Power Talks To Practitioners About Fees & Charging

Flat fees, subscription fees, percentages of assets under management…

Neil Parker
CEO, Joslin Rhodes
Lifestyle Financial Planning

“It doesn’t matter what you charge… just charge something.”

Neil clearly defines three parts to the Lifestyle Financial Planning service Joslin Rhodes provides: Life Coaching, Financial Planning and Financial Advice. He says it’s important to remember that each has a value, and each should have a fee. Clearly defining each of the three elements forces you to demonstrate and explain the enormous value your Financial Planning service brings to clients over the course of their lifetimes. Neil also explains why a ‘de-risking gap’ is key to getting clients over the line.

Emily Turgoose
Managing Director
Life Matters

“A model where you pay more, simply because you invest more, has had its day.”

Instead of calculating ongoing charges as a percentage of the amount invested, often dubbed a ‘wealth tax’, Life Matters charges a simple subscription fee tailored to each individual client’s requirements. Emily believes this approach means more clients can experience the benefits delivered by Financial Planning, without the considerable initial fee financial advisers and planners typically charge. The service can be cancelled at any time with no tie ins. Emily believes this approach is fair to both clients and planners over the longer term.

Alasdair Walker
Managing Director
Handford Aitkenhead & Walker

“All models carry cross-subsidy. There is a trade-off between simplicity and accuracy.”

Alasdair’s charging structure incorporates both a flat Financial Planning fee and an escalating tier of percentage charging for clients that choose to invest with his firm. Alasdair’s fees are clearly laid out on the firm’s website for complete accountability and transparency. There is a flat fee of £1,950 for a Financial Planning review and a tiered percentage fee for assets under management. Again, there are no tie ins and it is easy to stop at any time.

Learning objectives

  • Find out more about how Neil puts a value on the three elements of the Financial Planning service he provides: life coaching, Financial Planning and financial advice.
  • Learn why Emily set up a business based on a flat fee structure and why she charges no up-front fee and an ongoing monthly subscription fee tailored to each client’s needs.
  • Understand from Alasdair why there is still a valid reason to charge a percentage for assets under management.