Expat Financial Advice
Jun 14th 2017, 9:36 pm
#1
BE Enthusiast
Thread Starter
Joined: May 2010
Posts: 538
Expat Financial Advice
Exposed: the rip-off investment 'advisers’ who cost British expats billions - Telegraph
This article is a couple of years old (and yes it's not the Guardian) but the story still holds true today. And in the UK, IFA means an 'Independent Financial Advisor.
Insurance Bond commissions can easily hit 8% and annual fees of 3% are common.
So even with 5% growth, 100 turns into 100.8 after 5 years. (before early redemption fees!)
100 in a tracker fund, however, with 0.3% fees grows to 125.7 at the same 5% growth rate.
And obviously in a declining market the numbers become quite scary the more commission paid.
But going back to returns, 23% of 0.8 leaves 0.6. 23% of 25.7 leaves 19.8. Or maybe I'm missing something here but it strikes me that it's not so bad to pay tax after all. You have to make it to pay it. 0% tax on 0% growth is 0 but that doesn't help too much.
This article is a couple of years old (and yes it's not the Guardian) but the story still holds true today. And in the UK, IFA means an 'Independent Financial Advisor.
Insurance Bond commissions can easily hit 8% and annual fees of 3% are common.
So even with 5% growth, 100 turns into 100.8 after 5 years. (before early redemption fees!)
100 in a tracker fund, however, with 0.3% fees grows to 125.7 at the same 5% growth rate.
And obviously in a declining market the numbers become quite scary the more commission paid.
But going back to returns, 23% of 0.8 leaves 0.6. 23% of 25.7 leaves 19.8. Or maybe I'm missing something here but it strikes me that it's not so bad to pay tax after all. You have to make it to pay it. 0% tax on 0% growth is 0 but that doesn't help too much.
Last edited by Capo Boi; Jun 14th 2017 at 10:35 pm.
