I think some wool has been pulled over your eyes. I doubt it very much that the management of Investec (or any other financial organisation) will provide a product for free.
I think some wool has been pulled over your eyes. I doubt it very much that the management of Investec (or any other financial organisation) will provide a product for free.
Z
z109
Guest
They get to lend out nine times the amount you deposit and charge interest on it.
Huh!!? What has that got to do with my question?
markowitzman
Registered User
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it illustrates the point that the bank is the one who is investing were the op to put money on deposit and stresses the fallacy of putting money on deposit with a 10 year time frame.
Why was it in response to my question about any bank (including an investment bank) charging a management fee on a deposit account?
markowitzman
Registered User
- Messages
- 936
This thread is a perfect illustration of investor psychology. When markets are poor everyone is advising deposit, deposit deposit whereas last year all were saying stock market!
discussion of management fees etc are completely off the point in relation to deposit accounts.
the original q was how to invest 1 MILLION for 10 years.
The thread thus far is a perfect illustration of rabbit in the headlights advice.
To obtain inflation beating returns the op must be invested in a broad mix of asset classes with good allocation, period!!
Rant over!
discussion of management fees etc are completely off the point in relation to deposit accounts.
the original q was how to invest 1 MILLION for 10 years.
The thread thus far is a perfect illustration of rabbit in the headlights advice.
To obtain inflation beating returns the op must be invested in a broad mix of asset classes with good allocation, period!!
Rant over!
Fine if that were actually the case. But it's obviously not. Many people have always answered this sort of thread/question with the standard "build a diversified/balanced portfolio" answer regardless of prevailing market conditions or volatility.
markowitzman
Registered User
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to illustrate my point further.....
between 1926 and 1987 stocks in USA averaged 9.5% pa.
This time frame corresponds to 744 months and of these months 61% were profitable.
However if you removed the top 50 months (only 6.7% of total months) the return would be...........................ZERO!
Stock markets generally spike upwards 15-20% the year after a crisis so it is critical for the op to be fully invested to catch the upturn when it comes
http://www.ricedelman.com/cs/education/article?articleId=208
http://www.ricedelman.com/cs/education/article?articleId=207
between 1926 and 1987 stocks in USA averaged 9.5% pa.
This time frame corresponds to 744 months and of these months 61% were profitable.
However if you removed the top 50 months (only 6.7% of total months) the return would be...........................ZERO!
Stock markets generally spike upwards 15-20% the year after a crisis so it is critical for the op to be fully invested to catch the upturn when it comes
http://www.ricedelman.com/cs/education/article?articleId=208
http://www.ricedelman.com/cs/education/article?articleId=207
But your point was moot if it was meant to apply to feedback from AAM posters in general on this sort of query...
hhhhhhhhhh
Registered User
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- 197
Yes your figures are correct.
This is what I got using LABrokers on the Eagle Star Matrix Funds, they do lots of funds.
The reduction in management charge is more valuable if you are investing for a 10 year period.
There is a claw back period for the first 3 years Y1(3%) Y2(2%) Y3(1%).
Check with them it will depend on the policy you want to take out.
The dicsount brokers charge you a fixed fee to set-up the policy and then add the commission onto your policy, thats where you get the 3% from and the reduction in management charge is the commission they would normally get for each year you have the policy.
Duke of Marmalade
Registered User
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- 4,596
- managed fund?
Straight answer to question is No, not a (balanced) managed fund.
About 30% is in government bonds earning just over 4% p.a. Deduct 1% management charge and 30% of your investment is "dead" money earning just 3% p.a. There are much better deposit offerings for that portion.
Straight answer to question is No, not a (balanced) managed fund.
About 30% is in government bonds earning just over 4% p.a. Deduct 1% management charge and 30% of your investment is "dead" money earning just 3% p.a. There are much better deposit offerings for that portion.
Z
z109
Guest
Sorry, I understood your question to be related to the previous post:Huh!!? What has that got to do with my question?
roland said:
So I was providing the information as to how a bank makes it's money on deposit accounts without charging a fee, while also trying to show that any bank that not giving ECB+ on it's deposit accounts is profiteering at your expense.
Your response indicates that this was not the case and you were rhetorically rhapsodising about the benefits of deposit accounts - that they do not charge any fees. Or maybe not. In which case, what was your question about:
Clubman said:
Try reading my posts. In particular note the following questions:
A
AJM
Guest
you are mad investing €1m in a product designed for mere mortals like myself who have €1000 to invest.
The hidden fees in these life compnay products are ridiculous ! With €1m Anglo or Davy would be falling overthemselves to look after you! If i had that sort of money to invest I think i would rather see which one of them would give me the best deal !
The hidden fees in these life compnay products are ridiculous ! With €1m Anglo or Davy would be falling overthemselves to look after you! If i had that sort of money to invest I think i would rather see which one of them would give me the best deal !
A
AJM
Guest
costs is probably a better word to use ... when was the last time you saw the charges that the real underlying provider was charging? you dont really think that BOI and Irish life and all the rest are writing options now do you?
also these managed fund manage to a benchmark why pay someone to do what the rest of the market is doing ?