ChatterBank10 mins ago
Pension
10 Answers
I have paid into a pension for many years. I don't know much about finance so I asked a good friend for some advice. He told me it wasn't doing very well which I could tell from the yearly statements.
He put me in touch with a financial advisor who said he could make the pension work much better by moving it.
For setting up the deal and managing the fund the cost would be 5% set up fee + 1% per annum thereafter.
Does this sound normal.
He put me in touch with a financial advisor who said he could make the pension work much better by moving it.
For setting up the deal and managing the fund the cost would be 5% set up fee + 1% per annum thereafter.
Does this sound normal.
Answers
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For more on marking an answer as the "Best Answer", please visit our FAQ.I don't really get that point, Old-Geezer- the 1% annual fee is for work that will be done each year to actively manage the money by moving in and out of different funds to get a good return and reflect the age and risk factors (e.g. as the pension date gets closer the money is often moved into less risky assets)
Whilst I have limited experience of financial advisors what I have suggests once they've advised you what to do with your money then that is it. It stays there. And the advisor gets their regular payment for having passed the business on. Don't see any further labour, just income. I guess if it is managed you may have a point but I wonder how much efffort is involved in moving umpteen accounts together anyway. A good move for one is a good move for the thousands of others too.