Totally New to Pensions

card789

Registered User
Messages
15
Anxious/Feel like I should start a pension

Have set out details below and am wondering how best to go about it. Not big earners so feel like a financial advisor would be disappointed/not interested to see us walking in the door as no big bucks to be made. Any advice on how to start/read up have set out below what I think are relevant details

Me. 36 years Private Sector no Pension Annual Income 35k
Partner 35 years Semi State Annual Income 36k DC Pension (Almost certain its DC must check).
Mortgage 80k 20 years to go House about 250K
Saving approx 30k rainy day fund
One child
Any other relevant information?

I have a Pension bond from a previous employment ( is that right way of saying it when I left transferred employers contributions from my period of Employment into a bond think its worth about 10k)
 
There are two things to look at:

1. Contract structure

  1. You have a choice of a PRSA or a personal pension.
  2. PRSA's are more straight forward charge wise but can be more expensive. At the end of the day, both are pension plans and do the same thing.
  3. If you do DIY pension, be aware that the direct sales guy in the life company is on a commission.
  4. You also have the choice of paying a fee for the advice, which will work out cheaper in the long run (direct sales won't be able to charge a fee).
  5. There are about 10 different contracts with each life company, so I can't narrow it down for you.

2. Fund Choice
  1. What is your goal?
  2. What return do you need to make to reach your goals?
  3. Is that return achievable on a consistent basis?
  4. What is the downside to that level of risk?
  5. If the worst happened, would it keep you awake at night?
  6. How much can you afford to lose? (Remember, for most standard pension funds, you will not lose all your money)
  7. What trade offs are required, if any?


Steven
www.bluewaterfp.ie
 
Back
Top