The New Year has started with a bang – and the timing for us to launch Lower My Charges.com has been the perfect storm for us.
On January the 3rd 2018 – MiFID II came into force which now means all financial companies have to disclose and lay out what they are charging you in a different way.
To understand what different means have a look at a new disclosure document which now has to be presented to you when it comes to charges.
You will note on a £12,341.00 investment at 8%pa your charges could amount to £4,105.00 over a 10yr period – this does not include upfront adviser fees to pay for financial advice if taken from the investment being recommended.
We would recommend you look at these figures very carefully as this will be your only reference point to compare when looking at other quotes to determine the value for money.
All financial service firms must now comply with this.
Long-term Impact of Charges
One could start to imagine what the impact might be on a longer-term investment such as a Pension Plan.
The charges in the top table don’t seem to be that big – but due to the power of negative compound interest what seems small will add up to a significant amount of deductions to your future wealth over time.
So if you’re in the market to invest or are looking for financial advice make sure you look at the box showing the impact of charges.