Vanguard 60/40 portfolio options for Irish individual investors

Good afternoon guys,

I recently moved from Northern Ireland to the Republic of Ireland and I am looking for some advice please. I was looking to invest in a market cap weighted 60/40 portfolio (60% global stocks, 40% global bonds) with automatic rebalancing if at all possible.

Investing directly through Vanguard would've been easier had I still been living up North as it would appear to be a simple process for UK investors. Do you know how someone living in Ireland would go about investing the the Vanguard V60A ETF with minimal fees? Is it possible through the online brokers (degiro, etoro, bux, etc) or is going through Standard Life the only option in Ireland?

PoundMan said:

Do you know how someone living in Ireland would go about investing the the Vanguard V60A ETF with minimal fees?

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Before investing in ETFs you should understand the tax treatment.
There are also several threads here on Askaboutmoney about ETFs, taxation etc.

Not sure why the URL is censored but it's "money guide Ireland" without the spaces.

I've been informed that I can set up a PRSA AVC alongside my current Public Service main scheme, on an execution only basis through the direct client service at Standard Life:

I am wondering what would be the difference in investing directly through Standard Life as opposed to investing in the Vanguard V60A ETF through an online discount broker such as the likes of DEGIRO, eToro, BUX Zero, etc?

PoundMan said:

I am wondering what would be the difference in investing directly through Standard Life as opposed to investing in the Vanguard V60A ETF through an online discount broker such as the likes of DEGIRO, eToro, BUX Zero, etc?

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Can you invest in a PRSA that way?
How?

ClubMan said:

Can you invest in a PRSA that way?
How?

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Well Standard Life have told me this is an option so I was taking their word for it. I'm waiting more information from them in terms of fees as I'm assuming that passive investing into a global index fund on an execution-only basis is an affordable option but just not sure how that process compares to investing in an ETF through the likes of DEGIRO.

I'm confused as to how anybody would stop you liquidating assets via an online broker when they should be corralled as part of a PRSA and locked away until retirement?
Anybody else know about this?
Would it be done sort of small self administered pension PRSA or something?

I parked this over Christmas but this is the latest information that I got from Standard Life about setting up a PRSA AVC alongside my current Public Service main scheme, on an execution only basis through their direct client service:

Thanks for getting in touch about the Synergy PRSA.

I’ve attached an information pack and links that include:

• Standard Life’s direct sales terms of business - Attached
• Non Advised declaration : Attached
• Your Pension, Your Way, Pension Guide: your-pension-your-way-guide.pdf (https://urldefense.proofpoint.com/v2/url?u=http-3A__standardlife.ie&d=DwQGaQ&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=jpuUZO5PZvrEdmXaWm7OW8optCQRtiw1i3wYuJLZuKQ&m=zvArrvQlq3lZFVPO5g-RYH4rA_Pvil2ZiIrtoxmoHtM&s=NbC-xmhdLcZ1NYMnmbpmbNPNFQZOdh_5Ij0_Znk_WqY&e= (standardlife.ie))
• Application form : synergy-personal-retirement-savings-account-application.pdf (https://urldefense.proofpoint.com/v2/url?u=http-3A__standardlife.ie&d=DwQGaQ&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=jpuUZO5PZvrEdmXaWm7OW8optCQRtiw1i3wYuJLZuKQ&m=zvArrvQlq3lZFVPO5g-RYH4rA_Pvil2ZiIrtoxmoHtM&s=NbC-xmhdLcZ1NYMnmbpmbNPNFQZOdh_5Ij0_Znk_WqY&e= (standardlife.ie))
• Preliminary Disclosure Certificate: preliminary-disclosure-certificate-for-prsa.pdf (https://urldefense.proofpoint.com/v2/url?u=http-3A__standardlife.ie&d=DwQGaQ&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=jpuUZO5PZvrEdmXaWm7OW8optCQRtiw1i3wYuJLZuKQ&m=zvArrvQlq3lZFVPO5g-RYH4rA_Pvil2ZiIrtoxmoHtM&s=NbC-xmhdLcZ1NYMnmbpmbNPNFQZOdh_5Ij0_Znk_WqY&e= (standardlife.ie))
• Choosing The Right Pension : choosing-the-right-pension (https://urldefense.proofpoint.com/v2/url?u=http-3A__standardlife.ie&d=DwQGaQ&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=jpuUZO5PZvrEdmXaWm7OW8optCQRtiw1i3wYuJLZuKQ&m=zvArrvQlq3lZFVPO5g-RYH4rA_Pvil2ZiIrtoxmoHtM&s=NbC-xmhdLcZ1NYMnmbpmbNPNFQZOdh_5Ij0_Znk_WqY&e= (standardlife.ie))
• Having enough money when you retire: https://urldefense.proofpoint.com/v2/url?u=http-3A__www.standardlife.ie_1_site_ie_pensions_pensionsexplained_yourincomeinretirement&d=DwQGaQ&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=jpuUZO5PZvrEdmXaWm7OW8optCQRtiw1i3wYuJLZuKQ&m=zvArrvQlq3lZFVPO5g-RYH4rA_Pvil2ZiIrtoxmoHtM&s=D9Y-nDGAPGRWPFkQ_5hmMAPqO3NEMmCQbzcXXxReTQ0&e= (http://www.standardlife.ie/1/site/ie/pensions/pensionsexplained/yourincomeinretirement)
• Investment options guide : your-investment-options.pdf (https://urldefense.proofpoint.com/v2/url?u=http-3A__standardlife.ie&d=DwQGaQ&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=jpuUZO5PZvrEdmXaWm7OW8optCQRtiw1i3wYuJLZuKQ&m=zvArrvQlq3lZFVPO5g-RYH4rA_Pvil2ZiIrtoxmoHtM&s=NbC-xmhdLcZ1NYMnmbpmbNPNFQZOdh_5Ij0_Znk_WqY&e= (standardlife.ie))The annual fund management charges are listed in the investment options guide.
• Please review fund supplementary information document at our fund centre here: +Digital – Fund Centre (financialexpress.net)
• Your Personal Illustration (For your personal illustration please forward your investment amount, frequency, Date of Birth & potential fund choice) (The password to open the document is your date of birth in the format dd/mm/yyyy)
• Please note as per page 10 of the Preliminary Disclosure Certificate the difference between a Standard and Non Standard PRSA.
• Target Market Document : https://urldefense.proofpoint.com/v2/url?u=https-3A__www.brokerzone.ie_target-2Dmarket-2Dsynergy-2Davc.pdf&d=DwQGaQ&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=jpuUZO5PZvrEdmXaWm7OW8optCQRtiw1i3wYuJLZuKQ&m=zvArrvQlq3lZFVPO5g-RYH4rA_Pvil2ZiIrtoxmoHtM&s=MDV5_sBpXSgst7BbggxvFSrNWoA-2A2J7BcTdB6-EPU&e= (https://www.brokerzone.ie/target-market-synergy-avc.pdf)

The Following pricing options would apply:

Premium allocation rate: 100%

Initial Commission: 0%

Fund based (trail) Commission: 0%
Policy Fee: €0.00 per month

Early encashment Charge: 0%



Financial advice is important

We believe in the value of financial advice and recommend that you seek the services of an adviser. The following association can help you to find one-

Brokers Ireland: (01) 661 3067

www.brokersireland.ie



If you choose not to get advice, here’s how we can help

Our direct sales service is designed to help you buy a product without advice or recommendation from us.

Standard Life provides an non advised service. We can give you information, illustrations, answer technical questions and carry out your instructions.



The services we provide our direct customers

• A direct line to our team of direct customer representatives
• Pensions and investments technical support
• Access to all policy information at https://urldefense.proofpoint.com/v2/url?u=http-3A__mystandardlife.ie&d=DwQGaQ&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=jpuUZO5PZvrEdmXaWm7OW8optCQRtiw1i3wYuJLZuKQ&m=zvArrvQlq3lZFVPO5g-RYH4rA_Pvil2ZiIrtoxmoHtM&s=Ec-ykjT6Nik2duZteAPbUvUgq6qkR6Sqpb8lYYrVvkQ&e= (mystandardlife.ie)
• Access to our Fund Centre providing up to date information on our latest fund performance
• Full back office team support for servicing enquiries. (01 6397080)

Your next steps

For you to become a direct customer we’ll need the following items:

• Signed non-advised declaration
• Completed application form
• Cheque/Credit Transfer/Direct Debit Mandate

Funds can be transferred to the account details below. Please use your Surname & Date of Birth as a reference on the transfer.

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Does this sound like something worth pursuing? I have been living in the Republic since 2020 but I've been reluctant to start investing and AVC's because I'm still a little homesick and can't say for certain if I will eventually move back to Northern Ireland or not. I therefore wasn't sure if it was wise to start investing in a country where I don't know if I will live in until retirement.

PoundMan said:

I've been informed that I can set up a PRSA AVC alongside my current Public Service main scheme, on an execution only basis through the direct client service at Standard Life:

https://www.standardlife.ie/standard-life-global-index-fund-60-leaflet.pdf

I am wondering what would be the difference in investing directly through Standard Life as opposed to investing in the Vanguard V60A ETF through an online discount broker such as the likes of DEGIRO, eToro, BUX Zero, etc?

Click to expand...

ClubMan said:

Can you invest in a PRSA that way?
How?

Click to expand...

No you can't. Any third party has to be approved by the company providing the pension. I know Standard Life don't use any of those. And ITC, who specialise in self directed pensions haven't approved them either.

Standard Life are the only provider with access to Vanguard through their main suite of funds. They are also the only life company with access to the S&P 500. All of the companies have a version of an indexed North American equity fund but the Vanguard one is the only one which tracks the S&P 500.

Steven
www.bluewaterfp.ie

PoundMan said:

Well Standard Life have told me this is an option so I was taking their word for it. I'm waiting more information from them in terms of fees as I'm assuming that passive investing into a global index fund on an execution-only basis is an affordable option but just not sure how that process compares to investing in an ETF through the likes of DEGIRO.

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You may be able to access it via their Stocktrade service.

I'm pretty sure I have seen clients with Stocktrade accounts via Standard Life Synergy bonds hold single funds like the Vanguard one. I deal on the International side of things but I do some of the domestic trading from time to time.

PoundMan said:

I parked this over Christmas but this is the latest information that I got from Standard Life about setting up a PRSA AVC alongside my current Public Service main scheme, on an execution only basis through their direct client service:



Does this sound like something worth pursuing? I have been living in the Republic since 2020 but I've been reluctant to start investing and AVC's because I'm still a little homesick and can't say for certain if I will eventually move back to Northern Ireland or not. I therefore wasn't sure if it was wise to start investing in a country where I don't know if I will live in until retirement.

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Any thoughts on this earlier post guys? Is setting up a PRSA AVC a waste of time given that I am unsure if I will eventually move back to Northern Ireland in the future or not. Even if I was to commit to living in the Republic the rest of my life, I'm not sure that I will always work in the Public service sector for the rest of my career.