How to keep the costs of PRSA down

C

conor71

Guest
I am doing some research on setting up my own PRSA, and am trying to figure out the least expensive way of doing so. I was very surprised to find a charge of 5% for the privilege of simply depositing money with an institution, especially when I understand these schemes have been set up to be rather standard. On the other hand I don't have a problem in paying a % fee to an institution to manage my investment. Anyway, any ideas of how to reduce at least the 5%, preferably to zero? I see a site called LABrokers advertising this, but they only offer Irish Life.
Thanks for any help or comments generally.
 
Standard PRSA charges are capped at 5% of each contribution and 1% annual management charge on the full fund value and many PRSAs will charge these amounts. Probably the best way to keep the charges down is to pay an intermediary a once off flat fee (usually something like €100-€200) to arrange the PRSA for you and thereby benefit from lower charges - often something like 0%/1% instead of 5%/1%. If you can select an appropriate PRSA product yourself then you can do this on an execution only basis. Otherwise you will need advice and it may cost more (in terms of the flat fee charged or ongoing charges).

Keep a close eye on charges but also make sure that you choose a PRSA that is suitable to your needs otherwise (e.g. suitable range of funds, good administration etc.).

I've dealt personally with Liam Ferguson but others such as LABrokers etc. do similar offers - try browsing the rest of this forum for more offers:

[broken link removed]
www.labrokers.ie
 
... also, if you are arranging a "standalong" PRSA (i.e. not making contributions on a net pay basis through payroll and thereby benefiting from tax and PRSI/health levy relief "at source") you will have to deal with this yourself by applying directly to the Revenue for tax relief and either the Revenue or Social Welfare for PRSI/health levy relief in respect of PRSA contributions from after tax income. I'm still waiting for word back on my PRSI/health levy relief claim ... :|
 
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