A.V.C. PRSA does this represent good value

N

november16

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I purchased a lump sum PRSA AVC in october 22,000 of 10,000 from Broker who recommended New Ireland Assurance,
10,000 was invested as follows:
  1. Pension Cash Fund (6P) - Number of Units 3.033.386 Value of Fund 5, 032.39 - Annual fund charge 1%
  2. NS - Goodbody Dividend Income 3 (6P) Number of Units 4,012.290 Value of Fund 4,012.290 Annual fund Charge 1.2%
  3. Broker charged 500 euro and there is a Fund related charge 54.99
  4. Fund Value in June 10,011.64
Age 63 next birthday and will possibly have total 28 completed at age 65, based on 45.800 approx salary currently and pre-95 public/civil servant Fas. If considering purchasing additional AVC's, is this the best vehicle ref 2.2% and fee of approx 500 for another lump sum PRSA AVC. Could someone advise is that the norm charge for A.V.C.
 
There are a number of brokers who contribute to this board who offer execution only services, including AVC PRSAs. 100% investment of the contribution and annual charge 1% or less. But such deals come with no advice. Perhaps you can get the advice here and then get an execution only AVC PRSA. See this post.
 
november16 said:
  1. Pension Cash Fund (6P) - Number of Units 3.033.386 Value of Fund 5, 032.39 - Annual fund charge 1%
  2. NS - Goodbody Dividend Income 3 (6P) Number of Units 4,012.290 Value of Fund 4,012.290 Annual fund Charge 1.2%
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Those AMCs seem high to me.
Like @Fortune I'd question the logic of having so much in cash.
november16 said:
  1. Broker charged 500 euro and there is a Fund related charge 54.99
Click to expand...
More charges that seem high.
november16 said:
Age 63 next birthday and will possibly have total 28 completed
Click to expand...
I don't understand this - 28 what?
november16 said:
If considering purchasing additional AVC's, is this the best vehicle ref 2.2%
Click to expand...
Your AMCs seem high but not that high.
You are adding the two AMCs together to get 2.2%.
That doesn't make sense.
november16 said:
and fee of approx 500 for another lump sum PRSA AVC. Could someone advise is that the norm charge for A.V.C.
Click to expand...
See @Dave Vanian's post above and check out other threads on AVCs and AVCs for Public Servants in particular for more info.
 
Dave Vanian said:
There are a number of brokers who contribute to this board who offer execution only services, including AVC PRSAs. 100% investment of the contribution and annual charge 1% or less. But such deals come with no advice. Perhaps you can get the advice here and then get an execution only AVC PRSA. See this post.
Click to expand...
Thanks Dave Vanian but I don't have enough knowledge of A.V.C. and small monies (big for me though) to invest
 
ClubMan said:
Those AMCs seem high to me.
Like @Fortune I'd question the logic of having so much in cash.

More charges that seem high.

I don't understand this - 28 what?

Your AMCs seem high but not that high.
You are adding the two AMCs together to get 2.2%.
That doesn't make sense.

See @Dave Vanian's post above and check out other threads on AVCs and AVCs for Public Servants in particular for more info.
Click to expand...
Thanks very much Clubman
28 years service, that is why I'm trying to buy AVC but don't have enough knowledge in particular of charging structures AMC brokers fees and other possible fees
 
@november16

According to the NI website the annual performance of the Pension Cash Fund over the last 3 years is 1.6% pa and the Dividend Income one 5.6%. The website doesn't say what annual management charges is included in those but my guess would be none.

The broker probably advised you on that mix of funds as a result of a risk profile you completed. I'm assuming you're conservative and it was more about preservation of capital as opposed to growth?

If so, then there's usually enough funds available on a Standard PRSA to fit that profile - max AMC 1%. I suspect that the Goodbody one was not available on their Standard PRSA so 'justified' the broker in recommending a non-standard.

What you have is a Non-Standard PRSA and it looks like your AMCs are actually 1.5% & 1.7% on the value of the fund/s (assuming the fund related charge of €54.99 is 0.5% pa).

If you have the original policy certificate you should also check the allocation rate. With the current value I'd guess that it's not 100% so that was an extra charge again. If it's less than 100% then the €500 was very top heavy, if it was a separate charge. But, perhaps it's a 95% allocation contract?

What the others are saying is that you could buy a Standard PRSA with a 1% AMC and 100% of your money invested but that's for those that know exactly what they're looking for in terms of product, provider and fund/s.

Gerard.
 
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GSheehy said:
@november16

According to the NI website the annual performance of the Pension Cash Fund over the last 3 years is 1.6% pa and the Dividend Income one 5.6%. The website doesn't say what annual management charges is included in those but my guess would be none.

The broker probably advised you on that mix of funds as a result of a risk profile you completed. I'm assuming you're conservative and it was more about preservation of capital as opposed to growth?

If so, then there's usually enough funds available on a Standard PRSA to fit that profile - max AMC 1%. I suspect that the Goodbody one was not available on their Standard PRSA so 'justified' the broker in recommending a non-standard.

What you have is a Non-Standard PRSA and it looks like your AMCs are actually 1.5% & 1.7% on the value of the fund/s (assuming the fund related charge of €54.99 is 0.5% pa).

If you have the original policy certificate you should also check the allocation rate. With the current value I'd guess that it's not 100% so that was an extra charge again. If it's less than 100% then the €500 was very top heavy, if it was a separate charge. But, perhaps it's a 95% allocation contract?

What the others are saying is that you could buy a Standard PRSA with a 1% AMC and 100% of your money invested but that's for those that know exactly what they're looking for in terms of product, provider and fund/s.

Gerard.
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Thanks very much Gerard. I will look at the policy certificate, and yes that is a good point re knowing exactly what they or I am looking for, but the total fees as not transparent to me and I am not the only one who wishes they were, in order that an informed decision can be made at least in relation to costs of a product going forward. I dont have pots of money to throw.
 
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