What charges are there with your employer's scheme that makes it expensive? Contribution charges?
I would have thought that 1% per annum (no VAT) plus nil comm (which is available from quite a few providers) is decent enough.
Easy to say when I'm paying 0.5% though I guess.
How does one go about finding out the TER of (say) an Irish Life or Zurich Life equity fund?
And in any event surely things like FX etc are cheaper when done on a grand scale through a large fund rather than individually through a broker?
I think it's extraordinary that (a) our Central Bank allows this lack of transparency to continue; and (b) nobody seems to get upset about it.
How would this work for getting tax relief? As it's not going through my employer's payroll, I'll be paying into this account with my after tax income. Is it just a case of informing Revenue of the amount I paid into the second pension and then requesting a balancing statement? Can it be done through PAYE Anytime?
I'm afraid there is no reliable way of figuring out TERs for unit-linked funds. My estimates (and I would emphasise that they are just estimates) aren't based on publicly available data.
As an aside, I think it's extraordinary that (a) our Central Bank allows this lack of transparency to continue; and (b) nobody seems to get upset about it.
For sure - but there isn't much a fund manager can do about costs like stamp duty, etc.
I don't want to give the impression that I think there a wholescale rip-off going on within the Irish retirement savings market - I'm simply trying to make the point that a fund's AMC does not represent anything like the full ongoing investment cost.
While I think the Davy Select offering is pretty expensive (compared to similar offerings in the UK), it does, at least, have the merit of being relatively transparent.
Are you sure about that? They have a PDF on their website with a list of charges for all their different accounts and the only self directed account I can see has an AMC of 0.75%.I have looked at this a lot recently and ended up with a Self Directed fund with Friends First. They have platform with Cantor Fitzgerald which allow access to lots of ETFs. I pay 0.4% per annum to Friends First. Got 100% allocation and I'm currently in The Vanguard Total World ETF with a TER of 0.14%, FTSE 100 ETF with TER of 0.07% and Euro Corp Bond ETF with TER 0.20%.
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