How exactly would a fund track an index without buying and selling shares? They should be low on a 'pure' tracker fund, but there are still expenses.
Executive Pension pot transfer
- Thread starter NotMyRealName
- Start date
I don't know - why do you ask?
I'm trying to help you understand why there would be some costs within even the most efficient perfect index tracking fund.
@kevhenry already pointed out that buying and selling would be the largest component of the TER within a fund. So if a fund has to buy & sell assets, it will have expenses.
You got the 0.75% from the advisor (and pension provider) that you have been dealing with all along, or someone else and a different pension provider?
NotMyRealName
Registered User
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Yes, .75% from the same provider...
NotMyRealName
Registered User
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** RESULT *
My provider has come back with an improved offer....
* .5% AMC
** 100% allocation on lump sums of €20k or over , otherwise 95% allocation. In my case ,this is do-able as my contributions are likely to be in that order....( However, I would attempt to negotiate that down, even though I'm confident I can avoid it)
*** Full transfer value protected with NO exit penalties.
I have not accepted this offer yet as I have a similar proposal from another provider which would include ( paid-for) set-up and ongoing advice.
Anyway, as a case-study, I think this is a very positive outcome.
I'd like to thank you all for your advice and encouragement over the last couple of weeks.
No matter why you're reading this, please act soon and get a review of your own situation. If you think you need professional assistance, then get it......but, above all, don't do nothing. Thanks to ALL of you.
My provider has come back with an improved offer....
* .5% AMC
** 100% allocation on lump sums of €20k or over , otherwise 95% allocation. In my case ,this is do-able as my contributions are likely to be in that order....( However, I would attempt to negotiate that down, even though I'm confident I can avoid it)
*** Full transfer value protected with NO exit penalties.
I have not accepted this offer yet as I have a similar proposal from another provider which would include ( paid-for) set-up and ongoing advice.
Anyway, as a case-study, I think this is a very positive outcome.
I'd like to thank you all for your advice and encouragement over the last couple of weeks.
No matter why you're reading this, please act soon and get a review of your own situation. If you think you need professional assistance, then get it......but, above all, don't do nothing. Thanks to ALL of you.
That’s
The 100% allocation is actually likely to me 102% with the 2 going to the “advisor”
either way I’m delighted for you and hope it inspires others.
That’s really great! I think you should push - 100% allocation on everything regardless of the size. We get that on our monthly contributions and lumps and as I said before we are dealing with a smaller account than you are.** RESULT *
My provider has come back with an improved offer....
* .5% AMC
** 100% allocation on lump sums of €20k or over , otherwise 95% allocation. In my case ,this is do-able as my contributions are likely to be in that order....( However, I would attempt to negotiate that down, even though I'm confident I can avoid it)
*** Full transfer value protected with NO exit penalties.
I have not accepted this offer yet as I have a similar proposal from another provider which would include ( paid-for) set-up and ongoing advice.
Anyway, as a case-study, I think this is a very positive outcome.
I'd like to thank you all for your advice and encouragement over the last couple of weeks.
No matter why you're reading this, please act soon and get a review of your own situation. If you think you need professional assistance, then get it......but, above all, don't do nothing. Thanks to ALL of you.
The 100% allocation is actually likely to me 102% with the 2 going to the “advisor”
either way I’m delighted for you and hope it inspires others.
Younginvestor93
Registered User
- Messages
- 130
I'm currently comparing prsa pensions and I have been offered Davy at 0.75 management fee and of course I have to add on the TER of the fund I invest, say for example is 0.2. This brings the total charge to 0.95, is that accurate?
When comparing against say an Irish life pension or Zurich Fund pension that have a 1% annual management charge. I automatically assume that includes the TER of the Zurich fund I invest in within the 1% or is that wrong? Should I add on the Zurich fund TER on to the 1% charge to make a proper comparison?
Im not sure what is correct in this case
When comparing against say an Irish life pension or Zurich Fund pension that have a 1% annual management charge. I automatically assume that includes the TER of the Zurich fund I invest in within the 1% or is that wrong? Should I add on the Zurich fund TER on to the 1% charge to make a proper comparison?
Im not sure what is correct in this case
Highly unlikely, as original poster was talking about a 3/4 year time frame.
If company paid 2% to an advisor and charged 0.5% AMC, they'd be doing it for 'free', if not at a loss.
Gerard
www.bond.ie