Avc- Cornmarket vs Zurich

Discussion in 'Pensions' started by johnmurf83, Jul 14, 2017.

  1. johnmurf83

    johnmurf83 Frequent Poster

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    39
    I have an avc currently with Cornmarket. I was recently approached by a broker from PSRA, who claim to be an independent financial advisor, although I know myself they are not independent in the truest sense of the word. They want me to change over my avc from Cornmarket to Zurich Rebate Scheme. He claims I will pay significantly less fees if I move, as Zurich will rebate the annual management charge as long as I continue to contribute a minimum of €25 per month for the life of the pension. Both Cornmarket and Zurich charge entry fees of 5%. Anyone have experience of either or can offer any advice as regards the pros and cons. I know the entry fees are high with both. The obvious incentive for me is the 40% government contribution from my tax €€€s. I should add I am a public servant in my mid thirties.
     
  2. SBarrett

    SBarrett Frequent Poster

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    2,162
    Those rebate plans are a waste of time, especially being young as almost no one maintains pension payments for an entire working lifetime, even if your intention is to do so. Looking at the annual management fee of that product, the charge is 1.75%, significantly higher than what even Cornmarket are charging.


    By the way, The Central Bank's definition of independent is that he offers to do this work on a fee basis as well as commission basis. If he didn't offer you the option of a fee, he is not independent. The number of agencies he holds has is irrelevant.


    Steven
    www.bluewaterfp.ie
     
  3. johnmurf83

    johnmurf83 Frequent Poster

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    39
    Thanks for your reply. Just one more question, in terms of the rebate, if you adhere to the conditions and are entitled to the rebate, do they just refund 1.75% of the original sum invested or do they allow you to keep the money that has been made as a result of the investment also.
     
  4. johnmurf83

    johnmurf83 Frequent Poster

    Posts:
    39
    Just to clarify, do I get the benefit of the compound interest / gain that the 1.75% would potentially make over the years?