Cornmarket too good to be true?

D

Donrr123

New Member
Messages
7
I have been shopping around on the pension such as cornmarket, tried to contact Davy but no success.

I had the first finance advisor meeting about two weeks ago from irish pension and finance, the only charge is 4% allocation plus 0.75% AMC after first year, first year is 34% allcation rate + 0.75% AMC, they said this is to cover the consultation fees and it is free after that. It sounds alright since it is only 0.75% AMC.

Today I met another finance advisor from Cornmarket, so basically no allocation rate, AMC 1% below 40k, 0.75% 40k-140k and 0.5% after 140k, which can be seen from the booklet terms of business Noverber, 2023, page 6. He claims that there is no other fees. There is 4% allocation rate if it is a once off payment (such as if I put 10k inside)

Overall, this Cornmarket just look way too promising and I can't think of any other companies do offer AMC as low as 0.5%, is there a catch here I didn't see?
 
Brendan Burgess said:
Does this mean that if you put in €10k, they up it to €10,400?

They seem cheaper than the execution only PRSAs

Brendan
Click to expand...
That means they will take away €400, like if I deposit €10,000 in one go, rather than deducting from my gross salary each paycheck

Comparing labrokers or prsa which Brendan suggested. They still charge 1% and 0.75%.


Cornmarket still seems to offer the best pension for AVC, where it has a structure of 1% below 40k, 0.75% 40k-140k and 0.5% after 140k


The minimum contribution he said is €75 per month(or per two weeks I forgot) and €397 max (Due to my age and revenue limit)
 
Last edited:
Donrr123 said:
That means they will take away €400, like if I deposit €10,000 in one go, rather than deducting from my gross salary each paycheck

Comparing labrokers or prsa which Brendan suggested. They still charge 1% and 0.75%.


Cornmarket still seems to offer the best pension for AVC, where it has a structure of 1% below 40k, 0.75% 40k-140k and 0.5% after 140k


The minimum contribution he said is €75 per month(or per two weeks I forgot) and €397 max (Due to my age and revenue limit)
Click to expand...
I’m not sure that makes sense and personally I would run a mile.
 
Gordon Gekko said:
I’m not sure that makes sense and personally I would run a mile.
Click to expand...
I think a lot of people from the public sector using Cornmarket at the moment and they come to us for advertising quite a lot, they also seems to partner with Forsa.

I am looking up the PRSA website and LAbrokers they seem to offer the same thing where it is 1% AMC and 100% allocation rate and no other fees.
I would assume it is still a bit worst than irish pension and finance 96% allocation rate + 0.75% AMC.
 
If I stick €1,000 in and the provider takes €40, a annual management charge differential of 0.25% is going to take 16 years to make up, ignoring investment growth.
 
Well I am just quiet new to the pension so it was my mistake who always gets confused

The link as below

https: //cornmarket. cdn .prismic. io/cornmarket/b22c5cb0-b5bb-410c-a77d-e0ec0baae8b3_CM+TOB+Booklet+%2819321-2311-FA%29 .pdf
 
Donrr123 said:
Overall, this Cornmarket just look way too promising and I can't think of any other companies do offer AMC as low as 0.5%, is there a catch here I didn't see?
Click to expand...

Did he mention anything about any conditions attaching to the scaled AMC? The reason I ask is that pricing actuaries design these and it's highly likely that it's weighted in favor of the pension provider, if X, Y, and Z conditions are not met. If there are conditions like this and the advisor failed to mention them at the point of sale then choose another advisor.

It's an Occupational Pension type AVC where there are no disclosure requirements on commission AFIK. It's not a PRSA AVC.

"He claims that there are no other fees" - I'd read that as no other fees that he has to disclose, because those funds will have other ongoing costs and those tend to be higher for non PRSA products.

My guess is that it's with Irish Life but you should establish who the provider is first and then request a copy of the policy conditions. Look at what funds are available @ the 'typical' 1% AMC.

If the fund you wanted was 1.6%, would you end up with an AMC of 1.1% after reductions for fund value? What other conditions apply to the reductions eg. If you pause, skip or reduce the amount you're contributing are all bets off? If you put in a lump sum of €50K on top of the regular contribution, and paid your €2,000 to do that, do you qualify for the 0.75% immediately?


Gerard

www.prsa.ie
 
Hi Gerard,

I am 47 and have recently joined the public service at a higher grade so will not have the 40y service and believe I have a lot of scope for using AVCs which I wish to start very soon. My confusion on the execution only options, I was hoping you could help with, is around how to claim back the tax relieve on the contributions. I understand using Cornmarket this is typically done at source. For execution only do I need to apply for these on the Revenue site? For example if I had a 200 monthly AVC during 2024 through an Execution only PRSA do I apply for relieve through the Revenue site of 2400 euros at the end of 2024?

Thanks,
Lastbuilders

GSheehy said:
Did he mention anything about any conditions attaching to the scaled AMC? The reason I ask is that pricing actuaries design these and it's highly likely that it's weighted in favor of the pension provider, if X, Y, and Z conditions are not met. If there are conditions like this and the advisor failed to mention them at the point of sale then choose another advisor.

It's an Occupational Pension type AVC where there are no disclosure requirements on commission AFIK. It's not a PRSA AVC.

"He claims that there are no other fees" - I'd read that as no other fees that he has to disclose, because those funds will have other ongoing costs and those tend to be higher for non PRSA products.

My guess is that it's with Irish Life but you should establish who the provider is first and then request a copy of the policy conditions. Look at what funds are available @ the 'typical' 1% AMC.

If the fund you wanted was 1.6%, would you end up with an AMC of 1.1% after reductions for fund value? What other conditions apply to the reductions eg. If you pause, skip or reduce the amount you're contributing are all bets off? If you put in a lump sum of €50K on top of the regular contribution, and paid your €2,000 to do that, do you qualify for the 0.75% immediately?


Gerard

www.prsa.ie
Click to expand...
 
I have a similar problem/query to lastbuilders. I have an execution only PRSA AVC with Zurich and yes you need to log on to My account at Revenue and try to input the data yourself in order to receive the tax relief. I started paying into my AVC mid way through last year and after numerous attempts in My Account and through Enquiries I managed to get Revenue to adjust my tax credit accordingly. But not before several incorrect payslips, it was frustrating and time consuming. You have to upload your certificate proving that you are making this AVC contribution, difficult in itself as documents don't upload easily on the Revenue site. Now this year I have to start again as so far in 2024 I'm not being credited for my ongoing monthly contribution. I think the onus is on you to re apply each year. In addition I made two lump sum payments to my fund last year and it is a nightmare trying to get relief for these payments. I've sent enquiries through My Account but so far nothing back. In hindsight I would have gone with Cornmarket to save myself the hassle, more expensive but perhaps worth it.
 
@lastbuilders Have a look at the links in this post https://askaboutmoney.com/threads/c...lump-sum-or-regular-contribution-avcs.220671/

For regular contribution you can upload the PRSA2 Certificate after you receive it from the product provider.

What Revenue do is that they split the relief between a credit adjustment and an amendment to standard rate cut off. They expand standard rate cut off point to allow for the remainder of the relief.

No idea why they do that but that's how it works.

@acequion I don't use My Account so have no working knowledge of it. If you upload the proof that you're making the regular contribution AVC then you don't need to do anything else as long as the contribution stays the same.

Did you go through the process (in the links above) for the relevant tax year for the SPs? I don't see how it would be less hassle going though Cornmarket to resolve, what appears to be, a Revenue My Account issue.

Only time I've had clients come back to me on the My Account process is when it's not clear how the adjustment works on regular contribution and then I send them the text about Revenue splitting the relief and that usually does it.

Gerard

www.prsa.ie
 
Gerard, thanks so much for taking the time to reply and thanks for the help. Could you tell me how Revenue give relief for one off lump sum payments please? Do they put it into your bank account as they do for Med expenses? Or do they just adjust your credits? You see I got my second pay check of 2024 today and my tax credit is much higher than last pay check when I got no credit. I'm wondering if the €2.000 paid by lump sum in 2023 is lumped in with the credit for the regular monthly payments in 2024. Would you have any idea? I find it very difficult to get any information from them, it's so frustrating. Thanks again.
 
Log into your Revenue account, and check your tax credits.

The pension contributions might be there.
 
If you claim it as a lum sum payment I'd presume they pay it to your bank account if they have the detail. If not, a cheque by post after circa two weeks.

Is it possible you submitted it as a regular contribution and that's thrown it into disarray, as the Certificate didn't match the payment frequency?

Again, I've no working knowledge of My Account so I'm just guessing as to what might have gone awry.

Gerard.
 
Has anyone ever got to the crux of why the Forsa are so cosy with Cornmarket?
I too am relatively new to the public sector. I started AVC's 3 years ago & all I can tell you is at this moment my fund is worth 10% less than what I put in. Another point.... why is New Ireland the provider when they have consistently given worst returns over last 10 years.
Im very disappointed so far & the approx figures Cornmarket gave me on retirement will def not be reached unless there is serious upswing over next few years.
 
You must log in or register to reply here.
Back
Top