Value of our expertise

Cost-effective advice

At Lumin we pride ourselves on providing straightforward, transparent and cost-effective financial advice. Our low-cost annual fee spans both financial planning and investment management services.

Costs are only one side of the coin, however. What do you get in return?

Numerous research studies have found that consumers who receive financial advice are significantly better off financially than those who don’t seek expert help.

Material benefits of receiving financial advice include:

Potentially large tax savings through clear planning and tax-efficient investment management
Taking the right amount of investment risk to suit your circumstances, needs and objectives
Preventing common behavioural mistakes such as impulsive or panicked investment decisions, buying high and selling low, and holding an excessive amount of cash
Cost-effective implementation and frequent portfolio rebalancing
Advice on how to fund your spending needs before and during retirement, including the sequence and timing of drawing down on various types of accounts

Non-material benefits of advice can be just as valuable. These include:

Financial security/wellbeing
Saved time by delegating duties
Reduced complexity
More decisive action
Peace of mind

We believe that reducing investment cost is fundamental to achieving better financial outcomes. Our fees compare favourably with the UK average, in terms of both initial and ongoing advice (see illustration below).

Could you save on advice costs with Lumin?

According to the FCA, the total cost of ongoing advice services (including underlying product and portfolio charges) averages 1.90% annually. The chart below highlights the impact higher charges can have on an investment portfolio over time, compared to the FCA average of 1.90%, or lower costs of 1.55%, which are in line with Lumin’s ongoing advice charges. By year 20 there is a £160,000 difference between the lowest-cost solution with annual fees of 1.55%, and the highest-cost solution with 2.30% fees.

Do you have any further questions? The first meeting is free of charge.

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