On-going Pension advice fee

[Montbretia]

Have been quoted 0.5% of fund value as an on-going advice fee for buy out bond I am going into from a group pension. How does this stand up with regards to other FA's fees for same. Thanks

 

[Merowig]

What would be the fee for keeping the fund in the occupational scheme? Would the employe rcontinue to cover these?

 

[Steven Barrett]

0.5% would be my standard ongoing charge. What is the overall AMC you are paying?

There are lots of different charging structures available.

For example, an advisor may take 5% initial commission to set up a contract. The standard AMC is 1% plus his 0.5%, so you pay a total of 1.5% ongoing fee

Or he may take 1.5% initial to set up the contract and the standard AMC is 0.5% plus his 0.5%, so you pay 1% ongoing fee.

The difference between the two AMC's is recouping the commission paid out.

Steven
www.bluewaterfp.ie

 

[Montbretia]

0.5% would be my standard ongoing charge. What is the overall AMC you are paying?

There are lots of different charging structures available.

For example, an advisor may take 5% initial commission to set up a contract. The standard AMC is 1% plus his 0.5%, so you pay a total of 1.5% ongoing fee

Or he may take 1.5% initial to set up the contract and the standard AMC is 0.5% plus his 0.5%, so you pay 1% ongoing fee.

The difference between the two AMC's is recouping the commission paid out.

Steven
www.bluewaterfp.ie

Thanks Steven, AMC is 0.5% (total ongoing fee 1%)

 

[Steven Barrett]

I'd say that's ok. Your advisor is the one you will go to with any questions you have about your investments or any hassles. One of the most important roles of an advisor (and the hardest to quantify) is to stop people doing something stupid with their money that could cost them thousands in the long run...I'll switch and cash and go back in when the markets improve...why am I only getting a 5% return when markets are returning 15%...


Steven
www.bluewaterfp.ie