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Setting up a PRSA - best way to fund it?

  • 15-01-2021 3:30pm
    #1
    JackieChang
    Registered Users, Registered Users 2 Posts: 1,494 ✭✭✭


    I'm thinking of setting up a PRSA with Davy.

    As far as I know, they are the only PRSA that has its own trading platform and you can pick your own shares, correct?

    And what's the best way to fund it? Should I get my employer to take it out of my salary, or fund it myself?

    Are the tax implications the same whichever way I do it?

    Is it more hassle funding it myself?

    They wouldn't answer these questions on the phone as it's "tax advice".


Comments

  • #2
    Andrea B.
    Registered Users, Registered Users 2 Posts: 1,988 ✭✭✭Andrea B.


    Not answering your question, but are they only ones that you can direct your PRSA to stocks?
    I have 3 seperate PRSA's and looking to get sorted out.
    I would like however to look at options (if poss) of one to be allocated to shares in 1 specific company, until i retire hopefully.


  • #3
    colm_c
    Registered Users, Registered Users 2 Posts: 2,032 ✭✭✭colm_c


    Same tax benefit whether you do it yourself or via employer.

    Only difference is the tax credits are 50% credits l, 50% increase to your band, over the tax year.

    Easiest way is via your employer IMO.


  • #4
    colm_c
    Registered Users, Registered Users 2 Posts: 2,032 ✭✭✭colm_c


    Andrea B. wrote: »
    Not answering your question, but are they only ones that you can direct your PRSA to stocks?
    I have 3 seperate PRSA's and looking to get sorted out.
    I would like however to look at options (if poss) of one to be allocated to shares in 1 specific company, until i retire hopefully.

    If the company trades on the stock exchange, then yes you can do it with Davy.

    Not sure I would recommend having your entire PRSA allocated to shares in a single stock. High risk IMO.

    Balanced portfolio of stocks and funds is a more typical setup.


  • #5
    Andrea B.
    Registered Users, Registered Users 2 Posts: 1,988 ✭✭✭Andrea B.


    colm_c wrote: »
    If the company trades on the stock exchange, then yes you can do it with Davy.

    Not sure I would recommend having your entire PRSA allocated to shares in a single stock. High risk IMO.

    Balanced portfolio of stocks and funds is a more typical setup.

    Thanks.
    I was not clear, it would be 30% of complete portfolio.


  • #6
    Deub
    Registered Users, Registered Users 2 Posts: 1,442 ✭✭✭Deub


    Andrea B. wrote: »
    Thanks.
    I was not clear, it would be 30% of complete portfolio.


    IMO it is still a lot. If, for any reason, the company doesn't do well, are you ok to only get 70% of your PRSA?


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