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PRSA - which is the best bank?

  • 23-08-2005 2:43pm
    #1
    edengarden
    Closed Accounts Posts: 100 ✭✭


    Hi I had a pension plan (a group scheme)with my old job for a couple of years & when I left I went into Bank 'A' to set up a PRSA - I then had to contact Bank 'B' to see if I could get the money paid into my old plan put into my new prsa - to cut a long story short - the guy from Bank 'B' asked me did i want to set up an new plan and I told him I had already set one up with Bank 'A' and he said oh the last couple of years their returns have been really low and you should stick with us.

    I am clueless when it comes to stuff like this? Where is the best place to start up a PRSA?


Comments

  • #2
    ck1
    Registered Users, Registered Users 2 Posts: 123 ✭✭ck1


    Did Bank B ask you what fund you were invested into in Bank A ????


  • #3
    CCOVICH
    Closed Accounts Posts: 240 ✭✭CCOVICH


    The key thing to remember when investing is that past performance is no guide to the future, so it really isn't that relevant how your PRSA has done in the last few years.

    What matters is how it will do in the future.

    The guy in Bank B does not want to lose your business. He may be right about the returns your current plan have earned, but he cannot guarantee you that their plan will be any better. I wouldn't pay any attention to him.

    Their isn't any difference between standard PRSA fees and charges (these are capped by the Pensions Board-no provider is allowed to charge more than 5% on each contribution, and the maximum annual charge is 1% of fund value), so invest returns are all that are relevant in choosing a provider.

    Unfortunately, no-one (and I do mean no-one) can predict how a particlar fund will perform in the future (especially over a 30 year period that would apply to pensions).

    The only thing you can do is pick a fund based on your attitude to risk. More riskier funds invest in equities and property (asset clasess which give the best returns over the longer terms), less risky funds invest more in bonds and cash. All PRSA providers have a 'default' strategy that will be somewhere in the middle.

    If you don't feel that you know enough to select a fund yourself, find an Authorised Advisor (IFSRA will provide you with a list) and make an appointment. Be aware, if you want independent advice (i.e. from an advisor not tied to a number of PRSA providers), you will have to pay for it (don't be surprised to see costs of €200 per hour!).

    Hope this helps.

    I would suggest that you check out www.askaboutmoney.com, where you will find plenty of info on PRSAs, and there are financial advisors ready and waiting to advise!


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