# AVC via Cornmarket ~ annual fees etc.



## PaddyBloggit (25 Nov 2010)

I had deductions taken from my salary for AVCs for more years than I care to admit to.

It was via the INTO/Cornmarket promoted scheme ..... 'twas a very hard sell and as a young teacher I fell for the hard sell ... tax efficient etc. 

And sure why wouldn't I go for it .... my union was pushing it hard as well and they were looking after my welfare weren't they?

When the first spate of cuts came I stopped deductions and left the fund to work whatever magic it was or wasn't going to do.


The fund currently stands at €32k from a high of €56k approx, so it's losing value all the time.

Not only is it losing value but Cornmarket are charging me an annual maintenance fee of approx €500 to mange the fund ... a cost that that can't be sustained.



 Can I do anything about this money?
Can I 'release' it from Cornmarket and put it somewhere where it will have some chance of survival?
 
I've given up the ghost of AVCs and planning for a more comfortable retirement but having slogged to pay the contributions can I do anything to claw back what's left before it is totally annihilated?


----------



## GSheehy (26 Nov 2010)

PaddyBloggit said:


> Cornmarket are charging me an annual maintenance fee of approx €500 to mange the fund ...


 
Is this in the form of a contribution charge or is it a charge by the product provider for managing the funds under investment?


----------



## PaddyBloggit (26 Nov 2010)

It's a charge by the product provider for managing the funds under investment.


----------



## mercman (26 Nov 2010)

Sounds like gangsterism at its best


----------



## PaddyBloggit (9 Dec 2010)

Still looking for advice here.


----------



## Sumatra (10 Dec 2010)

Why don't you question your union for not negotiating a better deal for you? Surely there is power in numbers and you pay a sub to have them negotiate the best deal. I wonder if the union benefits from the deal?

How good is the Cornmarket rep?


----------



## PaddyBloggit (10 Dec 2010)

I'm thinking of leaving the union ....  a waste of money and a waste of hot air.

Re. Cornmarket ... they take the party line ... sell, sell, sell.

I see the whole investment as robbery at this stage .....


----------



## Parkview (4 Jan 2011)

Hi
Can you get some indication from C'market as to the charging structure, this can be anywhere from 8 - 0%(unlikely to be 0%)?
That is to say what do they take of each contribution you make. What is the management charge, usually LESS that 1% per annum?
If the contribution charges are high simply stop paying into the existing AVC and take out a PRSA AVC and pay an upfront fee for the advise and 0% commission charge on your money going in.


----------



## PaddyBloggit (17 Jan 2011)

Cornmarket rep due to call to school - I'll put your questions to him Parkview - thanks!


----------



## monagt (18 Jan 2011)

Talk to you peers as my Daughter in same position and would like to give her some advice. Current attitude is - its deducted from salary, union recommended it, her peers don't seem to care. (and its their money)

I think its another Union in the trough with the financial industry scam. The charges seem very high. 
What was the Full Agreement between the Union & C'Market I wonder.

Perhaps some teacher who has a real interest in his would do a full objective analysis on it.


----------



## Marathon Man (1 Feb 2011)

PaddyBloggit said:


> Not only is it losing value but Cornmarket are charging me an annual maintenance fee of approx €500 to mange the fund ... a cost that that can't be sustained.


Its a while since I looked at Cornmarket stuff - my wife has an AVC that she stopped paying into, so charges are now minimal.

The main cost of your €500 is probably the charge for your annual meeting with the rep - there is (or used to be, anyway) an additional hefty charge for this.  Just get a report from them - *don't* meet, especially if it's going to cost you a few hundred €.

You should also be aware that the Dept. also charges a 1% collection fee, so you are actually only paying 99% into your fund, before charges.


----------



## Parkview (10 Feb 2011)

Hi Paddybloggit
How did you get on with the Cornmarket rep?
H


----------



## PaddyBloggit (10 Feb 2011)

I can't touch the fund and they charge 1% each year to manage it.

Cornmarket blamed Irish Life as the people earning the charge.

I found the rep. disorganised. He arrived 20 minutes late, had no internet access so couldn't do a 'real time' analysis.

He was also do do a Health Insurance comparison for me ... as he had no internet access he was to come back to me about it .... I haven't heard from him since.

I found the whole experience lethargic. Whereas previously there was always a hard sell this meeting was quite the opposite.

I can't touch the money until I retire if there'll be any left then.


----------

