Vanguard PRSA

P

poppie

Registered User
Messages
16
I'm sure this question will give the true finance guys a giggle. But someone once said there is no such thing as a bad question...so here goes!

Is there anyway one can go directly to Vanguard, bypassing the provider. Ie Standard Life, to start a PRSA?

Go gently guys! Newbie here
 
No. Only providers registered with the Pensions Authority can offer PRSAs.
 
and if you can believe it, the Pensions Authority take a cut of your pot too.

Fees - pensionsauthority

Application fees The initial application fee, which includes one personal retirement savings account (PRSA) product, is €20,000 and €5,000 for each additional product. Annual fees PRSA fees are levied on the following basis: Fees are payable no later than 31 January of the following year and are...
pensionsauthority.ie
 
Thank you !
Off course they do
 
'A cut' that is often reduced or minimised by the rules governing third party PRSA fund charges, and no other pension products.


Gerard

www.prsa.ie
 
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They take 0.05% of your fund each year, plus they restrict the variation of charging structures, meaning a PPP can be cheaper than a PRSA.
 

You could set up a self-administered PRSA, a structure which allows you to invest in a huge range of assets and through that you could buy Vanguard ETFs. But the Vanguard funds available through Standard Life will work out cheaper if your broker is offering competitive charging.
 
You really would despair, average savers are up against it when even the body regulating pensions are taking a % of their pots.

These charges are not insignificant, I have a 401K from when I worked Stateside, and the entire annual fee is same amount the Pensions Authority is charging alone.
 
nest egg said:
You really would despair, average savers are up against it when even the body regulating pensions are taking a % of their pots.
Click to expand...
Not really. The constant whingefest about charges really needs to stop. I pay 0.65% on my pension assets in total on a fully loaded basis, and I’m more than happy to do so. They’re regulated structures and this is neither the Wild West nor a country with 350 million people.
 
Maybe “whinging” about charges is unbecoming but looking for better value and calling out overcharging or gouging is to be enthusiastically supported in my opinion. What I struggle with is when 0.65% on a small or average sized pot is reasonable or fair remuneration for whatever service you have but may not be when you simply have a much larger fund.

If your fund was double its current value would you be happy to pay double the fees in € terms for the same service?
I accept that the responsibility attaching to your advisor / supplier is greater if he messes up but is there actually that much more work involved for the supplier?
 
I'd be keen to know which provider offer those percentages??
Or is that top secret?
 
Zurich. It works out at around 0.65% including additional ‘hidden’ costs for things like trading and currency. That’s on a decent seven figure sum.
 
@poppie

I think you need to manage your expectations a bit better here.

You narrowed your choice down by fund so the charging option you were offered was 95% / 1% . You've also limited your search to one provider. You were getting advice with that service.

What level of contribution are you going to make? Couple of hundred a month?

You're now exploring the possibility of doing this on an execution only basis?

If a product provider could market, distribute, service, manage a €250pm PRSA on a 100% / 0.10% (whilst having to pay 'hello' money and 0.05% pa to the Pensions Authority) they'd be doing it already.

What's usually lost in these posts about charges is that everyone thinks that providers/intermediary overheads are just one-off, that there's no annual costs/overheads to be/stay in business, or service the contracts. Those overheads are there no matter what business model you choose to buy through. The regulatory/compliance regimes of each Country are different.

"What do we want?" Regulated products that we can buy from regulated entities so that we can have confidence in what's available.

"When do we want them?" Now.

"What do you mean I have to pay for that?"



Gerard

www.prsa.ie
 
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Thanks everyone. Enjoyed that debate and really helpful answers! Will continue to research and be back with more "newbie" questions!
 
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