Offering advice on a retainer basis for younger clients provides a profitable revenue stream, says former Personal Finance Society president Carole Nicholls.
Nicholls, partner at Nicholls Stevens Financial Services and PFS president in 2007, has run her business on a fee-based model for a number of years.
Speaking in a panel session on adviser charging today at the PFS conference, Nicholls said she found that working on a retainer basis, where a monthly fee is charged for advice services, works best with the firm’s younger clients.
She said: “We do have retainers but not for all of our clients, so we have them on a client segmentation basis. We actually find that retainers are very good for younger clients because they do not have a lot of issues for which we would charge them an upfront fee, but they do have this need for ongoing reviews.
“We do not charge them huge amounts but we do charge them monthly retainers and we see that it is a very good way of building up that bit of our client base for the future, so that we have them there for when they do need ’chunkier’ advice.”