Hillwalker1
Registered User
- Messages
- 4
If you choose to invest in the Acorn product I’d recommend that you find out if any growth on your fund after deduction of the 5% charge is subject to exit tax at 41% or does exit tax only apply once your fund is in excess of €100k. For the purposes of the following I’m ignoring the 1% levy which presumably applies in addition to the 5% product charge.
100k invested @ 95% = 95k
Fund grows by 2% = 95 * 1.02 = 96.9k
If you were to encash exit would be due on growth @41%
net encashment would be €96121
So in summary will you be charged exit tax on growth on the fund between 95k & 100k?
If you are incurring exit tax in this situation perhaps consider some alternative options.
Not sure what words he used, but there's a difference between the price you can buy units for (i.e. invest), and the price you can sell them for.He said it’s a bid offer investment?
I didn’t say anything about it being correct. I said I’d recommend that the OP check it out.That's not correct. The Revenue have stated that the gain to be taxed is "the policy proceeds less the premiums paid". If it is worth less than €100k on encashment, no tax is payable.
Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
Which product are you looking at with Acorn?invest in something low risk
Thanks everyone
Spoke to guy a little more. He said it’s a bid offer investment?
There's a list of the Acorn fees and charges here
Looks like there's a policy fee on investments of 0.0625% in addition to the 0.5%.
Partial encashment fee only other one that's relevant to Investment plan.
Government Levy not included as it's not an Acorn charge, presumably.
Tried to post this already so sorry for the double post.
I'm somewhat of an investment novice. Just a query re fees. Looking at investing €100,000 with Acorn. The fee structure is 5% up front with an AMF of .5%. I cant get my head around a 5% up front fee. I know other investments have penalty reducing charges if you leave a fund before its end of duration.
Or is this 5% a fee that most investment companies are currently charging?
Thanks
I though the Bid Offer spread was dead. That is where you buy a unit for €1 and sell it for €0.95. There is always a 5% difference between the buy and sell price on any given day. It has the same effect as taking 5% of your money. Investments should have this anymore.
Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
I just noticed that my wife's occupational pension scheme with Zurich has a BO spread. They will effectivity collect 5% of the fund on retirement!
I'm happy with the fund and it's charges but it looks this change can be eliminated through one of the discount brokers
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?