PRSA - Advice please

specialist1

Hi Folks, thinking of setting up a standard PRSA and wondered if someone could someone please advise me on which provider would be the most competitive (policy, fund management fees etc) and also hold the strongest track record? If there is a some further info. on PRSA performance please let me know.

Can I also ask why would one set up a non standard PRSA?

Thanks

eagle_i

How long is a piece of string???

TBH Specialist you will get the answers to all those questions by going to a financial adviser, looking for someone to post that information here will need to write a book if they were to cover all bases and will only end up causing almighty confusion to you and other readers. It does not cost you any extra to go to an independent financial adviser, the terms and costs of Standard PRSA (and Non-Standard PRSA's) products are the same whether you go direct to a PRSA provider or through a financial adviser.

Standard PRSA costs are capped at 5% entry cost (eg. every €100 paid, €95 is invested) with an annual management charge of 1%(AMC) of the total fund under investment (eg. your fund value is €5,000, 1%(AMC) = €50, obviously 1% of a higher fund value the bigger the AMC is taken but the percentage remains the same at 1%). These are the maximum charges, some providers offer a reduced/Nil entry charge with 1%(AMC), depending on the size of your premium. Someone paying in €10,000 p.a. will get a better deal than someone paying in €1,000p.a. Also you should note your fund choice through a Standard PRSA is restricted. Perhaps a Non-Standard PRSA maybe more suitable for your requirement, an adviser will tell you this rather than a stab in the dark reading a poster's opinion here.

My advice is go to an independent financial adviser, they will guide you through the mine field of options and charges etc.. Perhaps I am biased but don't go direct to the bank/insurance company as they will only sell whats on their shelves, at least with an independent adviser you have the choice of the market.

Sorry I can't be anymore help to you.

Forget about the track record on performance. What's gone before has no bearing on what may happen in the future.

You can buy the PRSA with or without advice.

If you need advice on the product and the funds you want to invest in then expect to pay up to 5% of a charge on each contribution you make for the duration of the contract. There will also be an annual management charge of 1% pa of the value of your fund.

If you do not need advice and want to set a PRSA up on an 'execution only' basis you can buy the PRSA online with just the 1% Annual Mangement Charge. This means that 100% of your contributions are invested in the PRSA (no 5% charge on the contribution).

The only reason you would set up a non-standard PRSA is where you are not happy with the range of funds availabe on the Standard PRSA. To be honest, the range of funds available on Standard PRSAs are good.

specialist1

Deleted User wrote: »

Forget about the track record on performance. What's gone before has no bearing on what may happen in the future.

You can buy the PRSA with or without advice.

If you need advice on the product and the funds you want to invest in then expect to pay up to 5% of a charge on each contribution you make for the duration of the contract. There will also be an annual management charge of 1% pa of the value of your fund.

If you do not need advice and want to set a PRSA up on an 'execution only' basis you can buy the PRSA online with just the 1% Annual Mangement Charge. This means that 100% of your contributions are invested in the PRSA (no 5% charge on the contribution).

The only reason you would set up a non-standard PRSA is where you are not happy with the range of funds availabe on the Standard PRSA. To be honest, the range of funds available on Standard PRSAs are good.

Thanks a mill for all your help and advice folks - thanks

salut

Hi, Getting great advice on prsa and decided to take the executation only path through Zurich.Just one question though,i am in a dublin bus pension 3% of gross salary,company pays 6%and am an ordinary driver and was wondering should i take out a prsa or a prsa avc.We have an AVC scheme with a tied agent (irish life) but i think the 5%,1% charge is to high.Basicly what im asking is the fact that im in a company scheme is it a PRSA AVC I should be taking.
many thanks
salut

salut

salut wrote: »

Basicly what im asking is the fact that im in a company scheme is it a PRSA AVC I should be taking.many thanks
salut

Yes.

salut

Hi ,thanks for that GeardS,just one last question.I have decided to take the annuity option as i will have a small company pension from dublin bus 125 euro p.w.state pension 220 euro p.w.,rental income 100 euro p.w.I am now 42 years old and want to retire at 65,so how much approx should i invest in the PRSA AVC to give me another 100 euro p.w.
Also what happens to the fund when i die ,does it go to my spouse/children.
thanks again
salut

salut

salut wrote: »

how much approx should i invest in the PRSA AVC to give me another 100 euro p.w.

Probably in the region of €250 pm (have made certain assumptions on growth rates, annuity rates etc.) but be sensible about what you can afford. Review it on an annual basis.

Also what happens to the fund when i die ,does it go to my spouse/children.salut

Yes.

salut

thanks again GerardS, i will be definitaly be recommending this PRSA.IE address to my collagues.
yours
Salut