ARF charges

R

Running Hatter

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I will be retiring early (59 yrs) in the next 18 month's and plan to go down the ARF route and of course I will be getting professional advice.
I plan to take 25% lump sum and go with a 75% passive global equity and 25% cash mix with the remainder.
My question is which company has the lowest overall charges and what percentage should I expect to pay.
 
Money saving TIP for the day:

If you hold a vested PRSA or ARF we can often both reduce your fees and improve your investment choices.

The cheapest ARF we can find with an insurance company is 0.40/% for an ARF or 0.45%pa for a vested PRSA with a relatively limited fund range of funds.

We can arrange an ARF with a qualifying fund manager (QFM) inclusive of a Pershing dealing and custody account for 0.40%pa with access to many thousands of funds and listed securities in multiple currencies.
 
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Running Hatter said:
I will be retiring early (59 yrs) in the next 18 month's and plan to go down the ARF route and of course I will be getting professional advice. I'm open to paying for that initial advice by fee and if I think I need ongoing advice I'll pay for that by fee too. I plan to take 25% lump sum and go with a 75% passive global equity and 25% cash mix with the remainder. My question is which intermediary has the lowest overall charges & fees and what percentage of fund value should I expect to pay - my fund will be €20,000 ? / €1m ?.
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You're going to get Narnia pricing otherwise.

Gerard

www.prsa.ie
 
Sarenco said:
Well, the website is completely misleading if that’s the case.
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The smoke and mirrors of the personal finance industry. I agree with Onion, that's the advisor charge. Given the insurance company amc mentioned a few times is 0.75%, there's 2% initial paid to the advisor and 0.25% ongoing.

I am not aware of any ARF for 0.25%.

And like I have said many times before, you don't go into the Nike store in Dundrum and get wholesale prices on Nike products. There will always be a mark up. Same with financial products. If you go directly to the life company, you deal with their direct sales team. If you go to an advisor, they will charge you.


Steven
www.bluewaterfp.ie
 
Marc said:
The cheapest ARF we can find with an insurance company is 0.40/% for an ARF or 0.45%pa for a vested PRSA with a relatively limited fund range of funds.
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Did you look at Aviva? Charges start at 0.3%.

Marc said:
We can arrange an ARF with a qualifying fund manager (QFM) inclusive of a Pershing dealing and custody account for 0.40%pa with access to many thousands of funds and listed securities in multiple currencies.
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Is there a broker commission or fee on top of these charges? Plus an additional annual charge depending on what fund or ETF you then invest in? From what I can see, you're quoting the cost of just one element of the transaction - the ARF structure - and forgetting to quote the cost of the other two elements - the broker commission or fee for advice and/or implementation and the fees for the investments themselves.
 
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Running Hatter said:
I will be retiring early (59 yrs) in the next 18 month's and plan to go down the ARF route and of course I will be getting professional advice.
I plan to take 25% lump sum and go with a 75% passive global equity and 25% cash mix with the remainder.
My question is which company has the lowest overall charges and what percentage should I expect to pay.
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Just retired myself. Took lump sum and starting ARF draw down next January. Shopped around. Stephen above sorted me out.
Do not stay with whoever you have your funds currently with you will always get the worst quote.
 
Thanks for all the feed back on my original question, what I'm really trying to find out is all costs involved from set up fee, AMC and any other charges and fees that I will encounter, for a pension pot of 450,000 euro.
 
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Running Hatter said:
Thanks for all the feed back on my original question, what I'm really trying to find out is all costs involved from set up fee, AMC and any other charges and fees that I will encounter, for a pension pot of 450,000 euro.
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I concur with @GSheehy above. You'd need to give an indication of the approximate size of the ARF to get an indication of charges - larger sums tend to get better charges. You should also clarify if you want ongoing advice or service from the intermediary.
 
A close family member has an ARF at 0.5% through Zurich. I don’t think there’s a whole lot better than that available in the marketplace. Yes, 0.5% isn’t the full story with a life company, but the additional costs at the scale life companies trade financial instruments and currency are negligible, plus there’s no VAT, plus that’s for active management.

I’d much prefer that versus some aggressive online salesperson constantly hawking his or her wares.
 
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