stock market crash

[Zigenare]

it's 2% which I believe is about the norm.

0.324% to manage my company pension fund - including discount

[JohntheBike]

0.324% to manage my company pension fund - including discount

the 2% covers the management of all my portfolio, including my IFA's fees. So not strictly comparable with yours.

[AtW]

it's 2% which I believe is about the norm.

2% from total value or profits they've made you in a given year?

[JohntheBike]

2% from total value or profits they've made you in a given year?

not sure, I'd have to check the exact wording. What I know is that every time they make a decision to buy/sell, I'm informed of the details, and this management is covered by the expenses they deduct, i.e. I don't pay directly for that management.

[lukemg]

2% - COAB

John - that is way way too much to manage the portfolio. This will NOT be on profits made for you in the year (which would be the best deal on the planet). It will be a blanket 2% of portfolio value.
This may not sting too much in a good up year but average return over time averages out around 4-5% after inflation over 10-20 yr timescales. Meaning 2% is ~50% of all your returns.
In a down year it's even worse as they still reap the 2%.

Even worse if this is being invested in funds because they will be paying fees internally which you will never see but will be operational expenses reducing the overall fund performance.

Get on here quick - Monevator.co.uk search for why fees matter, then read everything you can, it will be a good investment ! We are talking about 10's of thousands over the years depending on contribution which will make a huge difference to your financial outcome.
Fees matter hugely - Potentially more than anything else.

[AtW]

2% on value is a rip off, unless they bring 10%+ returns which jn bull market is relatively easy

[JohntheBike]

John - that is way way too much to manage the portfolio. This will NOT be on profits made for you in the year (which would be the best deal on the planet). It will be a blanket 2% of portfolio value.
This may not sting too much in a good up year but average return over time averages out around 4-5% after inflation over 10-20 yr timescales. Meaning 2% is ~50% of all your returns.
In a down year it's even worse as they still reap the 2%.

Even worse if this is being invested in funds because they will be paying fees internally which you will never see but will be operational expenses reducing the overall fund performance.

Get on here quick - Monevator.co.uk search for why fees matter, then read everything you can, it will be a good investment ! We are talking about 10's of thousands over the years depending on contribution which will make a huge difference to your financial outcome.
Fees matter hugely - Potentially more than anything else.

ok, thanks, I'll check the details with my IFA. I have to say though that the portfolio has made an average of 9.5% PA over the last 6 years. I'm using SL's Elevate product.

[lukemg]

ok, thanks, I'll check the details with my IFA. I have to say though that the portfolio has made an average of 9.5% PA over the last 6 years. I'm using SL's Elevate product.

Sorry if that sounded patronising, I have a personal hatred of these people leeching off investors. Your funds have done well and blasted any returns from cash, property etc but this has been a ridiculous bull market, everything is up.
I read the following quote on Monevator this morning -
Many investors, Statman says, frame their returns relative to zero, rather than relative to the market return — the performance they could have earned by investing in a low-cost index fund.
“A 15% annual return is excellent,” he says, “but it is inferior when an index fund delivers 20%.”

For interest VWRL - global passive index from Vanguard has averaged 11.7%/year for the last 5.

BUT - these markets are all going to slump at some time, that risk is why you are compensated with a higher return and the only useful purpose of an IFA (IMVHO) is to get you to hold your nerve when the market drops 20%, that's when you work out your tolerance to risk !
If for no other reason than to be better informed talking to an IFA, I would urge people to read Monevator and see how it all works.
In addition, my first question to an IFA would be where is your money invested ? If they don't mention ultra low-cost index funds I would walk, go onto a big investment platform and probably buy a big chunk of Vanguard Lifestrategy 80% shares/20%bonds fund (or 60/40 if I was scared)
Good luck all...

[JohntheBike]

Sorry if that sounded patronising, I have a personal hatred of these people leeching off investors. Your funds have done well and blasted any returns from cash, property etc but this has been a ridiculous bull market, everything is up.
I read the following quote on Monevator this morning -
Many investors, Statman says, frame their returns relative to zero, rather than relative to the market return — the performance they could have earned by investing in a low-cost index fund.
“A 15% annual return is excellent,” he says, “but it is inferior when an index fund delivers 20%.”

For interest VWRL - global passive index from Vanguard has averaged 11.7%/year for the last 5.

BUT - these markets are all going to slump at some time, that risk is why you are compensated with a higher return and the only useful purpose of an IFA (IMVHO) is to get you to hold your nerve when the market drops 20%, that's when you work out your tolerance to risk !
If for no other reason than to be better informed talking to an IFA, I would urge people to read Monevator and see how it all works.
In addition, my first question to an IFA would be where is your money invested ? If they don't mention ultra low-cost index funds I would walk, go onto a big investment platform and probably buy a big chunk of Vanguard Lifestrategy 80% shares/20%bonds fund (or 60/40 if I was scared)
Good luck all...

Sorry if that sounded patronising,

I didn't take it as so.

these markets are all going to slump at some time

agreed, but my Elevate portfolio will only provide 30% of my income, the other 70% coming from guaranteed funds. So a drop of 20% of 30% wouldn't hurt me too much. Additionally, I have other "hard" investments,, i.e. 3 classic cars, 6 classic motor bikes and a collection of about 100 model locomotives. Not that I'd want to have to sell my house, but it is worth quite a bit considering I live in Wales.

I'm not claiming I'm comfortable. I'm always aware of the dangers surrounding investments.

[lukemg]

Fair play, you are all over it, nice diversification too !