August 2017
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The sad, sad story of Britain’s suckered savers – me and you!

If you’re saving in a unit trust or for a pension, you probably imagine something like this:

Save £5,000 a year for 20 years = £100,000 saved: savings grow at about 7% a year: pay around 1% to a unit trust or pension fund manager: leaves me about 6% a year: after 20 years I’ll have a wonderful £193,375 and I’ll only have paid my unit trust or pension fund manager £16,848 (less than £1,000 a year)

And you’d be encouraged to think this way by seemingly endless articles in the Money sections of newspapers where journalists repeatedly write something like “assuming growth of six per cent a year”.

Sadly, the truth is actually as follows:

Unit Trusts: Save £5,000 a year for 20 years = £100,000 saved: savings grow at about 4% a year: pay around 3% a year to a unit trust manager: leaves me about 1% a year: after 20 years I’ll have a pathetic £109,775 but the unit trust manager will have taken an astonishing £34,660 of my money.

Pensions: Save £5,000 a year in my pension fund for 20 years: savings grow at about 2.5% a year: pay around 2% a year to a pension fund manager: leaves me about 0.5% a year: after 20 years I’ll have a shamefully small £107,000 but the pension fund manager will have taken a shamefully large £22,150 of my money. So, while my pension savings have gone up by just £7,000, my pension fund manager will have pocketed three times that.

Bottom line: most British savers are being fleeced and they don’t even know it.

So, what can you do?

Unit trusts: do not, repeat not, put any money in an ‘actively-managed’ unit trust. If you want to put money into the stock market, have a quick look at the sales bumf for a few unit trusts (available on-line), look at which are the main shares they buy and buy those shares directly yourself using a company like Hargreaves Lansdown to do all the buying and paperwork. If you really don’t trust yourself to buy shares directly, then put your money into a low-cost tracker fund where you’re paying no more than 0.3% a year in total fees and charges. Remember, over 5+ years, nine out of ten actively-managed funds will be outperformed by trackers.

Pensions: Put your money into a SIPP and then use your SIPP savings to buy a few top shares by looking at the shares held by the top unit trusts. It is total madness, repeat total madness to be tempted to put your SIPP money into a fund or unit trust as you’ll be paying charges to both the fund manager and the SIPP company.

If you want to read more about how Britain’s savers are being completely suckered, you could download a free short report called “Legalised Looting” by the True and Fair Campaign www.trueandfaircampaign.com/ or else buy copies of either PILLAGED How they’re looting £413m a day from your savings and pensions or GREED UNLIMITED Tricks and Traps Salespeople Use and How to Beat Them.

Please, don’t allow yourself or anyone you know to be suckered by the greedy scum in the savings and pensions industry.

(and if you’ve already bought a copy of DON’T BUY IT! could you please post a review on Amazon https://www.amazon.co.uk/review/create-review?ie=UTF8&asin=1909869937&channel=detail-glance&nodeID=266239&ref_=cm_cr_dp_wrt_top&store=books as that helps get the book included in Amazon promotions)

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