Hi all. This is my first post here and hope that the subject matter is of an appropriate nature to this particular forum.
My financial portfolio, an allocated pension fund, which consists mainly of managed funds, is within a wrap account. Because of my limited knowledge in relation to financial matters the f/portfolio is since 6 years under the wings of a financial adviser.
The wrap account and financial adviser charge monthly fees (administration and ongoing advice respectively) which are based on the total value of my assets in my wrap account. Both fees are automatically debited to my cash account within the wrap account.
The ongoing advice fee includes a six-monthly formal review, recommended portfolio changes, long term strategic modelling - ensuring I am on track in terms of asset allocation of my f/portfolio.
I do realize that for quality professional services appropriate fees apply and need to be paid. I am not opposed to these payments. However, I begin to question the necessity of monthly fees for ongoing advice as my f/portfolio only gets reviewed twice a year and feel that the ongoing advice fee rather undermines the cost effectiveness of the wrap account.
I am now contemplating switching to another professional financial adviser who charges me a professional fee (hourly rate) for finacial advice.
Presumably, since an hourly rate is not tied to the value of my investments, or generated by the purchase of any specific investment, couldn't I be confident to expect & receive objective advice for a more moderate fee? Though I'd expect to pay a higher hourly rate for an experienced adviser.
I hope receiving some good comments, recommendations and/or guidance from participants of this forum who have more savvy in this matter that I have.