AVC Questions

[illingworth22]

I started a Cornmarket AVC when I started working for the HSE 10 years ago and last year, under the advice of a BOI sales guy I started one with them. I started the BOI AVC as the costs and Management were a lot lower than the Cornmarket AVC. I was told that it would be a simple task to transfer the old (Cornmarket) AVC funds into the new (BOI) one. This is not so easy as there now seems to be penalties and potential losses of bonuses if I close the first AVC.

I now don't know what to do. I have stopped paying in to the first AVC and I pay into the latter BOI AVC. I am concerned that the Management fees on the old AVC will slowly erode it. Should I transfer, keep the first and restart payments thus having two AVS funds.....
It's not as simple as I first thought.

 

[Dan Murray]

Unfortunately, in my opinion, the lads and lassies in BOI (and other similar institutions) are more like sellers than advisors. I've had personal experience of them making fantastic claims to me. The last time I attended one such guru was a few years ago. Meeting concluded along the following lines: "so, what your saying to me is x and y" sez I. "Exactly" sez she. "Can you confirm that in writing please and I'll have a think about it."..............the e-mail is still in the post........and I actually sent a reminder (for the craic) and copied in the bank manager at whose insistence, I had attended the bloody meeting in the first place! Unbelievable, well not really!

As an aside, in my opinion, financial advice should ideally be on a fee only basis. [Note: many advisors will claim to be fee based - which is not the same thing - as fee only advice. It is true that fee based advice is better than commission based advice but not as transparent as fee only advice.]

In order to progress your own situation, can you:
1. Set out the charging structure of both plans; and
2. Summarise the rationale given for terminating one contract and establishing a new one in the "reasons why" letter.