.. and would the broker not also have a contract or agreement with the client ?
(Could conflicts of interest arise if the agency agreement clashes with the clients)
The regulated entity must sign the statement and provide a copy of this statement on paper or on another durable medium, dated on the day on which it is completed, to the consumer prior to providing or arranging a product or service, and retain a copy.Yes a broker must give a client a written statement of suitability which must cover the basis of their recommendation and the client must sign.
Agency agreements don't dictate charging structures. Most companies have a range of charging structures on each of their products from which a broker can choose.
Are you saying it’s not possible to get an ARF with 100% allocation with 0.40% AMC?
This is not meaningful if you don’t tell us the disclosed costs.
You will almost certainly only be offered a lump sum and an annuity because you are non resident.So I will have a small pension pot currently valued at ca. 100k from an old employment. I have since long left Ireland and won't have any more private pensions from there, just the state pension, contributory (should be close to if not over the 40 years of contribution) and a partial German state pension. Most of my passive income in retirement will come from rental income in Ireland and Germany. I also invest in ETFs, lazilly I might add, simply regularly buying shares in a MSCI World Index for the most part. ETFs are very easy to buy into in Germany from a tax perspective. My Irish DC pension pot is also pretty much all in a MSCI world index with Mercer. The fees are "low" as far as I know and subsidised by my former employer, so I think it makes sense to leave that pot invested as long as possible before conversion to an ARF. I had (naively it seems) assumed I could "simply" convert this pot into "more of the same", ie an ARF tracking the same MSCI world index, without the need for advisors and whatnot. I don't need investment advice as I know where I want to put this pot. Can I not just do this for "small money" directly with one of the ARF providers, having sought out the one that will charge me the least in management fees? There surely isn't a lot to manage when the client's funds are essentially in a passive ETF!
What does someone in my position do? I do not expect or care if the fund bombs out before I die. It is only 100k so it most likely will bomb out with the 4%/5% imputed distributions. The old DC pension is more of a nice to have in early retirement and in fact I would prefer to "burn" through it while I am still able to enjoy it rather than making sure it's still paying out €50 a month when I am 95.
FE told us that they find dealing with Irish insurance companies very frustrating because they are not clear about what charges are included in their returns.Yes it is.
My understading of this program is that the numbers can be run with and without charges.
By comparing the figures of one provider from their own pricing disclosures (that include OOCs, PTCs, and part of the AMC) with the the numbers above I can get close enough to the cumulative result. I suspect the difference is down to the fact that their own pricing just goes to the 13th September so I'd assume that when this 'comparison' was run that the comparative days were also off as the numbers feed into this program. But, as you say, full disclosure of what costs all indices include is the only way to afford past performance charts any credibility.
It really shouldn't be a surprise to anyone that an index that doesn't have any costs included (?) is going to be better than one that does.
Gerard
www.prsa.ie
FE told us that they find dealing with Irish insurance companies very frustrating because they are not clear about what charges are included in their returns.
Hey Al Capone are you a gangster?So why use FE?
Why not get the information directly from the companies if you want to do this type of 'analysis'?
That's disappointing to say the least. Why would an ARF be out of the question I wonder? They still have the whole PAYE stuff to manage if I have an annuity with them and the non-availability of a PAYE exclusion order is in fact a plus in my case as this income is then not taxable in Germany once the Revenue has taxed it. The TFLS is not sensible in my case as it is taxable in Germany.You will almost certainly only be offered a lump sum and an annuity because you are non resident.
You could transfer to another EU pension arrangement outside Ireland. But your fund is too small to be commercially viable for our fees. If you have another German scheme talk to them and see if they will accept a transfer in.
As a last resort it is possible to arrange an ARF invested in index funds for a fee. You would not be able to obtain an Irish PAYE exclusion order.
The regulated entity must sign the statement and provide a copy of this statement on paper or on another durable medium, dated on the day on which it is completed, to the consumer prior to providing or arranging a product or service, and retain a copy.
Whatever about mis-information, one of my issues is the "amount" of information that is presented to a typical customer. Whilst I consider myself reasonably financially savvy and able to grasp the basics of most financial products out there, my takeaway from looking at the charts and data shared by Marc on page 2, #21 (for example) is that this is way too much data for most people. No disrespect to Marc and I'd guess his software and licence costs are significant.So basically - how to keep as much of your own pension pot to fund your retirement in this country is third secret of fatima stuff. Absolutely no transparency on fees, costs or comparable options.
Advisors, brokers, insurance companies all sniffing around looking to pounce and take their bite. So much mis-information and scare-mongery thrown out into the ether to make sure the average punter is so confused, worried and frustrated that they will gladly hand it to an 'expert'.
Sometimes I think it would be easier if you just had the option of keeping your pension pot in special deposit account / simple trading platform that you can't access until you are retire the fund, but you have total control over.
So any analysis based on that data is suspect, to put it charitably.FE told us that they find dealing with Irish insurance companies very frustrating because they are not clear about what charges are included in their returns.
For me this is the salient argument in all this.Whatever about mis-information, one of my issues is the "amount" of information that is presented to a typical customer. Whilst I consider myself reasonably financially savvy and able to grasp the basics of most financial products out there, my takeaway from looking at the charts and data shared by Marc on page 2, #21 (for example) is that this is way too much data for most people. No disrespect to Marc and I'd guess his software and licence costs are significant.
Even if you can take it all in and then decide to look around for an alternative proposal, the format of the next presentation is likely to be different making comparisons difficult. Perhaps there is some value in the idea of a standard format to present retirement products.
As I continue to weigh up whether to go ARF or Annuity when my time comes, this thread is definitely edging me towards annuity even if it's just to stop me feeling annoyed/ anxious about constant value erosion from fees.
Depends on the point one is seeking to make.So any analysis based on that data is suspect, to put it charitably.
Oh, I do understand (and appreciate) the point you are trying to make. The problem is your analysis is flawed.Depends on the point one is seeking to make.
This is exactly where my mind is too at the moment, and most likely lots of others. It really doesn't need to be like this, and it's incredibly frustrating, and probably more so, the more you research you doAs I continue to weigh up whether to go ARF or Annuity when my time comes, this thread is definitely edging me towards annuity even if it's just to stop me feeling annoyed/ anxious about constant value erosion from fees.
It's not that complicated. When you come to draw down your pension, look at everything, the annuity rates available, the ARF options. Weigh up the pros and cons and go for the one that suits your circumstances the best.This is exactly where my mind is too at the moment, and most likely lots of others. It really doesn't need to be like this, and it's incredibly frustrating, and probably more so, the more you research you do
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