Transparent fees – No commissions
The following outlines our pension charges 2017 for giving advice on UK pensions. In essence we are not free, but then nothing is free, is it?
Any bond & pension commission fully rebated
We provide a comparison and give an example of how it works in practice at the end of this page, and look at how fees versus commissions actually works; it makes good reading for any client who wants transparency and open honest advice.
Most offshore expat experts and QROPS salesmen, or those who give you qrops choices will advise you to go with “trustee A” usually based out of Malta, Gibraltar or New Zealand. As you read further down their report, then you will see a “custodian” quoted such as Royal Skandia, Old Mutual International ( OMI ), Royal London 360 ( RL360 ), Friends Provident or Generali.
You are told about “trustee A charges” and a 1% custodian service charge.
Unfortunately, the offshore IFA adviser neglects to tell you about the other 2-4% of annual charges within the fund choices and wrapper of Royal Skandia, Royal London 360 (RL360), Friends Provident or Generali, all of which can be avoided. This is because the salesmen get paid 6-9% commission for using these bond wrappers.
Our aim is to be transparent, fair and offer worry-free advice in a consistent manner. Criticise us if you want, but we want to put the consumer first.
Our transparent fees outlined
TailorMade pensions for expats do not charge commission, rebating it all. There will be occasions where our standard fee will not apply, examples could include additional complexity or additional travel required. Our standard fee’s are below:
|What Service or pension charges 2017 apply to you?||What is our charge for this?|
|Fact Find – full completion of risk assessment through active PDF.||At our cost up to 1 hour|
|OPTIONAL STRATEGIC PENSION PLAN – (non-USA residents) We provide a full plan outlining your options (including keeping it where it is in the UK) and this includes TVAS report where required and full Cashflow projections for projected current fund values and transfer comparisons, with full options.||$1,500
Surcharge may apply if more than 3 pension schemes to be assessed
|OPTIONAL STRATEGIC PENSION PLAN – (USA residents) We provide a full plan outlining your options (including keeping it where it is in the UK) and this includes TVAS report where required and full Cashflow projections for projected current fund values and transfer comparisons, with full options. We also consider IRS rules and impact of moving pensions outside of the UK for a US resident.||$1,500
Surcharge may apply if more than 3 pension schemes to be assessed
|TVAS report – This is only possible now to be considered by UK registered and regulated by the Financial Conduct Authority (FCA) since 28th July 2014 for funded Defined benefit schemes (known as Final Salary schemes).||$1,000 per person up to 3 plans (or it is included at no further cost for one person in the above STRATEGIC PENSION PLAN); 50% discount if no Appropriate Independent Advice sign off is required
$1,500 for a couple up to 4 plans assessed- with same discount applied as above.
|OPTIONAL CASH FLOW – Comparison of investment or pension plan – compare best UK and USA rate schemes against offshore schemes.||$600 per scheme (or it is included at no further cost for up to 2 schemes in the above STRATEGIC PENSION PLAN)|
|TRANSFER IMPLEMENTATION – We will advise you on which Trustee you should consider for the country you are planning on retiring in, and we will obtain lowest rates possible for investment vehicles, rebating any excess commission (if there are any) to you. We will only use, wherever possible, investment structures that have no surrender or redeeming charges so you have full flexibility.
We will manage the transfer over the months it will take to happen, and we will liaise with your chosen SIPP (UK) or QROPS trustee as a licenced adviser.
|3% flat charge up to $900,000
However, if you have already paid for any STRATEGIC PENSION PLAN or TVAS report then we will discount this fee by 33%.
Therefore reduced to 2%
Above $900,000 please contact us for a personalised offer.
|SERVICING TRANSFERS – Where we do not recommend a transfer, or you do not want one, we can act in the UK as your investment adviser.||1% up front charge for first asset allocation change|
|STRATEGIC INVESTMENT PLAN – (non-USA residents) We provide a full asset allocated investment plan, appropriate for your targeted rate of return required to match your objectives in line with your attitude to risk as calculated by our risk assessment.||2% flat fee, which will be removed completely, meaning 0%, if you have taken our TRANSFER IMPLEMENTATION service|
|STRATEGIC INVESTMENT PLAN – (USA residents) We provide two options – both of which provide a full asset allocated investment plan, appropriate for your targeted rate of return required to match your objectives in line with your attitude to risk as calculated by our risk assessment.The option is whether you take the advice from ourselves as UK regulated advisers, or whether you wish to have advice from our partner in the US who operates under SEC and FINRA regulation.||2% flat fee, which will be discounted 50%, meaning 1%, if you have taken our TRANSFER IMPLEMENTATION service|
|OPTIONAL ONGOING INVESTMENT MANAGEMENT – We will monitor your portfolio at all times, and we will update you quarterly with our latest investment agenda giving you guidelines as to how you should be investing. We will also make recommendations to you where we feel that you should be selling or buying assets regularly.||1% flat fee per annum if Aisa hold consolidated investments with one custodian
1.5% flat fee per annum where investments not consolidated
|OPTIONAL INVESTMENT FEE PERFORMANCE – Under pension charges 2016 we have instigated an optional performance fee; we will get paid an additional sum for achieving a return greater than an agreed sum in any one year.||Agreed client by client|
|OPTIONAL ONGOING SERVICING MANAGEMENT – Where we are not managing your ongoing investments and you have your money held on a platform or custodian that we have terms with on your behalf then we will make a charge.||0.25% per annum (pension charges 2017 subject to future change by agreement)|
|INVESTMENT BOND FEE – Under pension charges 2017, for those clients who wish to take out in insurance or investment bond through Old Mutual International ( OMI ), Royal Skandia, Royal London 360 (RL360 ), Generali, Friends Provident or Hansard.||We rebate in full any commission, and reduce bond commission to ZERO|
Comparative example – Pension Charges 2017 versus commission
Visit Tailormade pensions for expats, and separately an offshore commission salesman. You live outside the UK and USA, and you wish to consider a pension transfer but you are unsure.
The value of your UK pension fund is £350,000
We will charge you $1,500 if you want our OPTIONAL STRATEGIC PENSION PLAN. We will do the TVAS report and CASH FLOW forecasting within this charge.
If we think it is best you transfer (and only if we think this and you agree) then we will provide TRANSFER IMPLEMENTATION at a charge of 2% (discounted from 3% because you paid for the Plan). This is $10,500.
Because you paid for the TRANSFER IMPLEMENTATION then you will not have to pay for the STRATEGIC INVESTMENT PLAN (none USA residents). £0.
The total cost for receiving a plan with good advice from a UK regulated broker will be $12,000.
The offshore commission salesman will not charge a fee usually, but he will earn around $31,500 – $47,250 commission for convincing you to transfer, irrespective of whether it is best advice. Under our pension charges 2017 we therefore will save you between $19,500 and $32,250 in commission charge alone, and around another $30,000 in other hidden fund charges over 5 years.
How does this look for a UK pension case of £150,000 or what are the pension charges 2016 on a £200,000 case per annum?:
Transparent fees – no pension commission! Our pension charges 2017 are listed for giving advice on UK pensions anywhere in the world.
We are regulated to give advice in the UK by the Financial Conduct Authority (FCA), and to give advice in the USA by the Securities and Exchange Commission (SEC) but this example is for outside both of those territories. Contact us if you live in the UK or the USA for advice by one of our regulated and authorised advisers in that country.