Pensions

[Andrew[MG]]

http://www.bbc.co.uk/news/uk-11452857

Is there any way to avoid paying these staggering fees? Do many people self manage their pension? A brave choice I would say!

[ringram]

Fee's are best minimised or avoided where possible. As they are in effect a waste of money.
Only a minority of managers outperform the market, so unless you know what you are doing and select the right funds etc you are better off with a tracker.
A low cost SIPP and ETF or Tracker would get your costs down under 1% easy.

You just need to do the R&D to figure out what funds or ETF's to buy into.

There is a recent example. $1000 invested with buffet would now be $45M, he has returned an average of 20% PA year on year. If he was a hedge fund with 2 and 20 charges you would only have $450K. The other $44M would be in the fund managers pocket.

Fee's kill. Avoid where possible.

[Tiggsy]

Andrew[MG] said:

http://www.bbc.co.uk/news/uk-11452857

Is there any way to avoid paying these staggering fees? Do many people self manage their pension? A brave choice I would say!

The fees are high because they take the 1.5% you pay in year on and say "what if that 1.5% was left invested....what would it be worth at 65" and then use that figure as the "cost"

It's like saying you buy a £10k car at age 35 and of that £1k goes to the sales guy....had that £1k been left in your bank and grown at 7% it would be £8k by age 65. So 80% of what you spent on that car went in sales cost - shocking, dont buy another car!