Are Cost Monsters eating into your finances ?
Cost Monsters can eat away at your finances and seriously damage your future plans.
Check the list below to see if you are at risk from a Cost Monster.
It could be a fund manager who is charging a high annual fee but isn’t doing much when it comes to getting you a healthy return.
It could be a platform viewing portal who allows you view all your investments in one place but charges a lot for doing very little.
It could be a Pension Provider who decides to charge you a huge exit penalty to transfer or take some money out of your Pension Fund.
It could be a financial adviser who charges up to 3% of your fund for initial financial advice and up to 1% pa for on going advice and service taken out of your Investment or Pension Fund.
What does this all mean?
Well remember, every pound that is eaten up by costs is a pound that is not invested and this can lead to an awful amount of money being lost over time.
Here some other things to remember…
Beware of three letter Acronyms (TLAs)
These can often be a favourite hiding place for Cost Monsters.
TER – Total Expense Ratio – Eats into your Fund
PTR – Portfolio Turnover or Trading Costs – Eats into your performance
AMC – Annual Management Charge – Eats your fund – pays your manager
FAC – Financial Advice Charge – Eats your fund and pays your adviser
PEF – Pension Exit Fee – Eats your fund to transfer your money
“It is difficult to systematically beat the market; it is not difficult to systematically throw money down a rat hole generating commissions (and other costs).”
Michael C Jenson – Harvard University
So whether you’re looking to Invest, get Financial Advice, put money on a Platform or transfer a Pension – make sure you check to see if there are any Cost Monsters lurking.
You might just end up saving a small fortune.