Typically a wealth advisor charges one to one-and-a-half per cent of the sum you give him or her to manage. He will also be required to identify your risk profile. Most classify themselves as cautious investors which results in a safer though lower return of say 3%. So if you give them £100,000 they charge £15000 for which you earn from their recommended investments £30000 before tax. They may advise structures which are tax efficient but for this you pay a large setting up fee. Most of the investments are with safe funds you can buy directly. So you may well wonder if it’s more worthwhile to be a wealth advisor than a wealth provider.
Should you decide to invest in a buy-to-let property you should get at least the same return, capital growth but possibly more aggravation with tenants. Should you use an agent then their charges would be based on the rental income not the capital value. All the major banks offer wealth advisory services. Their principal attraction is that leaving money on deposit with them generates the worst return of all. Indeed with purchasing power declining you are actually losing the value of money. It is a sorry state of affairs that those who wish to save and preserve their capital are forced to adopt a riskier strategy so to do so pay fees unrelated to performance.