Is my pension contribution "worth it"

agarnett

Linton wrote:

... Fund managers cant use your money for their own purposes, for example to lend out. They can only manage your money by investing it in investments that meet their stated criteria/scope

I think you forgot to say "...or they might redesignate / reattribute some of your money as their money and authorise themselves or get flunkies to do so in order to do what the hell they like with it." And you also forgot to say " ... or they might set your money up in investments which they then bet against using their own money and that of some other preferred clients' funds (at a suitable fee naturally) - just for a laugh (and at your expense of course)."

jem16 wrote: »

Current accounts and savings accounts have implicit charges, investment funds have explicit charges. The only difference is that one you see (mostly) and one you don't.

The implicit charge on a savings account is the difference between what the bank earns on your money and what you earn in interest. Banks are not paying you interest out of the goodness of their hearts.

Surely you were aware of that, weren't you?

Oh you dear sweet innocent delicate thing, is that what they told you would pass as a logical justification for the whole stink? :rotfl:

jem16

agarnett wrote: »

Oh you dear sweet innocent delicate thing, is that what they told you would pass as a logical justification for the whole stink? :rotfl:

And to think I thought you couldn't be stupid enough to believe savings accounts were free - seems I was wrong. :eek:

agarnett

jem16 wrote: »

And to think I thought you couldn't be stupid enough to believe savings accounts were free - seems I was wrong. :eek:

Please don't try to put words into my mouth. You simply haven't developed the necessary vocabulary

I will give you a clue ... a couple of posts ago I used a big word just before I used another big word "compactor". I said the markets were "interwoven". So then how might you calculate what savings charge I was incurring early last year when I was still earning 6% on a big bank regular monthly savings account that I had been sticking £2,500 per month into? What web had been woven in order to offer me that and what did they get out of it? I believe that deal was on offer for three years straight! I let myself think I was doing rather well on those deals for a couple of years running, and quite right too - I was entrusting them with some of my money and some of theirs too which I was borrowing at a quarter of the rate they were paying me on the savings account. But meanwhile of course too many on MSE were doing the industry's work and dumbing-down expectations on savings returns with logic like yours.

Couldn't last though could it? You won ... cornering cash via mediocre one year ISA deals and then dropping rates off a cliff has become the accepted norm, no-one expects different, so no provider has to offer me 6% gross anymore to gain my interest in doing business. There's plenty who will accept much less and who are resigned to your view of what's obvious and fair ... even governments I hear are countenancing negative deposit rates now - you deposit 100 grand for a year and get 98 grand back after 12 months - what's that all about? Must be interwoven with something eh, and it won't be professional fees, now will it? More to do with junk and other cr¤p in the compactor I'd hazard.