Investment Smarts – Your Options Made Simple
When it comes smart investments, you should never limit yourself to one product provider, like a bank or tied insurer agent, but always choose an Independent Financial Broker, as only an Independent Financial Broker can offer you sufficient choice to cover all investment product options and ensure best value!
Diversity – Limit Your Investment Risk
The old adage of not putting all your eggs in one basket rings true for any investment when it comes to limiting our investment risk, but this does not need to limit your investment returns. A financial broker will never make any investment recommendation without ensuring that you only ever take a comfortable level of risk. Moreover, by recommending a multi-asset (cash, bonds, property, shares & commodities) approach and monitoring your risk appetite over your investments life span, One Quote offer bespoke client risk analysis and risk limitation.
Transparency – Insist on Minimum Charges
Investments can appear complex especially when trying to understand tax-implications as well as product and adviser charges.
There are 3 different types of investments that One Quote Financial Brokers offer and below we explain what you to need know to get best value, prior to even thinking the investment return:
• Lump Sum Investments
• Private Pension Plans
• Post Retirement Investments
Irish Investment Taxes are set by the Government and apply on investment exist from all forms of investment, but only at entry on lump deposit type investments.
– On Lump Sum investments the Government take 1% on entry and 41% on the gains at exit.
– On Pension Plans, you can take a 25% tax-free lump sum but pay income tax at your marginal rate on withdrawals after that.
– On Approved Retirement Funds, you also pay income tax at your marginal rate on withdrawals.
But it’s on the combined product and adviser charges where you can save money and here’s how One Quote Financial Brokers offer best value.
Lump Sum Investments
Whenever investing a cash lump sum outside a bank or post office deposit, the Government take a 1% tax on the investment amount straight away.
So, let’s say you’re wanting to invest €30,000 in funds to beat deposit rates, on day one your investment is only worth €29,700 i.e. €30,000 -1% Government tax.
So, to counter this tax One Quote allows 101% allocation, so that your full €30,000 still stands after the 1% tax is applied at source. We do this by giving back 1% of our standard 3% broker commission, which the product provider pays all financial advisers for placing the business with them.
The only other charge that then applies is the Fund Management Charge or FMC, this is the charge that the product provider, e.g. Irish Life take for managing your investment and it’s how they make their money on it.
What’s most important to understand is that this charge can include an ongoing commission payable to the financial adviser known as a “trail commission”, so make sure your financial adviser explains what ongoing level of investment advice you can expect in return.
To offer you best value on lump sum multi-asset investments, One Quote limit your annual fund management charge to a maximum FMC of 1% and provides 100% allocation, with no trail commission.
Private Pension Plans
The Government levy on pension plans has thankfully been removed, so there is no longer any entry tax. There is however a very small Pension Board fee of €8.00 per annum and some pension plans carry small monthly policy fees of a few euro per month, however the main charge that should concern you is the annual Fund Management Charge or FMC.
What’s very important to understand is that this FMC charge may include an ongoing commission payable to the financial adviser, so make sure your adviser explains what ongoing level of service you can expect in return, some advisers may take trial commission of up to 0.5% PA, or charge invoiced fee’s outside the pension contract.
To offer you best value, One Quote Financial Brokers limits annual management charges on Executive Pension Plans to a maximum FMC of 1.00% inclusive of a 0.25% trail, for ongoing investment advice, with 100% net allocation on every ongoing contribution. (Mininum contributions levels and alteranative hourly rate fee options apply).
Approved Retirement Funds – ARF’s
Post retirement pension fund investment always needs ongoing investment advice, but adviser commissions can have a huge effect on your fund value overtime, effecting both the initial investment allocation (the net percentage of your accumulated retirement fund invested on day one) and your ongoing fund value, also sometimes referred to as your Net Asset Value or NAV.
Like with all other fund-based investments, limiting the Fund Management Charge (FMC) which includes an adviser fee for ongoing investment monitoring and advice, is the key to achieving the best underlying value prior to even considering your investment returns.
To ensure best client value, One Quote Financial Brokers limit annual fund management charges on Approved Retirement Funds – ARF’s to a maximum FMC of 1.00%, inclusive of a 0.25% trail, while still offering 100% net allocation on the broadest market investment choices and long-term investment advice and support.
Find Out More
One Quote Financial Brokers trading as One Quote was been helping Irish investors minimise charges on deposit and pension related investments for over 10 years, free expert advice is available by calling 01 845 0049. We look forward to assisting you!