Proprietary Director - how can I access a low cost self-administered pension fund?

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catharsis

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Hi All

I'm a proprietorial director with about 150K in a pension pot already and expecting to make a payment in the near future to move that towards 175K plus.
I'm paying something like 1.25% to 1.75% on the existing pension (due to being misled by a pensions salesman and placed in funds with that level of AMF) so not too happy about that, but it provides some context.

I have the possibility of adding up to 200-250K to the pension in order to create a decent SSAS/SSAP with the specific intent of being able to buy property and international ETFs (and ideally futures if possible in order to leverage up).

What is the lowest-cost way for me to create a scheme which I can direct, and which is capable of investing (on an arms length basis etc) in property?

It seems to be difficult to find any way of doing it which does not involve high AMFs which would seriously undermine the reason for self-direction in the first place.

Thanks for any advice or suggestions.
 
You are paying way too much in annual fees!!

If you have €150k in your pension, you have enough to set up a SSAS pension already but probably a bit light to purchase a property. Buying a property through a pension isn't that cheap as there are all the usual costs of purchasing a property plus the trustee's solicitors fees and your advisors fees. Futures aren't allowed in pension schemes either.


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

I know I'm paying too much and I'm unhappy about it....

I wasn't aware about futures not being allowed - that seems a little odd when you can have 'reverse spider' ETFs which allow you to short the market, but OK.

The property play is in essence 'moving' an existing property into a pension by selling the existing property and buying a similarly valued property (at arms length) so the total fund would be enough to pay for the property plus some amount left over.

Anyone any advice as to how to achieve what I want at the lowest (ongoing/annual) possible cost.
 
Do you own the property personally? If so, how are you planning on transferring the proceeds from your own name into a pension fund? It could take a long time to claim the tax relief on the contributions, never mind the expense of selling a property and then buying another.

The company I use charge 0.5% ongoing and I charge the same, so it would be 1% total.


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

Is the 0.5%+0.5% fee structure you describe in respect of a small self-administered scheme? Does this cost include all costs e.g. SSAP platform, pensioneer trustees fees etc.?
 
Yes, you have to pay the fund manager costs too. For example, a Vanguard ETF will cost about 0.25%


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