ETF pension

J

Jackman

Registered User
Messages
11
Hi
Are there any PRSA providers that allow you simply to invest in an ETF?

I am looking for one that will invest in say the Eurostoxx 50 index, and just track that at the lowest cost possible.

The advertised return of my current pension provider is 6% which I think is on the low side for equities, especially when the etf's dividends (say 1 or 2%) are taken into account.

I am not interested in managing my own shares (or have anyone manage them for that matter ) just track 2 or 3 broad etfs max.

Thanks!
 
New Ireland offer the Eurostoxx50 as part of their suite of funds. The AMC is 1%, which is the cost laid down in legislation for PRSA's. If you want a personal pension plan, you will be able to get it at 0.75%.

The 6% return is the maximum allowed by the Society of Actuaries. It is only a quote and has zero relevance in reality, no fund ever goes up in a straight line like that.



Steven
www.bluewaterfp.ie
 
Thanks - so is 1% the minimum annual management charge for a PRSA fund by law?
That seems a bit expensive if the management fee of the etf is only 0.25% for example.
The 6% return is the maximum allowed by the Society of Actuaries. It is only a quote and has zero relevance in reality, no fund ever goes up in a straight line like that.
Click to expand...
Is this the highest annual rate of return pension providers are allowed to quote in examples or the maximum return they will actually give on a fund?

Obviously the fund will never give 6% constantly but the average over 25 or 30 years should be a bit higher than that, more like 7 or 8% especially with dividends? Or are they factoring in inflation?
 

The 0.25% is the fund manager cost. Then you have the life company cost plus profit. All pensions are regulated products and are expensive to run. You will probably be looking at a total expense ratio of 1.04% for a fund.

There are guidelines laid down by the Society of Actuaries with a maximum return of 6% per annum. Equities should return higher, but the standard quote you get will say 6%.


Steven
www.bluewaterfp.ie
 
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