Pension Query LA Brokers

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emerf

Registered User
Messages
11
HI
I have to start a pension ebofre 31st December to avail of tax relief.

I have the info on the execution only penisons from Irish Life and Eagle star via LA Brokers.

My quesion is this.

I have 10,000 as a lump sum to invest and then intend putting in a monthly payment of say 300.

Would it be a good idea to set up two penisons- one with Eagle star and one with Irish Life and put 5,000 in each and split the monthly payments between the two. Both on the execution only basis.

I am 32 with an income of ca.70,000

Any advice would be appreciated.
 
I have to start a pension before 31st December to avail of tax relief.
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Not true - you can make a payment up to 31st October 2007 and backdate it to get tax relief for 2006.

It is now too late to backdate a payment to obtain tax relief for 2005 - the deadline was 31st October 2006
 
emerf said:
Would it be a good idea to set up two penisons- one with Eagle star and one with Irish Life and put 5,000 in each and split the monthly payments between the two. Both on the execution only basis.
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Probably not. Certainly on the lump sum, and possibly on the monthly contribution, allocation rates are on a sliding scale so the more you invest, the higher the allocation so if you split your lump sum you may get an overall lower allocation.
 
orka said:
...... allocation rates are on a sliding scale so the more you invest, the higher the allocation so if you split your lump sum you may get an overall lower allocation.
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Not true for a standard PRSA. It's 100% on an execution only basis and no more.
 
At the OP's young age and level of contribution, she would be better off looking at Eagle Star's personal pension (execution only) with a management charge of 0.75% rather than a PRSA with a charge of 1%. The initial loss on allocation/bid-offer spread will be made up by the lower charge in about 10 years time and thereafter, the PP will have a greater value. The PP also gives a wider selection of Eagle Star funds. [No connected to ES but took out a PP with them recently which is why the answer is about ES and not Irish Life]
 
Fair enough, but you also have a policy fee and no guarantee that the AMC will not increase.

If you are not happy with ES, for whatever reason, and you want to transfer your funds you will be penalised. Not so with the PRSA.
 
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