Plan management is where we, at least annually, get together and talk about you, what’s going on and what’s on the horizon. We also consider the wider investment, economic and tax environment.
Adjustments are made to keep your plan in the best shape possible. Your plan management fee covers you for “anything and everything” that might be needed throughout the year. Nothing sits still, so your financial plan should not either.
Our fee for this service is different to most other planning / advice / investment firms. And for good reasons – fairness and transparency being the major ones. Every two years we set your fee at a level that is fair to you and us, based on your circumstances and the value we bring to bear.
Most other advisers charge a % of the money they manage whereas we use a fixed £ amount. The typical ongoing % fee is 0.75% - 1% pa, some charge much more. But what you get for that fee can vary wildly.
In plan management meetings we discuss any and every money related matter that is relevant to you. This includes (but is not limited to) tax, estate planning, share schemes, long-term care, work benefits, wills, loans, insurances, expenses, your immediate and wider family, coaching, career advice etc. We also keep track of how things are progressing using our financial planning software, allowing us to make sure you stay on track, regardless of what life throws your way.
We do not believe you can get more for your money; our approach is fairer and more transparent:
1. Our fixed £ fee means you know what you are paying, and we know what we are getting, and we can both plan accordingly.
With % fees what you pay changes month to month and is directly linked to how wealthy you are.
2. £ fees are tailored to you, your needs, your specific circumstances.
% fees are "one size fits all".
3. Stock markets grow 75% of the time.
With our £ fees your costs remain the same between reviews.
With % fees you pay more and more as your investments grow.
4. Our £ fees do not increase as money is added (e.g. ISA or pension contributions).
% fees automatically increase every time you add more money.
5. £ fees are in your explicit.
% fees are like a stealth tax.
6. £ fees allow us to deliver consistently and without bias.
% fees encourage risk taking and poor advice practices.
7. Every 3-5 years there is a substantial stock market shock and values can be expected to drop 30-50%.
Our £ fees mean our income does not drop. We can maintain service levels and continue to invest in our business for your benefit.
% fees mean that uncomfortable decisions may have to be made that are not to your long-term benefit.
Think about it - what would you have to do if your household income dropped 30-50%? What would have to go?