Friday, Jul 30, 2010
Looks like Bricks 'n' Mortar are possibly a better bet after all thanks to our chums in the city
Telegraph: £7billion a year skimmed off our savings
More than £7.3billion a year is being “skimmed off” the value of Britons’ savings by City bankers and fund managers, an investor putting £50,000 into a fund providing typical returns over 25 years would lose out on £108,000 because of unnecessary charges. Investors have become victims as the charges they have to pay have risen and risen while the returns they get have been consistently below par and the actual cost of managing their money has continued to fall.
Posted by enuii @ 10:57 PM (1076 views) Add Comment
12 Comments
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1. mr g said...
It's been blatantly obvious for years that these parasites have been ripping off investors, they're just part of the casino called the City which, if you listen to politicians, is necessary for the well being of the British economy.
Bullsh*t Britain!
2. Who Stole My Pension? said...
They also do this, and more, to our pension funds. Most pension funds actually have a negative real return as the pension fund provider claims a tax rebate from the government on our behalf. This rebate the fund provider use to show a "positive" return even though it is actually negative as the tax rebate is meant for you, not the fund provider. For example you pay 100GBP in to your pension, the pension fund provider then claims tax relief say 20GBP, then in your annual statement the fund provider show the fund value as 110GBP and thus a gain of 10%! When in fact they have lost 10GBP (or more correctly put it in their own pocket plus the actual real gain of the fund (say 5%)! The whole pension industry is a rip off.
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4. tenyearstogetmymoneyback said...
A related question is how many managed funds beat tracker funds ?
I don't think it is many, many because trackers have a fraction of the charges of managed funds.
This is because they can be run by a computer or admin staff.
5. techieman said...
... all true which is why you really owe it to yourself - if you can - to take responsibility for your own investments.
Tracker schmacker!
6. Crunchy said...
Of course it's not a conspiracy. It's just another expense.
Invest based on the knowledge you have. lol
7. mark wadsworth said...
Investing in these funds is a mug's game, of course, but the fees etc mentioned here are still only half of the fees deducted from money you put into a tax-relieved pension fund.
Steer well clear of all of it, is my motto.
8. braindeed said...
"A range of questionable hidden fees and levies are being deducted from investments"......you don't say?
Eric Blair would be feeling smug now - there's no fixing this system now. The kids better sober up and get organised, feudalism is returning.
9. Clockslinger said...
Why would the autocracy allow a return to feudalism when they have put so much effort into the existing "advanced" (fully developed) " democratic" (as in quantative democracy) capitalist order? No wonder Marx is ridiculed by our learned leaderes and their approved intellectuals. Accurate analysis is always a threat. There can be no return to an earlier stage of an evolutionary process.
10. Yekim1967 said...
Mark, can you explain to me why these are only half of the fees of a tax relieved pension fund. Are you talking about the holding charge My pension fund has a .75% charge annual for doing nothing. After reading this, I think its about time to find a cheaper or free one. I have heard there are free ones, but is anything really free? cheers
11. Crunchy said...
5. braindeed said...'Eric Blair would be feeling smug now.'
He always did in a way. He knew back then what some others still can't grasp today.
There are evil power crazed people in this world, in history and of present.
Perhaps smug would be the wrong feeling, a loss of hope maybe.
recap - microwave chips
12. Hugh said...
There should be an urgent inquiry into the ways that the banks are colluding to skim savers and borrowers. Interest rates remain extremely low yet the rates charged on loans and credit cards often exceed 15% per annum. it is an outrage.