What are your annual costs?

phlebas192

Just seen someone in another thread claiming that costs of 1.78% per annum from St James Place are somehow reasonable. Personally, I think that is nonsense and would consider such levels verging on exploitative. But that does beg the question: what is reasonable? How much do typical people actually pay?

I just calculated our charges over the past year. We have two SIPPs, three stocks & shares ISAs and two general investment accounts. All of these are "active" in that non of the investments are in index trackers. The bulk is semi-passive being in investment trusts that are designed to deliver long term income that rises each year but some is very active (think 100% turnover each year). The account charges come to 0.02% of the total value. Transaction charges are 0.11%. So a total annual cost of 0.13%.

Just to put it in perspective, if we were paying 1.78% pa then that would be an annual cost rather in excess of £20,000 over what we currently pay. That's a heck of a lot of extra value that would have to be delivered to justify SJP level charges.

Obviously the actual charges the collective "we" pay will depend both on the amount of investments and the investing style. I don't factor in the time I spend researching, analysing & monitoring our investments which probably would have to be done by someone who had zero interest in doing so. But when average real returns tend to average around 4%, I find it hard to think that anyone could justify charges more than 1%.

So what do others here actually pay?

El_Torro

My pensions combined are 0.61% and my ISAs are 0.55%. Probably a lot higher than many posters here but I'm happy with what I've got. I DIY. 

Not that I'm saying that SJP aren't eye wateringly expensive, but I'm not sure there's much value in comparing DIY solutions with paid for advice. 

masonic

0.26%, but that includes the fund OCFs. Majority of my holdings are low cost ETFs, but I still hold some active investment trusts.

About 0.05% just for platforms and trading. My most expensive account is my workplace pension @ 0.19%, without this it would be 0.03%.

masonic

El_Torro said:

Not that I'm saying that SJP aren't eye wateringly expensive, but I'm not sure there's much value in comparing DIY solutions with paid for advice. 

The advice bit would need to be added on. Say 0.5-1% depending on size of portfolio and depth of advice.

ZeroSum

Circa 0.35% with Vanguard 

AlanP_2

 So a total annual cost of 0.13%


That is very low if it includes the OCF of the ITs as well as platform and personal trading costs.

incus432

I estimate 0.2% including platforms, funds and dealing fees. Most of that is the funds (0.14%) . DIY of course. High fees (1.78%!) destroy savings

boingy

Apart from pension I pay nothing.
The pension is whatever the Vanguard cap is.
Peeing away 1.78% of your money each year is, frankly, nuts.

MK62

masonic said:

0.26%, but that includes the fund OCFs. Majority of my holdings are low cost ETFs, but I still hold some active investment trusts.

About 0.05% just for platforms and trading. My most expensive account is my workplace pension @ 0.19%, without this it would be 0.03%.

Almost identical here........about 0.06% for platforms and trading costs, plus about 0.2% overall on fund/IT/ETF OCFs.

GazzaBloom

Most of my money is in my workplace pension that has an AMC of 0.16% but I do hold a couple of funds within that have additional fund fees of 0.30% but their good historical annual growth has made it worthwhile (so far) but it's something I keep an eye on.

When fees go over 0.60% my teeth start to itch. Over 1% is completely unnecessary these days with the choices that are available.

phlebas192

AlanP_2 said:

 So a total annual cost of 0.13%


That is very low if it includes the OCF of the ITs as well as platform and personal trading costs.

No, it doesn't include the OCF which I really don't pay any attention to with ITs. That measure makes a lot of sense when considering index trackers or comparing otherwise essentially equal funds but I don't consider it a useful measure for ITs. ITs are companies and should be treated as such - operating costs are a factor in their performance but not the main driver.