NewEdition
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PRSA is 5% of contributions.Is this a PRSA? Is the broker tied or is he independent? Is it an Irish Life product by any chance? Those charges are not low cost. There are cheaper and as mentioned above, you should be able to get 0% contribution charges.
PRSA is 5% of contributions.
Tied broker I believe, he cannot reccomend other providers.. he was straight with me on that.
So give me a couple of example providers where it is 0%?
I imagine if I called them, I would be put in touch with a rep who would pester me constantly.. thats why I asked this guy.
From that labrokers link, it says they take 0.25% of the 1% AMC.
So even if you know exactly what you want, the cheapest you can get still gives 0.25% of your pension fund forever to someone for simply passing on your application form and doing nothing else after that?
From that labrokers link, it says they take 0.25% of the 1% AMC.
So even if you know exactly what you want, the cheapest you can get still gives 0.25% of your pension fund forever to someone for simply passing on your application form and doing nothing else after that?
I am looking at setting up a pension and have met a broker.
The charges are:
1% of value taken each year
3% of contribution taken at time of making the contribution
Is this reasonable?
The broker is a friend of a friend and seems like a nice guy so am happy putting business his way, just want to be sure I am not getting ripped off
That is how they get paid. They get nothing upfront. If you pay €10,000 in the first year, they will get paid €25. It will take a number of years for them to make money on the policy.
Steven
www.bluewaterfp.ie
I am sure they probably do. Depending on the volume of the business, there are probably other rebates included. Not condemning them but if Zurich can afford to pay 0.25% of the AMC to LA Brokers then they should offer the AMC of 0.75% to direct customers. Otherwise what exactly is the direct customers 0.25% paying for apart from extra profit?
The lowest cost pension contracts on the market at the moment have a base management fee of 0.50% (0.45 for Standard Life MyFolio Market and Aviva L&G). These have no deduction from your contribution (100% allocation) and pay no commission to the advisor. The Standard Life contract has early encashment penalties for the first 5 years (if you switch away). As there is no commission you would have to pay an advisor to set up the contract for you, but this should not cost more than €700, which should then lead to a significant long term saving. Davy Select has a base management fee of 0.40%, but you then have to invest your funds. If you invest in direct equities there is no additional management fee, but if you invest in funds the additional fee will be between 0.06% and 1%+ depending on the fund chosen.
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