A very bold statement, yes. It boils down to whether you believe money could have a important effect on your life. Most, I believe, can see money having an effect on their life in one form or another.
Fees cost pensioners £284,000+*
Really this is true. If you pay 2.5% fees, like most people do, if not more you are throwing away money that could be used to keep you in your retirement. Some could consider it immoral that an industry is built with almost exclusively salesmen whose sole incentive is to sell, sell and sell more. This is because these salesmen get a large chunk of that fee. It is easily possible to use index funds and pay significantly less (1%) for investments that, more often than not beat the performance of “experts”, who are just guessers. The lucky guessers are the ones who make the money. When they make bad guesses with your money, you pay them 2.5% of your entire investment for doing so, it doesn’t affect them much at all. It is all very clever and quite wrong.
One large asset management company has an army of “Partners” throughout the country. “Partner” is simply a marketing term they use instead of “Sales Rep”. Their whole business is built on selling high cost investments that bring in large bonuses and commissions. These fees potentially cost their clients £100,000s more than better alternatives on the internet and even provided for a much smaller fee by an IFA.
*Based on a 20 year old paying £200 per month into an investment for 50 years with an average rate of growth at 7% and paying 2.5% fees compared to 1% fees (these are even the lowest you could have).
So can investment fees change your life. Only if you believe £200,000 would change your life.