How much to set up a standalone PRSA?

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willbee

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I met an independent financial advicer a couple of weeks ago about setting up a nil commission, 1% management fee PRSA/AVC. He quoted me €500 to set it up. Is this a reasonable amount?? He was very helpful, by the way.
 
If you shop around you may be able to get it for no up front fee and just the annual management fee of 1%.
 
ClubMan said:
If you shop around you may be able to get it for no up front fee and just the annual management fee of 1%.
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My understanding is that these deals are on an execution-only basis only, i.e. no advice. If willbee met with a financial adviser, this suggests (and I could be wrong here) that s/he requires advice, which would have to be paid for.
 
Fair point. Many people use the term "financial adviser" loosely but what you say could be the case here.
 
I am checking his quotation again and it says and I quote "100% of your money gets invested every time, the only charge is a 1% p.a. management fee levied by the Fund Manager, I charge a once off fee of €500.00 to set up the above and monitor it until retirement" close quote. I am just wondering is this a reasonable amount to charge?
 
If it's just to start it and "monitor" it (which you can presumably do yourself) and not for advice dispensed then I don't think so.
 
Clarify what he means when he says he will monitor your PRSA. What exactly is he proposing that he will be doing?
 
By monitoring it he says he will be looking at the fund it is in, and see how it will be performing and if he thinks it could be put into a better performing fund he will tell me to switch. If I decide to take up his offer now, he is advising me to start contributing to the Eagle Star Balanced Managed fund. The thing is I could set it up myself and sitch it to a more stable fund closer to retirement. Whats is so difficult about that?? I feel the €500 would be better to me in the fund itself.
 
I'm skeptical about the value being added here. It sounds like your broker is saying that he can better time the market than you or anybody else when the fact is that nobody can really do this at all!
 
I second Clubman's opinion. I'm also somewhat dubious (or perhaps just cynical) about an offer to provide an ongoing service until retirement for a once-off charge at the very start.
 
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