When choosing a financial adviser, investment performance is often the first thing people think about. But increasingly, investors are also paying closer attention to something else: how much they're paying for financial advice.
For many years, percentage-based charging has been the industry norm, with advisers taking an annual fee based on the value of the assets they manage. As investment portfolios grow, however, so do those fees – leading more people to question whether they're paying for the value of the advice they receive or simply the value of their investments.
Cheltenham-based chartered financial planners rockwealth has seen growing interest in fixed-fee financial advice from clients who want greater certainty over costs and a clearer understanding of exactly what they're paying for.
Why Gloucestershire investors are taking a closer look at adviser fees
For county investors with larger portfolios, even relatively small percentage fees can add up over time.
For example, someone with a £1 million investment portfolio paying an ongoing adviser fee of 0.75 per cent would pay around £7,500 a year. If that portfolio grew to £2 million, the annual fee would double to £15,000, even though the advice, planning and ongoing support they receive won't necessarily have increased to the same degree
It's one reason why more investors are exploring alternative charging models that separate the cost of advice from the value of their investments.
While percentage-based charging remains appropriate for many people, understanding how different fee structures work can help investors make a more informed decision about which approach best suits their circumstances.
What is fixed-fee financial advice?
Rather than charging a percentage of the assets under management, a fixed-fee financial adviser charges for the advice and financial planning they provide.
For many clients, this offers greater certainty over costs, making it easier to understand exactly what they'll pay each year regardless of short-term market movements or portfolio growth.
It also allows conversations to focus on the wider financial picture — from retirement planning and pensions to tax-efficient investing, inheritance planning, protecting loved ones and building long-term financial security.
There's no single charging model that's right for everyone, but understanding the difference between percentage-based and fixed-fee advice can help you decide which is likely to deliver the best value over the long term.
Questions to ask before choosing a financial adviser
Whatever charging model an adviser uses, it's worth asking a few straightforward questions before making a decision:
- How much will I pay each year in pounds and pence?
- What services are included within that fee?
- How often will my financial plan be reviewed?
- Is the advice independent and tailored to my circumstances?
- Why is this charging model the right fit for me?
Clear answers will help you compare advisers on the value they provide, rather than simply the way they structure their charges.
Why rockwealth has adopted a fixed-fee approach
Founded in Cheltenham in 2014, rockwealth is an independent chartered financial planning firm advising on around £1 billion of client assets, while continuing to grow its team at its Imperial Square headquarters.
Launched by entrepreneur Tim Horrocks, the firm works with individuals, families and business owners across Gloucestershire and throughout the UK, helping clients navigate everything from retirement planning and pensions to tax-efficient investing, estate planning and preparing for significant life events such as selling a business or receiving an inheritance.
rockwealth charges fixed fees based on the work involved rather than the size of a client's investment portfolio. The firm believes clients should know exactly what they're paying from the outset, with advice centred on helping them achieve their long-term financial goals rather than being linked to the value of their investments.
As an independent chartered financial planning firm, rockwealth can recommend products and providers from across the market, enabling its advisers to tailor recommendations to each client's individual needs and objectives.
Choosing the right financial adviser
A financial adviser can become one of the most important long-term professional relationships you'll have, so it's worth taking the time to understand not only the advice on offer but also how you'll be charged for it.
Whether you're reviewing an existing arrangement or seeking professional financial advice for the first time, understanding how different charging models work – and asking the right questions about costs, services and ongoing support – can help you make a confident, informed decision.
To find out more about rockwealth's fixed-fee approach to independent financial planning, visit rock-wealth.co.uk.
