At Ruby Red Financial Planning Ltd. , the cost of our initial discovery meeting is covered by the company. We will then begin work on your Financial Masterplan and create a proposal of how we see your current and future financial position. We then present this initial proposal of how we can help.
At that point, if we decide to work together, you become a client and chargeable works can commence.
It is at this point where we provide you with your ‘Financial Masterplan’ and compose any recommendations dictated by the financial plan for your consideration.
Therefore, our fees work in three stages:
- Fee for the Financial Masterplan
- Implementation of any financial recommendations (which can offset the initial Financial Masterplan fee)
- Subscription to our ongoing planning service
Stage 1 – Financial Masterplan
The fee for creating your bespoke Financial Masterplan depends on your life stage
Standard: £1,800
Designed for clients towards the start of their financial planning journey
More Complex: £3,500
Designed for clients further down the financial planning journey,
Highly Complex: Minimum £5,000+ depending on works required
Designed for clients with significant assets, complex tax planning requirements and / or complex business planning requirements. We will together, analyse what works and planning are required and provide you with a bespoke quote for our work.
Typically, the ‘Financial Masterplan’ fee is paid directly to Ruby Red Financial Planning Ltd. by clients, but it is possible for this to be facilitated by most providers. The options will be discussed beforehand.
Stage 2 – Implementation
(Implementation fees and insurance commissions can offset our fee for the Financial Masterplan)
Should your Financial Masterplan suggest the requirement for a financial product such an investment (into various wrappers) we charge an implementation fee. If we recommend the use of an insurance product, the company will pay Ruby Red Financial Planning Ltd. a commission.
These implementation fees and commissions will offset the initial cost of Stage 1 – Financial Masterplan.
Our implementation fees for investment of new money is as follows:
First £100,000: 1.50%
Next £400,000: 1.00%
Above £500,000: 0.50%
Examples:
1. New investment of £60,000. All falls into the first tier of 1.50% = implementation fee of £900
2. New investment of £285,000.
- First £100,000 at 1.50% = £1,500
- Remaining £185,000 at 1.00% = £1,850
- TOTAL £3,350 implementation fee (1.18%)
3. New Investment of £1.2m.
- £100,000 at 1.50%= £1,500
- £400,000 at 1.00%= £4,000
- Remaining £700,000 at 0.50%= £3,500
- TOTAL £9,000 implementation fee (0.75%)
Stage 3: Ongoing planning service
Our financial plans are typically created with a long-term view. Whilst it is possible that you may only require a Financial Masterplan, a majority of our clients subscribe to our ongoing planning service, and the Ruby Red Financial Planning Ltd. fees are typically facilitated directly from clients’ portfolios by the recommended provider (but can be paid directly if this is the preference).
For this service, we charge as a percentage of the value of your invested portfolios, again on a tiered basis:
First £1m: 0.75%
£1m – £2m: 0.50%
£2m+ 0.30%
These fees are subject to minimum annual fees of:
For individuals and families: £2,000 per annum
Both business owners and their businesses: £3,500 per annum
Should the agreed ongoing planning fees facilitated through your portfolios not meet our minimum levels, the shortfall can be topped up directly.
Example 1:
A new client is at the start of their financial journey and has no existing foundations in place. Therefore, a new standard financial plan is required.
This is created, with a fee of £1,800.
New regular contributions to a stocks and shares ISA are recommended and implemented, along with a new income protection plan, which pays a commission of £1,500.
The £1,500 is used to offset the financial masterplan fee, with the balance of £300 paid directly from the client.
No ongoing service is required at this time.
Example 2:
A new client approaches Ruby Red Financial Planning Ltd. They wish to organise and plan for their financial future and have recently inherited £300,000 from a relative. They have no other financial foundations in place.
Standard Financial Plan fee: £1,800
Investment implementation fee: £3,500
The full financial plan fee is offset by the implementation fee.
They choose to subscribe to our ongoing planning service at 0.75% per annum. Over the course of the year, the fee facilitated by the provider is £2,250 which covers our minimum annual fee.
Example 3:
A business owner client with significant personal tax planning requirements, has no key person cover in place and wants to provide an employee benefits package to their staff.
Given the complex nature of the works required, a bespoke fee of £7,500 is agreed with the client.
Commissions on the employee benefits package and key person protection total £5,500 which offsets the financial plan fee, with the balance of £2,000 paid directly from the client.
They also subscribe to our ongoing planning service. Their fees and commissions over the following year total £2,850, with a balancing payment made directly from the client at the end of the year for £650 to meet our minimum fee for this service.