Quick question on fees for AVC

Opus2018

Frequent Poster
Messages
54
Hi all,

I was thinking about this AVC option which is approved by the Department of Finance. (Civil Servant pre 95 but won't have 40 years)

The question is about the fees so:-

In year one they take 22% of the premium in year one along with 4% from year 2 on. In addition to which they charge a 0.75% management fee per annum. If you want tomake a lump sum it costs 3% but that could be higher if it is done in year one. I imagine if I want to reduce the cost I could reduce the premia in year one and make a lump sum deposit in year 2?

The year one deduction is a bit much or am I being too precious about it?

Company is New Ireland and the plan is Iris.

All comments welcome!

Best,

Opus2018
 

Conan

Frequent Poster
Messages
1,089
Who is the broker? (Cornmarket?)
This is far too expensive. You would be better establishing a stand-alone PRSA AVC and you can get much lower fees.
22% in year one (plus probably 22% in year one of any future increase in the Annual Contribution) and 4% of every contribution is far too high. The 0.75% is fine.
 

Opus2018

Frequent Poster
Messages
54
Who is the broker? (Cornmarket?)
This is far too expensive. You would be better establishing a stand-alone PRSA AVC and you can get much lower fees.
22% in year one (plus probably 22% in year one of any future increase in the Annual Contribution) and 4% of every contribution is far too high. The 0.75% is fine.
Hi Conan,

That's what I thought - Any suggestions? I was also told that if I put in a lump sum this year, I'd have to pay 18% of it in fees!!

The broker is IPF.

Many thanks,

Opus2018
 

Conan

Frequent Poster
Messages
1,089
It's possible to establish an "execution only" (ie no advice) PRSA AVC for much lower fees. There are some intermediaries on this site who can help you. Perhaps they will respond.
 
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