Your report is very nice, but your figures are flawed

Woke up after Jamie had left for work. Got on with it, had a bug left over from yesterday but solved it fairly quick. To be honest a one day job took two days, but that happens sometimes. I had to pop out lunchtime and see the financial advisor again. He’d produced a very thorough report. His recommendation was to take out a new pension with Aviva and transfer my old pensions into it plus a lump sum. All looked interesting. This evening, after a run I wen’t through all the figures. The old pension provider gave growth forecasts for the usual 2.4% and 5.6%, I also have the same forecasts for the new Aviva one. This is where the figures just don’t add up. If I take the 2.4% prediction and just whack the lump sum on at the end, it’s actually greater than the new one’s total fund. Further looking into it, it’s all down to charges. Aviva charge 0.4% to manage the fund. But this guy wants an additional 0.7% annually to basically do bugger all, this is on top of the grand to set it all up. I’ve thanked him for the report, which cost two-hundred and fifty quid anyway, and said I won’t be pursuing it any further. No regrets on the report though, I had no idea how my existing pension compared to any new ones, and as it happens whoever sorted it originally, did a fairly good job.

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