Self Directed/Administered
Self Directed/Administered
What is a Self Directed Pension scheme ? A Self Directed Pension offers you access to a wider range of Investment options than traditional Executive and Personal Pensions.
Who are they suitable for ? In general, they are targetted at
higher Income earners or those who have already built up a lot of value in their existing scheme as Self Directed schemes can accept in Pension transfers from other schemes.
While it is not clearly defined, those schemes are
most suited to Income above €100,000 with capacity to fund €20,000 plus per annum into a scheme What are the wider Investment choices ?Apart from all the Investment funds usually accessible to Pension plans, these also offer the ability to purchase Property in the UK and Ireland and to choose your own share portfolio.
Are there any restrictions you should be aware of ? YES :
you will need to have at least 30% of the Price of the Property plus all the usual costs of Buying (Stamp duty, legals etc) already in your scheme BECAUSE there are Revenue restrictions on how much a Pension plan can borrow.
any purchase must be at arm's length - from an unconnected party
the property cannot be for your own (or your family or business) use or enjoyment
What are the Revenue restrictions ?
Borrowing capacity : maximum 70% (occasionally 75% for Commercial Property) of Purchase price
Maximum Loan period is 15 years : so your scheme (or your capacity to make future contributions) needs to be able to fund repayment of the Loan in this period
Must be a full repayment Mortgage : Interest only is not an option
What service do we offer ?
We work closely with four of the leading providers of Self Directed Pensions in the Irish market and can review your situation and recommend which one is most suitable for you
We can arrange completion of all the paperwork required to set up such a scheme - and can do this within days
We can review existing Pension arrangements and advise on Pension transfers from existing schemes - and if appropriate , arrange the necessary paperwork on your behalf
We can advise on your capacity to contribute to maximise your tax benefit
We can assess your Investment preferences and design an Investment portfolio that's right for you
A word of caution
We believe in a balanced approach with different Investment classes - and caution about putting all your eggs in one basket, which we have seen in cases where professional advice has not been taken.
