Best option for small contribution self directed PRSA

T

Triptree

Guest
I'd like to begin my pension this year with a lump sum of 5K.

I want to invest all of that sum in BOI shares with a view to their medium to long term appreciation.

My question, other considerations aside, such as any employers pensions scheme etc., what is the most straightforward way to do this ?

If I setup an account and paid the one off commission to purchase the shares through one of the over-the-phone or online share dealers, my only cost would be a low annual charge.

From what I have read here, doing this through a PRSA appears to be a far more expensive option, with setup fees & much higher charges, and not worth it at the level I want to invest.

Am I mistaken, or is there a straightforward way to invest this 5K in Irish shares to strart a self administered pension fund ?

Thanks
 
Self-directed PRSAs are rare and tend not to accomodate contributions of €5,000. You might find that your need is met with a self-directed Personal Pension (if you are self-employed or in non-pensionable employment) or self-directed Occupational Pension Scheme (if you are a company director or an employee who can influence your employer to set up a scheme for you.)

You will pay charges for setting up and administering the pension policy as well as the charges you mention for actually buying the share. But you need to weigh the charges for setting up the policy against the tax relief / tax deferral which you get for investing through a pension.

Liam D. Ferguson
www.ferga.com
 
Thanks Fergal. Yes, from what I can see 20K seems to be the smallest viable amount to start a self directed PRSA with ( that from Canada Life). So it will be some other option until then.
 
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