Introduction

Managing your finances can be complicated, and getting advice can help you make the important decisions. But what will it cost you, and is it value for money? 

If you have inherited some money, it can be difficult to know what to do – should you invest the money? Pay off debts? Save for the future? A financial adviser can help guide you through the complexities of managing your finances. But good advice does come at a cost, and it’s natural to want to know if it is going to be worth it in the long term.

What does financial advice cost?

Financial advisers typically charge in one of three ways: a flat fee, an hourly rate, or a percentage of the assets (money) they manage for you. 

1. Flat fee: Some advisers charge a flat fee for a specific service, such as creating a financial plan or providing investment advice. This fee can vary widely, but you might expect to pay anywhere from £500 to £5,000 depending on the complexity of your situation. This option is often more predictable and can be ideal if you need advice on a particular issue.

2. Hourly rate: If you only need advice for a few hours, some advisers charge by the hour. Hourly rates can range from £150 to £350 per hour. This can be a cost-effective way to pay for advice if you have a clear understanding of what you need help with and only need a limited amount of time.

3. Percentage of assets managed: Another common way to pay for financial advice is through a percentage of the assets the adviser manages for you. This percentage usually ranges from 0.5% to 1% per year. For instance, if you have £100,000 to invest, you might pay around £500 to £1,000 annually for ongoing advice and management. Often the percentage in the first year is higher than subsequent years, to cover the initial advice and getting products set up. While this method can be more expensive over time, it also aligns the adviser’s incentives with your financial success – if your investments do well, so does your adviser.

Comparing these costs can be challenging, as advisers may offer different levels of service. However, it’s crucial that whoever you speak to is transparent about their fees from the start. Most advisers provide a free initial consultation, during which they explain their services, fees, and how they can help you. This meeting is your chance to ask questions and ensure you’re comfortable with their approach before committing.

Is financial advice worth It?

There are a number of potential benefits to getting good advice.

1. Expert guidance: A financial adviser brings expertise that can help you make informed decisions. They can guide you through the maze of investment options, tax implications, and retirement planning, ensuring that your decisions can help you meet your long-term goals. Find out more about what an adviser can help with.

2. Better returns: Making the most of your money and assets is the main benefit of good financial advice. According to research, people who receive financial advice are on average £47,000 better off over a decade compared to those who don’t. 

3. Saving your time: Managing your finances effectively takes time and effort. A financial adviser can free time spent on research, and allow you to focus on other aspects of your life.

Peace of mind: With professional advice, you can feel more confident that you’re making the right choices with your money. This peace of mind can be invaluable, particularly during stressful times.

Other factors to consider

1. Cost: Paying for financial advice can be expensive, and you may have to pay what feels like a significant amount upfront for some kinds of advice. However, the fees are often justified by the potential for higher returns and better financial outcomes over time.

2. Risk of poor advice: It’s essential to choose someone who is qualified, experienced, and has a good track record. 

3. Loss of control: If you don’t understand all the factors involved in an investment, you may feel like you’re losing control over your money. It’s important to find an adviser who keeps you informed and involved in the decision-making process.

Overall, the benefits of taking good financial advice should increase over time, and small gains can build up significantly. Remember, the whole point of taking advice is to be financially better off in the long term. So for most people who take advice, the cost is less than the cost of doing nothing.

How Trustestate can help

A financial adviser can help you with financial planning and advise you on the best products to make the most of your inheritance and secure your future. Trustestate can help you get in touch with a trusted adviser and schedule a free initial consultation.

What we offer

Dealing with inheritance and probate can be a challenging and overwhelming process. Let Trustestate take out the hassle for a fixed transparent fee. We offer a simple, streamlined service with expert support at every stage, and can signpost to partner services such as financial advisers.

Use our Complete Probate service and we’ll manage every stage of the process – we’ll take over all the admin, apply to the court for probate, and share out the estate. 

Or if the estate is simple and you have time, you can use our Grant of Probate service, and we’ll apply for probate using information you provide.