cheapest way to set up avc

D

Dublin85

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I'm looking to set up an avc for my wife. I was considering Zurich but see that they have high fees outside of the AMC. we are essentially looking for the lowest fee/cheapest way to get into something like the vanguard life strategy. is a broker necessary? thanks
 
Deal with an execution only broker.
Don't deal directly with an AVC provider as they will charge full rate fees.
 
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bstop said:
Deal with an execution only broker.
Don't deal directly with an AVC provider as they will charge full rate fees.
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is it simply just a matter of calling standard life. no need for a broker I assume
 
Dublin85 said:
is it simply just a matter of calling standard life. no need for a broker I assume
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If you deal directly with Standard life (a provider) you will likely be charged full 5% allocation fee on all contributions you make to the AVC.
If you go to certain execution only brokers you will likely have 0% allocation fee.

This 5% reduction will save you 50 euro for every 1000 euro in contributions.

The execution only broker will not give investment advice. This means that you would need to choose the funds you want in your AVC and the risk level of these funds.
There is lots of advice regarding suitable risk levels depending on age on the askaboutmoney site.

The execution only broker can liaise with the provider on your behalf and assist with the setting up of your AVC.
 
I'm currently looking at setting up an AVC outside of that provided by my workplace. If done through the official work intermediary, I discovered today that the contribution fee is 2.5% and the management fee is actually 1.5%, as the official broker add in their own fee of 0.5%!
I'll certainly be looking at going execution-only - the only niggle is that I doubt I'll be able to persuade my public sector employer to facilitate payroll deductions for an "unoffical" AVC even if they would still be going to Zurich. So I guess I'll just get used to adding this to my list of tax claims come every New Year.
 
Even if you set up a PRSA-AVC, not linked to your employer, you can still get the tax relief coded into your tax credits.
 
ya I'm in the same boat. the whole thing is so confusing. on one hand I don't eat to pay zurich the big fees and on thr other hand I'm not sure how to go about execution only with thr likes of davy select.
 
Dublin85 said:
ya I'm in the same boat. the whole thing is so confusing. on one hand I don't eat to pay zurich the big fees and on thr other hand I'm not sure how to go about execution only with thr likes of davy select.
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If you are willing to put a small amount of effort into the AVC, I would suggest the following.

Get a PRSA brochure from Zurich.
You will be setting up an AVC PRSA.
Check the range of funds available and their risk level.
Choose which funds you would like to invest in. You can choose one or as many as you like to divide your contributions into.
When you are happy with the selected funds contact an execution only broker and ask for an AVC PRSA application pack.
I have used " prsa.ie "
The broker will send you all the forms and fees details
You can liaise with the broker if you need assistance filling out the application forms.
 
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Protocol said:
Even if you set up a PRSA-AVC, not linked to your employer, you can still get the tax relief coded into your tax credits.
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Hmm, interesting - are you saying this could be done for payments for a current tax year, i.e., under "manage your tax 2023"?
After a quick play around in revenue.ie under the 2023 AVC section, my tax credits were only increased by 20% of the prospective AVC amount rather than my marginal rate of 40%, plus it seems mandatory to upload a copy of your pension certificate...
Not sure why the credit didn't increase to 40% of the AVC amount (yes, my prospective salary is well above the cut-off) or what the certificate would be for payments not yet made.
 
nephster said:
After a quick play around in revenue.ie under the 2023 AVC section, my tax credits were only increased by 20% of the prospective AVC amount rather than my marginal rate of 40%,
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Did your standard rate band also increase?
 
thanks for the information bstop
 
ClubMan said:
You didn't answer my question.
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But how could I see that? Back at Overview, I see the amount of the (20%) AVC credit as Pending, but I don't believe you can see a new tax credit cert unless you submit the return for real.
 
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