Stopping a PRSA @ 5% to start a new one

M

mark1

Guest
I started a standard PRSA with Eagle Star last year and pay 5% on all monthly payments, does it make sence to stop this one and go through a broker to start a new standard PRSA and only pay 2% or even 0% on my monthly payments ?? Given that I have 30 years to buils up a fund.

Any advice would be great. Thanks.
 
In general, yes - the lower the fees, the better for you. But as in all things in life, cheaper is not always better. You need to familiarise yourself with the investment strategy from Eagle Star and the strategy for the cheaper alternatives. I've never seen any evidence that 'active' fund managers like Eagle Star can beat cheaper 'passive' managers in the long run.
 
All things being equal (e.g. fund selection, customer service, investment strategy etc.) lower charges are better. If you do stop the original PRSA and start a new one then you can either leave the old one where it is or transfer it into the new one.
 
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