Pension investments

[doranalex1]

Hi All, I'm 40, have no company pension and want to set up a private pension.
At present I can only afford to contribute €1k/ month. This may increase in the future.

I was planning to go with LA Brokers (they're linked to Zurich) and just do an even split between 4 of the high-risk funds (level 5 and 6 risk ratings) and then leave it alone.

Anything I should consider changing about my strategy?

 

[ClubMan]

just do an even split between 4 of the high-risk funds (level 5 and 6 risk ratings) and then leave it alone.

This is arguably unnecessary and doesn't improve diversification. You're 40 so can well afford to just stick it all in a low charges maybe passively managed high/all equity content index tracker and forget about it for 20+ years.

This thread might also be of interest:

Probably the best (cheapest) PRSA in the world?

The launch of Royal London Ireland's new pension product in late November 2024 seems to have finally offered customers accessible, lost-cost PRSAs. Through an execution-only broker, it is relatively easy to access a passive fund AMC of 0.55% or significantly lower on larger transfers. Taking...

www.askaboutmoney.com

 

[Fibbernacci]

The cost of being able to survive sequence of returns risk seems enormous. Either you sacrifice growth in the long term (stocks/bonds) or survive decimating your portfolio in the short term (100% equities) by having an enormous pot to begin with. Possibly a backup, diversified source is needed like property/annuity/move somewhere cheaper.

In my humble opinion a retiree should be ready to adapt their spending when the markets are low (to the extent that they can) and possibly to build on other income sources when the markets are up like building a blue chip dividend portfolio etc.

With the world on fire the way it is now there is a serious risk of disruption e.g. Overvalued US stocks, potential WW3, declining dollar, climate change etc. A couple of gold bars in the attic might be a good idea too.

 

[doranalex1]

stick it all in a low charges maybe passively managed high equity content index tracker

Thanks ClubMan. I'm fairly new to all this, I'm not sure I know what these are or how to access them.
Could you give one or two examples of high equity content index trackers just to help me understand?

Re. the low charges, LA Brokers offer 0.75% AMC (no trailing fee, no contribution charge) so I thought I was doing pretty well on the charges. Should I be looking for lower than this?

Thanks for the link to the other thread. I read through it once before but so many posts I got lost in the weeds.

 

[ClubMan]

Could you give one or two examples of high equity content index trackers just to help me understand?

A very common one would be an MSCI World Index tracker fund.

MSCI World Index

The MSCI World Index captures large and mid cap representation across Developed Markets countries. The index covers approximately 85% of the free float-adjusted market capitalization in each country.

www.msci.com

Most providers have one. Either their own or (more commonly I think?) via the likes of Vanguard or BlackRock etc.
E.g.

Indexed Global Equity (BlackRock) | Zurich Life Funds

Indexed Global Equity Fund is a medium to high risk, unit-linked fund, giving you the opportunity to participate in the performance of companies in the developed world.

www.zurich.ie

Fund Centre by Longboat Analytics

Global Index Funds | Investment Choices | Standard Life

Our Global Index Funds take the effort out of investing. Find out how you can choose to invest in ready-made and professionally-managed portfolios built to suit you.

www.standardlife.ie

Etc...