# Financial advisor - pay fees/commission or get advice on AAM??



## babydays (21 Jan 2010)

Two questions -
-is a fee-based financial advisor better for us (given that we're probably a 'smaller portfolio'?)
-what kind of fees are charged?

By way of background our position is:

we're a married couple (earner is 41 and I'm 39)
one earner (75K pa)
with 3 kids under six
expecting inheritance on sale of house of (conservatively) 350K
one old banger of a car (needs to be upgraded in a few years or sooner)
mortgage of 27 yrs left owing E195,000
need to build onto our house or move house (more space needed)
only debt is the mortgage
Savings E10,000
Regular savings - child allowance to an post monthly.

We're clueless about finances so it's been suggested to us to consult with a financial advisor.
Have looked at the key posts and see that a fee-based financial advisor seems to be the mainly advised for logical reasons.

Understand that fee-based might be the better way to go but looking at websites don't get any idea what kind of fees would be applied. Given that we're not looking into anything fancy (stocks, equities etc) but just want a financial makeover and advice on financial security (pension, life insurance, savings for 3rd level education, a little more money to hand) is fee-based the best for us?

I googled and came across just one organisation quoting fees :
[broken link removed]

The following struck me:
'In order to establish and maintain a client fee account, generally a minimum fee income of E1,200 per annum is required. For smaller porfolios, this may be less cost effective than a traditional commission based product'.

Two questions -
-fee-based best for us (given that we're probably a 'smaller portfolio'?
-what kind of fees are charged?

Many thanks


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## Sue Ellen (21 Jan 2010)

Hi babydays,

Further to your request for advice on your posting  perhaps contributions on the money makeover forum might give you some guidance before you approach a Financial Advisor.  

In the meantime you need to bear  in mind:-

"Askaboutmoney is not a substitute for professional advice and we accept no liability for any losses incurred arising from action taken on the basis of issues raised on Askaboutmoney"


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## Bronte (22 Jan 2010)

No reason why you can't ask on AAM and go to a financial advisor.  Pick a good financial advisor who is not tied to any product, I would prefer to pay a fee.

You can post what the financial advisor says on here and get comments on it.

You need to know your goals in life as a starting point.

The first thing that hits me on your affairs is the 27 year mortgage. Yikes, that needs to be sorted.  Also the person with no income, presumably the woman.  Many women married to a spouse do not think about what would happen on retirement (and other life events) if they have no pension contributions or assets etc.  These are things that need to be discussed.

Is the inheritance to both, does it go into the marriage etc.


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## babydays (22 Jan 2010)

Thanks Bronte. 

Regarding goals in life - financial security is important to us. We're not risk takers. We'll have a lump sum but also have a large enough mortgage. 

Education for kids at 3rd level (in 15 yrs when there's no more free ed), a slightly bigger house (or probably work on our current house security in the event of the earner dying early etc.

We're not big spenders and don't seek a lavish life-style - therefore we've agreed that I'll stay at home with the kids for now - but don't want to be tied into big house payments forcing me to go into full time employment. There are possibilities for me doing consultancy work in a few years time but it wouldn't be a huge earner.

I'm the stay at home Mum for now. I have full PRSI contributions. Had a pension at work but worked in different countries before a longer stint in Ireland.


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## NorfBank (22 Jan 2010)

babydays,

Does your husband have life cover in place?
Do you?
Does he have income protection personally or through work. If he couldn't work tomorrow, what would you do?
As you are a one income family, the most important task for you is to protect his income. Hopefully it will never happen but what if it did?

Not trying to scare you but a lot of people start to worry about where they will invest their money without keeping in mind what they would do if the income stopped suddenly.

I'm a believer in protection first, investment later. Take care of your immediate priorities first.


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## babydays (22 Jan 2010)

NorfBank, 

That's exactly our thinking. First cover the insurances. I'm not sure how adequately we our covered at the moment. Will check this out.


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