# Best pension for 30yr old sole trader?



## JackB (11 Oct 2006)

Hi, I have been reading through all the posts and still cant decide which pension to choose..
Hoping someone can bring some light to the best pension providers of the following...

Over 35 years, the provider for a sole trader regarding minimum monthly/yearly charges?

Current performer and what they are investing in?

Benefits when pension contributions are finished?

Also, if a sole traders income tax return is say e4,000 pa. How much can he/she contribute to their pension?

Thanks guys..
JB


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## asdfg (11 Oct 2006)

> Also, if a sole traders income tax return is say e4,000 pa. How much can he/she contribute to their pension?


do you mean 4K pa or per month?


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## JackB (12 Oct 2006)

Good Morning.. 4k pa. Thanks


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## asdfg (12 Oct 2006)

Have you any other earnings.  If you are only earning 4K per annum or 80 pw you will not pay any tax so there is no benefit to you in setting up a pension.


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## fobs (12 Oct 2006)

Think he means his tax bill will be roughly 4k after expenses etc are taken into account?


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## simp (12 Oct 2006)

I'm interested in this point as well.  I'm a sole trader, and approx half my income is tax exempt, through the Artists' Exemption.  The remainder, minus deductions for overheads, does not leave me liable for an excessive amount of tax.  Therefore the tax incentives for me to invest in a pension are not great.  I spoke to a pensions advisor last year, and he advised me to look into non-pensions investments, for this very reason.  I've just bought and renovated my first house, so my need for short-term savings is lessened now.  What would you all advise me to do about long term savings - pension or investments?


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## asdfg (12 Oct 2006)

Sorry about that read it completely wrong lets go back to the beginning 



> Also, if a sole traders income tax return is say e4,000 pa. How much can he/she contribute to their pension


 
At 35, you can put away a max of 20% of your gross income or income declared for tax purposes. The following is taken from the pension board website
*Age ..........Maximum Contributions*
Less than 30........ 15%
30-39 .................20%
40-49 .................25%
50-54 .................30%
55-59 .................35%
60 and over .........40%

You get tax relief at your marginal rate of tax plus PRSI 
This could amount to a refund of tax up to 45% of the pension contribution. If you set up a pension now and you make a contribution before 31st oct against your declared income for 2005 you should get a refund of up to 45% within a few months from revenue/welfare.


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## JackB (12 Oct 2006)

> I spoke to a pensions advisor last year, and he advised me to look into non-pensions investments, for this very reason.


Simp, what kind of investments would this involve?  With house prices gone through the roof, excuse the pun, what other investments are out there instead?
Was talking to some friends today who own companies/sole traders, who claim pensions are a waste of time for sole traders.. Many thanks
JB


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## asdfg (12 Oct 2006)

> who claim pensions are a waste of time for sole traders


 
Don't really understand this. If you make a contribution of say 5K into a pension you could get a refund of 2.25K so you have 5K in your pension and 2.25K in the bank by way of a refund. not a bad return, better than the ssia return.


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## JackB (13 Oct 2006)

> LA Brokers will set up an Irish Life standard PRSA on an execution basis only for €150. 1% per annum management charge with no charges on contributions.
> 
> See this link :


This is the information I was hoping for.



Are Irish Life the best.. Why?

Are Quinn Life the best.. Why?

Are Canada life the best.. Why?

Im hearing about all these hidden charges and cons on when cashing in at the end etc..
Would like,, and i'm sure a lot of people who asked similar questions,, would like to know, in straight forward terms..     "......................." are the best provider out there because they give a clear indication as to what and why they are charging and this is what you will receive if you retire.. NO catches!!
thanks again


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## Guest126 (13 Oct 2006)

Jack B, Yorky

There is no one "best" fund manager!

Of course Irish Life are "worth considering", they manage about €20 billion of assets - so they are clearly not 'fly by night' nor are they mugs they are the second largest Irish Fund Manager!

Of most importance, though, is the charges that apply in setting up your pension - whichever fund manager you choose, with a 'bad deal' in terms of charges you will under perform (even if you happen to choose the best fund manager).

None of us have crystal ball...we cannot tell you which fund manager will perform best over the next 10 to 30 years!


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## simp (13 Oct 2006)

JackB said:


> Simp, what kind of investments would this involve?  With house prices gone through the roof, excuse the pun, what other investments are out there instead?



After years of saving for it, finally bought and renovated a house this year - so I have that part sorted...  Which is why I am now looking for a home for my investable money for the future...



JackB said:


> Was talking to some friends today who own companies/sole traders, who claim pensions are a waste of time for sole traders.. Many thanks
> JB



Exactly the advice I was given...



			
				asdfg said:
			
		

> Don't really understand this. If you make a contribution of say 5K into a pension you could get a refund of 2.25K so you have 5K in your pension and 2.25K in the bank by way of a refund. not a bad return, better than the ssia return.



Except that most sole traders are trying to maximise their tax efficiency, so their tax liable income is ideally not going to be very high - so they don't really benefit from the Revenue's tax/pension allowances (which is probably the point!)...

So the question is - what else is a sole trader to do, if pensions are not the most efficient way of saving for the future..?


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## JackB (13 Oct 2006)

Appreciate your replies..
Starting to see the light................................




> Of course Irish Life are "worth considering", they manage about €20 billion of assets - so they are clearly not 'fly by night' nor are they mugs they are the second largest Irish Fund Manage


Who are the first?

It seems to be down to, whos a decent peformer and have low charges.. I get the gut feeling to go with Quinn Life.. Although new, they seem to know what their doing regarding insurance.. Any opinions on Quinn Life?


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## Guest126 (13 Oct 2006)

Bank of Ireland Asset Management is the largest.


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