Helping a friend - was her 75 year old mother given wrong advice

darkpool

dunstonh wrote: »

I dont believe that there is any provider out there which will allow 2% a year to go to an adviser. So, on that basis it is not possible.

You continue to mix up investment cost, advice cost and provider/platform cost.

but when people come here and tell us what their IFA recommended it's generally all active UTs or Investment Bonds. So the charges are circa 2% plus.

If these people get fed up paying these charges they can buy shares directly and save that 2% each year.

You seem to think that your customers only pay you annual charges....

dunstonh

but when people come here and tell us what their IFA recommended it's generally all active UTs or Investment Bonds. So the charges are circa 2% plus.

No. You say they are. Evidence says different. We had one in the last week that posted 0.4% TER.

If these people get fed up paying these charges they can buy shares directly and save that 2% each year.

And if you had your own farm you could grow you own food.

You seem to think that your customers only pay you annual charges....

My clients pay me to do a job. The investment we use has no influence on my remuneration. Whether it be UT/OEIC, pension fund, life fund, ETF or IT. Those that dont want a servicing contract dont pay me a penny annually.

darkpool

dunstonh wrote: »

No. You say they are. Evidence says different. We had one in the last week that posted 0.4% TER.

perhaps you could post a link to that thread? i bet you can't post a link though.......

dunstonh

perhaps you could post a link to that thread? i bet you can't post a link though.......

I can post a link. It is in the pension forum if you care to look.

Doesn't matter though as you clearly cannot see through your prejudice to realise that that adviser remuneration and provider charges and fund charges are different things. You have evidence from others and you still disregard it.

darkpool

dunstonh wrote: »

Doesn't matter though as you clearly cannot see through your prejudice to realise that that adviser remuneration and provider charges and fund charges are different things. You have evidence from others and you still disregard it.

but "adviser renumeration", "provider charges" and "fund charges" are all paid by the investor. it doesn't really matter who gets what from the 2% cake, the mos importnat thing is that the investor is losing 2% each year in charges......

so can an IFA client invested in active UTs save 2% a year by investing his money directly in trackers?

opinions4u

darkpool wrote: »

but "adviser renumeration", "provider charges" and "fund charges" are all paid by the investor. it doesn't really matter who gets what from the 2% cake, the mos importnat thing is that the investor is losing 2% each year in charges......

so can an IFA client invested in active UTs save 2% a year by investing his money directly in trackers?

Has there been a price cut?

For months you've been going on about it always being 3% ...

darkpool

opinions4u wrote: »

Has there been a price cut?

For months you've been going on about it always being 3% ...

LOL!! is 2% not bad enough!

i think some active UTs will charge over 3% but not them all.

dunstonh

ut "adviser renumeration", "provider charges" and "fund charges" are all paid by the investor. it doesn't really matter who gets what from the 2% cake, the mos importnat thing is that the investor is losing 2% each year in charges......

make your mind up. If someone goes DIY then the only cost they save is the adviser cost. Typically that is around 0.5% p.a. The cost of product is no different.

so can an IFA client invested in active UTs save 2% a year by investing his money directly in trackers?

No. Again, you mix up cost of product and cost of advice.

darkpool

dunstonh wrote: »

make your mind up. If someone goes DIY then the only cost they save is the adviser cost. Typically that is around 0.5% p.a. The cost of product is no different.

No. Again, you mix up cost of product and cost of advice.

*sigh* but if someone had active UTs with an IFA and he decided to DIY with trackers he would save 2%.

it's like you are paid to represent the fund management industry.... oh forget i wrote that.

dunstonh

*sigh* but if someone had active UTs with an IFA and he decided to DIY with trackers he would save 2%.

Again, you are mixing up product and advice. post after post after post you continue to make the same mistakes.

You have three things which cost you.
1 - cost of advice (or not if you DIY)
2 - cost of product/platform
3 - cost of investment

The cost of the investment part is the same whether you use an adviser or not. If you dont use an adviser, you will save in part 1. You wont save in part 3.

So, a DIY investor using the same investment (irrespective of what it is) will not save on investment charges. They will save on adviser charges.

And the answer to your question is no.
Lets use Schroder Income Maximiser Z fund. An active managed fund. That has a TER of 0.89% Would you like to explain how that can be 2% cheaper by not using an IFA? Are you really suggesting that Schroder will pay you to hold that fund?

it's like you are paid to represent the fund management industry.... oh forget i wrote that.

Its like you are being dumb on purpose...oh forget i wrote that.