Amount | € 100,000 | |||
Allocation | 102% | |||
Invested | € 102,000 | |||
Illustrative Annual fee | 2.41% | using Irish Life MAPS 4 Investment Bond product as a proxy because fee disclosure for ARF is opaque | ||
Commission | 3.00% | |||
Commission Paid | € 3,000.00 | 5% Growth | Charge | |
Year | 1 | € 107,100 | € 2,581.11 | |
Year | 2 | € 109,744.83 | € 2,644.85 | |
Year | 3 | € 112,454.98 | € 2,710.17 | |
Year | 4 | € 115,232.06 | € 2,777.09 | |
Year | 5 | € 118,077.71 | € 2,845.67 | |
Cummulative Charges | € 13,558.89 | |||
It looks like the commission is "only 1%" when you focus on allocation rates | ||||
For illustrative purposes only |
Is this standard and is this avoidable by using an execution only broker? Thanks.
This makes sense and the numbers stack up approximately. Thank you for taking the time to explain it to me.This is exactly the reason the legislation around disclosure needs to be looked at!
Looking at year 5 the disclosure calculation assumes you haven’t full draw down your fund until exactly that point in time. Therefore as you’ve held onto the policy for 5 years you will have had 5 years of 1.25 % deducted. Therefore the total expenses and charges to date are 5 years worth of AMC deductions and the penalty applying at that date.
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