CASE STUDIES
The following case studies are not based on real people, but are chosen to show typical examples of financial situations at different life stages. In many cases we have seen, the link between the originating adviser or sales person and the customer is no longer current and in these cases, there is no longer any advice being provided to justify these payments. In other cases, the fees being taken may exceed the value of the advice being provided. Or in the worst case scenario, there may even be commission collected with no advice being provided.
We recommend that you review your plans on an on-going basis to ensure that they are still fit for purpose and that they meet your current requirements. As such, we are not advocating that you opt not to take advice. In some cases, such as income draw down, advice is crucial in deciding how you shape your retirement, as there have been significant changes to this under recent legislation. As a result, the options open to you have also changed. You must therefore seek advice with respect to your plans, but our aim is to make paying for your advice more transparent and to ensure that you as a client get value for your money.
By paying for the services as and when you need them, you dictate the level of consultation you require, and receive advice as and when you need it. You are free to seek this advice from wherever you choose in the knowledge that the commission is completely divorced from the advice. If you wish us to refer you to our advisory team, this will always be on a strict hourly fee basis.
DAN
Dan lives in London and is a self-employed professional in his late 30's. He has a Personal Pension Plan with a fund value of £120,000 and on-going premiums of £1,000 pm gross. He also has a life policy (level term assurance) for £100,000 for which he pays £8 pm. Finally, he has stocks and shares, and ISA's valued at around £50,000.
CASHBACK WITH MASSOW'S:
- The Personal Pension Plan has been setup with fund-based trail commission of 0.5% which equates to £600 per annum.
- The life policy has a premium of £8 pm and was started 5 years ago, so renewal commission is paid of £2 per annum.
- The Stocks and Shares ISA's have a servicing fee of 0.5% fund-based commission, which equates to £250 per annum.
Total Commission generated: £852 per annum
Massow's commission at 20%: £170 per annum
TOTAL REBATE TO DAN EVERY YEAR = £682 per annum
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SIMON & LINDA
Simon and Linda live in Norfolk with their two children. Simon works full-time and Linda works part-time. They are both in their early 40's. Simon has a SIPP (Self Invested Pension Plan) valued at £300,000 and Linda has an old with-profits pension plan valued at around £12,000. Together they also have life assurance and critical illness cover for £360,000 to repay their mortgage for which they pay £85 pm, along with stocks and shares, ISA's and units trusts valued at around £70,000. Additionally they have a with profits investment bond valued at £50,000.
CASHBACK WITH MASSOW'S:
- Simon's pension policy has been setup with fund based trail commission of 1% which equates to £3,000 per annum.
- Linda's old pension has no on-going commissions payable.
- The protection policy pays £25 per annum in renewal commission . The ISA portfolio has a servicing fee of 0.5% which is £350 per annum and the investment bond has also generated £250 per annum in fund-based commission.
Total Commission Generated is: £3,625 per annum.
Massow's commission at 20%: £725 per annum
TOTAL REBATE TO SIMON AND LINDA EVERY YEAR = £2,900 per annum
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GRAHAM & JOYCE
Graham and Joyce are both in their late 50's. They currently live in Chester, but are planning to retire to Spain. Graham has an income draw down plan which has a value of £420,000. He is not yet taking income from this, but has taken the tax free cash. There is an on-going trail commission of 0.75%. The cash was invested into an offshore bond, together with some of the sale proceeds of their house. The bond has a value of £500,000 and there is an on-going fee of 0.5%
CASHBACK WITH MASSOW'S:
- Graham's pension will generate £3,150 in trail commission.
- The bond will also generate 0.5% fund based commission which is £2,500 per annum.
Total Commission generated: £5,650 per annum.
Massow's commission at 20%: £1,130 per annum
TOTAL REBATE TO GRAHAM AND JOYCE EVERY YEAR
= £4,520 per annum
Apply for your rebate