Best self directed pension

Discussion in 'Pensions' started by Connard, Mar 9, 2017.

  1. SBarrett

    SBarrett Frequent Poster

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    Friends First do have a contact with an AMC of 0.4% if you use ETFs/ Indexed funds. That contract has a whopping big policy fee of €120 a year.

    Steven
    www.bluewaterfp.ie
     
  2. Gordon Gekko

    Gordon Gekko Frequent Poster

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    Steven,

    That's good to know; not whopping in the context of a meaningful sized fund.

    Gordon
     
  3. SBarrett

    SBarrett Frequent Poster

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    Whopping in comparison to what else is charged. The highest policy fee I've seen before that is €5 a month.

    But agree, if you have a decent size fund, a monetary fee has a smaller effect than a percentage based fee.


    Steven
    www.bluewaterfp.ie
     
  4. Sarenco

    Sarenco Frequent Poster

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    The policy fee adds 0.012% to the AMC on a €1m portfolio. That's fairly trivial in the grand scheme of things.
     
  5. Connard

    Connard Frequent Poster

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    True but when you're building that fund from nothing up to €1m then it is expensive. If you could start off somewhere cheaper and transfer into that friends first account when you have a decent sized portfolio then that would be ideal.
     
  6. Sarenco

    Sarenco Frequent Poster

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    Absolutely - assuming you can get a 100% allocation.

    On that basis, by my calculations, the Friends First offering starts to look cheaper than the Davy offering once the portfolio reaches around €25k.
     
  7. mtk

    mtk Frequent Poster

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    Last edited: Mar 15, 2017
    nice to know
     
    Last edited: Mar 15, 2017
  8. Connard

    Connard Frequent Poster

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    My calculations give a figure of €34,286. Davy is at .75% AMC whereas FF is a .4% AMC and €120. So, 120 has to be less than .35% of the fund value. 342.86 * .35 = 120.01.

    So below €34,286 Davy is cheaper, over that FF is cheaper.
     
  9. Sarenco

    Sarenco Frequent Poster

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    I think you need to add the weighted average TER of the underlying ETFs/funds to Davy's 0.75% wrapper cost - I assumed 0.15%.
     
  10. Connard

    Connard Frequent Poster

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    Surely there is a cost for ETFs and funds with FF as well. If you get the same ETF through Davy and FF then wouldn't the cost be the same?
     
  11. Sarenco

    Sarenco Frequent Poster

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    As I understand it (and perhaps Steven might be good enough to correct if I'm wrong), Friends First offer a self-directed investment option (through Cantor FitzGerald) for 75bps (or 50bps plus a policy fee of €120). So you would have to add the cost of the underlying ETFs to get to the total cost of that option.

    Separately, Friends First offer a range of State Street index funds for 65bps (or 40bps plus a policy fee of €120) but there is no additional charge to access these funds.
     
  12. SBarrett

    SBarrett Frequent Poster

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    I can't find anything on Friends First's broker site about the charging structures of their self directed options with Cantor. I see on the Cantor site, they also use Zurich as a wrapper.

    On the Zurich site, the AMC is 1% for the self directed option.

    I use Conexim for self directed pensions. They have teamed up with ITC to provide their wrapper. The base charge for a PRSA is 0.5%. A SSAS is 0.4%.


    Steven
    www.bluewaterfp.ie
     
  13. letitroll

    letitroll Registered User

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    Anyone have link for Friends First 0.4% / 120e product? Cant seem to see it online, do you need a broker to access or can you ring them directly?