Are You Overpaying on Your Financial Plan? Why Costs Matter – And How We Keep Them Low Without Sacrificing Quality
13th September 2024
When it comes to managing your financial future, there’s a delicate balance between keeping costs low and ensuring quality advice and product selection. At Brigantia, we believe that you shouldn’t have to sacrifice one for the other. The truth is, cutting costs can be easy—anyone can do it—but cutting them strategically while maintaining high standards is a true art form. And it’s an art that we at Brigantia Private Wealth Management have perfected.
There are numerous ways expat clients can be overpaying within their financial plans, whether it's the fees associated with advice, product charges, or the underlying investments. Let’s take a closer look at where unnecessary costs can sneak in and how our approach ensures your money is working for you, not for someone else’s profit.
There are numerous ways expat clients can be overpaying within their financial plans, whether it's the fees associated with advice, product charges, or the underlying investments. Let’s take a closer look at where unnecessary costs can sneak in and how our approach ensures your money is working for you, not for someone else’s profit.
The Hidden Costs in Financial Advice
It’s no secret that advice costs are a fundamental aspect of financial planning. But in many expat markets, these charges often come with hidden or underexplained layers. You might expect that very high upfront charges would be a clear red flag, but the reality is far more insidious. Some advisers take substantial commissions on products and investments that pass these costs onto the client through ongoing charges. Unfortunately, many expat markets lack proper regulation, allowing unscrupulous practices to flourish unchecked.
In these markets, products and investments are often designed to maximise adviser earnings rather than client success. These excessive commissions and hidden charges can severely impact the potential for growth in your financial plan, leaving you footing the bill for an adviser’s profit rather than your own financial success.
At Brigantia, we take a different approach. We believe in full transparency and low, capped advice costs. Our model ensures that you’re never paying more than you should, with no hidden commissions or excessive fees.
The Problem with Ongoing Adviser Charges
A common feature in the expat financial landscape is ongoing adviser charges, which typically hover around 1% across the industry. While this might sound reasonable at first, when combined with other fees and charges, the overall impact on your financial growth can be staggering. In some cases, the combination of adviser and product charges can mean that the only ones truly profiting are the providers and the advisers, while clients find themselves at the back of the queue.
When you’re paying 1% here and 2% there, it may not seem significant—but over time, those charges compound. This erosion of your returns can have a substantial impact on your ability to meet your financial goals, whether that’s buying a property, funding a child's education, or enjoying a comfortable retirement.
It’s no secret that advice costs are a fundamental aspect of financial planning. But in many expat markets, these charges often come with hidden or underexplained layers. You might expect that very high upfront charges would be a clear red flag, but the reality is far more insidious. Some advisers take substantial commissions on products and investments that pass these costs onto the client through ongoing charges. Unfortunately, many expat markets lack proper regulation, allowing unscrupulous practices to flourish unchecked.
In these markets, products and investments are often designed to maximise adviser earnings rather than client success. These excessive commissions and hidden charges can severely impact the potential for growth in your financial plan, leaving you footing the bill for an adviser’s profit rather than your own financial success.
At Brigantia, we take a different approach. We believe in full transparency and low, capped advice costs. Our model ensures that you’re never paying more than you should, with no hidden commissions or excessive fees.
The Problem with Ongoing Adviser Charges
A common feature in the expat financial landscape is ongoing adviser charges, which typically hover around 1% across the industry. While this might sound reasonable at first, when combined with other fees and charges, the overall impact on your financial growth can be staggering. In some cases, the combination of adviser and product charges can mean that the only ones truly profiting are the providers and the advisers, while clients find themselves at the back of the queue.
When you’re paying 1% here and 2% there, it may not seem significant—but over time, those charges compound. This erosion of your returns can have a substantial impact on your ability to meet your financial goals, whether that’s buying a property, funding a child's education, or enjoying a comfortable retirement.
High-Commission Products and Their Consequences
One of the most damaging ways that expat clients overpay is through high-commission products. Many investment products in the international market come with embedded commissions that flow back to advisers. These arrangements create a conflict of interest, where the adviser’s motivation is tied to their income rather than your success.
Even when products don't have these hidden commissions, the portfolios we see from new clients coming to Brigantia are often packed with high-cost funds that aren’t carefully selected for long-term performance. Often, we find that these portfolios have been thrown together with little thought about how the costs will impact the outcome 10, 15, or 20 years down the line. This lack of attention can be the difference between reaching your financial goals and falling short.
Strategic Cost Management Without Sacrificing Results
At Brigantia, we’ve made it our mission to minimise costs for clients—but never at the expense of quality. All of our wealth managers are UK-qualified to at least Level 4, with over a decade of experience advising in heavily regulated markets like the UK. This ensures that every piece of advice and every product selection is made with one priority in mind: your success.
We design bespoke portfolios that are built for long-term growth, with a focus on low-cost, high-performance investments. By avoiding high-commission products and unnecessary fees, we ensure that your hard-earned money is working as hard for you as possible.
One of the most damaging ways that expat clients overpay is through high-commission products. Many investment products in the international market come with embedded commissions that flow back to advisers. These arrangements create a conflict of interest, where the adviser’s motivation is tied to their income rather than your success.
Even when products don't have these hidden commissions, the portfolios we see from new clients coming to Brigantia are often packed with high-cost funds that aren’t carefully selected for long-term performance. Often, we find that these portfolios have been thrown together with little thought about how the costs will impact the outcome 10, 15, or 20 years down the line. This lack of attention can be the difference between reaching your financial goals and falling short.
Strategic Cost Management Without Sacrificing Results
At Brigantia, we’ve made it our mission to minimise costs for clients—but never at the expense of quality. All of our wealth managers are UK-qualified to at least Level 4, with over a decade of experience advising in heavily regulated markets like the UK. This ensures that every piece of advice and every product selection is made with one priority in mind: your success.
We design bespoke portfolios that are built for long-term growth, with a focus on low-cost, high-performance investments. By avoiding high-commission products and unnecessary fees, we ensure that your hard-earned money is working as hard for you as possible.
The Real Impact of Charges: Some Examples
To put this into perspective, let’s look at two examples that show the difference charges can make:
Lump Sum Investment of £250,000 at 8% returns for 15 years:
Regular Investment of £2,000 per month at 8% returns for 15 years:
The underlying investments in both cases are identical—the only difference is the charges. And these are the kinds of real-world consequences that excessive fees can have on your financial future. The higher charges above are also much lower than the worst examples we've seen.
Why Brigantia?
At Brigantia, we pride ourselves on being a market leader in providing sound financial planning and wealth management to expats around the world. We ensure that every penny you invest is geared towards your success, not towards excessive charges or adviser commissions.
If you’re ready to take control of your financial future and ensure you’re not overpaying, why not book a free, no-obligation initial call with one of our expert wealth managers? Our team is here to help you optimise your plan, minimise unnecessary costs, and maximise your financial success.
Click the button below to get started.
To put this into perspective, let’s look at two examples that show the difference charges can make:
Lump Sum Investment of £250,000 at 8% returns for 15 years:
- With charges of 3%, your total at the end of the 15 years is £529,250.
- With charges of 1.5%, the total is £662,791.
- That’s a difference of £133,541—just in charges!
Regular Investment of £2,000 per month at 8% returns for 15 years:
- With charges of 3%, your total at the end of the 15 years is £537,277.
- With charges of 1.5%, the total is £611,314.
- That’s a difference of £74,037!
The underlying investments in both cases are identical—the only difference is the charges. And these are the kinds of real-world consequences that excessive fees can have on your financial future. The higher charges above are also much lower than the worst examples we've seen.
Why Brigantia?
At Brigantia, we pride ourselves on being a market leader in providing sound financial planning and wealth management to expats around the world. We ensure that every penny you invest is geared towards your success, not towards excessive charges or adviser commissions.
If you’re ready to take control of your financial future and ensure you’re not overpaying, why not book a free, no-obligation initial call with one of our expert wealth managers? Our team is here to help you optimise your plan, minimise unnecessary costs, and maximise your financial success.
Click the button below to get started.