A 1.5% management fee might seem like peanuts when the manager in question has convinced you he’ll make your retirement pot rocket in value, but don’t forget charges accumulate as the years tick by. We have analysed the costs associated with various wealth managers. Read on to find out how much you can save by investing in cheaper funds or managing your money yourself with the help of Investor's Champion research.
There are two great problems with the investment management industry
a) Fees. I don’t want to be giving 1.58% (the average fee for an active fund manager in the UK) of my life savings away for the sake of an investment which may or may not make me money.
b) Trust and transparency. I am more likely to trust a person who promises to nurture my investments than a faceless market tracker.
But, a) that person costs too much and it’s going to annoy me when I see them driving around in a Ferrari.
And so, a vicious circle begins, one that prevents many savers from storing their money in the stock market.
At the age of 50, Simon has decided he needs to start saving the maximum amount possible into his pension. He recently re-mortgaged the house to get a better rate and he’s stopped making monthly investments into his ISA, instead all his spare cash is…
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