micramblin
Registered User
- Messages
- 5
Hi,
My business partner and I are in the process of setting up an Executive Pension Plan at present. (one of us late 30's, the other is 40 - no pension at present).
My original plan was to start putting in around 1k a month into an EPP but after getting some advice it was suggested we should perhaps look at putting a smaller amount into the pension (e.g. 400 per month) and put 1k a month into a corporate investment account instead.
Both would be invested in a Zurich Fund (Dynamic).
The EPP amc is 1% per annum.
The corporate investment a/c amc is 1.5% per annum.
Both via the same broker.
Aside from the fee difference (which is based on the assumption that funds in the corporate a/c are free to move at any time), I'm curious as to what others think of this as an approach?
My primary objective is to get cracking on the pension asap given we're both a bit late to the party on that front. But I do like the idea of being able to access funds via the corporate a/c if we ever needed it for cashflow reasons etc.
I'd also love if someone could explain to me the tax implications of this a bit better. i.e. I'm aware of the 25% exit tax every 8 years on gains - on the face of it that would make it seem like a bad idea given we wouldn't pay the 25% exit tax every 8 yrs. on the pension.
We also intend to prob do one off lump sums each year depending on company performance etc.
Our preference is not manage this ourselves given we're time poor and therefore happy to use a brokerage for this, but would appreciate any valuable insights on this general approach and any thoughts on the fees.
Thanks.
mic.
My business partner and I are in the process of setting up an Executive Pension Plan at present. (one of us late 30's, the other is 40 - no pension at present).
My original plan was to start putting in around 1k a month into an EPP but after getting some advice it was suggested we should perhaps look at putting a smaller amount into the pension (e.g. 400 per month) and put 1k a month into a corporate investment account instead.
Both would be invested in a Zurich Fund (Dynamic).
The EPP amc is 1% per annum.
The corporate investment a/c amc is 1.5% per annum.
Both via the same broker.
Aside from the fee difference (which is based on the assumption that funds in the corporate a/c are free to move at any time), I'm curious as to what others think of this as an approach?
My primary objective is to get cracking on the pension asap given we're both a bit late to the party on that front. But I do like the idea of being able to access funds via the corporate a/c if we ever needed it for cashflow reasons etc.
I'd also love if someone could explain to me the tax implications of this a bit better. i.e. I'm aware of the 25% exit tax every 8 years on gains - on the face of it that would make it seem like a bad idea given we wouldn't pay the 25% exit tax every 8 yrs. on the pension.
We also intend to prob do one off lump sums each year depending on company performance etc.
Our preference is not manage this ourselves given we're time poor and therefore happy to use a brokerage for this, but would appreciate any valuable insights on this general approach and any thoughts on the fees.
Thanks.
mic.
