AVCs - Lecturers, Teachers,Nurses, Gardai, Civil Servants etc. - wake up!
- Thread starter auburn
- Start date
I'm surprised an innovative broker hasn't moved into this market. A few phone calls to Joe Duffy, an ad in the INTO magazine and Bob's Your Uncle.
I'd be willing to invest (time & money)
i dont know what all the hulabulu is about there is plenty of alternatives to marsh cornmarket ipf etc. A quick google search will confirm this. as the oul saying goes if you want something done right do it yourself. anyone who blindly believes what the union is shoveling deserves what they get.
mulas tip for the day
stop whingin read the forums inform yourself do a few searchs, make a few calls, shop around and stop relying on someone else to do it for you
mula
i dont know what all the hulabulu is about there is plenty of alternatives to marsh cornmarket ipf etc. A quick google search will confirm this. as the oul saying goes if you want something done right do it yourself. anyone who blindly believes what the union is shoveling deserves what they get.
mulas tip for the day
stop whingin read the forums inform yourself do a few searchs, make a few calls, shop around and stop relying on someone else to do it for you
mula
I agree, unfortunately my experience of teacher and nurse friends is that they are not particularly clued up when it comes to finance. The are under the assumption that the Union is looking after their interested by recommending/ endorsing Cornmarket.
This is an excellent thread – most informative. I’ve studied the posts and have tried to summarise the info below and have set out some questions.
Background: I’m thinking of setting up an AVC. I’m 28 and have 7 years pensionable public service. I would like to have the option of retiring a little early or having a larger lump sum at retirement. It appears that an AVC is a good financial investment given the tax benefits whether one retires early or not………yeah?
What savings will I make by taking out my AVC with e.g. LA Brokers, LD Ferguson & Associates etc?
From my reading of the thread thus far this is what I reckon:
I avoid the 1% charge by my employer (the Dept of Ed) to forward on my AVC money to Cornmarket, I avoid an initial 5% up front charge on every € I put into AVC and an ongoing 1% annual management charge. And I avoid an initial charge of €800 to set up my AVC. Am I accurate on these facts?
What extra work will there be for me if I avoid Cornmarket and set up an AVC with eg. LA Brokers, LD Ferguson & Associates etc?
I will have to set up a direct debit and ring up the revenue to increase my tax credits to take account of my monthly contribution and apply to get my PRSI relief at the end of the year……that’s it yeah?
Other Questions:
If the process is so simple, why the hell are so many public servants paying theses extortionate fees to Cornmarket etc? Why are our unions supporting it?
Background: I’m thinking of setting up an AVC. I’m 28 and have 7 years pensionable public service. I would like to have the option of retiring a little early or having a larger lump sum at retirement. It appears that an AVC is a good financial investment given the tax benefits whether one retires early or not………yeah?
What savings will I make by taking out my AVC with e.g. LA Brokers, LD Ferguson & Associates etc?
From my reading of the thread thus far this is what I reckon:
I avoid the 1% charge by my employer (the Dept of Ed) to forward on my AVC money to Cornmarket, I avoid an initial 5% up front charge on every € I put into AVC and an ongoing 1% annual management charge. And I avoid an initial charge of €800 to set up my AVC. Am I accurate on these facts?
What extra work will there be for me if I avoid Cornmarket and set up an AVC with eg. LA Brokers, LD Ferguson & Associates etc?
I will have to set up a direct debit and ring up the revenue to increase my tax credits to take account of my monthly contribution and apply to get my PRSI relief at the end of the year……that’s it yeah?
Other Questions:
- What charges do brokers such as LA Brokers, LD Ferguson & Associates charge? Initial charges? Ongoing management charges? Charges to change funds?
- Do these brokers offer an execution only service (no advisory)?
- Would I have access to the same investment funds with these brokers as if I would have with Cornmarket e.g forestry, alternative energies etc?
- Are there ANY advantages in taking out a Cornmarket AVC over one with LA Brokers or LD Ferguson?
- What is the minimum amount I can put towards my AVC? Was thinking about €100 a month – thus €60 net cost when I get my tax back
If the process is so simple, why the hell are so many public servants paying theses extortionate fees to Cornmarket etc? Why are our unions supporting it?
I am not a financially qualified expert and not connected to the associates you named above. Good luck with it. Willbee.
Cheers for your help Willbee. Now I need to get a move on and get this AVC in action....who would want to work until they are 65?!
Looks like Cornmarket is for mugs..................Maybe as CN624 suggested above, some broker would be interested in recruiting me to forward on half the public service and get them away from the Cornmarket rut!
Looks like Cornmarket is for mugs..................Maybe as CN624 suggested above, some broker would be interested in recruiting me to forward on half the public service and get them away from the Cornmarket rut!
You are correct wrt the PRSA charges. My point was that the charge imposed by the DEpt. is NOT a PRSA charge, but a charge imposed by the Dept. to "compensate" it for the "difficulties" in collecting the contributions before passing them on to Cornmarket. As such, this 1% doesn't appear, nor is it required to, on your annual statement.
You'll find info on it [broken link removed].
This is the text from the above link:
Dáil Éireann - Volume 574 - 11 November, 2003
Written Answers. - AVC Scheme.Mr. Kenny Mr. Kenny
262. Mr. Kenny asked the Minister for Education and Science the charges or levies a company (details supplied) impose on teachers with respect to the AVC scheme. [26448/03]
Mr. Dempsey Mr. Dempsey
Minister for Education and Science (Mr. Dempsey): My Department currently takes a 1% handling fee by way of a deduction from the total contributions of members in respect of all the products operated under the deduction at source arrangements for Cornmarket. The role of my Department is to operate the deduction facility. The issue of any charges or levies that the company referred to by the Deputy may impose on teachers is a matter between the company, the individual teacher and the relevant teacher union.
PS I've just re-read it an was surprised to see that, all along, I'd missed the "all products" bit - so that includes life insurance, PHI etc.
Misinformation is the word of the day apparently!
Note that the deductions charge applied by the Department of Education no longer applies & hasnt done so for some time. The quote above is from 2003.
Furthermore, there has not been a 'top up' charge since December 2006.
Also 'Bedlam' where did you dream up your 9% charge?
As a member of The I.N.T.O. for about 10 years now, I watched the PrimeTime Programme with delight..I have been preaching to fellow colleagues for years to steer clear of these guys.. I truly do feel for those people who have seen the value of their Pension funds drop in the last few months.
I have had the pleasure of the hard-sale tactics of these Cornmarket agents on two occasions as I thought strongly about setting up an AVC.
I read the small print. I asked a few awkward questions and was informed on one occasion that I would need to organise a consultation before I would receive any answers (at a cost of 400euros approx., as far as i can remember)--this confirmed what I suspected. Cornmarket will tell you almost anything to get that signature on the dotted line.
As I see it, there are three parties to blame in this equation
1. The teachers--allegedly intelligent people should have read the small print--asked the questions and should know that there is risk when investing in equities.
2.Cornmarket: If people who took out AVCs did so under false information or mis-selling, then Cornmarket should be hauled over the coals and fined heavily by The Financial Regulator. I personally despise Cornmarket. They are not competitive, they believe and perhaps rightly so that teachers are a push-over for the hard-sell.
3.The Unions: John Carr publicly admitted that there had been complaints.
He then tried to claim that the I.N.T.O. had looked into these claims. I cannot decide which is worse. He "did" look into it and found nothing wrong or he "didn't" bother his backside to look into it--probably too few complainers to rock the boat of the higher executive..
As a Union member who has paid subscription fees for over ten years, I am asking myself if like Cornmarket AVCs, is this a value for money product. I certainly will be looking for alternatives.....
I have had the pleasure of the hard-sale tactics of these Cornmarket agents on two occasions as I thought strongly about setting up an AVC.
I read the small print. I asked a few awkward questions and was informed on one occasion that I would need to organise a consultation before I would receive any answers (at a cost of 400euros approx., as far as i can remember)--this confirmed what I suspected. Cornmarket will tell you almost anything to get that signature on the dotted line.
As I see it, there are three parties to blame in this equation
1. The teachers--allegedly intelligent people should have read the small print--asked the questions and should know that there is risk when investing in equities.
2.Cornmarket: If people who took out AVCs did so under false information or mis-selling, then Cornmarket should be hauled over the coals and fined heavily by The Financial Regulator. I personally despise Cornmarket. They are not competitive, they believe and perhaps rightly so that teachers are a push-over for the hard-sell.
3.The Unions: John Carr publicly admitted that there had been complaints.
He then tried to claim that the I.N.T.O. had looked into these claims. I cannot decide which is worse. He "did" look into it and found nothing wrong or he "didn't" bother his backside to look into it--probably too few complainers to rock the boat of the higher executive..
As a Union member who has paid subscription fees for over ten years, I am asking myself if like Cornmarket AVCs, is this a value for money product. I certainly will be looking for alternatives.....
Hi Dillage,
The 9% in charges were taken from an Irish Life benefit statement for the ASTI Scheme through Cornmarket for the year 2004
Shown as follows: total contributions 7093.02
Less Cornmarket Top Up Consultancy Fee 226.03
Less Admin chg and Consultancy Fee 625. 48
Nett amount to investment 6241. 51
And this 9% was ignoring the Top up fee (as a once off), were this added on the total % deduction came to 12%
Thanks
Bedlam
The 9% in charges were taken from an Irish Life benefit statement for the ASTI Scheme through Cornmarket for the year 2004
Shown as follows: total contributions 7093.02
Less Cornmarket Top Up Consultancy Fee 226.03
Less Admin chg and Consultancy Fee 625. 48
Nett amount to investment 6241. 51
And this 9% was ignoring the Top up fee (as a once off), were this added on the total % deduction came to 12%
Thanks
Bedlam
E
europal
Guest
It is not simply the case that people need to wake up.
A number of years ago I went to the bother of finding a suitable PRSA and provider, but on approaching my employer (a third level institution) to arrange deductions through payroll I discovered that they had an 'exclusive' agreement with Marsh Ireland for all pension arrangements (all Irish Life products), therefore if I wanted the most convenient pension solution I had no option but to use Marsh.
I did try to arrange this PRSA outside of direct deductions through payroll, but on advising my preferred provider of the situation they simply backed away from the situation as they were not willing to step on the toes of the larger operator.
My oppinion is that the all employers should be obliged to provide deductions through payroll for at least two providers so that there is some element of competition. Otherwise one large operator can simply tie up the entire business from large organisations as has been documented in several situations recently.
A number of years ago I went to the bother of finding a suitable PRSA and provider, but on approaching my employer (a third level institution) to arrange deductions through payroll I discovered that they had an 'exclusive' agreement with Marsh Ireland for all pension arrangements (all Irish Life products), therefore if I wanted the most convenient pension solution I had no option but to use Marsh.
I did try to arrange this PRSA outside of direct deductions through payroll, but on advising my preferred provider of the situation they simply backed away from the situation as they were not willing to step on the toes of the larger operator.
My oppinion is that the all employers should be obliged to provide deductions through payroll for at least two providers so that there is some element of competition. Otherwise one large operator can simply tie up the entire business from large organisations as has been documented in several situations recently.
Keizer Soze
Registered User
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I'm in the guards and ours are done through PenPro in Stillorgan. I'm unsure of the details of their charges so I'm definitely looking into it after reading this!
E
ecdarg
Guest
5%contribution 1%annual managment, Finders fee, they all get paid.
i suposse its all about how much your willing to pay to get a service your happy with.
if certain providers like the ones mentioned on this site other than cornmarket/marsh can offer better products why dont they get in to schools and offer their services.
i suposse its all about how much your willing to pay to get a service your happy with.
if certain providers like the ones mentioned on this site other than cornmarket/marsh can offer better products why dont they get in to schools and offer their services.