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Pensions, what to do?
Comments
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ok, understood, thanks for your help.0
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gadgetmind wrote: »There, you've gone and done it, you've gone and said his name!
No good will come of this...
i swear I saw him the other day on the savings board and i may be sick BECAUSE I AGREED with him lol.
And yes, Nevern=mind is a troll/new name i am sure.0 -
Without meaning to highjack the original thread, & interupt the lively debate.
My stakeholder pension is split 50% between Friends Life Managed & Friends Life Stewardship managed. Annual management charge is 1%.
Current age is 42, retirement age 70.
Yearly payments into plan = £2400
Total paid into plan since start = £21600.
As above, I appreciate that things may change since the pension was first set up, but does the FL pension still seem like good value?
MV, my biggest worry for you is that for your age, that 27/k pot and 200/m may not be enough going forwards.
Are you saving in Cash and S&S ISAs outside the pension? Do you have a good sized pot there yet? Because I think you need more Pension contribs than you are putting in. at present.0 -
If so, & as I'm tied to the IFA via my company, what scope do I have to get a reduction on this?
Sadly, this is something the company would have to push through by using their collective bargaining power. We're going through exactly this with FL ourselves right now and they are squealing like a stuck pig!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 -
The crucial difference being the annual charges on the tracker are 1/3 to half the annual charges on the FP managed fund
This makes a lot of difference when all you can expect on investment returns in 5-6% BEFORE fees year
Yet the FP fund beats the benchmark after charges where as the cheaper trackers tend to be below benchmark.1% seems toppy and it's probably worthwhile trying to get this reduced.
Not for a group stakeholder scheme. It is right on benchmark.The difference would be the fees paid to your company's appointed IFA firm
How much advice are you getting from that 0.5% they are pocketing each year?
Wow, you have the contract in front of you as well. Seeing as it is not possible to get 0.5% p.a. on that contract, would you like to explain how they are getting it?ok, if I understand Neverland correctly the 1% is approx. 0.5% to the original IFA & the rest to FL direct.
If so, & as I'm tied to the IFA via my company, what scope do I have to get a reduction on this?
You dont want to understand neverland as he is wrong. Also, the relationship is between the employer and the IFA. Not you and the IFA. The employer has chosen for the IFA to be remunerated by the employees and not by the firm. The IFA isnt making much on this at all with it being a group stakeholder. So, there isnt any real scope for reduction unless the employer pays for it. It would also have to apply to all members and not just you.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 -
Yet the FP fund beats the benchmark after charges
This thread is getting complicated, but are we perhaps comparing a multi-asset fund with a single tracker?Not for a group stakeholder scheme. It is right on benchmark.
It's way more than we're paying and way more than you pay if signing up with FL via Cavendish. And, of course, it's only one component of the total fees.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 -
Also, the relationship is between the employer and the IFA. Not you and the IFA. The employer has chosen for the IFA to be remunerated by the employees and not by the firm. The IFA isnt making much on this at all with it being a group stakeholder. So, there isnt any real scope for reduction unless the employer pays for it. It would also have to apply to all members and not just you.
Yo have to have an IFA says the IFA-troll0 -
This thread is getting complicated, but are we perhaps comparing a multi-asset fund with a single tracker?
The FP managed fund is a mixed asset portfolio that effectively is designed to follow benchmark. Not outperform it. So, the principle is the same as the tracker.It's way more than we're paying and way more than you pay if signing up with FL via Cavendish. And, of course, it's only one component of the total fees.
Its not way more. Its 0.3% more on regulars and 0.4% more on single premiums. The difference with Cavendish is that you are doing all the work. With a group scheme, the employer is passing the work to the IFA and getting the employees to pay for it.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 -
The FP managed fund is a mixed asset portfolio that effectively is designed to follow benchmark. Not outperform it. So, the principle is the same as the tracker.
Just because the two operate on similar principles doesn't mean that you can directly compare the two.Its not way more. Its 0.3% more on regulars and 0.4% more on single premiums.
I thought we were talking about annual fees, but could be wrong. Adding 0.3% to annual fees will make a huge difference over the longer term.The difference with Cavendish is that you are doing all the work. With a group scheme, the employer is passing the work to the IFA and getting the employees to pay for it.
I'm in a GPP with FL, with an IFA in the loop but I'm not sure what work the IFA does; it definitely isn't fund selection.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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