Where to invest small lump sum and monthly additions?

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colly

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I have about 7-8k currently spread between a deposit account and also in some US Shares which are not doing much and I want to get out of.

I want to put them in a decent investment, one which I can add to on a monthly/quarterly basis - and not have to wait an age if I want to withdraw.

I have not done a huge amount of research but I think index funds are probably a good start.

Some options:

[broken link removed]
[broken link removed]
Irish Life

Any advice further than this?
Thanks
 
Quinn Life and Rabo would also be contenders maybe also Friends First...other than that, you have already picked out the main contenders for this type of savings vehicle.
 
Quinn life are probably your best bet if you don't want exit charges. Otherwise by going through a broker and with a minimum lump sum of €7,500 I think Eagle star have an offer of 1% annual management charges which is a good deal charges-wise imho.
 
gravitygirl said:
Quinn life are probably your best bet if you don't want exit charges. Otherwise by going through a broker and with a minimum lump sum of €7,500 I think Eagle star have an offer of 1% annual management charges which is a good deal charges-wise imho.
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There would be no exit charges on any regular savings plan set up on a nil commission basis with any of the providers listed above.

Also, the 1% fund management charge from Eagle Star is available even if there is no lump-sum just a regular saving plan.
 
South said:
There would be no exit charges on any regular savings plan set up on a nil commission basis with any of the providers listed above.
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You should be aware, however, that some may have early encashment charges if you cash in your investment within, typically, five years.

For example, Eagle Star have a tapering charge of 5% in year one, reducing to 1% in year five on their 5*5 funds.

This may not be a problem if you are investing for the medium to long term, but if you want to be in a position to cash in without penalty should unforeseen circumstances arise, watch out for these types of charge.
 
On nil commission policies that I have seen with ES, there is no such penalty, I guess it depends on how the policy is set-up...
 
Quinn Life and Rabo would also be contenders maybe also Friends First...
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Friends First's Saver First product has a €3.75 monthly policy fee, 2.5% annual management charge for the first five years and early exit penalties in the first six years.

It's worth pointing out to colly that any "nil commission" deals mentioned in this thread will typically involve paying a fee to the agent. This may be obvious to those in the know, but not so to those outside that circle. The exception to this is Quinn Life but you would typically deal directly with them.
 
The Friends First policy has a 106% allocation in the first three years and 104% allocation thereafter, the fund management fee dips to 2% from year 6 onwards and to 1.5% from year 16 (if a saver makes it that far!!).

Remember also that some apparently nil commission deals are not nil commission at all.
 
Annual management charge of 2% and more for the first 15 years is expensive.

Remember also that some apparently nil commission deals are not nil commission at all.
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Do you mean over-ride commission, where many brokers get paid a commission from insurance companies based on the volume and quality of business done with them? This is not deducted directly from individual policies.

Or do you mean something else?
 
An allocation rate of 106% and 104% is, by contrast, very generous.

Yes, I have seen some advertising of a lump-sum and regular savings policy as nil-commission whereas there is in fact an over-ride commission payable.
 
Minimum realistic term on the Friends First Savings Plus is 6 years as penalties apply before then.

Assuming €250 level contribution with €8,000 lump sum at the start at 6% growth the projected value after 10 years is €45,863 after tax on the Friends First plan on a "nil commission" basis.

Exact same projection using the same assumptions on [broken link removed] of the Eagle Star Savings Plan gives a projected value of €48,610. And that includes commission for us, so a client wouldn't be paying a fee.

Do you still believe that Friends First's 106% allocation for 3 years, 104% for subsequent years is generous?

On the other point, nil commission is a bit of misnomer, although the industry and those working within it have yet to come up with an alternative that best describes the practice. Traditionally "nil commission" has been used to describe the allocation rates and charges where a broker chooses to forego all policy-level commission so that the client can get the highest available allocation rates / lowest annual management charges. A broker cannot forego over-ride commission for the benefit of the client and whether or not a broker receives over-ride commission has no bearing on a client's charging structure. "Reduced commission" would suggest that a broker has the option to reduce further, which they don't. We need a good superlative term. :cool:

Obviously over-ride commission must always be disclosed.
 
I would think that the ES deal which refunds the 10% commission and charges a flat fee of €200 would be a far better deal than the ES package that you mentioned...so long as the annual premium is over €2,000 - which it clearly is once the monthly premium goes €167.

If the lump-sum were very large, the FF deal with 106% allocation would obviously have a better chance of being the better deal...each case would need to be reviewed on its own merits.
 
I would think that the ES deal which refunds the 10% commission and charges a flat fee of €200 would be a far better deal than the ES package that you mentioned...so long as the annual premium is over €2,000 - which it clearly is once the monthly premium goes €167.
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Can you point me to a link where such a deal exists?

If the lump-sum were very large, the FF deal with 106% allocation would obviously have a better chance of being the better deal...each case would need to be reviewed on its own merits.
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If the lump sum were very large, this product would represent awful advice - you'd get far better terms on a lump-sum only product.
 
My family's firm provide such a product, a few people on this site have already taken advantage of it, feel free to PM me if you want further info.

In relation to the lump-sum, as I have already told you, each case would need to be reviewed on its merits I was merely disproving your theory that the FF deal could not match the ES deal it clearly could...
 
My family's firm provide such a product, a few people on this site have already taken advantage of it, feel free to PM me if you want further info.
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This represents an excellent deal. I'm curious as to why it can only accessed via PM through yourself.

In relation to the lump-sum, as I have already told you, each case would need to be reviewed on its merits I was merely disproving your theory that the FF deal could not match the ES deal it clearly could...
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You misunderstood. I didn't have such a theory. I was merely disproving your original statement that for the original poster, "Quinn Life and Rabo would also be contenders maybe also Friends First..."
 
Because its their firm and that is the way they wish to control traffic to the firm's resources.

If FF could match ES (as you seem to be admitting above) - then how could it not be a contender?
 
Because the only situation where Friends First might beat Eagle Star would be where the lump sum was large. This is irrelevant because the original poster says their lump sum is 7K - 8K.

Let's start again - for the original poster's stated requirement, do you still think Friends First may be a contender?
 
I have reworked the figures and the FF fund in your example is out a bit, it should be €47.3K after tax so...as I said originally, there are a number of contenders, FF could be one (depends on term of investment).

As I said at the outset, I would review each case on its merits, the size of the monthly premium and the timeframe are unknowns at this stage so there should be a number of contenders considered in my view including all those that I mentioned initially.
 
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