evergreen top-up

Hi,
I'm looking for some advice on behave of my parents, my Dad is coming up on retirement age. They invested €30,000 into an evergreen fund about 2 years ago and so far it seems to be doing very nicely. They now have some more savings about €18,000 (SSIA) and are a little hesitent about toping up the fund as they don't want to put all there eggs into that basket, they are talking about a savings account instead. They already have money in a savings account and I am tending to advice them to top-up the evergreen fund with the 18,000 as they won't make anything on the savings account. Any advice would be appreciated - is relying on the Evergreen on its own a bad idea?

If they are nearing retirement will they need the funds in a short space of time? The Evergreen Fund is quite good and your right has done quite nicely over the past 2 years, but as with any managed/equity fund an investment term of 5 years plus is advised. If they top up their existing bond can they afford to leave the money that long?

A consultation with a fee based Authorised Advisor might be a good starting point for advice. An accurate measure of their risk profile, future retirement plans, existing pension arrangement etc might reveal some obvious options.

Is the €30K (or whatever it's worth now) + €18K most or all of their means and the money available for their retirement? Or do they have any other savings/investments in particular pension investments?

They have saved for there retirement and have a decent pension. This was just some extra savings that they decided to do something different with and wanted to try maximise there return on it.

Would they not benefit from tax/PRSI relief by investing it in a pension fund (even if it meant choosing a conservative fund if they planned to draw the benefits down in a few short years)?

portlaire said:

Any advice would be appreciated - is relying on the Evergreen on its own a bad idea?

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Given you said they have decent pension fund, it does not sound like they are relying on Evergreen Fund alone.

However, if they have an appetite for risk and diversification away from Evergreen...they could try a 100% equity or a 100% Commerical Property Fund.