GOOD ADVICE HAS A PRICE

A study by Vanguard identified seven key areas where advisers can add value, estimating values for each area.

The total sum was discovered to be around 3% per annum.

At Longhurst we will always tell you the unvarnished truth about your money, including the pounds and pence that you pay us for the advice we deliver to you.

As you would expect from a highly qualified and experienced professional advice firm, we charge fees for all initial planning and advice services.

Our fee model is complexity based, determined by service cost and client value, providing you with the confidence that your best interests sit at the heart of everything that we do for you.

Ahead of us working together we’ll discuss how our fee model works and mutually agree which service bests suits your needs. We review our charges on an annual basis, and we guarantee not to change them within the year.

Subject to your situation our fees can be paid by you directly, through your investments, by your business, or a combination of all three.

Initial Advice Services

Exploration Meeting

We offer all new clients an Exploration Meeting which is held at our expense and without obligation. We typically hold this meeting at our office in Silverstone or London. We can also host these virtually via secure video conference.

We will have some deep-dive conversations about all aspects of your life, including what and who matters most to you. We will also talk through what you would like to achieve as a result of our work together, so that we can help you decide whether we are the right adviser for you.

Following this meeting we will write to you with a personalised fee agreement confirming the services we will provide to you.

Fee = Held at our expense

Initial Financial Planning Review

We will comprehensively assess your current financial circumstances and establish how your existing resources can be expected to support your desired lifestyle in the long term. We will then discuss our findings with you and document the financial planning strategies that you should consider.

Incorporating detailed lifetime cash-flow forecasting, the review will compare:

  • Life as it stands today, and whether your current portfolio of assets (and how they are currently invested) will support your short, medium, and long-term goals.
  • A number of bespoke What-If scenarios comparing the anticipated outcomes of different financial planning strategies.
  • Stress-testing all options by looking at investment volatility and what problems you may face in the event of a market downturn at different stages of your life.

This analysis does not involve the specific recommendation of suitable product providers, investment funds, nor the implementation of any advice. This is a pure strategic planning exercise to establish your pre and post retirement options.

For completing a fact find exercise, undertaking initial data gathering, and to produce your initial financial planning review incorporating a lifetime cash-flow forecast, we charge a flat fee of £1,500.

Advice & Recommendation

Advice & Recommendation Service

Financial advice regarding which products, product providers, and investment strategies are advisable to enable you to secure and maintain your version of financial independence, or to achieve any other financial objective.

This covers personal pensions, investments, and savings, as well as covering arranging lump sum investments, new regular contributions, and withdrawals from an existing investment/ pension arrangement.

This does not cover defined benefit pensions, pensions with safeguarded income benefits (e.g. Section 32, and deferred annuities).

For completing extensive research and providing a personal recommendation, we charge a flat fee of £500 per product/policy under review.


Advice Implementation Service

Once we have made the recommendations, the Longhurst team will then get to work implementing them on your behalf, overseeing all aspects of the administration and paperwork.

For implementing our recommendations, we charge a flat fee of £1,000 for the first product/policy, then £500 for each subsequent product/policy.


Large Filing Cabinet of Policies?

If you have a large filing cabinet of historic policies we will take a pragmatic and commercial view on how much we charge you to deliver the above service.

Clearly, we will do our best to ensure no financial barrier is placed in front of you to work with us.

Example

Client has 3 historic paid-up pension polices (totalling £500,000) she would like to review with an aim of simplifying her financial affairs whilst also putting in place one cohesive pre-retirement planning strategy.

Our fees would be as follows:

  1. Initial financial planning review @ £1,500
  2. Advice & Recommendation across 3 policies @ £1,500 (3 x £500)
  3. Implementation service, assuming advice is to consolidate all 3 policies into 1 new policy @ £2,000 (£1,000+£500+£500)
  4. Total cost, if this client implemented our advice = £5,000 (equivalent cost of 1% of investable assets)

Annual Forward Planning Review Services

Why Review?

Using a Silverstone-based analogy, getting the F1 race-car off the start line is just the beginning, ensuring it reaches the checkered flag is the real challenge. It’s the same principle with financial planning.

If you want to achieve and then maintain your version of Financial Independence; be tax-efficient; and leave a meaningful legacy for your loved ones; it will require constant work and adjustment.

We therefore offer an Annual Forward Planning Review service which focuses on two clear life phases, pre and post retirement. We also break the services down into two clear elements, Financial Planning and Investment Management.

Financial Planning

Tier 1 – SmartStack™ – Saving Phase

A service designed for those building towards their version of financial independence, who are facing evolving life decisions, and who are looking for on-going personal and professional guidance about achieving or maintaining their life goals.

The service includes:

  • Face-to-face forward planning meeting
  • Updated financial plan and lifetime cashflow forecast
  • Update on your situation and any changes to your financial goals and objectives
  • Tax planning review & strategy implementation
  • Protection review
  • Mortgage review service
  • Cash management service
  • Behaviour coaching & sound-boarding
  • Discussion of any new recommendations
  • Monthly Longhurst newsletter
  • Invitations to Longhurst events

Fee = £250 per month, or £3,000 per annum


Tier 2 – SmartRetire® – Spending Phase

A service for those wanting to live life without fear of ever running out of money; engineered to give you control and confidence over the important decisions you need to make prior to, during, and then throughout your retirement.

The service includes:

  • Face-to-face forward planning meeting
  • Updated financial plan; lifetime cashflow forecast; & sustainable income withdrawal forecast
  • Maximising capital and income from your pensions and other assets
  • Estate Planning
  • Inheritance Tax planning
  • Wealth preservation strategies
  • Residential property retention strategies
  • Cash management service
  • Behaviour coaching & sound-boarding
  • Discussion & implementation of any new recommendations
  • Monthly Longhurst newsletter
  • Invitations to Longhurst events

Fee = £250 per month, or £3,000 per annum

Investment Management

We also charge a separate fee covering all areas of investment advice, management, and administration.

This will include:

  • Portfolio reviews
  • Annual re-balancing
  • Fund switches
  • Annual capital gains harvesting
  • Annual utilisation of tax efficient investments
  • Access to institutional funds unavailable to retail clients
  • Where applicable, liaising and overseeing external institutional or investment managers

Fee = 0.3% annual funds under management levied against all investments held under Longhurst’s agency

Example

A married couple in their 50’s are introduced to us by their solicitor. Their children have flown the nest, and as such they are now focused on putting enough away for their well-earned retirement.

They are employed, with Mr an additional rate tax payer, and are both contributing into their workplace pensions. They have significant savings spread across Personal Pension Plans, ISA, and cash accounts.

They would like to make sure they have a robust retirement plan in place; want to maximise tax efficiency; and want to improve on their current bank saving rates. Their investable estate is currently worth a combined £500,000.

Our on-going forward planning fees would be as follows:

  • Financial Planning flat fee @ £3,000 per annum
  • Investment Management fee @ £1,500 (£500,000*0.3%)
  • Total annual fee @ £4,500 (equivalent cost of 0.9% per annum of funds under management)

As another example, if the above clients had £2,000,000 of investable assets, our on-going forward planning fees would be as follows:

  • Financial Planning flat fee @ £3,000 per annum
  • Investment Management fee @ £6,000 (£2,000,000*0.3%)
  • Total annual fee @ £9,000 (equivalent cost of 0.45% per annum of funds under management)

Clearly, the larger the investable estate, the more cost-effective our proposition looks compared to traditional high-street advisers and wealth managers.

Other Services

Human Insurance / Mortgage Advice / Equity Release / Long-Term Care / Ad Hoc

Human Insurances (life/critical illness/keyman/relevant life/shareholder)

We offer two payment options for providing advice and arranging an insurance product:

  1. Where it is agreed that we will receive commission, the amount of commission we receive will vary depending on the type of contact, term of the cover and the premium amount. We will tell you how much commission we expect to receive before we transact business for you. You will receive a quotation, which will tell you about any other fees relating to any particular insurance policy we arrange for you.
  2. You also have the option to pay for our insurance services by way of a fee. If you elect this option we will waive the commission received by the insurance company, the result of which will reduce your monthly insurance premiums. The amount we charge will depend on the amount and complexity of the work required. Typically, our standard rate is £2,000 per policy arranged, with the fee covering our initial research, recommendation, and overseeing all aspects of your application(s).

We are not otherwise permitted to receive or retain any financial inducements, significant gifts, or hospitality from insurance product providers, for arranging insurance contracts on your behalf.


Mortgage Advice

For establishing your needs, undertaking research and making a recommendation, we do not charge a fee. If you choose to proceed with our recommendation and the mortgage goes ahead, we may charge a fee. This would typically be £1,000.

If you choose to proceed with our recommendation, and the mortgage goes ahead, we will be also be paid a commission from the lender for arranging the mortgage on your behalf.

The amount of commission we receive varies from lender to lender. Information about the range of commissions available to us from the mortgage products we recommend is available on request.


Equity Release

For establishing your needs, undertaking research, making a recommendation, and administering an application on your behalf, we charge a flat fee of £2,000. Our fee becomes payable on completion of your application.

If you choose to proceed with our recommendation and your equity release goes ahead, we will also be paid commission from the product provider for arranging the lifetime mortgage or home reversion plan on your behalf.

If you apply for a lifetime mortgage or home reversion plan that does not go ahead, you will receive no refund.


Immediate Needs Care Plans / Long-Term Care Advice

For establishing your needs, undertaking research, making a recommendation, and administering an application on your behalf, we charge a flat fee of £3,000. Our fee becomes payable on completion of your application.

If you apply for an immediate needs care plan that does not go ahead, you will receive no refund.


Ad Hoc Services

From time to time we help clients who are in need of one-off project based planning.

This could include carrying out a variety of different tax calculations, including pension lifetime allowance or annual allowance calculations.

In these instances we will provide you with a written time-based estimate of our fees.

How do we compare against other IFAs or Wealth Managers

How do we compare against other financial advisers?

Pure Percentage / Ad Valorem Charging

See our Wisdom page titled: The Truth About Fees.


Free Advice Is Often The Most Expensive

If an adviser/wealth manager states they do not charge initial fees, always double check the initial and on-going fund charges you’ll incur by investing into their recommended portfolio.

Especially so if they’re recommending you invest into their own in-house funds.

If you don’t, you could end up with a very large and surprising initial and life-long cost.


Our Principles

We do not compete on fees, or on ‘track record’, or any other variable. We encourage all prospective clients to choose a financial planner in whom they feel the most implicit trust. It’s a personal decision, and one only you can make yourself.

You can easily find advisers who do less – and who care a whole lot less – than we. They probably also cost less. We think you have to ask yourself if that’s what you really want.

Whilst we are certainly not the cheapest adviser on the market, we are definitely not the most expensive. Our fee model is fair and reflects a mutual respect where no conflict of interest will exist between you and us.

We know that our full suite of services encompasses every element of your financial journey. Are you receiving this level of support from your current adviser.

Longhurst Limited is authorised and regulated by the Financial Conduct Authority.

Longhurst Limited is registered in England and Wales under reference 11193790.