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My son has recently changed job and his new employer has no pension scheme in place. What should he do?
If your son’s previous employer had a pension scheme and he was a member of it he may be allowed to transfer his portion of that fund into a Personal Retirement Savings Account (prsa). A prsa is a personal pension plan which you can take from job to job throughout your working life. If your son is interested in setting up a prsa his employer is required by law to have made arrangements with a provider to offer one to employees. The employer is also required by law to make deductions from employee’s salaries at source for contributions to the prsa should the employees wish.

WIN!!
Managing your money is always a challenge, but with ‘Microsoft Money’ a software program for your home computer, it’s easy to take control of your finances, track savings and investments, manage and reduce debt and achieve your financial goals.

We have one copy of Microsoft Money to give away in this issue of EM. All you have to do is answer the following question and send us your answer. A winner will be selected at random.B

The ‘participation rate’ on tracker bonds is between: A 70-90%
B 40-60%
C 20-30%

See here for details on how to enter our competition.



		Tracker Bonds Most investors want to maximise return and minimise risk. That’s why property investments remain so popular. But for those without the capital necessary to fund a property purchase and who are looking for a higher return than that offered by a deposit account there are alternatives on offer and one of them is a tracker bond. These bonds come with a guarantee that investors can get their money back at the end of a set term, typically between two and five years. The bond takes its name from the fact that it tracks the performance of a stock exchange or other market index, such as the Irish iseq or the London ftse 100. If the index rises the bond appreciates in value, but if it falls investors are still guaranteed to get their money back. Investors are guaranteed to get at least their money back because they do not receive the full gains made by the market or index the bond tracks. This is known as the “participation rate” – which may be between 70% and 90% depending on the type of bond offered. This “no-risk” aspect coupled with the potential to make high returns are the main reasons for the popularity of tracker bonds. Furthermore, the eventual net profits made on the bond are tax free as all relevant taxes are paid directly by the issuing financial institution. Anyone interested in investing in a tracker bond should consult a financial advisor or their bank. Have you got the right household insurance? Many people do not realise that their household insurance may not cover them for certain things. Ask yourself the following questions and if you answer no to any of them you may need to review your cover. Have you checked out the rebuilding cost of your home in the past three years? If you have valuables such as jewellery or art, are they specifically covered under the insurance? Are valuables and items outside the home covered? Does your policy cover you for accidental damage? Paper Watch Credit Unions cheapest for loans in survey Shopping around is well worth it after a survey from the Financial Regulator shows savings ranging between €80 and €1,200 on a typical personal loan. Deals from the credit unions beat all the banks, with the total cost of credit on a €3,500 personal loan coming in at €127.96. The country’s financial watchdog took three typical personal loans in its latest consumer survey and found big savings to be made on the total cost of credit. Consumer Director Mary O’Dea said: “Our survey shows that a €7,000 variable-rate loan over three years could cost between €830 and €1,160. “If you have a poor credit history or many financial commitments, your choice of lenders may be limited, meaning your loan could cost you even more – in this case over €2,790 with one lender.” She added: “Waiting until you can afford what you want is painless compared with finding yourself trapped with a loan you cannot afford to repay”. The survey looked at the cost of three loans from 14 different lenders and for the first time featured sample costs of loans from credit unions. According to the survey, a €3,500 loan over one year varied in cost from one financial institution to another. The survey also looked at a €7,000 loan over three years and found some big differences. The same loan from the credit union would cost the cheapest of all loans in this range. Irish Independent 28/09/05 The President of St. Patrick’s Credit Union, ESB Ltd., George O’Driscoll, welcomed the findings of the above survey. He told EM he “hopes that it will encourage more staff and pensioners to use the Credit Union for all of their personal borrowing requirements”. For information on loans and repayments at St. Patrick’s Credit Union please contact Simon Dunne on 01-6325100.		Ask Barry My son has recently changed job and his new employer has no pension scheme in place. What should he do? If your son’s previous employer had a pension scheme and he was a member of it he may be allowed to transfer his portion of that fund into a Personal Retirement Savings Account (prsa). A prsa is a personal pension plan which you can take from job to job throughout your working life. If your son is interested in setting up a prsa his employer is required by law to have made arrangements with a provider to offer one to employees. The employer is also required by law to make deductions from employee’s salaries at source for contributions to the prsa should the employees wish. WIN!! Managing your money is always a challenge, but with ‘Microsoft Money’ a software program for your home computer, it’s easy to take control of your finances, track savings and investments, manage and reduce debt and achieve your financial goals. We have one copy of Microsoft Money to give away in this issue of EM. All you have to do is answer the following question and send us your answer. A winner will be selected at random.B The ‘participation rate’ on tracker bonds is between: A 70-90% B 40-60% C 20-30% See here for details on how to enter our competition.