this 5% goes do cornmarket if it was execution only there would be no 5% chargeCornmarket told me that Zurich will take 5% of a lump sum payment too (cornmarket will take nothing, because its execution only)
again the 3% is paid by zurich to cornmarket if it was execution only there would be no 3%The guys at Zurich take a 5% of the money they receive into the AVC (sounds a lot but it's true). And they take again another 3% to set up an ARF. That's about 1600 fees (the 20'000 becomes 18'400)
as she has been advised to put this into an arf i am presuming she will have taken her max tax free cash from her avc? if so how can she take 18,400 tax free next year? what is her superannuation pension going to be?she can claim back tax at the 20% rate (or is it 21%) on all of this......and PRSI. Lets say the combined salary of my parents is 81'000.
Correct me if I'm wrong, as a ballpark she might get a refund of say 5'000 from revenue...My mother can take out the 18'400 from the ARF next year (without paying any tax on it, because her income will be small)
Sounds like a good bet, doesn't it ?
Or are my maths wrong ?
on the figures you have given i doubt it. Worst scenario is she is taxed on the way out at 20% which cancels out the tax relief given.Then take cornmarkets charges and early exit fees she could end up being down over 8%She has been advised by an accountant not to go ahead (on the grounds that the fees are too high, and it's too complicated, and too risky !!
I know nothing about AVCs and ARFs apart from what I read on the internet last night (mostly on AAM) over the course of about 2 hours ! but I think my mother should put the 20'000 in the AVC and set up an ARF......
Am I right ?
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