First of all, get out of MAPs. They are more expensive than other funds and don't produce the returns. If you want medium risk, the Consensus has a good track record.
With Zurich, the Balanced is a good fund but medium risk. Other flagship funds are the Performance and Dynamic. They've all been around for years and invest in the same assets, just different percentages between bonds and stocks.
What level of risk you take is a personal decision. If you can't handle the greater ups and downs of a higher risk portfolio, don't going into one. Risk and return are related, you don't get one without the other. If you are happy to invest in an equity fund and just let it do its thing without being too concerned, the Dynamic or the Blackrock Global Equity index are good funds. Irish Life also have index funds but I don't have a very high opinion of them.
Steven
www.bluewaterfp.ie
I receive a few thousand euro every year from rental income. My accountant gives me an amount of tax I owe to revenue on this income. I either pay the tax to revenue or paid an amount onto the pension to "offset/neutralise" what I owe.bongos
I don't understand the status of the second pension plan. It is not possible to establish a pension based on "rental income ". This deemed "unearned income " and not capable of being pensioned.
What is the status of that Plan?
What Pension Plan do you pay this contribution Into? Is it the Pension associated with your employment or is it a separate Pension? If the latter, what income is it based upon (because it can't be rental income)?I receive a few thousand euro every year from rental income. My accountant gives me an amount of tax I owe to revenue on this income. I either pay the tax to revenue or paid an amount onto the pension to "offset/neutralise" what I owe.
Its the latter, PRSA from a former employer which was dormant for a few years. I was advised to do this as I'm diversifying between Irish life and Zurich, surely its normal practice to use pension contributions to offset against tax owed?What Pension Plan do you pay this contribution Into? Is it the Pension associated with your employment or is it a separate Pension? If the latter, what income is it based upon (because it can't be rental income)?
Not sure who advised you to do this, but based on the information you have supplied here I don’t think this is a qualifying (exempt approved) pension. If you only have one source of relevant earnings (from your employment) then this is the only pension on which you can base tax deductible pension contributions. You might be better converting the PRSA into an AVC PRSA linked to your occupational pension. Otherwise, the contributions are not tax deductible.Its the latter, PRSA from a former employer which was dormant for a few years. I was advised to do this as I'm diversifying between Irish life and Zurich, surely its normal practice to use pension contributions to offset against tax owed?
Thanks Conan, I will definitely look into this further, I wouldnt mind but my accountant is the ultra cautious type generally who is very solid with his advice ... Appreciate the your helpNot sure who advised you to do this, but based on the information you have supplied here I don’t think this is a qualifying (exempt approved) pension. If you only have one source of relevant earnings (from your employment) then this is the only pension on which you can base tax deductible pension contributions. You might be better converting the PRSA into an AVC PRSA linked to your occupational pension. Otherwise, the contributions are not tax deductible.
....Irish Life also have index funds but I don't have a very high opinion of them.
Steven
www.bluewaterfp.ie
This article is 4 years old now but captures the reasons for my low opinion on their index funds. Given they have such a large slice of the Irish pensions market, you would expect better.Hi Steven. I would be interested in your view on this. Would you be able to explain your opinion on Irish Life Index funds a little more? Thanks...
Hi StevenTracking Error - Bluewater Financial Planning
Passive Funds and ETFs are hugely more popular these days than in the past. People believe that markets in efficient and that news about a company is quickly reflected in its share price, whether the news is good or bad. When investing in a passive fund, although the fund manager doesn’t have to...www.bluewaterfp.ie
Thanks for that Steven.This article is 4 years old now but captures the reasons for my low opinion on their index funds. Given they have such a large slice of the Irish pensions market, you would expect better.
Tracking Error - Bluewater Financial Planning
Passive Funds and ETFs are hugely more popular these days than in the past. People believe that markets in efficient and that news about a company is quickly reflected in its share price, whether the news is good or bad. When investing in a passive fund, although the fund manager doesn’t have to...www.bluewaterfp.ie
Same for me, company defined contribution plan is with Irish LIfe. In this case, there is nothing we can do about it but to pick simple index funds rather than MAPs? We can't choose somewhere else to go while still working for them?Thanks for that Steven.
My company pension scheme is with Irish Life and I am a fan of passive investing so I picked their index funds but I have long suspected that their tracking error / implicit charges are not great.
They have other funds besides MAPS which is a more expensive fund. There is a list of index funds under their platform that should be available.Same for me, company defined contribution plan is with Irish LIfe. In this case, there is nothing we can do about it but to pick simple index funds rather than MAPs? We can't choose somewhere else to go while still working for them?
My apologies Steven - I thought Vanguard stopped using MSCI indices about 10 years ago.Their Global Stock Index does
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