# Which PRSA is best?



## VenoBlanch (25 Jul 2005)

Hi guys,

I opened a PRSA with Bank Of Ireland nearly 2 years ago(with my job) - but I think their charges are too high.

Would anyone recommend another provider? I opened it up without checking the other options.


Thanks in advance,
V


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## CathyK (26 Jul 2005)

Hello,


Most PRSA providers charge the same, i.e. 5% bid offer and up to 1% annual management fee. Some will differ when it come to larger premiums being paid ( normally over €1000 per month), however what you should be looking for is fund performace, its all well and good paying a charge, but you also want the performance to back this up.
catherine@keatingfinancial.com


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## salmon2005 (26 Jul 2005)

Get quote's from a few different providers and see the charges that way. For instance Canada Life Management charge halfs after 10 years-this means alot considering the average pension plan is 25-30 years long! After the charges consider fund proformance. While past proformance is never a way to guarantee future proformance it will give you an idea how the fund managers have proformed in the past!

Hope this helps,
Anthony
anthony@advicefirst.ie


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## RS2K (6 Aug 2005)

I don't agree with most of what's been said here.

The key is where the money is going to be invested. Risk vs. reward.

Far less important is the relative strength of the investment manager. There are many duds and few stars. If a particular fund has a good history, chances are it will underperform relatively from now on. People in the business move, retire, and takeovers are common. I'd look at consensus funds - you can't get it far wrong assuming the sector you go for is ok.

Charges on all standard prsa's are identical. I simply do not believe anyone will half their charges in 10 years. I bet there's no accrual for this massive promise in the fund managers a/c's.

Lastly competing quotes should not form any basis of comparison on value for money. Acuaries are clever people, who can and do make subtly different assumptions in calculating quotes. An extra premium, opting to take the benfits 1 month late etc. will all skew the figures.


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## salmon2005 (8 Aug 2005)

Th idea for getting the quotes was simply to compare the costs of the plan. The canda life prsa which i have mentioned does have after 10 years fact! There funds proformance can be seen in any paper. While risk vs reward is a way to guage the clients risk profile it is not a way the research the funds to invest into. Consensus fund may suit alot of people, but property might suit someone else.Every body is different and will have there own level of risk.

Regards
anthony@advicefirst.ie


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## RS2K (8 Aug 2005)

salmon2005 said:
			
		

> Th idea for getting the quotes was simply to compare the costs of the plan. The canda life prsa which i have mentioned does have after 10 years fact! There funds proformance can be seen in any paper. While risk vs reward is a way to guage the clients risk profile it is not a way the research the funds to invest into. Consensus fund may suit alot of people, but property might suit someone else.Every body is different and will have there own level of risk.
> 
> Regards
> anthony@advicefirst.ie



But competing quotes are not, according to the regulator, to be used as a valid comparison of value. I hope that you are not simply firing a persons details into a computer and making a recommendation based on the highest illustrative accumulated fund!

I don't doubt that C.L. are saying they'll do cartwheels or whatever in their brochure after 10 years, but I'm questioning are they accruing for this seemingly enormous expense in their a/c's.

Many life co's previously offered this fabulous notion of "bonus units", allowing their actuaries include growth on these in their illustrations. When push came to shove the unit allocation statements did indeed show the addition of bounus units, and a corresponding reduction in unit price.

A con in other words. Be wary of smoke and mirrors.


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## salmon2005 (9 Aug 2005)

I have never said to use the qoutes for projected value merly for the true costs of the plan!!!!Under the the new regulations from the financial regulator in all qoutes the cost of the plan must be stated. So again i say it, get quotes from different companies and compare costs not projected value etc. The canada life policy which i have spoke about does not say extra allocation or anything like that. The managment charge is stated in all quotes and after 10 years the management charge halfs. Maybe try this, check it out and then come back and tell me i am wrong!!!!!!!!!!!!!

Regards
anthony@advicefirst.ie


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## RS2K (9 Aug 2005)

I said:-

"I don't doubt that C.L. are saying they'll do cartwheels or whatever in their brochure after 10 years, but I'm questioning are they accruing for this seemingly enormous expense in their a/c's".

Mangement charge may be halved, but other charges are variable, and new ones can be introduced anytime. So what good is that?

Answer = None.


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