Pension query

J

JJones

Guest
I talked to a pension advisor yesterday and went through all the forms for a company pension.
I thought I understood it clearly but repeated questions by me didnt clarify it for me, and I would like someone who understands it better than me to clarify it to me.

I am limited company and the sole employee I am starting the pension and paying 4500 divided in monthly installments to the year end and also putting in a lump sum of 4500.
Now the The costs state

A premium charge of 5% will be deducted from each regular payment I make, so for this year this will four payments of 1125 for this year will this mean a 5% charge on each payment.

Also a yearly charge of 1.25% for managing the fund will also be charged.

So is it 5% on each payment for the duration.
 
A

Alan Moore

Guest
Sounds expensive....

....... unless it's a specialist fund.
 
G

GCS

Guest
Pension

JJones

Sounds like it's a flat 5% charge on each contribution for the term of the policy. Has the advisor said what sort of service you are going to get for this payment?

Is there a policy fee per month?

1.25% is expensive if it's a BIAM managed fund.

Here's the ironic part. You can accesss BIAM through Hibernian at an management charge of 0.75% although the contribution charge, policy fee can be more expensive.
 
A

Alan Moore

Guest
Options

"You can accesss BIAM through Hibernian at an management charge of 0.75%"

And New Ireland
 
J

JJones

Guest
the costs read as the following

A premium charge of 5% will be deducted from each regular payment that I pay.

A yearly fund related charge of 1.25% will be charged on the value of my fund each year.

It is access to the standard BOI pension
 
G

GCS

Guest
Options

On a like for like basis who comes out on top. Hibernian or New Ireland?
 
A

Alan Moore

Guest
Depends......

"On a like for like basis who comes out on top"

Assuming costs float your boat. Just ran off a quote based on the level of premium suggested. Hibernian worked out better but the Final estimated funds were almost identical. Difference at retirement worked out to be less than 0.06% of the final fund value. Neither company were the cheapest.
 
D

Director

Guest
Ooch!!

I have my executive pension with Quinn Life. Straight 1% pa management charge. No other charges. You would be mad to go with a pension taking 5% out of that level of contributions.
 
S

Skinflint

Guest
.

Don't forget that QL levy an additional flat €3.81 per month on regular pension contributions. You should also be able to buy a PRSA charging only 1% per annum and nothing else for a once off flat fee of c. €100.
 
J

JJones

Guest
Re: .

"You should also be able to buy a PRSA charging only 1% per annum and nothing else for a once off flat fee of c. €100. "

Where exactly is this available

Thanks,
 
A

Alan Moore

Guest
This is a prime example of.....

the dangers of execution only business.

Are you sure that a PRSA is the best option for you? Based on what you have said to date I would suspect it may not be. And if you do a PRSA for 100 euro what company/funds will you choose and why?
 
R

Ratna

Guest
the dangers of execution only business

I see nothing wrong with a person getting financial advice eleswhere and placing their business on discounted terms through an execution only broker.

The person(s) who gave the free advice might not be happy but there you go.

Didn't Niall Brady hint at this yesterday - at least the healdine writer did. Get a factfind completed, identify your needs. The fact find is free and you're under no obligation, needs are identified, solutions recommended.

The only thing a fact find doesn't tell is is where you should purchase such products. If you can get the exact same product cheaper elsewhere then shouldn't you be told about it?

No point having a factfind if the conclusions are wrong.
 
A

Alan Moore

Guest
The issue I had was that

.... someone was possibly going to take out a policy that doesn't suit their needs.

"I see nothing wrong with a person getting financial advice eleswhere and placing their business on discounted terms through an execution only broker.
The person(s) who gave the free advice might not be happy but there you go"

A) You will have no comeback if the advice given was incorrect

B) I believe you are basically suggesting taking advantage of someone that has put time and effort into your welfare and not being remunerated for same. Most clients don't operate this way. What I have no problem with is someone agreeing a fee for a report on the understanding that any business transated as a result of the report will be carried out on a nil commission basis.
 
R

Ratna

Guest
taking advantage of a financial adviser

A) You will have no comeback if the advice given was incorrect

So for example if the fund a client invests in doesn't perform to their expectations, they can sue their financial adviser. Sounds like a win / win for the client and a very dangerous situation for the adviser.

B) I believe you are basically suggesting taking advantage....

But a financial adviser that allows him or herself to supply information free of charge will be taken advantage of. If one wants to impart knowledge free of charge then they have themselves to blame not otheres or the execution broker.

Imagine a GP who took your blood pressure etc told you what was wrong with you, wrote a prescription but only got paid when you purchased your prescription at his/her favourite chemist!!
 
A

Alan Moore

Guest
Skinflints

1) The comeback applies where you have been sold a policy that does not best suit your need. So in your example if your investment underperforms the advisor will have to demonstrate that the policy undertaken met your agreed risk profile.

2) "But a financial adviser that allows him or herself to supply information free of charge will be taken advantage of.

I mainly operate on a fees so you wouldn't get a report for nothing from me but in the past have worked on the basis of the free report and commission. Can see how the "skinflints" could take advantage but the reality is that the majority of people don't.
 
L

Late Night Poker

Guest
taking advantage of a financial adviser

Take the hint Alan. This is exactly the type of post that should preclude any advisor ever getting involved on this site. You are perceived as being surplus to requirements by the eggheads and skinflints and serve no purpose.

Niall Brady is talkin through his ass. If he took the time to read the Terms of Business of any advisor with a bit of cop-on he would understand that what he says is nonsense. Yes folks, the Terms of Business you get BEFORE you complete the Fact Find and receive any advice.
 
N

Not Ratna

Guest
Laserish

Late Night your stance reminds me of Arthur Scargill and the mineworkers. Is there some sort of a personal picket in place?
 
A

Alan Moore

Guest
Arthur Scargill & The Mine Workers......

Very big in the 1980's. Had I number 1 with "I don't like Mondays I think"
 
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