Index Tracking via a Pension

[Toshiba001]

I have a PRSA currently valued at 300k with Zurich with a 1% AMC with 20 years left to retirement.

The 2 actively managed funds that I'm in have a 5 year cumulative return of 64.54% & 71.67% before fees. The S&P 500 has gained 81.2% in the same period.

I know fees can have a big impact on growth and am thinking of switching the entire pension into a low cost S&P tracker for the next 10 years.

What is the best way to proceed? Do I need an Self Administered Pension to do this & will the costs (set-up & on-going charges) outweigh the benefits of lower fund fees over time?

 

[LDFerguson]

You don't say what Zurich funds you're in at present so I can't comment on the fund choices. But do remember that past performance is not a guide to future returns.

You can switch to a Standard Life PRSA investing in a Vanguard S&P500 index tracker fund with 100% investment and 0.65% AMC as the fund being switched is >€100,000.

Regards,

Liam
www.FergA.com

 

[GSheehy]

The S&P 500 has gained 81.2% in the same period.

Is that before or after fees?

The figures you've quoted for the mixed funds include part of the AMC, all Other Ongoing Costs and Portfolio Transaction Costs. You've also quoted Pension Funds, not PRSA Funds. The performance of both differs as some OOCs are not permitted to be charged to the customer on PRSAs so some PRSA Funds outperform Pension Funds if AMC was the same.

Why did you choose mixed asset funds and not 100% equity funds (like say 5*5 Americas, International Equity or 5*5 Global on the existing platform?


Gerard

 

[shipship]

You don't say what Zurich funds you're in at present so I can't comment on the fund choices. But do remember that past performance is not a guide to future returns.

You can switch to a Standard Life PRSA investing in a Vanguard S&P500 index tracker fund with 100% investment and 0.65% AMC as the fund being switched is >€100,000.

Regards,

Liam
www.FergA.com

Who is that available through?

 

[LDFerguson]

Who is that available through?

Any financial broker who has an agency agreement with Standard Life can offer this. There are other Standard Life PRSA charging options available with higher charges, so a broker could choose to sell a higher charge version. The above is the version we'd use.