Starting a pension, questions to ask financial advisor?

Jay D

Well I was thinking about this for a while, never too early to start and all that jazz.

Was going to pop in to bank last week to see about it however I was advised not to go near banks. I have been put in touch with a financial advisor but could tell a sales pitch straight away and although I am eager to learn what my options are, I am just wondering what exactly to be vigilant of in this meeting coming up.

I am really at the early stages of this process. I have a mortgage as well, why did he ask me that if I'm starting a pension? What questions should I ask him?

Just trying to express some caution

Formal shorts

Not going near banks if understandable advise - unfortunately nearly all advisor's you go to will have an interest in you signing up though. I wouldn't like to give you any advise personally as a pension is a big thing, but I'd direct to this page.

http://www.itsyourmoney.ie/index.jsp?1nID=94&2nID=658&3nID=721&4nID=721&5nID=721&6nID=721&7nID=721&pID=721&nID=725

Make sure you are 100% sure about the terms and conditions, including charges, before deciding on anything. Similarly, look for absolutely everything in writing. You don't want to be told "that won't be an issue" and then have the terms change.

Andymfinancial

Go to 2 or 3 brokers to get the best advice. You need to find out the following;

What allocation rate are you getting. This is the amount of money that is actually allocated to the investment. Typically you should expect a minimum of 98% for a premium of over 200mth.

What is the annual management charge? The standard would be 1% or thereabouts.

Any other fees or charges?

What funds are available for investing in? Irish Life, Zurich Life & Aviva, in my opinion have the best fund choices.

This blog post on Paying for Financial Advice may be of help to you.

Jay D

I appreciate the feedback lads, thanks. Reading up on everything there now. Can't believe they charge something for 'managing' your pension. Would have thought they would be only too glad to play around with my money for so many years. Learning anyway.

nonashmot

jay d
the one question everyone will ask about pensions is managment charges.unfortunatly these are a fact of life. The really importatnt question to ask when starting a pension is which product best suits your situation ,how much money are you paying @42% tax(this is what you want to put into pension to get max benefit) and what are your retirement options and of course fund choice compatable to risk profile(very important).if you reply to this post i will be glad to help you