Financial Industry think their clients are "muppets"?

dunstonh

if you factor in your initial consulation fee would it bring the annual charges up to 3%?

No.

so what are the average charges for an investment you would recommend?

Depends on the type of investor and individual. Anything from 0.1% to 1.7% typically

darkpool

ehhhmmm ok, so that woman that was advised to buy a bond with annual charges of 3% was an aberration? Your figures don't include portfolio costs?

so what do your clients get for their *cough* 1.7%?

dunstonh

ehhhmmm ok, so that woman that was advised to buy a bond with annual charges of 3% was an aberration?

She never clarified the charging structure and you jumped on some figures and rounded them up.

Your figures don't include portfolio costs?

Yes they do.

so what do your clients get for their *cough* 1.7%?

They are not paying me 1.7%.

Jegersmart

Just a note to general readers, there are clearly a few posters in this thread that are misinformed at best, and rather laughable at worst - and that is giving benefit of the doubt. I presume it is obvious to whom I refer.

Good luck

J

darkpool

dunstonh wrote: »

She never clarified the charging structure and you jumped on some figures and rounded them up.

Yes they do.

They are not paying me 1.7%.

why, now you come to mention it the annual charges were 2.9%, surely that's near enough 3% not to quible? she did give the return on her investment assuming 7% return - the figures did show 2.9% annual fees.

could you provide some evidence that portfolio costs are included in that 1.7%?

but your clients still pay 1.7%, surely they ask what they get for that money? I know i certainly would.

darkpool

Jegersmart wrote: »

Just a note to general readers, there are clearly a few posters in this thread that are misinformed at best, and rather laughable at worst - and that is giving benefit of the doubt. I presume it is obvious to whom I refer.

Good luck

J

well said!! imagine anyone at all thinking you'd only save 0.5% by investing your own money!!! we all know it's the thick end of 2%.

i feel bad at thanking that person that called you pompous, i'll remove my thanks.

GeorgeHowell

Jegersmart wrote: »

Just a note to general readers, there are clearly a few posters in this thread that are misinformed at best, and rather laughable at worst - and that is giving benefit of the doubt. I presume it is obvious to whom I refer.

Good luck

J

More pompous nonsense. To say that people are misinformed, without offering the missing or corrected information concerned, is unhelpful and meaningless. It's classic internet forum 'play the man and not the ball' tactics.

I don't understand why the IFAs don't spend less time in this forum, in the futile attempt to convert their protagonists, and more time working to make money for their clients. The fact that some of them appear to have so much time on their hands perhaps speaks volumes.

It is a fact that in this internet age the average punter with not-too-complex financial affairs can if they so wish manage their affairs quite satisfactorily without the need for paid advisors, Given this, and the increasing amount of publicity to the effect that punters on the whole cannot depend on getting a particularly great deal by using money managers, I suspect that the generalised IFA industry is in a state of slow decline.

I post this with a health warning : I have not done any specific research, and I may be misinformed or even laughable. Readers must draw their own conclusions.

dunstonh

could you provide some evidence that portfolio costs are included in that 1.7%?

could you provide some evidence that they are not?

but your clients still pay 1.7%, surely they ask what they get for that money? I know i certainly would.

They know exactly what they are getting.

why, now you come to mention it the annual charges were 2.9%, surely that's near enough 3% not to quible? she did give the return on her investment assuming 7% return - the figures did show 2.9% annual fees.

IIRC, it was more of an RIY figure than an annual charge.

I don't understand why the IFAs don't spend less time in this forum, in the futile attempt to convert their protagonists, and more time working to make money for their clients.

No more than any other person posting on this website. Why do you post?

I post this with a health warning : I have not done any specific research, and I may be misinformed or even laughable. Readers must draw their own conclusions.

Thats the same as free advice.

DiggerUK

I can remember a line in 'Mississippi Burning' when somebody remarks that the rattlesnakes are fighting amongst themselves.

Seems that the rattlesnakes, along with the usual suspects, are jumpy these days.
..._

brasso

darkpool wrote: »

but if you service your own car you'd have to buy tools and buy the spare parts, so you're right it's probably not worth it for people to do their own car servicing to save a few hundred a year.

however to do your own money management you only really need an internet connection, something most people already have. and the savings are a lot more, you're likely to save 2 grand a year for each 100k you have. so someone with 500k could save 10k a year. i don't mind doing my own money management for those types of savings.

You can do an awful lot of maintenance and value-adding with a handful of tools collected over a lifetime and supplemented with trips to eBay and scrap yards. In any case this is missing the point completely, as I suspect you know.

The point I'm making is pretty simple. Some people have the inclination and the mindset and the drive to do it. Others excel at other things - say accountancy - and are happy to leave the car maintenance to the professional mechanics, who of course are equally content to visit the same accountant once a year and dump a carrier-load of paperwork on the desk rather than spend long weekends trying to do the year-end accounts.

You are the hobbyist mechanic shaking your fist at the professionals, and I really don't know why you are bothering. If people want to spend time learning about investment and sitting on internet forums debating the niceties of investment strategies -- as we do, then perhaps we deserve to earn some cash for our efforts. But I wouldn't deride other people who would prefer to use that same time for other money-saving hobbies, or simply to spend with their families.

You have a valid point of view and you've expressed it a large number of times. Thank you. But time surely for you to chill out a bit and get back to discussing what you probably know quite a lot about. I would be much more interested in hearing your opinions on investment strategy.

This is a serious question: tell us about your portfolio. I know you're an index-tracker enthusiast, but tell us how your portfolio is broken down, and how you see things panning out over the next year. I'll happily reciprocate if we can just move away from this.