K
Kelloggs
Guest
We have EUR 150 per month to save for our children's education. Since we are looking at a time-frame of at least 15 years, we would like to invest this money in a fund rather than just save it in a deposit account.
We are considering opening an EBS Choice Bonus Save regular savings account and investing in the Consensus fund. However, we are concerned about the fees & charges: 1% govt. levy, 3% fund charge on each contribution and a further 1.9% fund management charge built into the unit price. Is this too expensive and should we consider e.g. Rabo as a cheaper alternative?
Note that we do expect to be able to maintain these payments long-term, and therefore avail of the bonuses built into the plan, even if the children's allowance is reduced. We would get a EUR 360 bonus after year 6 (20% of our year 1 contributions) and EUR 540 bonus after year 10 (30% of year 7), and a further EUR 360 every 5 years thereafter, if we maintain our contributions. This would effectively "refund" us the bulk of the 3% fund fee.
Would be interested to hear of other people's views/experiences for this type of unit-linked plan, particularly after reading mercman's recent thread about "the real cost of investing".
Thanks and regards.
We are considering opening an EBS Choice Bonus Save regular savings account and investing in the Consensus fund. However, we are concerned about the fees & charges: 1% govt. levy, 3% fund charge on each contribution and a further 1.9% fund management charge built into the unit price. Is this too expensive and should we consider e.g. Rabo as a cheaper alternative?
Note that we do expect to be able to maintain these payments long-term, and therefore avail of the bonuses built into the plan, even if the children's allowance is reduced. We would get a EUR 360 bonus after year 6 (20% of our year 1 contributions) and EUR 540 bonus after year 10 (30% of year 7), and a further EUR 360 every 5 years thereafter, if we maintain our contributions. This would effectively "refund" us the bulk of the 3% fund fee.
Would be interested to hear of other people's views/experiences for this type of unit-linked plan, particularly after reading mercman's recent thread about "the real cost of investing".
Thanks and regards.