Making charges more transparent

Crabby

Perhaps the herd is paying over the odds? The Dot Com boom is a classic example of the Herd Instinct in practice.

To quote Charlie Munger (Buffet's right hand man).

Quote:
“A great business at a fair price is superior to a fair business at a great price.”

Maybe the herd wasn't deemed to be paying over the odds before the crash, who knows?


Perhaps, maybes and quotes are all well and good, and hindsight is a wonderful thing, but they don't pay the bills.


"Only time knows who is right and who is wrong, every one else is just guessing".


That's a quote from me. :rotfl:

cattie

Crabby wrote: »

Time for a rethink and a change.
The next question now is, how to divorce your IFA?

This is a process I'm in the middle of & it's quite easy to have your funds transferred over to another platform. I've gone for iweb but there are many more to choose from. Once all my funds have been fully transferred, my ifa & platform ceases to have me as a customer & my costs will drop by quite a decent amount.

Froggitt

cattie wrote: »

This is a process I'm in the middle of & it's quite easy to have your funds transferred over to another platform. I've gone for iweb but there are many more to choose from. Once all my funds have been fully transferred, my ifa & platform ceases to have me as a customer & my costs will drop by quite a decent amount.

OP here.

As an interim, we are thinking about moving the existing funds from a % based platform to a flat rate platform (e.g. The Share Centre £24 a year for the whole portfolio), at the same time dumping the adviser.

That's gotta be saving a decent wedge.

Froggitt

AnotherJoe wrote: »

Care to publish the portfolio with % of each investment ?

I wish I could. They are in a dusty folder a hundred miles away. Unfortunately she now takes my advice not to trust people on the internet a tad too far

Froggitt

Thrugelmir wrote: »

Who is going to choose the investments? Passive is simply one investment option. Buying something because everyone else is , is little more than speculation. That may well disappoint in the longer term. Average investing will return average results.

British savers had a 50:50 chance of picking an “active” fund that managed to beat simple automated rivals over the past decade, research for Money Telegraph has established.

Happy to achieve on average the same returns as an active fund selection for 80% less charge.

Froggitt

Malthusian wrote: »

And if she is, why is she not the one posting?

Does she have Lasting Powers of Attorney in place if the OP is actually going to be the one running her portfolio, and are they happy with the legal liability of DIYing someone else's portfolio if so?

There should be special red blinking lights on any thread which begins "My mother has..." where the OP is not an attorney, as the one thing more risky than advice down the pub is advice down the pub passed on second-hand.

Doesn't need POA yet, all her marbles are nicely lined up in a straight line. She just knows absolutely nothing about investments.

Nothing will be done, or can be done, without her agreement.....which can take months if not years

AnotherJoe

Froggitt wrote: »

Happy to achieve on average the same returns as an active fund selection for 80% less charge.

Ah but there's the problem, you won't receive a return "on average" you'll receive very specific returns tied to your exact choice of investments.
Which if you choose them, she'll blame you for if they decline and if they go up she'll think they would haven done that anyway so you've not done anything clever !
Or if you use an IFA to advise on those, well they will want paying !
Anyway without knowing what the funds are this conversation is at stalemate since no one can even suggest similar but lower charge ones. Let alone 80% less.

Malthusian

Froggitt wrote: »

Doesn't need POA yet, all her marbles are nicely lined up in a straight line.

But has she completed them? If she has, apologies for banging on. If not, they need to be done urgently. When her marbles are out of alignment it will be too late (probably). When your children are going down the pub and asking what their parents should do with their money, the time when it is too late is approaching.