IFA costs

[Estherpologist]

I've never used an IFA in my life. How much do they cost?
The Which website suggests they can be expensive, or at least more than I'd hoped for. I'm looking at a divorce sized amount of money, but I'm terrified of spending what I can't afford to lose.

We had a free chat with one yesterday about consolidating pensions and looking at investments.
No advice given but if we want to proceed it will cost.
The fee structure was sent through last night and my DH turned white.

It was ££££

Some of the options were £9k
Some were nearer £5k

Financial Planning: £3k-£5k plus VAT
Implementation: 0.75% of assets under management with minimum of £1000 fee - no VAT.

Source: meaningfulmoney.tv/work-with-pete/

I don't know if that is typical or not but I would certainly look for fixed fee financial planning, then you can decide to implement the plan yourself if appropriate.

Initial meeting should be free. More advisers are now charging fixed upfront costs too an hourly rate rather than a % of the funds you invest, which is fairer.
Expect to pay an hourly rate that is somewhere between £150 to £300 depending on experience, location, complexity of the work. There is really no need to pay £1,000s upfront for financial planning.

Spoke to one today and she said,
1% to do an assessment of what I'd have, what I need, and to set things up.
Then something like .75% p/a (or about that. I forget.)
With an expected growth of around 8% p/a, which should be roughly on track "with the market" and not speculating on high risk stuff.

Does that sound even vaguely realistic? 8% is more than I expected.

8% before fees maybe. Though markets have been high for quite a while, so will that continue? It is an unknown.