Financial Advisor fees - PPS RA

[snoozee]

Just curious what sort of "Financial Advisor" fees and "Administration" fees people are paying on their PPS RA. Is everyone paying this as a % of investment value? I had previously negotiated mine down back in 2015, but still feel I am paying too much for the work being done. Probably cannot do much about the "Administration" fee, but just keen to hear what %'s you are paying?

 

[supersunbird]

I pay an annual administration fee (charged monthly) of 0.54% on my Allan Gray RA (various unit trusts from different providers). Coronation RA - no such fee (just Coronation funds).

No Financial advisor fees since I don't need them.

 

[snoozee]

Thanks Supersunbird. I don't think I can invest in PPS without a Financial Advisor. I have no use for him - all he does once a year is submit my annual RA contribution and processes that through their systems, and he gets a fortune for that.

 

[supersunbird]

Thanks Supersunbird. I don't think I can invest in PPS without a Financial Advisor. I have no use for him - all he does once a year is submit my annual RA contribution and processes that through their systems, and he gets a fortune for that.

Yeah, it might be that they say you have to have one, have you enquired?

Well, you should make him earn his money at least by making him have a meeting with you at least once a year, where he shows you that your are on track and that all your bases are covered (life insurance and disability cover), I use a FA for my life insurance stuff (which is way more complex than retirement planning).

 

[pdb]

Thanks Supersunbird. I don't think I can invest in PPS without a Financial Advisor. I have no use for him - all he does once a year is submit my annual RA contribution and processes that through their systems, and he gets a fortune for that.

PPS don't have a direct option really...FA fees can get a bit silly, especially if you're being invested in index funds (which require zero work from their part!)

PS: check out thinkdirect.co.za if you are looking for low-cost retirement saving options and want to skip the FA fees

 

[Amberstorn]

I sent PPS an email and asked them to remove the FA fees. Which they did within a few days, unfortunately you are stuck with the admin fees

 

[Basil959]

We had a fund administrator, charge our fund 2%... for years, we all could understand why the longstanding members pension didn't grow.. we just got told "the markets are bad"... Had a meeting with the advisers and they basically said tuff, if we didn't like it we should have said so.. Ask for proof that we agreed to the fees, but they supply it. Completely criminal..!

Tried to get hold of the FSB who are less than help full..!

I think this is something that government should regulate, FFS they regulate how much a pharmacy can charge for dispensing why not fund administrators...:wtf:

 

[supersunbird]

We had a fund administrator, charge our fund 2%... for years, we all could understand why the longstanding members pension didn't grow.. we just got told "the markets are bad"... Had a meeting with the advisers and they basically said tuff, if we didn't like it we should have said so.. Ask for proof that we agreed to the fees, but they supply it. Completely criminal..!

Tried to get hold of the FSB who are less than help full..!

I think this is something that government should regulate, FFS they regulate how much a pharmacy can charge for dispensing why not fund administrators...:wtf:

Well, to be fair there are competitors and it's not geographically limit like say a pharmacy. Yes, the life insurers type of wealth companies do get away with ridiculous fees. The Retail Distribution Review is looking at it and how advice is incentivised.