On-going Pension advice fee

Discussion in 'Pensions' started by Montbretia, Dec 12, 2016.

  1. Montbretia

    Montbretia Registered User

    Posts:
    19
    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
     
  2. Merowig

    Merowig Frequent Poster

    Posts:
    118
    What would be the fee for keeping the fund in the occupational scheme? Would the employe rcontinue to cover these?
     
  3. SBarrett

    SBarrett Frequent Poster

    Posts:
    1,999
    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
     
  4. Montbretia

    Montbretia Registered User

    Posts:
    19
    Thanks Steven, AMC is 0.5% (total ongoing fee 1%)
     
  5. SBarrett

    SBarrett Frequent Poster

    Posts:
    1,999
    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