AMC on stakeholders question

stuartrdb

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dunstonh

For Scottish Widows (a popular one already on this forum I see)

Their personal pension or retirement account are good options. The stakeholder is largely a waste of time unless you are looking at small contributions.

there is a 20% off the Annual fund Charge (is this the AMC?) when you apply online.

its the same thing. Online through whom?

My question is would I get a better deal from going direct to Scottish Widows with the 20% off?

No. IFAs can beat Scottish Widows.

Also would this saving on the AMC (as I think AFC is AMC) out weight the commission reinvestment by Cavendish online?

There is no commission reinvestment by Cavendish. That isnt allowed under HMRC rules. The AMC is lower because commission isnt taken to the same level.

EdInvestor

stuartrdb wrote: »

For Scottish Widows (a popular one already on this forum I see) there is a 20% off the Annual fund Charge (is this the AMC?) when you apply online. The 20% off is permanent and makes the AFC for the plan 0.8% from 1%

According to Cavendish online the saving on the AMC through them would be 0.45%.

Ask Cavendish what AMC is payable after the discount -one assumes 0.55% which would be cheaper than the Widows offer..

stuartrdb

Right! so it seems Scottish Widows marketing nearly worked. What they really meant, if you look at it the same way as Cavendish have advertised, is that you save 0.20%.

To look at it another way Cavendish could boast a 45% discount, if they wrote it like SW did.

Thanks for clearing that one up guys. Anyone else got further comments?