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Looking for an IFA - I will pay 5% maybe 10%!
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The HL SIPP is expensive for funds due to no discount and full trail (and all the hidden costs in funds), and expensive for everything else unless you have a 6 figure pot thus making the £200pa cap a reasonable percentage.
It may be an extreme example but how many billions of pounds have HL got on their SIPP from people thinking that they are rebate commissions on it? Remember we have seen people post on the pensions section that they have moved out of traditional pension funds costing 1% or less into HL MM funds because they thought the HL SIPP was a low cost option (and in some cases the funds chosen were not only 100% higher cost at HL but also had consistently underperformed what they already had). In those cases, would advice have been a bad thing?I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Please provide said academic evidence. Please also find me unit trusts which have 3% annual charges. Provide.....something of substance to back up your arguments, otherwise you have nothing but black marks on a white screen.
i'm a bit busy to get the said academic evidence. however if there was evidence that active management was worth the fees do you not think the active fund management industry would be shouting about it from the rooftops? the silence from the fund management from regarding the value of active management is deafening.
bit of basic maths for you here, TERs are typically 1.5 to 1.7%. the TER does not include dealing charges, in the UK a share is on average held about 18 months. so the brokerage charge is likely to be another 1%. The which magazine said annual fees was typically 3%, you think they made that up?
If anyone is bored today, log onto the Financial Times website. look at share quotes for a few of the household name companies like sainsbury/ glaxo. The quote pages also show the shares in issue for each company, the page also shows how many shares have been traded that day. After you have done that google "churnover" and see what it means.0 -
In those cases, would advice have been a bad thing?
HL make it very clear that they don't rebate commission in a SIPP. Yes, people who can't read and comprehend this clearly need their hands holding, and more!I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
If anyone is bored today, log onto the Financial Times website. look at share quotes for a few of the household name companies like sainsbury/ glaxo. The quote pages also show the shares in issue for each company, the page also shows how many shares have been traded that day. After you have done that google "churnover" and see what it means.
Check the share price of Man group whilst you are it and see the risks of having portfolios of a limited number of shares. Or think what would have happened if you had B&B or Northern Rock shares or any bank share in there for that matter (as you would have). Shares may be cheaper for lump sums (but not monthly) but they give a different type of risk and you also have to consider your fixed interest sector and property diversification as well as looking to other markets outside of the UK.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Check the share price of Man group whilst you are it and see the risks of having portfolios of a limited number of shares. Or think what would have happened if you had B&B or Northern Rock shares or any bank share in there for that matter (as you would have). Shares may be cheaper for lump sums (but not monthly) but they give a different type of risk and you also have to consider your fixed interest sector and property diversification as well as looking to other markets outside of the UK.
so are you saying it was only private investors that held the shares like BB and Northern Rock? plenty institutions held these shares as well, and charged clients 3% a year for doing so.0 -
so are you saying it was only private investors that held the shares like BB and Northern Rock? plenty institutions held these shares as well, and charged clients 3% a year for doing so.
No. However, advised clients typically have around 1% or less with any one company. To achieve that with a share based portfolio would take a lot of trades and require a lot of buy/sells to keep it rebalanced. Or course, you seem to ignore that dealing costs.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
No. However, advised clients typically have around 1% or less with any one company. To achieve that with a share based portfolio would take a lot of trades and require a lot of buy/sells to keep it rebalanced. Or course, you seem to ignore that dealing costs.
I work on <5% with any one company and <10% in any one sector. Of course, deciding which sector some companies are in is hard, particularly with the multi-utilities. This requires a portfolio of around 25 shares. Regards rebalancing, I handle this via a combination of new money and dividend reinvestment, and fixed interest via retail bonds, preference shares and ILSCs.
However, I don't think darkpool was suggesting people DIY to quite this level, more that a whole load of trading goes on.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
gadgetmind wrote: »and fixed interest via retail bonds, preference shares and ILSCs.
Preference shares do carry higher risk than fixed interest due to them being subordinate to bonds. Also, the tax treatment of prefs is the same as for ordinary share dividends rather than for bonds.Living for tomorrow might mean that you survive the day after.
It is always different this time. The only thing that is the same is the outcome.
Portfolios are like personalities - one that is balanced is usually preferable.
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Ark_Welder wrote: »Preference shares do carry higher risk than fixed interest due to them being subordinate to bonds.
Yup, but the risk/reward was worth it, and they are a small percentage of my portfolio.Also, the tax treatment of prefs is the same as for ordinary share dividends rather than for bonds.
Yes, which works for me as my wife holds them unwrapped.
Worst case, the UK banks crash or get nationalised, and we lose several £ks of prefs. Ah well, at least we can use the capital loss!I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0
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