Hi, I am looking to invest childs allowance from the age of 0 to ~20 (150euro/month) to have a nice pot when they are older. Can someone advise on the best investment fund on the market at the moment for this i.e. lowest charges and most respected. I went with irish life MAPS 4 but thinking of backing out based on figures for projected expenses and charges estimated over the course of its life. See information noted at bottom.
1. Each payment is subject to 1% gov levy
2. Managament fee by irish life is 1.8% annually
3. 5% increase due to CPI year on year
4. Tax on gains made at end of 20 years.
I guess what I am saying is does this fund seem sensible to you guys. 'How to be good with money - Eoin McGee' recently had an episode discussing this exact strategy but they obviously didnt mention the chosen investment fund. Any feedback would be appreciated so I could either leave what I have set up or pull out of this before the cooling off contract period passes.
Note:
After 1 year, total premium paid to policy would be 1800euro. Projected investment growth on that 39euro. However, projected expenses and charges on that 108euro, and taxation of 0euro. Policy value after year one 1731euro
After 5 years, total premium paid to policy would be 9946euro (includes increase due to CPI). Projected investment growth of 1022uro. However, projected expenses and charges on that 451euro, and taxation of 234euro. Policy value after year 5, 10283euro
After 10 years, total premium paid to policy would be 22640euro (includes increase due to CPI). Projected investment growth of 4628euro. However, projected expenses and charges on that 2100euro, and taxation of 1036euro. Policy value after year 10, 24132euro
After 20 years, total premium paid to policy would be 59519euro (includes increase due to CPI). Projected investment growth of 23346euro. However, projected expenses and charges on that 10660euro, and taxation of 5201euro. Policy value after year 20, 67004euro
1. Each payment is subject to 1% gov levy
2. Managament fee by irish life is 1.8% annually
3. 5% increase due to CPI year on year
4. Tax on gains made at end of 20 years.
I guess what I am saying is does this fund seem sensible to you guys. 'How to be good with money - Eoin McGee' recently had an episode discussing this exact strategy but they obviously didnt mention the chosen investment fund. Any feedback would be appreciated so I could either leave what I have set up or pull out of this before the cooling off contract period passes.
Note:
After 1 year, total premium paid to policy would be 1800euro. Projected investment growth on that 39euro. However, projected expenses and charges on that 108euro, and taxation of 0euro. Policy value after year one 1731euro
After 5 years, total premium paid to policy would be 9946euro (includes increase due to CPI). Projected investment growth of 1022uro. However, projected expenses and charges on that 451euro, and taxation of 234euro. Policy value after year 5, 10283euro
After 10 years, total premium paid to policy would be 22640euro (includes increase due to CPI). Projected investment growth of 4628euro. However, projected expenses and charges on that 2100euro, and taxation of 1036euro. Policy value after year 10, 24132euro
After 20 years, total premium paid to policy would be 59519euro (includes increase due to CPI). Projected investment growth of 23346euro. However, projected expenses and charges on that 10660euro, and taxation of 5201euro. Policy value after year 20, 67004euro
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