should I change my AVC

T

television

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Have been reading alot about pensions on here. I have an AVC with MArsh. Paying in 380 a Month. Charges are allocation rate 94.5 management fee. 1.00% Im thinking of changing to a PRSA where i believe allocation rate is 100%. I have 3 questions

1. Based on the fact that I am 33 and started an AVC last OCtober how much roughly in charges will I pay over 30 years if I stay with Marsh?

2. Should I go to LA Brokers and sort out a PRSA and leave marsh?

3. What are the problems in doing 2 above.
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You probably have an AVC linked to your occupational pension scheme.

I doubt this AVC is a PRSA AVC, as PRSA AVCs are fairly new.

The above poster is wrong, there are PRSAs with 100% allocation rates.

You can buy them from discount brokers like

www.labrokers.ie

www.ferga.com

etc., etc.

Broadly speaking, Marsh will take 5.5% of every contribution, i.e. 5.50 euro out of every 100 euro contribution.

So your fund would have to grow by over 5.5% to break even.

So you, like many people, are being screwed by the fund mgt industry.

Switch to a 100% allocation PRSA pension, and all your contributions are invested.
 
Protocal, interesting and very informative post. One question however, if I buy my PRSA how do I choose how it is invested? Could I just use the investment plan Marsh has me on? And what are the pitfalls of buying it on your own without any advice. My wife has an avc with cornmarket and I know we are getting screwed and its beginning to bug me.
 
Jonathan.OB said:
Your AVC is probably a PRSA. And there isn't any PRSA who's allocation rate is 100%. J
Click to expand...
As mentioned above this is simply not correct. Mine is 100% for example. You may have to haggle, go to a discount execution only broker or meet specific contribution criteria but 100% allocation rate (i.e. charges of 0% on each contribution and ongoing annual management charge of 1% or thereabouts) is possible.
Protocol said:
So you, like many people, are being screwed by the fund mgt industry.
Click to expand...
Eleanor Roosevelt once said "Nobody can make you feel inferior without your consent.". Substitute the term "screwed" appropriately into that sentence and you get the gist of my view on such matters.
 
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