Advice Needed Please Folks Regarding setting up a pension

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Tom Brady

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Hi All, great forum and fair play to you all for contributing.

I'll probably sound like a total novice here buy here goes. I came here as I am looking for some simple advice.

I want to set up a pension and I simply want to invest in a Vanguard S&P 500 ETF. I want to be in control of this myself, I understand the risks and accept that things can and will go south at times.

The reason as to why I want to set this up as a pension is to avoid taxes of 41% (deemed disposal). And the reason as to why I want to set this up and manage it myself is because the fees through a bank or provider / brokerage will eat a huge chunk out of the cumulative value, even a 1% fee has a colossal impact.

Please tell me this is possible. Thanks Folks.
 
Why ETF rather than a regular index tracker?

What exactly do you mean by "being in control"?
If you're simply buying one fund then what is there to control?

Have you searched for existing threads?
E.g.:


This one in particular suggests that you may need a self-directed pension/PRSA in order to invest in ETFs specifically - if that's what you really want to do and assuming that it's appropriate for your needs.

ETF's via Pensions

What is the cheapest way to invest in Exchange Traded Funds under a pension structure? Can this be done directly or do you have to go through a broker? Thanks in advance.
www.askaboutmoney.com
There are probably other existing threads that outline the likely costs associated with self-directed pensions.
 
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Do you know what type of pension you want or that you're eligible for?

Why does it have to be specifically Vanguard or the S&P 500?

By 'being in control' I assume you mean you want to choose an index tracing fund and not choose an actively managed fund 100% equity fund?

What level of contribution will you make? There's a difference in what's available AMC wise between €50 per annum and €50,000 per annum.
 
Tom Brady said:
Hi All, great forum and fair play to you all for contributing.

I'll probably sound like a total novice here buy here goes. I came here as I am looking for some simple advice.

I want to set up a pension and I simply want to invest in a Vanguard S&P 500 ETF. I want to be in control of this myself, I understand the risks and accept that things can and will go south at times.

The reason as to why I want to set this up as a pension is to avoid taxes of 41% (deemed disposal). And the reason as to why I want to set this up and manage it myself is because the fees through a bank or provider / brokerage will eat a huge chunk out of the cumulative value, even a 1% fee has a colossal impact.

Please tell me this is possible. Thanks Folks.
Click to expand...
www.standardlife.ie

Our Investment Fund Types | Vanguard Index Fund | Standard Life

Explore our range of investment funds to find out which types suit your clients' financial needs and goals.
www.standardlife.ie www.standardlife.ie


Vanguard U.S. 500 Stock Index Fund is the one you've asked for.
 
Yes I mean Index fund apologies. By being in control, I mean not having to go through a third party to set it up and take fees, can i open a self administered pension myself and put money in myself and not have to pay a third party to do this on my behalf?

Why S&P 500, the results speak for themselves
 
Tom Brady said:
By being in control, I mean not having to go through a third party to set it up and take fees, can i open a self administered pension myself and put money in myself and not have to pay a third party to do this on my behalf?
Click to expand...
As far as I know you may be able to go to a provider such as Standard Life and ask them to set up a pension for you but the charges may actually be higher in doing this than by going via a broker. I presume that the life company prefers intermediaries to handle business for them.

You might want to check out some execution only intermediaries such as the following to see if they might be able to offer you what you're looking for...

www.ferga.com

Ferguson and Associates

Pensions (including Self Administered) Life Assurance - Income Protection Savings - Investments
www.ferga.com www.ferga.com

PRSA Ireland | PRSA.ie

Low Cost Pensions Ireland Zurich LIfe The Value Pension Website Execution Only PRSA AVC PRSA Pensions www.prsa.ie
www.prsa.ie www.prsa.ie

Others are mentioned in other threads.
 
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You don't need anything special in order to invest in market index tracker fund (whatever about specifically an ETF), be able to switch funds as you wish, and pay low charges. Any of the brokers above and others mentioned elsewhere should be able to facilitate this for you on an execution only basis for an annual management fee of about 0.75% and no other charges in all likelihood. But if you need more advice and hand holding you'll most likely pay more.
 
Tom Brady said:
I mean not having to go through a third party to set it up and take fees, can i open a self administered pension myself and put money in myself and not have to pay a third party to do this on my behalf?
Click to expand...
Yes, you can deal directly with a product provider and probably pay more than you would through a third party, particularly as you appear to be trying to do this execution only. You have to buy through a distribution channel that is a regulated entity.

Tom Brady said:
Why S&P 500, the results speak for themselves
Click to expand...

You mean the past performance? All those inflated past performance figures that don't take any Contribution Charges, AMCs, Other Ongoing Costs or Portfolio Transaction Costs into account? I doubt very much if you're comparing like-with-like, which is a mistake that most people make.

Vanguard S&P500 (on a pension platform) is only available in Ireland since 14/02/2018
 
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