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Which to Choose: Company or Private PRSA?

  • 22-11-2017 12:28pm
    #1
    Tim76
    Registered Users Posts: 955 ✭✭✭


    Hi,

    Just wondering if anyone out there has had experience with this and could give a bit of advice on the subject. I am looking at starting a PRSA and i have 2 options:

    Option 1 - The company that I work for has an option/scheme set up with a local broker that is provided for us as part of our employment terms. The company does not contribute to the PRSA, the only advantage is that contributions come directly from our wages before tax. The broker charges a 5% allocation fee.

    Option 2 - I was speaking with separate broker. After initially suggesting that i would be better off going with the company broker, he then suggested that there wasn't mush difference in going with my own broker but that i would need to lodge a PRSA cert with Revenue and they would adjust my tax credits accordingly so i wouldn't lose out on any money. This broker only charges a 3% allocation fee.

    Option 2 would seem like the better offer as i am losing less of my contribution to fees but I'm wondering is there any pitfalls of not going with the company scheme?

    Any advice much appreciated.


Comments

  • #2
    homer911
    Registered Users, Registered Users 2 Posts: 5,128 ✭✭✭homer911


    What about ongoing costs, and historical/projected rates of return?


  • #3
    Tim76
    Registered Users Posts: 955 ✭✭✭Tim76


    homer911 wrote: »
    What about ongoing costs, and historical/projected rates of return?

    Both will be charging a 1% annual management fee on top of the allocation fee. As far as I am aware, these are the only intermediary costs.

    I haven't decided on an actual PRSA product provider yet but the company broker is tied to Irish Life and the private broker is independent.


  • #4
    Henry Ford III
    Moderators, Business & Finance Moderators Posts: 17,725 Mod ✭✭✭✭Henry Ford III


    Tim76 wrote: »
    Both will be charging a 1% annual management fee on top of the allocation fee. As far as I am aware, these are the only intermediary costs.

    I haven't decided on an actual PRSA product provider yet but the company broker is tied to Irish Life and the private broker is independent.

    A tied agent isn't allowed describe themselves as a broker. The regulator would be very excited if this was the case. He won't be able compare ILAC to anyone else either as he's not authorised do so.

    p.s. The company don't have a scheme - just access to a standard PRSA.


  • #5
    Geuze
    Registered Users, Registered Users 2 Posts: 13,584 ✭✭✭✭Geuze


    Both options are robbery.

    You can get a PRSA with zero cont fees and 1% AMC.


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