You are using an out of date browser. It may not display this or other websites correctly. You should upgrade or use an alternative browser. Discussion in ' Pensions ' started by SPC , Feb 24, Log in or Sign up.
I am considering switching to a self directed PRSA with a view to reducing or at the very least confirming the costs on my pension. I think these are the only guys offering a self directed PRSA which supports buying ETFs; Davy Standard Life Zurich Irish Life Which guys am I missing? This is a very good question and well timed as I have just agreed terms for a new PRSA contract. The base cost is 0. This is payable to a revenue appointed independent trustee. There is a separate cost of 0.
The benefit of splitting out the trustee, custodian, fund management and advisory services into separate companies can be explained in three words: So for example if I put in a global equity fund I can have over 10, stocks including emerging markets for a TER of 0.
Giving a total cost for the contract of 1. On a like for like basis, the annual management charge of this fund is 0. Note that this is one of the more expensive funds I use and typically bond funds are around 0. This part is not self directed. However we can also add on a self directed element for anyone wanting to run a Las Vegas account as part of their pension. This has a higher annual management charge of 1.
This part of the PRSA can include property,hedge funds,private equity, ETFs and individual securities. Overall based on the earlier example of a 0.
So for anyone stuck owning illiquid assets they wish they had never purchased custom house clients for example this could be a good solution. Equally anyone who wants to take a punt with a couple of grand of their pension fund can open a separate account specifically for that purpose and not have to expose their whole pension to the additional costs associated with full self-directed functionality.
Finally I should mention that this contract is only available through my network of approved professional advisers and advisory fees are payable in all instances. Hi Marc, Thanks for all the info. Keeping on the ETF track, If someone organised an execution only self directed PRSA contract for buying and selling ETFs they select themselves, are these your costs for the consumer? Independent Trustee Company also have a self-directed PRSA product. Thanks for all the feedback so far.
If you have pricing details on any of these or similar products please let me know. Standard Minimum commission 25 euro or. To update this thread, I understand that Davy's are about to make their Self Directed PRSA detailed above significantly more competitive. I believe they will become the market leader for self directed PRSAs, especially for someone who wants to passively buy and hold ETF's in a pension product.
I understand it will be announced publicly over the next few weeks, but as the information I have was given to me privately I don't want to put it in public domain without permission. Hi SPC, Did Davy ever launch this product and is it the current market leader for self directed PRSA.
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Also, do you know how dividends are handled. I presume they are paid into you trading account within your PRSA and you use that cash to reinvest, paying commissions on the transaction. Are there similar self-directed pension products for people taking money out of a previous company pension via buyout bond etc.? I think there is. If you do further research and confirm this please update the thread!
My biggest CON with this PRSA is security of funds. In theory there are safeguards ensuring your asserts are held separately, but if someone behaved fraudulently etc.
The standard life guarantee from the UK government is a lot stronger. Are there any pensions available to Irish residents that are covered by the standard life guarantee from the UK government? SPC I presume you are referring to the Morrough case regarding the security of nominee accounts. Mind you, I presume that the same risk is present with any 'normal' pension provider in that the underlying investments are not in the name of the investor.
Not strictly on topic, but a note for anyone searching for this type of pension. Irish life offer this type of pension, but not in the PRSA wrapper as far as I can see. They call it self-invested fund. They use TD waterhouse for trading. Flat fee of 15 euro a trade.
Davy Select charges 0.
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ETFs that you invest in will charge their own AMCs on top of that, and their charges will vary. That particular account does not have a minimum amount of money that you need to invest.
There may be better options out there of course, though. You must log in or sign up to reply here. Your name or email address: Do you already have an account?Part 05 - Of Human Bondage Audiobook by W. Somerset Maugham (Chs 49-60)
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