I think Marc should be applauded for the clarity of this response.Initial planning fee subject to a minimum fee of €2,500 plus VAT
Minimum annual fee €2,500 plus VAT
I would have thought the reference to a minimum annual fee was self-explanatory. No?Are you saying that I have understood the fees correctly?
Unbundling
In order to receive the most sophisticated solution you need to unbundle the various components of a pension....
If you are fortunate enough to have at least €80,000 in your pension fund (per type of pension not in aggregate) then you should consider an unbundled solution...….
Your adviser will agree their fee with you (known as customer agreed remuneration) rather than be paid a commission by a life company for selling a contract.
The most common fee structure globally is for the adviser to be paid an annual fee from the pension account for providing an ongoing service.
The key distinction being that this fee is disclosed annually and can be turned off by the client - something that can't happen on a traditional life assurance contract.
Interestingly I am currently working with an adviser who has just been sacked by his client after many years of in my view excellent advice and service.
The funny thing is that the client also believes he has received excellent advice and service.
He just doesn't want to pay for ongoing advice anymore.
He's eluding to the fact that investing is a long term game. In order to have the opportunity to get returns above deposit rates, you have to take an element of investment risk. That means that at times, the deposit rate investment will out perform the equity based investment. As the investment period lengthens, the chances of deposit rates returning more than equities reduces.
I agree with Steven; it is bonkers to draw any meaningful conclusion from a three year period where State Savings may have outperformed a particular equity strategy.
Having read Marc's posts and him finally explaining that he represents people with around €1M+ for retirement investment. His charges seem OK and even if the investments don't perform well, his customers don't appear to miss the loss. If in that millionaire bracket, I have some difficulty in wondering what they are doing still investing. Certainly, it is not for themselves, but their offspring.
But, there is a loud silence from the Financial Advisors regarding their costs, fees, emoluments, commissions, taxes etc for investing pension lump sums and life savings for ordinary mortals. For these people (including moi) I have seen nothing here to beat toddling down to that part-time post-office worker and taking out some state financial plans. No commissions, no fees, no taxes, no emoluments, no fear, no gamble and an easy mind. And you don't have to wait until your in your 90's for enjoying the fruits of your investments.
He's eluding to the fact that investing is a long term game. In order to have the opportunity to get returns above deposit rates, you have to take an element of investment risk. That means that at times, the deposit rate investment will out perform the equity based investment. As the investment period lengthens, the chances of deposit rates returning more than equities reduces.
Think of investing like sailing a boat. You can't expect to have calm seas at the time, sometimes you will have storms. But you wouldn't think of stormy seas as anything unusual, that's just the way it is. With investing, there's lots of stormy days.
Steven
What did you do with all the dividends in calculating that return?FTSE Dec 24th, 1999 was 6806,
FTSE Dec 13th 2018 is 6876 (today, 10.30).
That's a nice return, over 19 years of about 1%.
What did you do with all the dividends in calculating that return?
That's a pretty pointless exercise. Your total return is what matters, so you have to include dividends and other distributions.Just looking at the bare value of equities
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