annual Cost including VAT £864 £1,152 £1,728

 

Cost of the Support Options, if requested on an ad-hoc basis

Service Classic Premium Ultimate
Retainer – Annual Cost including VAT £864 £1,152 £1,728
Cost of Receiving the same benefits on an ad-hoc basis
Ad-hoc Cost of Annual Review preparation, meeting and follow up £750 £750 £750
Ad-hoc cost of Ongoing provider admin and e-mail and telephone support – (based on 3 hours) £360 £360
Ad-hoc cost of 6 monthly interim review report, meeting and follow up £600 £600
Market monitoring, personal telephone alerts and more regular e-mail and telephone support £1,200
Annual Cost on an Ad-hoc basis including VAT £1,010 £1,710 £2,550
Saving with Retainer Package £146 £558 £822

 

 

Comparison vs Financial Advisers who charge as a % of investments

Most advisers charge for on-going support by taking a % out of your investments or pension. The fee is usually between 0.5% and 1%.

In the tables below we show the difference in cost for clients with different sized investment portfolios or pensions.

Your Pension or Investment Portfolio has a value of £150,000

Service Leabourne Most Advisers charge a % of investments
0.5%
Most Advisers charge a % of investments
1.0%
Classic – Annual Cost including VAT £864 £750 £1,500
Premium – Annual Cost including VAT £1,152 £750 £1,500
Ultimate – Annual Cost including VAT £1,728 £750 £1,500

 

Your Pension or Investment Portfolio has a value of £250,000

Service Leabourne Most Advisers charge a % of investments
0.5%
Most Advisers charge a % of investments
1.0%
Classic – Annual Cost including VAT £864 £1,250 £2,500
Premium – Annual Cost including VAT £1,152 £1,250 £2,500
Ultimate – Annual Cost including VAT £1,728 £1,250 £2,500

In order to find out how I can help you please call me to book your free 30 minute phone call or meeting on 01992 310292

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