What's the story?

For decades, financial advisers have typically charged a percentage of the assets they manage - usually between 0.5% and 1.0% per year.

This might seem reasonable at first,
but is it really fair?

Percentage Fees: An Outdated Approach

Percentage-based fees started when advisers mainly selected investments and managed portfolios. Larger accounts needed more work, so fees increased with account size.

Today, good financial advice is about much more than picking investments. It's about helping you make better financial decisions, pay less tax and retire with confidence. We believe fees should be based on how complex your situation is, not just how much money you have.

That's why we do things differently.

Problems with Percentage Fees

We believe percentage-based charging has three major shortcomings:

1. They Create Potential Conflicts

When an adviser's pay depends on the size of your investments, will they always recommend what's truly best for you?

  • Would they encourage you to pay down debt if it meant reducing your invested assets (and, in turn, their fees)?
  • Would they recommend an annuity—which might provide you with guaranteed income but remove assets from their management?
  • Would they support a moderate risk strategy that suits your needs, even if a more aggressive approach would inflate the portfolio (and their earnings)?

2. They Ignore How Complex Your Needs Are

With percentage fees, clients with more money often pay much more for the same advice. This raises fairness questions. Wealthier clients may subsidise clients with less money, while advisers might prioritise higher-paying clients.

3. It Lacks Transparency

Many people think a 0.5% or 1.0% fee sounds small, but these costs add up significantly over time. For example, a 1.0% yearly fee on £1 million equals £10,000 yearly. Over decades, this can take a big chunk out of your investment returns.

Fixed Fees: A Fairer Approach

We charge set advice fees based on how complex your situation is, not how much money you have. We believe this is much fairer. Here's why:

1. Our Interests Match Yours

Since our fees don't increase with your investment amount, we can focus entirely on what's best for you. Whether that means investing more, spending some of your money, or paying off debt - our advice is based solely on what benefits you most. 

2. Clear, Predictable Costs

With fixed fees, there are no surprises. You know exactly what you'll pay and can clearly see what services you're getting for your money.

3. Fair Treatment for Everyone

Our fixed fee system means everyone pays based on the complexity of their financial situation, not the size of their wealth. This ensures all clients receive proper attention and care, regardless of their portfolio size. 

4. Lower Costs for You

Under traditional percentage-based fees, someone with £2 million invested might pay between £10,000 and £20,000 every year (0.5% to 1.0%).

With our fixed-fee approach, your annual fees would be around £4,000 to £8,000, depending on the complexity of your needs.

Our Fee Structure

Initial Setup Costs

We charge a one-time fee to set up your financial plan:

Base Setup Fee

£500

Pension Transfers*

£500 per pension

ISA or Investment Account Transfers*

£250 per account

*If your pension is less than £50,000 or your ISA/investment account is under £25,000, we waive the transfer fees.

Annual Advice Fee

Our annual fee is based on the complexity of your financial needs:

Standard Annual Fee

£4,000

Enhanced Annual Fee
(if one factor below applies)

£6,000

Comprehensive Annual Fee
(if both factors below apply)

£8,000

Factors That Affect Your Annual Fee:

  1. Retirement Planning Needs: If you're within five years of retirement or already retired
  2. Investment Complexity: If you have specialised investments such as VCTs, EISs, Business Relief investments, onshore/offshore bonds, Family Investment Companies, or trust structures

This tiered approach ensures fees are fair and reflect the work involved in managing your financial plan.

What’s Included in Your Fee?

  • Investment Planning: Advice on choosing and managing investments across ISAs, General Investment Accounts, and pensions.
  • Tax Planning: Strategies to structure your investments efficiently and minimise your tax bill.
  • Regular Check-ins: Ongoing meetings (we suggest twice a year, but it's up to you) to review your plan, check progress, and make changes as needed.
  • Advice on Complex Investments (if required): Help with specialized investments like VCTs, trusts, and investment bonds.
  • Retirement Planning (when needed): A custom retirement plan covering:
    • How much you should save
    • Understanding your contribution limits
    • When you can afford to retire
    • How to best arrange your retirement income
  • Estate Planning: Ways to protect your wealth and pass more to your family or chosen beneficiaries.
  • Financial Forecasting: Detailed projections of your financial future, including:
    • Stress testing your plan against unexpected events
    • Showing how your plan would perform based on real-world market data (stochastic modelling)
    • Early retirement planning for younger clients (FIRE scenarios)
  • And….something good for the planet: We’re committed to making sure we not only have a positive impact on you and your family, but also the world as a whole. So for every year that you’re a client, we’ll plant a tree for you. Each tree will have a lifespan of approximately 50 years, and remove almost a ton of CO2 from the atmosphere.

How Our Fees Compare

A study by the Financial Conduct Authority (FCA) found that the average total costs for financial advice in the UK were around 1.90% per year. This includes both the ongoing advice fees (0.80%) and the costs of investing (1.10%), including platform fees, underlying fund charges and transaction costs.

With our fixed fee model, most clients will pay significantly less. Find out for yourself using our free fee comparison calculator: 

Stay up to date with Investment Advice

Blincoe Financial Planning
The Blincoe BlogPrivacy PolicyTestimonials
Connect
hello@blincoe.uk07746 250670Contact

Blincoe Financial Planning Limited is an appointed representative of Sense Network Ltd, which is authorised and regulated by the Financial Conduct Authority. Registered in England & Wales, No. 14569306. Registered office: Star Lodge, Montpellier Drive, Cheltenham GL50 1TY. Blincoe Financial Planning Ltd is entered on the Financial Services Register under reference 1000321. The guidance provided within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK. The Financial Ombudsman Service is available to sort out individual complaints that clients and financial services businesses aren’t able to resolve themselves. To contact the Financial Ombudsman Service, please visit www.financial-ombudsman.org.uk.

Website designed and developed by Storytold