http://preview.tinyurl.com/6olsbe8
Read Henry's take on my campaign and plenty of other interesting articles.
Snipit:
"Why your personal pension/FSAVC may be worthless.
Stephen Tiley’s starting a campaign to get restitution for those who invested in valueless FSAVC and Personal Pensions. You can read about it here. [link above]
The comment box isn’t working [should be now - ST] so I’ll blog a response here as Stephen’s opening a can of worms I’m quite sure a lot of people would prefer was kept shut.
In the old days before stakeholder pensions, insurance companies were able to employ back end loaded charging. What this meant was that units you purchased in the first 24 months of a regular premium policy like a personal pensions, Retirement Annuity Plan, FSAVC , EPP and some AVCs would carry a supplementary charge of up to 6% pa. Supplementary to the 1% charge you paid on units later in the life of the policy.
This 7% pa charge on initial or “capital” units is to cancel out part or all of the growth on the units. Indeed, in times of low unit unit growth (as we’ve experienced on equity based funds in the past ten years, these units can reduce in value to a point where they are pretty well worthless. etc.."
Read Henry's take on my campaign and plenty of other interesting articles.
Snipit:
"Why your personal pension/FSAVC may be worthless.
Stephen Tiley’s starting a campaign to get restitution for those who invested in valueless FSAVC and Personal Pensions. You can read about it here. [link above]
The comment box isn’t working [should be now - ST] so I’ll blog a response here as Stephen’s opening a can of worms I’m quite sure a lot of people would prefer was kept shut.
In the old days before stakeholder pensions, insurance companies were able to employ back end loaded charging. What this meant was that units you purchased in the first 24 months of a regular premium policy like a personal pensions, Retirement Annuity Plan, FSAVC , EPP and some AVCs would carry a supplementary charge of up to 6% pa. Supplementary to the 1% charge you paid on units later in the life of the policy.
This 7% pa charge on initial or “capital” units is to cancel out part or all of the growth on the units. Indeed, in times of low unit unit growth (as we’ve experienced on equity based funds in the past ten years, these units can reduce in value to a point where they are pretty well worthless. etc.."
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