Personal question in regards to feed

Kmagic · 07-07-2019 2:10pm #1

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?

cooperguy · 09-07-2019 11:43pm

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

Kmagic · 10-07-2019 10:04pm

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?

cooperguy · 10-07-2019 11:27pm

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

Kmagic · 12-07-2019 12:12am

I think you could be right.

BrokenArrows · 12-07-2019 9:18am

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%

phantom_lord · 12-07-2019 6:45pm

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)

Geuze · 12-07-2019 6:59pm

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.

Kmagic · 13-07-2019 7:31pm

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.

FernandoTorres · 14-07-2019 11:23am

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.

dickface · 14-07-2019 11:33am

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

FernandoTorres · 14-07-2019 11:44am

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.

cooperguy · 21-08-2019 10:15pm

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

Squall Leonhart · 21-08-2019 10:18pm

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?

cooperguy · 22-08-2019 8:33pm

Squall Leonhart wrote: »

Is that fees, or growth over last 30 days?

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

Kmagic · 23-08-2019 8:49am

cooperguy wrote: »

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

And you have 100% allocation rate with those fees?

cooperguy · 24-08-2019 10:27am

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)

Kmagic · 25-08-2019 10:58am

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.

Inspector Coptoor · 25-08-2019 11:38am

My annual charge is 0.4% and that’s it

Kmagic · 26-08-2019 7:28am

Inspector Coptoor wrote: »

My annual charge is 0.4% and that’s it

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

Inspector Coptoor · 26-08-2019 4:48pm

Kmagic wrote: »

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

Willis

cooperguy · 26-08-2019 6:51pm

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!

Kmagic · 31-08-2019 11:15am

cooperguy wrote: »

let us know what you end up with!

Will do. Thanks for the replies.

Personal question in regards to feed

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