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 |  |
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| Annual Review Meeting | |
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| Findings & Recommendations | |
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| Ongoing Provider admin | |
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| Ongoing telephone support | |
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| Ongoing email support | |
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| 6 monthly interim review report | |
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| 6 monthly review meeting | |
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| 6 monthly findings & recommendations | |
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| Market monitoring | |
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| Personal telephone alert | |
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| 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 |