Q. I am a Consultant in my late 40s and have a number of stock market investments worth around £200k. I keep reading about how high costs can eat into my retirement pot, and I know I should check, but find it a hassle to look at this.
How easy is it to check this out? Would this mean I’d have to pay a fee for this?
A. We meet and speak to lots of people in your position. Any good financial planner would (in our view) give you, say, half an hour of their time free of charge.
If you supplied them with your fund information, they would be able to use technology to give you a quick overview of the ongoing costs that you are paying, and past performance too. You can then make an informed choice as to what you do.
It is vital that this is done, as many new clients we meet are simply unaware of how these costs can mount up. As a guide, using a £200,000 investment, which grows at 7% pa net of costs and taxes etc over a 20 year period, this is how it works out:
0% pa additional costs, end fund value = £773,937
1% pa additional costs, end fund value = £641,427
3% pa additional costs, end fund value = £438,224
It really is worth checking this out to protect your security in retirement!
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