Current thinking on PRSA's etc and potential losses

C

Compass

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I think this is national savings week or something like that. I'm looking again at opening a PRSA and putting aside some 'surplus' income from 2007 to avoid paying top rate of tax on it.

BUT there has been a fair amount of negative publicity recently with regard to pension funds dropping well below what the punters put into them.

This obviously causes me some concern as to security of what I might put in. Is this rational!!?

I also perceive (but perhaps erroneously) that given the fall in stocks/shares etc., this might be a reasonable time to start such a scheme as investments would be made at a time when better value could be got. Of course, I also realise the values could drop further .. but how to make a decision for an ordinary self employed person

Thanks for any advice you can give.

Confused.
 
Hi

As much as the tax man needs the revenue at the moment from your own retirement planning perspective you would be better putting into a pension, risk is something that can be controlled through fund option from cash through to earth resources there is a fund to suit everyone. Age and years to retirement would be a factor here if you have 20+ years to retirement your money will likely see many high and lows and its all in the timing and strategy. Many people throw money at a pension and think no more about the underlying fund it is invested in this is financial suicide, know a guy invested in an high risk fund money almost doubled in a year but even though he was delighted with the return he left the money there and now is back where it started, what I would have suggest is set a realistic target return when you get there lock in your return, keep base funds working for you but don't jeopardise any gains over your target return. Hope this makes sense.
 
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