Advice Please on AVC contributions

C

chasie

Registered User
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I am shocked by the fact that my AVC account with Irish Life has reduced by 19% in real terms from July 2007 (9 months)
Should I suspend contributions until the markets improve ?
Is the rate of decline slowing down ?

I anticipate taking early retirment in 2 years
 
Re: Advice Please on AVC contributionsl

It's a tough one Chasie - we're in the same position as millions of others :(, the logic I have used is that you are buying units much cheaper now that you were 9 months ago so if there is a lift :confused: you should get gains on the upside.

No garauntee to this but in any event you are getting the full tax and PRSI relief on your AVCs which is a hell of a start even in a declining market so for me it's well worth it.

Rog
 
Re: Advice Please on AVC contributionsl

  • What charges apply?
  • What fund(s) are you invested in?
  • Have you/they taken steps to shift from higher risk/reward to lower risk/reward funds/assets as you near retirement in order to mitigate the effects of volatility?
  • What are the total contributions and current surrender value of your fund (e.g. judging performance over the last 9 months may not give the full picture in relation to overall performance)?
  • Are you getting independent, professional advice?
 
Re: Advice Please on AVC contributionsl

Chasie,

I was asking similar questions here a week or so ago, although I'm at least 15 years (more likely 20) from retirement. I've also got my AVC with Irish Life, and I can tell you that

a) If, like me, you're with Consensus 8, then you shouldn't be paying any charges. They will have been 'front loaded' in the first few years of your contributions and anything you're putting in now is for you and you alone.

b) As a previous contributor has stated, whatever units your current contributions are buying, they're buying them at a reduced rate, so you should be smiling when the market takes off (hopefully)

c) Although my own pot in the fund stands at only about 1700 euro ahead of my contributions, I have been told (NOT by Irish Life, but by an independent professional in the field) that at this point in the cycle, that's nothing to be unduly worried about, bearing in mind (which I had failed to do) that your tax and PRSI relief means that whatever contributions Irish Life may have received in your name, you have only put in 53% yourself; the rest is tax relief which, h
 
Re: Advice Please on AVC contributionsl

Sorry, but I'm having some trouble editing my posts. To conclude, chasie, had you not been paying the tax relief to Irish Life, you'd have just been paying tax to the government. At least this way, you stand some chance of getting it back.

Finally, if you're in Consensus 8, they'll automatically switch your money into safer investments as you grow older. However, you say you're taking early retirement, so it might be an idea to check they're aware of this, or they might not be making the switch yet.
 
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