M
monkey14
Guest
First time post, really enjoying the site. Am educating myself re pensions, and have a few questions, (please bear with me).
I am using LAbrokers to set up a standard PRSA on an "execution only" basis (thanks to all I've learned from this site!).
They give 3 provider options: Irish Life, Eagle Star and Hibernian. They give 100% allocation rate on all 3, with no set up fee.
Re Managment Fees (according to product brochures):
Eagle Star: 1%
Irish Life: 1% initially.
"As your fund gets bigger, the charge for managing that fund reduces to:
0.95% when it reaches 150,000
0.9% when it reaches 250,000
0.85% when it reaches 500,000
This reduction in charges is allowed for by adding additional units to your account each month"
Hibernian: 1% initially.
"As your fund grows Hibernian will reduce the fund management charge by adding units to your Standard PRSA. When your fund reaches a certain size, units will be added to it on the anniversary of the policy
State of Fund Management Charge Rebate (as a % of fund)
up to 20,000 - Nil
20,000 to 49,999 - 0.15%
50,000 up - 0.25%"
I have 3 questions.
A. Does the Hibernian product effectively mean that the charge is reduced to 0.85% at 20,000, and 0.75% at 50,000, or am I missing some subtlety in the wording? If this is the case, on the basis of managment charges only, the Hibernian product is by far the better deal. Yes?
B. I know I will have to compare funds when making final decision who to go with. I know nothing about investment, so will prob keep it very simple and go with the Consensus or Equity funds, so need to compare these. My very amateur impression is that Eagle Star and Irish Life have better records than Hibernian in terms of fund performance. I know past performance is no indicator etc. So, if Hibernian is the better deal in terms of charges, should I consider fund performance at all, or just go with Hibernian (presuming I'm happy with their fund options)?
C. I have a lump sum to start the PRSA (am paying direct, not throught payroll). I want to allocate some of it to last year and some to this year, to maximise tax back. Can I lodge it all to the PRSA as one lump sum, and then ask Revenue to allocate some to last year, or do I need to lodge it as 2 separate lump sums?
Thanks in advance for any help!
I am using LAbrokers to set up a standard PRSA on an "execution only" basis (thanks to all I've learned from this site!).
They give 3 provider options: Irish Life, Eagle Star and Hibernian. They give 100% allocation rate on all 3, with no set up fee.
Re Managment Fees (according to product brochures):
Eagle Star: 1%
Irish Life: 1% initially.
"As your fund gets bigger, the charge for managing that fund reduces to:
0.95% when it reaches 150,000
0.9% when it reaches 250,000
0.85% when it reaches 500,000
This reduction in charges is allowed for by adding additional units to your account each month"
Hibernian: 1% initially.
"As your fund grows Hibernian will reduce the fund management charge by adding units to your Standard PRSA. When your fund reaches a certain size, units will be added to it on the anniversary of the policy
State of Fund Management Charge Rebate (as a % of fund)
up to 20,000 - Nil
20,000 to 49,999 - 0.15%
50,000 up - 0.25%"
I have 3 questions.
A. Does the Hibernian product effectively mean that the charge is reduced to 0.85% at 20,000, and 0.75% at 50,000, or am I missing some subtlety in the wording? If this is the case, on the basis of managment charges only, the Hibernian product is by far the better deal. Yes?
B. I know I will have to compare funds when making final decision who to go with. I know nothing about investment, so will prob keep it very simple and go with the Consensus or Equity funds, so need to compare these. My very amateur impression is that Eagle Star and Irish Life have better records than Hibernian in terms of fund performance. I know past performance is no indicator etc. So, if Hibernian is the better deal in terms of charges, should I consider fund performance at all, or just go with Hibernian (presuming I'm happy with their fund options)?
C. I have a lump sum to start the PRSA (am paying direct, not throught payroll). I want to allocate some of it to last year and some to this year, to maximise tax back. Can I lodge it all to the PRSA as one lump sum, and then ask Revenue to allocate some to last year, or do I need to lodge it as 2 separate lump sums?
Thanks in advance for any help!