PiggyBankPirate
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Hi everyone,
I’m 26 years old, living at home, and currently working for the HSE with a salary of €66K. I’m extremely new to all of this—investing, pensions, AVCs—so I’m looking for some guidance to help me make the right choice.
I've been looking into setting up an Additional Voluntary Contribution (AVC) to boost my pension savings, but I'm a bit confused about the best option given the fees and charges involved.
Thanks in advance for your help!
I’m 26 years old, living at home, and currently working for the HSE with a salary of €66K. I’m extremely new to all of this—investing, pensions, AVCs—so I’m looking for some guidance to help me make the right choice.
I've been looking into setting up an Additional Voluntary Contribution (AVC) to boost my pension savings, but I'm a bit confused about the best option given the fees and charges involved.
Here’s what I’ve found so far:
- Cornmarket:
- Annual Management Charge (AMC): 1.00% for Public Sector Strategy Funds.
- Tiered AMC: Reduces by 0.25% on amounts between €40K and €140K, and by a further 0.25% on amounts above €140K.
- Setup Fee: €595, deducted from contributions in the first year.
- Contribution Charges: 0% on regular contributions, 4% on single premium contributions.
- Payroll Deductions: Contributions can be made directly via payroll, which provides immediate tax relief.
- Fairstone (AskPaul):
- AMC: 1.50% flat rate.
- No Setup or Contribution Charges: No initial setup fee or contribution charges.
- 100% Allocation: No charges on contributions, meaning all of your money is invested.
My Questions:
- Given that I'm relatively young and have time on my side, which option might be the best for long-term growth?
- How significant is the difference between a 1.00% AMC (Cornmarket) and a 1.50% AMC (Fairstone) over a 30+ year period?
- Is the convenience of Cornmarket's payroll deduction and immediate tax relief worth the setup fee and other charges, or would Fairstone's simplicity and lack of extra charges be better in the long run?
- I've read that some people recommend an execution-only AVC, but I feel this might not suit my circumstances. I’m extremely new to investing, pensions, etc., so I’d prefer a bit more guidance and support.
- Are there other companies or providers you would recommend instead of these two?
Thanks in advance for your help!