How We Compare
Surprisingly, despite many clients being told that they are paying 1% to 1.5% in annual fees, a recent study by the Department of Social Protection found that investors are paying an average 2.2% in opaque annual fees.
Without realising it, most pension-holders and investors in Ireland are paying 2.2% per year in fees.
= 2.2%
WIth Informed Decisions, clients know exactly who they are paying, why they are paying them, and what they receive in return.
*Advisory Fee for amounts €300,000 and €500,000 = 0.6%
Advisory Fee for amounts €500,000-€1,000,000 = 0.5%
Advisory Fee for amounts over €1m = 0.4%
Global Custody & Admin in certain retirement structures: 0.4%
John Sherry
GARDENROOMS.IE
Paddy showed me how to take the profits I’ve earned from my business and to convert them into personal money, in a meaningful and cost-effective way.
€400,000 invested for 10 years with average 7% growth
Final Value
€627,540
Final Value
€709,000
The difference
€81,460
higher!
The Impact For You
If you invested €400,000 over 10 years with two different companies, one charging 2.2% and the other charging 1%, both growing at 7% per year; your return would have been €81,460 more in the 1% investment. This is thanks to the magical power of compounding.
That is over €8,000 of additional growth, or a saving of €8,000 per year in investment fees. €660 per month more for you, thanks to a 1.2% fee differential
The savings outlined here include the flat fee clients pay us for creating their Informed Decisions MasterPlan (€1,200-€1,500) and for implementing new investment and retirement structures (€1,500).
Typical Example
Client Engagement & Master plan
Client engages me to help them define the desired results, conduct analysis and create their Informed Decisions MasterPlan.
Based on 14 hours of analysis and recommendation
€1,120
Implement Investment Account
Where there is a desire to work together and a tangible benefit to clients we will implement their new strategy.
Fixed cost for establishing their account, no matter what the amount.
€950
Ongoing Guidance, Planning, Portfolio Management
On an investment of €600,000 the total all-in fee per year for our clients is 1% of assets. This is the total cost per year for all custody, admin, fund fees, and the services from me. This included on-going financial planning, guidance, reporting, on-line access and a relationship which stands to deliver results for us all over the long term.
€600,000 x 1%
€6,000
final pot value
€600,000 invested over 10 year period, paying a total fee of 1%, and average annual growth of 7%
Final Pot value with Informed Decisions
€1,067,608
Reduction in yield of 1.09%
the difference
The final pot value with Informed Decisions includes the initial outlay for your Discovery MasterPlan, the costs of implementing your accounts and the total annual fees payable for all services you receive from us. Final Pot value if paying industry norm of 2.2% = €940,310 and reduction in yield of 2.39%.
The difference is€124,123 - yours to keep.
