Selasa, 09 April 2013

Pensions-how to lose easily 131,000

Easily enough, the worst can open the chat in line would begin to talk about pensions.

Although I researched them for over twenty years, it never ceases to amaze me how fast can I I fall asleep at the thought of even thinking about them.

And that is probably why more than 17 million people living in the United Kingdom have never reviewed the pension that they set up.(1)

Each of these pensions can easily be reviewed. A good friend of mine died recently and he had put off his retirement planning and didn’t want to watch it. Its pension plan had a value of £ 113,000. Because he had never examined (‘ the bored senseless ‘, he would say), he had not noticed that the death benefit on his retirement was actually a return of premiums paid, rather than the total value had grown to.

He had examined, as pena and simply turned on the Board. Instead, its beneficiaries received the return of premiums-a paltry £ 38,000, which resulted in a fine of £ 75,000.

Too often a Board is removed to a spare of the moment and never considered again. In fact, research by Barings showed that 38% of all pensions taken choose default pension fund available, and therein lies the reason why the performance of the Pension Fund.

With 48% of us never having considered our pensions, only one out of five review in recent years and 12% sure if they looked at getting their house literally millions are wasted.

Take a pension fund of £ 100,000. In the last year average United Kingdom all holdings pension fund returned £ 12,400. Top performers returned £ 30,800 and worst Fund lost £ 1,200. The difference between the top and middle was 18,400 pounds and this is more than a year. (2)

In five years the numbers are pretty impressive. The average fund returned £ 19,500, superior Fund returned £ 80,500 and worst Fund returned a loss of £ 50,800. The gap between the top and the worst thing was an unforgivable £ 131,300 on a simple investment of £ 100,000.

Now we all know that past performance is no guide to the future, but an expert independent financial advisor will have all the search tools to ensure a good quality of consistency in the Fund Manager.

For example; twelve years ago after having invested in a sophisticated search mechanism that now I can see on a month to month basis as consistent is a fund; how much risk you are taking. where the returns are coming from; the strategy of their decision and the decision-making process.

That was very helpful over the years to ensure the maximisation of returns, but only if investors review their pensions that their independent financial advisor can help you make the relevant changes.

Maybe it’s a sad reflection of investors ‘ view of their financial adviser that the 13% of customers use a family member to decide where to invest their capital and select which resources to allocate to.

So much so that nearly 2 million people rated the advice from their financial adviser on such fund to be used as a poor and 3.3 million today, make that decision on their own.

While the vast majority of retirement accounts go to an independent financial adviser for their advice, the numbers would be much higher.

It’s not just the performance of the Fund; The advantages of death mentioned above should be sufficient motivation for anyone, but an analysis of the costs is also alarming.

Whereas could set a simple stakeholder pension back nearly 1% per year, with access to a straight forward Fund, other pensions that I reviewed recently charged 10% per year.

Cannot be exciting or challenging, but a review is essential.

In many circumstances if you transfer just the authority of the pension fund that the new Adviser will be paid to do the exam with the Commission the previous Councillor was paid for doing nothing.

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