What fees / charges can I expect with my ARF?
Understanding your fees is important.
These relate to your Insurance or Pension Company /ARF provider and your Financial Advisor
1. Insurance or Pension Company / ARF Provider Fees:
There is always a recurring annual fee levied by the insurance / ARF provider for the day to day management of the ARF in the fund(s) chosen. Annual fees will vary from 0.5% to as high as 1.5% and are taken directly from the ARF. ARF Ireland negotiate with the various providers on the market to secure as low as possible an annual fee for you.
2. Financial Advisor (ARF Ireland): Set Up Fees
Unlike many firms, we do not charge set up fees for getting your ARF up and running. Some firms may charge anywhere from 1% to 5% of your starting ARF fund value as a set up fee. We do not.
3. Financial Advisor (ARF Ireland) Annual Fees
We charge our clients an annual fee of between 0.25% and 0.5% of their ARF fund value depending on a number of factors, again levied directly from the ARF. We do not charge entry / allocation fees as outlined above as we believe we should be paid based on the financial planning advice we give to you and performance of your ARF over your lifetime. The fee is agreed with each client in advance of the ARF being set up.
As a result, we commit to meeting with our clients a minimum of every 12 months. We feel this level of interaction is important as there are many issues and ongoing decisions that need to be made with your ARF investment. For example, Health, Changes to Family Circumstances, Tax Law Changes, Investment Market Volatility and much more all affect your ARF. At these yearly meetings we review the progress of your ARF and continue to ensure the primary ARF considerations are still being met:
• Income Sustainability – what level of income drawdown can my ARF sustain?
• Tax – Do I understand the income tax and inheritance tax implications of my ARF?
• Inheritance – what are the possible inheritance opportunities I should be aware of for my ARF?
• Investment Risk – Am I comfortable with the risk profile of the income generating funds I have in my ARF?
• Fees– Do the fees I am paying in my ARF represent value for money?