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Personal question in regards to feed

  • 07-07-2019 2:10pm
    #1
    Registered Users Posts: 85 ✭✭ Kmagic


    I have been in contact with a PRSA provider who said that based on €500 per month contributions I could have "3% premium charge [presumably monthly] and 0.75% Fund Management Charge [annually]"

    At the higher rate of tax, the real world cost to me is €340 per month.

    How does this sound to other people in the know?


Comments

  • Registered Users Posts: 2,649 ✭✭✭ cooperguy


    Are you saying charges on the fund are 3.75%? That seems crazy high


  • Registered Users Posts: 85 ✭✭ Kmagic


    So my understanding is they take 3% of each monthly contribution so €15, meaning €485 gets added to the pension pot. Then as a management fee they take 0.75% of the total value of the fund every year.

    Is this not standard with a PRSA?


  • Registered Users Posts: 2,649 ✭✭✭ cooperguy


    My pension does not have a charge on each contribution. The annual fee is less than 1%. Im not an expert, but it sounds like you need to get an independent financial advisor.

    If you had 6% annual growth over the long term over half would be taken in fees


  • Registered Users Posts: 85 ✭✭ Kmagic


    I think you could be right.


  • Registered Users Posts: 7,494 ✭✭✭ BrokenArrows


    Yes if you are paying 3+ % in fees for a pension then that is far too much.

    Most pension funds have annual charges of < 1%


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  • Registered Users Posts: 10,928 ✭✭✭✭ phantom_lord


    Shouldn't be paying any contribution charge, that's just robbery.

    Fees of around 1% are normal in Ireland unfortunately (would be curious about anyone paying less than that)


  • Registered Users Posts: 11,181 ✭✭✭✭ Geuze


    Kmagic wrote: »
    So my understanding is they take 3% of each monthly contribution so €15, meaning €485 gets added to the pension pot. Then as a management fee they take 0.75% of the total value of the fund every year.

    Is this not standard with a PRSA?

    It's easy to get a PRSA with 0% ongoing cont charge, i.e. 100% allocation.

    The 1% AMC is fairly normal.


  • Registered Users Posts: 85 ✭✭ Kmagic


    Thanks for the replies. I'll just ignore that product.

    Anyone have any suggestions on good products out there or should I find a financial advisor.


  • Registered Users Posts: 480 ✭✭ FernandoTorres


    Kmagic wrote: »
    Thanks for the replies. I'll just ignore that product.

    Anyone have any suggestions on good products out there or should I find a financial advisor.


    Generally you just need to call and say you're managing it yourself and you want a "100% allocation rate". Most companies will give it to you if you ask. If you don't they'll screw you for up to 3% and unfortunately a lot of people in Ireland never bother to look into it.


  • Registered Users Posts: 99 ✭✭ dickface


    To the people saying they pay less than 1% AMC, care to link to these PRSA's?


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  • Registered Users Posts: 480 ✭✭ FernandoTorres


    dickface wrote: »
    To the people saying they pay less than 1% AMC, care to link to these PRSA's?


    Standard Life have a few Vanguard funds that are 0.90%. Still crazy considering they're around 0.10% in the US, Australia etc.


  • Registered Users Posts: 2,649 ✭✭✭ cooperguy


    Out of interest I got the fees from Zurich for my different fund options. Screenshot attached!


  • Closed Accounts Posts: 1,794 Squall Leonhart


    cooperguy wrote: »
    Out of interest I got the fees from Zurich for my different fund options. Screenshot attached!

    Is that fees, or growth over last 30 days?


  • Registered Users Posts: 2,649 ✭✭✭ cooperguy


    Is that fees, or growth over last 30 days?

    That is annual fees for each fund type I have access to


  • Registered Users Posts: 85 ✭✭ Kmagic


    cooperguy wrote: »
    That is annual fees for each fund type I have access to


    And you have 100% allocation rate with those fees?


  • Registered Users Posts: 2,649 ✭✭✭ cooperguy


    Kmagic wrote: »
    And you have 100% allocation rate with those fees?

    Do you mean, is a contribution fee taken off the top of my monthly pension payment? No, that doesn't happen, what comes out of my salary every month goes into the pension account (plus the employer contribution)


  • Registered Users Posts: 85 ✭✭ Kmagic


    cooperguy wrote: »
    Do you mean, is a contribution fee taken off the top of my monthly pension payment? No, that doesn't happen, what comes out of my salary every month goes into the pension account (plus the employer contribution)


    Yeah from your monthly payment. Those fees are quite low compared to what I'm seeing. Must try research those funds.

    Cheers.


  • Registered Users Posts: 6,818 ✭✭✭ Inspector Coptoor


    My annual charge is 0.4% and that’s it


  • Registered Users Posts: 85 ✭✭ Kmagic


    My annual charge is 0.4% and that’s it

    Do you mind if I ask who you're provider is?


  • Registered Users Posts: 6,818 ✭✭✭ Inspector Coptoor


    Kmagic wrote: »
    Do you mind if I ask who you're provider is?

    Willis


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  • Registered Users Posts: 2,649 ✭✭✭ cooperguy


    Kmagic wrote: »
    Yeah from your monthly payment. Those fees are quite low compared to what I'm seeing. Must try research those funds.

    Cheers.

    let us know what you end up with!


  • Registered Users Posts: 85 ✭✭ Kmagic


    cooperguy wrote: »
    let us know what you end up with!

    Will do. Thanks for the replies.


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