How hidden costs can affect your savings
Occasionally EFPG health-checks plans and policies that clients already have in place to judge whether it would be better for them to stick with their current arrangements or jump ship to save money.
In doing so, we have to look under the bonnet of a range of different products that we are not familiar with.
EFPG has found that two of the most insidious wealth-killers are bid/offer spreads and trading costs.
EFPG’s regular contribution local pensions and savings plans do not apply bid/offer spreads and for regular investments in investment funds, there are no trading costs.
In the main article (available here) we have described bid/offer spreads and have designed a basic interactive model that allows you to estimate what the potential cost of trading fees might be if your portfolio is re-balanced periodically.