How does this sound? Vanguard passive Global Equities, US S&P, Euro Govt Bonds with a TER of 0.42%. Eurozone Equities marginally more expensive at a 0.43% TER. A Range of Multi- Asset funds with marginally higher TERs for those that need them.
100% Net allocation rate, no entry or exit charges.
Ongoing adviser charges only if selected and there are a range of value add services which are provided for this. Clients can do their own cost benefit analysis to see if they need or want these services.
Of course there is a set up fee which depends on a) whether or not the client has selected the on-going advice or not and b) the specifics of the case.
I haven't posted here for quite a while as tbh I have been put off somewhat by the unnecessary complexity of some posts and a somewhat argumentative tone. Neither of which in my opinion helps anyone, and AAM is a great tool for anyone trying to educate themselves. Keep up the good work Brendan!
With the "keep it simple" narrative, the above is our starting proposition for pension, and ARF investment strategies. We are not ruling out any active management options but they need to demonstrate strong value add before being considered over and above the passive option and then only for a portion.
We have done a large amount of independent analysis and over the last decade there has been a huge under performance of domestic fund managers versus the Vanguard passive equivalent. We looked at the performance of one of the 'best' performing Balanced Managed funds and compared versus a Vanguard equivalent. The under performance has been significant at over 1.74% per annum over 10 years. To be clear, in the future the under performance may reverse, stay the same or even get worse - no one knows ... but the drag caused by higher costs alone will repeat, year after year.
We have done specific modelling, with help from Tony Gilhawley, for retirees with ARFs. Over a long 30 year time frame the additional drag from both higher costs and under performance ( if it persists) can have a huge impact on the total income taken in retirement and the remaining value of the ARF for legacy purposes. I strongly recommend anyone with an ARF should look at this.
Anyway I hope the above helps NY_Resident.
All the best Vincent