PRB query

I’ve heard of Personal Retirement Bonds before, but understood that due to the charging structure they were better to set up long in advance of any access requirement.

Then recently I came across the concept of a ‘bed and breakfast’ PRB, and was curious to learn more. Can anyone provide more details on terms and conditions, fees and charges, and how to go about one?

TIA

A B&B PRB is one where you move the money there for a short period. An example would be taking a transfer value from a defined benefit pension, transferring it to a PRB and them maturing it immediately. The money would only be there for a few days. The fees are usually minimal as the life company makes money on the ARF that the pension goes to after the lump sum is deducted. An advisor will charge for the PRB and ARF as one*


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)




*Although I did hear a story recently of an advisor wanting to charge 4% commission on the money coming into the PRB and then mature it immediately. This would have meant a 5% early exit penalty for the client. After the lump sum was deducted, the remainder was to go into an ARF, again with 4% commission. The life company refused to do it.