S
South
Guest
I presume, judging from the post, that a final decision has not been made about anything in relation to the type of pension, level of contribution (never mind the appropriate index (one or multiple) used!) yet.
Where do I buy an 'Execution only PRSA'?
You mentioned that an OPS/Exec pension can have a once off fee 4.25/month policy fee and a .75% pa mgmt fee. How do I buy this product at these rates?
You say that an OPS has a higher max contribution. How much higher?
I have a 35% holding in the company. What is ARFing at retirement? Is that where you can take out a lump sum tax free?
You recommend nil-commission. How do I get a pension set up nil-commission?
If I have an OPS, what happens if I wind up my company and become a PAYE worker? Can I keep paying into the fund?
What is core and satellite? Do you mean some of the pension is invested in x and the rest in y?
Can I clarify by saying that I don't want an actively managed fund, just something linked to transparent indexes that I can follow in the paper? Several indexes is good because that gives diversity. I understand that a pension fund should move away from equities into bonds as retirement age approaches. Fair enough.
I am told that I can get some life cover linked to a pension. Is this an efficient way to arrange life cover compared to stand alone?
With all due respect to the posters on Askaboutmoney.com, I wouldn't make a substantial financial decision based solely on what I read here.
Hi Carolina,
I don't think that you need an Authorised Advisor for this transaction, and even if you did, a good Multi Agency Intermediary is better than a bad Authorised Advisor anyday.
And similarly, a good Authorised Advisor is better than a good Multi Agency Intermediary every day...no point settling for less.
South - like many before you, you've fallen into the trap of believing the hype. But most have seen the error of their ways by now. When delineation between AAs and MAIs originally occurred, the Irish Brokers Association believed the above myth also and tried to make it a condition of membership that all members must be AAs. They were forced to do a U-turn on that one when they realised their mistake.
Now even the regulatory bodies are considering scrapping the titles AA and MAI so that in the future, the only distinction between good and bad will be the quality of the advisor, which is the only workable answer.
(1)If you go to an AA and can get in for 0% upfront and < 1% ongoing why on earth would you go for QL (only four funds at 1%, of which only two are equity at 0% and 1%)?
(3)Of course I am sure that the charges would be lower using a different provider,given the choice between 0% + 0.75% with a greater fund choice compared to 0% + 1% with only two equity funds, it's clear to anybody that 0% and 0.75% will beat 0% and 1%.
(2)From working in the industry, I am quite familiar with the direct sales staff in a whole host of companies - independent advice (not tied to a specific investment manager/insurer) is often worthwhile addition based on my experience.
(4)How do Acorn Life compare with who and under what criteria?
What trap?
An AA can give advice on the complete market of products, an MAI can't...the MAI can only advise on the agencies he/she holds.
It seems pretty clear to me which is preferable.
After 15 years of paying 0.25% too much, again you seem unfamiliar with the fact that QL have only two equity funds at a 1% fmc, all the rest are higher and your example at 1% then specifically refers to Celtic (who would want their entire pension based on the ISEQ?) and Euro freeway funds.
Ah there is no doubt clients prefer to have the full market choice rather than the limited product choice of a MAI, the changes are more on the compliance monitoring and regulatory side, that's fair enough but clients still appreciate the extensive market coverage of an AA (I don't really care what they are called to be honest!!) over that of an MAI.
No all 12 QL funds reduce their AMC by 0.5% after 15 years. Some start at 1%, some at 1.2% and some at 1.5%. My example used the lower eight - 1% and 1.2% to start with and 0.5% and 0.7% after 15 years. A mix of these eight funds would produce a lower charging structure after 25 years than a fixed 0.75% per year. This is why a good AA must at least include Quinn Life in the list of recommendations. The client can then decide if the additional charges available in another product are justified by the additional fund choice.
My background is not pertinent to this thread as nowhere have I used the arguments that my background or experience is relevant. I prefer to make arguments based on facts.
For clarity, I will, however, confirm that I have no connection with Quinn Life.
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