Company Pension

Debt_Free_Chick

jonjack wrote:

Ed is only trying to put into the public domain risk free cheap investment contracts so that everyone can benefit.

I don't deny this, but it's really quite futile ... up to a point. When you buy a pair of knickers in M&S you don't delve into the detail and analyse how much money they make - you can't! So at least investment products are "better" inasmuch as they are transparent about their charges. No other consumer product has so much information about what we're paying for.

I really do agree that if you can buy the same for less, then you should do so. But one has to understand the vast amount of regulation that governs the operation of pension plans. Not just the investment of the money but the customer services, technical support and compliance!

I'll say it again ... when you buy a pair of knickers in M&S or a tin of beans in Sainsburys, do you analyse the "charge" or profit that the retailer makes?

FWIW ... Woolies operates on a 2% margin. So, of the price you paid for that Easter Egg you bought last week, Woolies "charged you" 2% .... now what do you think of that?

dunstonh

jonjack, can you confirm that you are for real. At this stage and given your recent sign up and only posts on this thread combined with that shocking post about releasing equity to invest, I have to guess that you are not for real and just winding us up.

Debt_Free_Chick

dunstonh wrote:

She is linked with the investors association and is anti financial services (on the whole).

Yah-boo-sucks. I'm happy with the 1.25% initial charge on my Fidelity India Focus Fund (held in an ISA, not a pension) and the 1.5% AMC as this fund has grown by 110.6% since I invested in it in November 2004. My initial investment of £1500 is currently valued at £3160!!! :j

But then again, I buy my tea in Fortnum & Mason as I believe it delivers top-notch quality, albeit at a price.

Sometimes ... you get what you pay for!

Debt_Free_Chick

jonjack wrote:

I'm confused you say that an adviser would not recommend what i'm considering and yet Edinvestor does say that SIPPs and HYI are the best.

I thought that Edinvestor was an adviser?

Even if Edinvestor were an adviser, she is not authorised to give you, me or anyone else on this Board "advice". Advice can only be given following a thorough understanding of the individual investor's circumstances, attitude to risk and investment goals. That can't be done in an "internet chat room".

All you can hope to achieve is a greater understanding, in order to equip you to make your own informed decisions. If it all goes pear-shaped, you have no redress!

whiteflag_3

Debt_Free_Chick wrote:

Even if Edinvestor were an adviser, she is not authorised to give you, me or anyone else on this Board "advice". Advice can only be given following a thorough understanding of the individual investor's circumstances, attitude to risk and investment goals. That can't be done in an "internet chat room".

All you can hope to achieve is a greater understanding, in order to equip you to make your own informed decisions. If it all goes pear-shaped, you have no redress!

DFC - I love the way you always manage to post such common sense replys.

HAve you any idea why Edinvestor seems to be ignoring this thread?

EdInvestor

dunstonh wrote:

jonjack, can you confirm that you are for real. At this stage and given your recent sign up and only posts on this thread combined with that shocking post about releasing equity to invest, I have to guess that you are not for real and just winding us up.

Quite agree. I see no reason to respond to windups and personal attacks which are against site guidelines and thus will contribute no further comment to this thread.

Debt_Free_Chick

jonjack wrote:

Well I think that Edinvestor posts some good advice and information. I read all the points on SIPPs, Equity release and High Yield Investments with great interest.

Ed is only trying to put into the public domain risk free cheap investment contracts so that everyone can benefit.

You think that SIPPs, Equity release and HYI are "risk free"? :eek:

Either you've misunderstood or the risks have not been explained to you.

I'm confused you say that an adviser would not recommend what i'm considering and yet Edinvestor does say that SIPPs and HYI are the best.

The best at what? And best for whom?

These comments really illustrate why some people need a financial adviser. Nothing is ever the best for everyone ... not even a cash ISA (work out why )

Debt_Free_Chick

whiteflag wrote:

DFC - I love the way you always manage to post such common sense replys.

Thanks for your kind words, but opinions are like a!!!holes - everyone's got one

HAve you any idea why Edinvestor seems to be ignoring this thread?

Now, now .. play nicely children

dunstonh

As I have said before, I totally respect Eds opinions. However, I disagree with the presentation of those opinions as fact. Much of the time, Ed posts information that would be right for a large number of people. However it is written as though it is correct for everyone or it only contains the positive points and not the negatives. That is when the thread tends to take its usual path of "oh yes it is", "oh no its not". The repeating of these threads and subject material can get very fustrating.

Pal

dunstonh wrote:

1% charge is nothing. Supermarkets work on a profit margin of 10-15%. Electrical Goods is closer to 30%.

This is a bit misleading. It is true that the individual investor pays 1% per annum for investment, administration and custodian services they receive. However comparing this to a supermarket and making it out to be "cheaper" is not really comparing like with like.

A supermarket might buy something from a manufacturer for 80p and sell it for £1. If their costs are equal to 10p for that product, they get a 10% profit margin.

However the investment management or insurance company does not buy a product and then resell it. Their profit margin is the total amount of all the 1%'s they receive from all the investments they hold, less their costs of operating their business. As the cost of operating an investment management business is not particularly linked to the size of assets, their profit margin grows rapidly once their assets under management exceed a certain level. Obviously relatively small funds make a loss until they grow to this breakeven point. The investment company's profit is never 1% of an individual investor's funds.

None of this changes the fact that, if you want to have your pension savings invested by a team of professionals, you need to pay them a fee to do so. People who don't want to pay those charges, or those who think that they can invest better than a team of professionals with in-house research departments, can invest in their own choice of assets through a SIPP, self-select ISA or through a stock broker.

Whichever option is chosen, the individual needs to be fully aware of the risks that they are taking.