Cost of investment advice

Peelerfart

Wow! And i thought 3% was high. That's what I was quoted before going my own way.

jimjames

nuriel wrote: »

which are 6% in my case within the first 6 years, would you be happy with 4% ? Are management annual charges of 1% average ? I wish there was a table presenting charges per company so that they could be compared.

I'd strongly suggest you speak to an Independent adviser (IFA) as a comparison. I'd find any charges for exit high but those are extortionate. HL charge £25 per fund and £50 to close and are considered high, yours are on another scale.

enthusiasticsaver

5% !!!! That is extortionate.

username12345678

Good grief...I owe my IFA and DFM an apology. :eek::rotfl:

slinga

20 years ago I went with an IFA based in Bath.
After 1 year I realised how useless their advice was for me and I was paying them for advice which was worse than my own inexperienced decisions.
I left them and went DIY.

No problem and I've done so much better than I would have if I'd've stayed with them even if their charges had been zilch.

bigadaj

username12345678 wrote: »

Good grief...I owe my IFA and DFM an apology. :eek::rotfl:

And maybe a P45?

bigadaj

nuriel wrote: »

Yes. And thx for your time as well.


What s a pension provision ? If this is the cumulated amount I have accrued so far, that s around £35K. During our discussion, he made me realise I should aim at way higher if I wanted to have the decent level of income by the time I retire, so I am planning to boost this amount with some disposable cash.


Yes, DB I think (my employer and I pay in, I can contribute more if I wish to, and I am planning to once I figure out how)


Yes


Yes, one year worth of fixed bills and few non-critical extra


I am planning £500 per month and and initial boost of £40K

Thx

For a basis for comparison then adviser charges will typically run 1-3% initial and 0.5-1% ongoing, though some will not charge initial depending on sums, lower fees are for larger amounts, with the split coming at around £100k typically.

If you diy then there should be no initial charges and 0.5% is a good cost to target annually, tracker funds will be much less and some active funds much more, but if you have a mixed portfolio then they might average 0.5% or a bit more.

AnotherJoe

OP, to put the charges from SJP into context, you could easily end up getting a pension 30% less than if you went with a more average charging adviser, simply because of the cumulative effect of the reduction in growth.
And that’s before you got into DIY done well (of course you could do it badly as well but take a little time and you can learn, you can even start by using a more normal charging IFA and go with their advice but make sure you understand it so you can then pick up what’s needed over time.

cashbackproblems

Just open an account with Vanguard directly and their charges are under 0.5% for platform and fund fee and your just passive investing. No initial fees either which at 5% is huge. 10k = £500 for what?