Is this a good deal

W

WillGilbert

Guest
I am a proprietry director and have not been contributing much to a pension scheme fro last 10 years. There is an amount of money built up in the Comopany Bank account.

Onr of the Main Irish life insurance companies has suggested I take out a 'Company Pension Scheme', where the Company, on my Behalf, can input about 200% of my salary. This sounds like a good idea as it will make up for lost time.

The charges quoted are 2% of Premium and 1 % of the Fund

Is this a good deal ?
 
It does not sound very inspired, what is the approx annual  contribution you're considering?
 
Contributions for first say 3 years I expect to pay in c 15,00 per year
to make up for lost time and then mabybe c 3,000 per year

What exactly is uninspring ?

I was comparing it with PRSA , where the annual charge is 5% (versus 2 %) and the Fund charge (1%) versus 1% which most companies seem to be charging.

The benefits I see are as follows:

1. Going Company reoute... it allows me in effect to contribute way more than a prsa
2. 2% has got to be btetter than 5 %
3. 1% is no more than the 1% quoted by most other companies.
 
Well we and other execution only brokers set up PRSA for 0 percent contribution fee and a one off payment of 250 so it is clearly uninspiring compared to that, also what investment manager is it - an important decision, and one that you would need to consider.
 
CapitalCCC's 0%/1% PRSA for a once off fee of €250 seems pretty good to me assuming that it gives you the underwriter/fund(s) that suits your specific needs. Some other brokers may do similar deals but, as we found here on AAM in the past, finding them can be difficult. If it was a choice between CapitalCCC's and your other offer then all things being equal I would certainly condider the former unless you can clearly identify good reasons for paying higher charges.
CapitalCCC said:
also what investment manager is it - an important decision, and one that you would need to consider.
Click to expand...
You should probably also consider index tracking funds while you're at it.
 
I am not so sure that index tracking funds are all that, if an index tracking approach were to be used, a minimum of three different geographic indices should be used, for example a tracker fund that tracks US equities is far too exposed to one economy for my liking.
 
My comments are not all encompassing financial advice but there is a strong argument for index tracking funds over actively managed funds. Just Google for more information if you are interested.
 
Hi Club - I hope you don't mind me saying, but if I were you I would not believe everything I read on Google.

In particular, bear in mind that 80% to 90% of investment success by Pension Funds is attributable to Asset Allocation and Geographic Selection within Asset Classes.

It seems to me that you are concentrating on the very narrow, and relatively less important area of individual stock selection, when you always mention indexed investing.

Remember that index investing is fine for US Pension Funds that have advisers to help them choose the appropriate Asset Allocation and Geographic split of the assets - it is only when those major decisions have been made that the various indices to reflect those choices are selected.

Index Investing on its own - without consideration of the asset allocation and geographic split - is not really a strategy.
 
A no. of people on this forum have said that you can get PRSA for a flat set up amount and then a % (less than or equal to 1 %)

Howvere, only 1 (CapitalCCC was mentioned .. is this an Insurance company , a broker , on line co. or what)

Is this really the case. I saw one thread on this forum with about 15 replies which stated the same thing about a particular insurance company, and the very last thread item mentioned that when they contacted the partcular offerror, the rates were in fact higer than stated.

I would appreciate it if someone could jump in here and list those comapnies which offer a better deal on PRSA's than 1% of the fund and 2% of the premium. Most comments here suggestt that they are difficult to find.... A euphmism for perhaps they dont exist !!!
 
Capitalccc is a person working for a broker.

Please PM if you want further information.
 
WillGilbert,

yes it is possible to get a PRSA with 0% fees on your contributions and an annual 1% mgt charge.

These low-cost PRSAs are sold by discount insurance brokers. They are not sold by the life assurer themselves.

To get these policies, you would pay the broker a fee of 150-250 euro. You would get no or very little advice, i.e. you need to know what you want.

Such brokers include www.labrokers.ie in Wicklow and www.myadviser.ie in Dublin. Also maybe try [broken link removed] in Louth


Protocol
 
Protocol - such a deal can be struck with any of the main players, not just those two.
 
The Execution Only Fees referred to above are for PRSAs and for this fee WillGilbert would not get any advice. From reading the original post it would appear that WG has procured and already received some advice from someone in relation to a Company(Executive) Pension.

The charges quoted do not seem excessive for a Company Pension Scheme for someone that will probably need advice on an annual basis but only WG can decide if he/she would need this service.

Why should he/she be looking at a PRSA?
 
There would be advice included for the policy that I am talking about.

I think for the contribution that WG is talking about 2% and 1% is not a bad deal - I think €500 per annum on a no commission basis would be a better deal but I do not think the 2% and 1% is a bad deal.
 
CapitalCCC said:
Hi Club - I hope you don't mind me saying, but if I were you I would not believe everything I read on Google.
Click to expand...
Google was just a handy reference point. I don't believe everything that it tells me and neither is it the sum total of my reading on such matters! :rolleyes:
 
CapitalCCC said:
There would be advice included for the policy that I am talking about.
Click to expand...

Well we and other execution only brokers set up PRSA for 0 percent contribution fee and a one off payment of 250 so it is clearly uninspiring compared to that
Click to expand...

Maybe I am taking this out of context but this does not make any sense to me. You can't offer advice on a execution only basis.

Can you please clarify?
 
It is an execution only service.

However, if someone wants to talk to me about advice, I will talk to them about it - sorry if that presents a problem for you, but I like discussing investment approaches.

CLUB - no contradiction - the deal is not bad, but it is not inspired.
 
Perhaps it would be better if you described the Execution Only Service that someone receives for €250 i.e. Does the client have to complete a Fact Find? Are they provided with a 'Reasons Why' letter?
 
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