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I assumed that if you had no IFA you would be "Self Investing" and so would have to pay the extra fees associated with that feature. If that's not the case then I apologise.
Are there any discounts that might be lost by not using the IFA? Also find out about any fees charged to move or access the pension.
Mordko wrote: »
The costs are very important. In my book anything approaching 1% is way too much (including IFA, fund TER, etc). 1% doesn’t sound like much but it can easily come to 100s of thousands during a typical portfolio lifespan. Given that one can own the world for 0.1%, hard to justify a portfolio which is heavily concentrated in the UK and is underperforming its own benchmark year in year out.
Having said this, an appropriate asset allocation is the number one priority. Someone buying this portfolio must be able to withstand 50% drawdowns.
bostonerimus wrote: »
There is a discount to the 1% of up to 0.65%, but most people will get about 0.5%. Then there is wording about "additional charges" and IFA charges etc etc. in the brochure. The upshot is that it all seems like a sales pitch designed to disguise what you actually pay in fees. My experience is that pension and insurance companies are seldom low cost, but RL could prove me wrong. Maybe someone with an RL pension can tell us exactly what they pay a year, or maybe they have no idea which would be a big problem IMO. Also I'd like to understand any transfer or withdrawal fees that might apply.
I know SonOf says that DIY is possible with Royal London and if you stick to the governed portfolios there won't be any extra cost, but I just wonder how interested RL will be in dealing directly with the investor.
Mick70 wrote: »
How did you get RL down to 0.25%, I thought the lowest they would was 0.35?
JoeCrystal wrote: »
I do have an RL pension which is invested in Governed Portfolio 4 fund instead.
My last annual statement from RL says that I was charged £294.22, which is equivalent to 0.5% of the plan value in 2018, which is partly offset by £99.40 ProfitShare Award (About 0.33% of the plan overall). I do not pay any ongoing servicing with my IFA. As my plan value is now high enough to get 0.55% discount on 2019, I would be expecting to pay roughly £315 which equivalent to 0.45% of the plan value, again, partly offset by £115.46 ProfitShare Award (About 0.28% of the plan overall)
I already said earlier on in another post on how RL CS doesn't seem to like to deal with the public directly.
mcc100 wrote: »
The exact words on the paperwork from my IFA are:A mutual fund discount is also on offer from Royal London, and this will currently reduce the fund charge by a further 0.15% per annum to just 0.25%. It is Royal London's stated intention to maintain this discount in the range of 0.15% to 0.25% per annum.
Mordko wrote: »
Are the charges you are quoting inclusive of all costs, such as stamp duties and all the other costs of owning and periodic buying and selling of properties, commodities and stocks?
They invest into commodities via derivatives. Do they report the costs? Do they account for the additional risk, e.g. contagion?
Mordko wrote: »
TER will be higher than AMC. Always is but in some cases it’s a lot higher, particularly for active funds, property funds, futures...
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