Well, if you're self employed then an executive Pension is the way to go. Get the lowest cost and fees provider ( learned my lesson ......late) . No mortgage? Rent? Childcare? Anyway , pay off the loan first. Keep a good cash reserve to make sure of no credit card interest or car payments. Then pension what you can afford. An exec pension can also be accessed from age 50 but terms and conditions apply. Many people on here more expert than me who can help steer you. Keep the fees LOW. Small % eat into fund over time. That's my advice...Hi Folks,
I need to get started on a Pension here in Ireland I know dropped the ball here a bit; but looking for advice on companies options etc. I spent a large number of years in Australia and only returned 3 years ago and the whole pension scheme here seems a bit confusing or else I just have not given time to get my head around it.
Background on my situation.
33 Years Old
1 x Mrs working full time
2 kids less than 4 years old
No mortage
1 x Personal Loan 8k (should be paid off by May)
$70k AUD in Pension Fund (If I ever see it)
Wage €80k (Self employed Contractor)
2 x cars < €16,000 combined
No other assets of mention
Necessary Outgoings per month €1200 (All Bills; Diesel, Internet, Shooping, Electricity, Insurance etc)
If I pay into a Pension for 10 -15 years and die whats happens to those payments do they go to my Mrs and Kids? Or are they lost?
What % of my wage should I be putting aside for a pension given the fact I am a late starter as such with pension funds
Any ideas or reccomendations on companies that setup and manageme funds here
Alos open to suggestions on investments if there are more efficient ways to invest money.
I don't know, I did it the other way around..An exec is way more tax efficientThanks for the replies guys;
The executive pension sounds interesting to be honest I only expect to be self Employed for another 5 years max
So would this be transferrable to another fund if I went PAYE after 5 years ?
Well, if you're self employed then an executive Pension is the way to go. Get the lowest cost and fees provider ( learned my lesson ......late) . No mortgage? Rent? Childcare? Anyway , pay off the loan first. Keep a good cash reserve to make sure of no credit card interest or car payments. Then pension what you can afford. An exec pension can also be accessed from age 50 but terms and conditions apply. Many people on here more expert than me who can help steer you. Keep the fees LOW. Small % eat into fund over time. That's my advice...
Well, if you're self employed then an executive Pension is the way to go. Get the lowest cost and fees provider ( learned my lesson ......late) . No mortgage? Rent? Childcare? Anyway , pay off the loan first. Keep a good cash reserve to make sure of no credit card interest or car payments. Then pension what you can afford. An exec pension can also be accessed from age 50 but terms and conditions apply. Many people on here more expert than me who can help steer you. Keep the fees LOW. Small % eat into fund over time. That's my advice...
Well my most recent experience is on another thread " pension pot transfer"Please elaborate on your journey and experience the finding the lowest cost fees .I have a directors pension and am only now unravelling the hidden costs and looking for alternatives. Not meaning to hijack the thread as this information should be pertinent to op.
Apologies.....this calculation is completely flawed......update in a few minsWell my most recent experience is on another thread " pension pot transfer"
I started an exec pension by moving my small PRSA into it 14 years ago. I used a main pension provider, through my bank.
I've been in a position, even through the recession, to add to it in lump sums every year. Initially, small lumps then, as company cashflow improved, larger lumps in the last 5 or 6 years.
Provider charged 5% on contributions, 3% if over 12k and 1% Annual Management Charge.
Download a compound interest calculator and see what that can do over time.....
I'm currently renegotiating the terms for going forward.
My contract allows for 100% transfer value....other contracts may not. Ask your provider for details and shop around with providers. I wish I'd clued into this earlier. However, running a business is hard enough and at least I started a pension .....
Let's say you start with 50k in your pot today and you contribute 12k per annum @ 1% AMC and 3% contribution charge. We can only presume ( hope for) growth and the magic number is 5% per annum. In 15 years that's total €257,856
Now assume .75% AMC and 0% contribution charge ( this is gettable in the market).
In 15 years that's total €362,889
So € 105,000 in creeping fees
My cornflakes are boiling in my stomach...... thinking about it
Self-employed people can’t set-up an Executive Pension.
Nor can they access their pension at age 50.
I'm a contractor - I'm self employed (via limited company).
I have setup an executive pension and I can access it at 50.
So you can figure by now I think you are very wrong here.
I'm a contractor - I'm self employed (via limited company).
I have setup an executive pension and I can access it at 50.
So you can figure by now I think you are very wrong here.
There are two possibilities:
1) I am “very wrong here” and you are right
2) You don’t know what “self-employed” means and you actually work for a limited company
Or 3. You don't know what 'self-employed' means and I actually own that limited company so am self-employed.
See
revenue.ie/en/self-assessment-and-self-employment/documents/code-of-practice-on-employment-status.pdf
Anyway - it is a bit grey & doesn't really matter. I agree you can only access your pension by leaving/closing down that Ltd. company.
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