The Atticus Papers

Bringing clarity to finance

Sunday 6th June, 2021

The impact of fees and charges on investment returns - active versus passive investment

I am often asked by investors, "Am I paying too much for my investments?". So, what is the impact of costs on your investments and does it matter? The answer to this question is far more nuanced than many realise and really depends on what your personal preferences and beliefs are, and what you are trying to achieve. It also invariably involves a comparison of active versus passive investment. In the article below, I will firstly highlight the impact of costs on investment returns over time, underlining the importance of this subject. I will then explain the difference between active and passive investment strategies. Lastly, I will endeavour to explain our reasons for favouring passive investment strategies for generating investment growth and returns.

Read about active versus passive investment

Tuesday 1st June, 2021

How do you pay for financial advice - a complete guide to financial adviser charges and fees

I am often asked by people, "How do I pay for financial advice? What fees do financial advisers charge?" This is an incredibly important question, as fees and charges create a drag on investment performance. If they are too high, how are you to make the investment returns you need to achieve your goals? If they are too complicated, how are you to know if they are too high? There are many people who could benefit from taking financial advice. There is a mountain of evidence that shows that taking financial advice makes a real difference. However, many people are put off by the fees and charges. We have therefore put together this guide to help explain all the charges involved in paying for financial advice, including the advice fees and the fees on the investments and platforms themselves.

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Monday 24th May, 2021

Cash versus investments – should I invest or keep my money in the bank?

If you keep your money in cash, you won't run the risk of losing it, but currently low interest rates almost guarantee terrible returns from savings accounts. If you invest your money into shares, bonds and property; the value will go up and down and you run the risk of getting back less than you put in. However, the returns over the longer term are likely to be substantially higher. "Should I save or invest my money?" This conundrum faces many people looking for better returns. So, which is better? Cash or investments? In the next few paragraphs, I will explain what we mean by cash and investments and will also cover what the main risks of cash and investments are. Lastly, I will discuss performance and which provides a better return.

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Monday 5th April, 2021

The art of tax efficient investing

The best way I can demonstrate the impact of effective tax planning is through a little theoretical exercise I do with my UK clients. The first thing I ask them is how much income can a married couple, both aged 65, earn in retirement before they have to pay tax? The standard answer is £25,140 based on two personal Income Tax allowances. This answer is understandable, but incorrect.

Read about the art of tax efficient investing, or watch the video

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