Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

How much should I be paying into my Pension

13»

Comments

  • #62
    newacc2015
    Closed Accounts Posts: 2,375 ✭✭✭newacc2015


    ixus wrote: »
    Pension "time bomb" article.

    http://m.independent.ie/business/personal-finance/pensions/muchfeared-pensions-time-bomb-is-now-exploding-for-600000-workers-35222535.html

    If i was to have a pension, I would want as much control over it as possible. Leaving someone else run it is asking for trouble.

    Pension costs set to increase.

    http://m.independent.ie/business/personal-finance/pensions/pension-costs-here-are-set-to-increase-35203739.html

    The problem with most of these pensions is the fact their 'experts' managing the funds for massive fees are clueless. A pension of fund of a certain company sold all their property holdings in 2013 at the bottom of the commerical property crash. Most of these pension funds are filled with bonds that are getting destroyed at the moment. One major pension fund has only about 25% shares


  • #63
    Merowig
    Registered Users, Registered Users 2 Posts: 413 ✭✭Merowig


    Cute Hoor wrote: »

    Many people will argue that you are wasting your time and money investing in a pension fund, preferring to manage their own investments themselves, be that property, commodities, shares, whatever, but these people are not availing of the very generous tax relief and are assuming that they have a better capability to deliver returns that outdo professional fund managers. Maybe they do, maybe they don't.

    You can manage your pension investment yourself via a Self-directed PRSA with Davy.


  • #64
    Cute Hoor
    Registered Users, Registered Users 2 Posts: 1,788 ✭✭✭Cute Hoor


    Merowig wrote: »
    You can manage your pension investment yourself via a Self-directed PRSA with Davy.

    Yea, but I'm sure Davy aren't offering that service pro-bono either. Whether you are putting it in a 'normal' pension fund or a self-directed PRSA the overriding benefits of the tax free investment bonus and compounding still applies. Most ordinary people won't have either the time or the expertise to micro manage their pension fund


  • #65
    Dardania
    Registered Users, Registered Users 2 Posts: 3,397 ✭✭✭Dardania


    Cute Hoor wrote: »
    Merowig wrote: »
    You can manage your pension investment yourself via a Self-directed PRSA with Davy.

    Yea, but I'm sure Davy aren't offering that service pro-bono either. Whether you are putting it in a 'normal' pension fund or a self-directed PRSA the overriding benefits of the tax free investment bonus and compounding still applies. Most ordinary people won't have either the time or the expertise to micro manage their pension fund

    It could be a nice way to gather all the funds togehter - I'm having the problem at the moment as I change employment that I gather different PRSAs, and in each case the next emplyer wants to use "their" PRSA provider,,,and all the while I'm paying fees...
    Right now I have something from Irish Life, and another associated with Zurich - presumably both of those are having fees levied against them.
    The PRSA "system" feels quite user unfriendly to me...


  • #66
    Merowig
    Registered Users, Registered Users 2 Posts: 413 ✭✭Merowig


    Dardania wrote: »
    It could be a nice way to gather all the funds togehter - I'm having the problem at the moment as I change employment that I gather different PRSAs, and in each case the next emplyer wants to use "their" PRSA provider,,,and all the while I'm paying fees...
    Right now I have something from Irish Life, and another associated with Zurich - presumably both of those are having fees levied against them.
    The PRSA "system" feels quite user unfriendly to me...

    You can transfer your old PRSA to your current one.

    So far I have 1 PRSA and one Occupational Scheme. I have no intention to consolidate though as I can then retire at different ages from both, it diversivies my portfolio even further and it is easier to transfer a PRSA abroad than an occupational scheme.

    Your both PRSAs will most likely have an annual management charge of 1%. Possibly even a rib-off contribution charge....


  • Advertisement
  • #67
    Merowig
    Registered Users, Registered Users 2 Posts: 413 ✭✭Merowig


    Cute Hoor wrote: »
    Yea, but I'm sure Davy aren't offering that service pro-bono either. Whether you are putting it in a 'normal' pension fund or a self-directed PRSA the overriding benefits of the tax free investment bonus and compounding still applies. Most ordinary people won't have either the time or the expertise to micro manage their pension fund


    Davy charges 0.75% AMC and then there are charges depending what you buy (stamp duty on some shares etc).
    You can just buy monthly a Vanguard ETF which tracks the market and that's it - not much micromanagement


  • #68
    Cute Hoor
    Registered Users, Registered Users 2 Posts: 1,788 ✭✭✭Cute Hoor


    Merowig wrote: »
    Davy charges 0.75% AMC and then there are charges depending what you buy (stamp duty on some shares etc).
    You can just buy monthly a Vanguard ETF which tracks the market and that's it - not much micromanagement

    If you are buying a Vanguard ETF monthly I presume you are paying Davy commission as well as the Vanguard TER so your costs will be adding up, but as you say going that route would require very little micro management. What Vanguard are doing with their funds wouldn't be a whole lot different to what a normal pension fund is doing.


  • #69
    Merowig
    Registered Users, Registered Users 2 Posts: 413 ✭✭Merowig


    You pay 0.10% fee everytime you buy the etf + 0.75 amc to davy.
    Vanguard is famous for being lowcost and they just track the market with their etf.
    Quite cheap in comparison to what people pay otherwise for their PRSAs.


  • #70
    Cute Hoor
    Registered Users, Registered Users 2 Posts: 1,788 ✭✭✭Cute Hoor


    Merowig wrote: »
    You pay 0.10% fee everytime you buy the etf + 0.75 amc to davy.
    Vanguard is famous for being lowcost and they just track the market with their etf.
    Quite cheap in comparison to what people pay otherwise for their PRSAs.

    What happens to the dividend that Vanguard are obliged to pay periodically, is that automatically re-invested into your PRSA and are there tax implications involved as in do you have to declare it to Revenue annually and pay income tax on it


  • #71
    Merowig
    Registered Users, Registered Users 2 Posts: 413 ✭✭Merowig


    It is a PRSA - so any gains remain in the PRSA and there is no tax declaration.

    The ETF am thinking of is traded in London - so its priced in £ - the underlying assets obviously are not necessarily.
    Blackrock also has a low cost ETF traded in London imho which you can get via Davy.

    You can look also for ETFs / Shares traded in other markets - but because of the fees involved its not worth in my opinion for the normal Pension saver who contributes just a couple of hundred Euros per month.


  • Advertisement
Advertisement