Perspective…it’s fascinating to discuss until it is obvious.
Thursday, 14 May 2009
There is a sense of outrage on MPs that has been exposed by the Telegraph regarding expenses.
Yet if you add up the costs of these claims and divide by the number of taxpayers, in real terms, it is almost zero. As one MP said, there is a lack of transparency. So whilst the cost to each of us individually is minimal, it is the principles of integrity and honesty that grasp our attention and feed our emotions with distrust.
What has this to do with investments?
There is an unfortunate reversal of costs v transparency.
When you employ investment managers for your pension funds, ISA and investments, which are your savings for your future, the costs to each of us is high. The impact of costs is massive if you are not careful. To put these costs into perspective, over 25 years or more, the impact of costs can amount to over half of your fund! That means your future income from investments can be vastly reduced.
Yet rather than expose these costs as the Telegraph has done, which shows a lack of transparency, the information on retail investment management costs are actually fully available to the public. It is not a secret. Whilst it is clear many fund managers and advisers will not help you find this information as it would undermine their perceived value…remember the saying, a 'Turkey would not vote for Christmas', but it is nevertheless, available if you want to find out.
If you are outraged at the lack of integrity of MPs that in reality does not impact in any significant way on your individual net worth, maybe take that same outrage and direct it towards things that do have an impact on your future net worth. A sense of perspective ultimately may be better for your wealth.
posted by Murray Round Wealth Management @ 12:22,
The Authors
Nicholas Round
Nic is the Managing Director of Murray Round Wealth Management Limited, who seeks to ensure the advice provided is truly independent. Based in Shropshire with clients local, national and worldwide, Nic has strived to find the best possible service for his clients needs, by researching and studying the market, trends and philosophies. Nic strongly believes Asset Class Management will bring his clients Financial Freedom, Independence and Happiness.
Kirsty
Kirsty is our communication guru. Managing information requires considerable due diligence and her passion for organisation gives the clarity we all seek. From Shropshire, with a Psychology Degree and much travelling, she is now back in Shrewsbury...and London often, keeping us all at Murray Round focused.
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