I think they would be able to do better than .75 for the amc. I’d no where year as big a pot and managed better. If you do the maths on the difference it will make overall to your end funds you’ll find you could buy a nice car with the difference.***UPDATE.. UPDATE***
They'll do 100% allocation , but .75% with no early encashment or transfer charges.
Can I do better....is it worth it??
I think they would be able to do better than .75 for the amc. I’d no where year as big a pot and managed better. If you do the maths on the difference it will make overall to your end funds you’ll find you could buy a nice car with the difference.
Maybe suggest you them that you’ve seen .5 in the market and want to know how they can do better before you switch? Either way well done so far!!
Kinda, it was the same “broker” that we always used but he could not answer a lot of my questions so started just to copy his contact in friends first on the mails so they would answer them directly.Thanks for your encouraging input. They've drawn an iron curtain @ .75% AMC. I want to move as I feel I've been shoddily treated notwithstanding my inattention to this.
Big40 did you engage a broker to get you to .55% ?
I'm ready to move.
Thanks for thatKinda, it was the same “broker” that we always used but he could not answer a lot of my questions so started just to copy his contact in friends first on the mails so they would answer them directly.
Whole process was very frustrating and in the end we stayed with FF/Aviva but “had to” open new funds as some of the old funds were subject to transfer value loss (what could be moved without costing money was and the rest will shift later this year). I was annoyed about this as I viewed it as churning the accounts for fees and commissions but in the end with the funds 100% allocations and lower amc it was to my benefit.
I’d be hard pushed to recommend the people I deal with mostly because the whole thing was a mystery wrapped in shanaangans
That's a great result, well done! It's always worth trying
Kevin,
In your professional opinion can I do better than .75%AMC ?
Providers fees etc are not really transparent across the board.
My motivation to move is historic shoddy treatment and not losing future value to ongoing charges.
What does AMC really mean?
If the AMC is 0.5% and I'm tracking the S&P and the S&P returns 10% in a given period and there is no tracking error, does that mean that the net return on my investment after all charges is 9.5% (assuming 100% allocation)?
Or, are there additional charges? Otherwise put, what is included in the 0.5% AMC?
Yes, the difference between the gross return and net return would be the management charge in this case. However, funds may also have associated running costs that are not included in the quoted AMC figure. This represents the total expense ratio (TER) of the fund and these figures can be much more difficult to obtain.Can one of the financial experts confirm/clarify this please?
As per earlier, charges are one part of the equation (albeit important) because it ultimately comes down to the overall value you're getting; all things considered. But, Yes, there are different pricing options on the market that effectively operate on the basis of a volume discount above certain thresholds. €600,000 would qualify.Kevin,
In a nutshell, what I'm after is,
* 100% allocation, a better AMC than .75% ( I'm hoping this would include trail fees etc.) . No sneaky exit charges ( not because I want to tinker, but in case of death, serious illness and when it comes to lump sum /ARF time.
It's a 3 year timeframe, and additional contributions are planned.
I've considered the devil I know and that was why I tried the advised negotiation. By my rough calcs ,assuming 5% -ish p.a. growth and inc. projected contributions the difference between (.75% and .55% could be approx 6k in 3 years. My crude calcs can be wrong .......and have been.If better terms are available from a devil I've not yet met, well then I'm ready to make that move.
Anyway, I post this so , hopefully, others can learn from my experiences ( which haven't been as bad as some other peoples) , not because I'm looking for pension advice for free.
My STRONG advice to any readers here is review your particular arrangement. The earlier in your contributing phase, the better.
If you can't, or don't want to, understand it........Look for professional help.
" The best time to have done something is then.......the next best time is Now."
The TER is more prevalent with managed funds as opposed to index tracking funds. Some actively managed funds would have very high TER’s as it relates to the ongoing management activity undertaken by the team.Thanks Kevin,
So a fund of an Irish company tracking a major index, what is the TER likely to be if the AMC is 0.5%?
Otherwise put, what is included in the AMC and what is not?
Note: I don't think that this is a simple question - well, maybe the question is simple but the answer isn't coz I have seen others ask it before on this site and I'm not conscious of it ever receiving a decent answer! Long way of saying that I appreciate very much you taking the time to reply!
Otherwise put, what is included in the AMC and what is not?
It can be broadly broken down as business costs vs activity costs.Thanks Kevin,
A final question......