Advice with reviewing pension strategy

[pavb2]

Hi all unfortunately found site after I've made my decision but would welcome comments on my strategy.

I'm 46 wife is 41 we have been directors of our own business for ten years initially I took out pension with Hibernian performed OK to date €50k in worth about same.

Wife took out one with Quinn paid in €10k worth same

This is the killer one though based on advice from Irish Life Broker our company performed well for 3 years (2006 - 2009) so we managed to put €200K into executive pension fund.

Unfortunately we were naive & not fully understanding pensions this was fully invested in an Irish property fund so now we're now at €100k loss it also came to light that we were paying too much fees for this level of contribution.

So what I've done now is take out pensions with Zurich & diversified funds (global markets,equities etc)I've also applied to transfer Irish Life pension but unfortunately you have to give 6 months notice.

My thinking is that the Zurich pension will improve while if funds are left with Irish Life property fund I can't see any recovery for 10 years.

I'm OK and take the atitude buyer beware, we've had tax breaks on contributions also hindsight is a great thing but hopefully won't make the same mistake.

Would appreciate any advice or feedback

 

[DerKaiser]

The mistake you made was not diversifying.

You need to have exposure to the different assets classes (cash, fixed interest, equity and property) and the different regions (Eurozone, UK, US and Asia)

You need to review your choice every few years.

I wouldn't worry about what will happen in the next 6 months. There's no guarantee one fund will outperform another. Longer term, though, you're better off spreading your risk.

 

[pavb2]

Thanks for reply, yes my own ignorance, with hindsight I should have diversified but I think I am right in getting out of Irish property fund now and diversifying it's just psychologically accepting I am down €100K at moment and moving on.

Unfortunately I don't think I could have put my main investment in a more poor performing fund however thinking positive my broker originally asked me to transfer the Quinn and Hibernian funds over which thankfully I didnt do.