Our first (Engagement) meeting is a chance for us to get to know one other; to find out if we can add real value to your situation and decide if we’d like to work together going forward. For this meeting, there is no charge.
At Callisto we have a defined process as to how we advise all our clients. In line with that process, our fees are broken down into three main elements, which are charged for the three defined parts of our service. Life Planning, Financial Planning and Investment Planning.
If, after our first (Engagement) meeting we both decide to go ahead, our charges are as follows.
Fixed fee for Life Planning
This fee covers –
• Getting to know you;
• Establishing your values, goals and key relationships
• Helping you create your life plan
• Life and Financial transition planning
• A review of your current situation;
• Our general recommendations covering the best way forward for you, provided in our Strategy Report.
The fee for this part of our service is £750.
This payment can either be taken from any investment upon receipt by the provider or paid directly by you.
Financial Planning and the Implementation of our recommendations
Once we’ve helped you create your life plan and the financial plan that supports it, we’ll go ahead and make specific recommendations. This is where we act as an Independent Financial Adviser and use our expertise to research your current situation, compare this with the best products in the market, and recommend the right solutions for you.
Our fee to put our recommendations in place is usually based on the amount of work involved and is quoted as a project fee not as a percentage. For instance, it takes a lot of time to get information from pension providers and then to formulate a report and advice. It usually takes longer if you have five pensions to be assessed than if you have two. We will confirm our project fee in writing and won’t carry out any work without your prior agreement.
Investment Planning and Forward Planning (Review) Meetings
Once we’ve implemented the recommendations, we move on to ensuring that you remain on course to achieve your plan.
We’ll help you:
• To be relaxed that your plan is still on course by updating the life time cash flow at the annual Forward Planning (Review) meeting;
• Stay the course if investment markets cause you to ‘wobble’, as they sometimes might;
• Ensure that your investments continue to match your risk profile, by regularly testing your tolerance for and ability, willingness and need to take risk;
• To be comfortable that your portfolio hasn’t drifted off course with our rebalancing service;
• Change your plan if you decide on a different direction;
• Make any changes necessary to cope with whatever life throws your way;
• Make minor changes to help you stay on course;
• Client Engagement Standards
Ongoing fees are varied and can be quite complex. At Callisto we are very transparent in how we disclose these various fees to our clients. We provide all our clients with a Total Cost of Ownership figure, which highlights all the various fees Schedule of Fees and Charges. This is a simple spreadsheet, into which we enter our client’s portfolio value, and then the amount for the various elements of the Total Cost of Ownership is expressed as a percentage and a monetary figure. Our ongoing fee, as part of the Total Cost of Ownership is detailed below:
|Funds Under Management||Charge Per Annum||Discount|
|Up to £250,000||1%|
|£250,001 – £500,000||0.8%||20%|
|£500,001 – £1,000,000||0.6%||40%|
These charges are tiered and break at the trigger points detailed above. So a £249,000 investment would have a relationship fee of 1%, whilst a £400,000 investment would be charged at 0.925%.
We typically charge a percentage fee for the cost of our on-going service and regular reviews. Usually, this fee is paid on a monthly basis, based upon the daily average, or month end value, of funds under management.
The fee charged reflects the amount of work we carry out on your behalf and the additional services provided.
What if i’m still not sure?
At Callisto we don’t believe that any one financial adviser is right for every client. Investment planning links your values and goals. It’s equally important though that you feel the same way about us. That’s why our step-by-step process is designed to allow both of us the time to decide whether there will be a good fit in working together. We will check with you every step of the way that you are happy to proceed and will never pressure you into making a decision before you’re ready.
It will usually be clear to both of us by the end of our initial (Engagement) meeting whether or not we want to work together. If we both agree that we do, then that’s great. If not then our goal is to have given you clarity about your financial situation, so you will have benefited from our meeting whether you decide to proceed or not.