We currently have a lump sum in excess of 150k that we need to invest.
Early 50s, both maximising pension, no debt, mortgage free on 2 properties (one rented).
Thinking about retiring in about 10 years. No earlier plans.
While we will probably also invest in some shares directly, our first move was to look at ETF products managed by an insurance company with funds that are similar to some PRSA.
I have a couple of PRSA as I am self-employed. However, as my income is very low and I started to invest in my pension only a few years ago, the chance of me paying more than 20 per cent tax in retirement is fairly slim and in 10 years, my personal pension pot would probably not exceed 150k if I stay in my current occupation. I was wondering if it would be an idea to put some of this money (perhaps 50K) in a new PRSA. If I continue in my current occupation, I would be able to slowly get the tax relief on a yearly basis. If I was to change occupation in some point, I would pay a maximum of 20 per cent tax (after a free lump sum) on the investment instead of 41 per cent on the gain. Could that make sense or not at all?
Early 50s, both maximising pension, no debt, mortgage free on 2 properties (one rented).
Thinking about retiring in about 10 years. No earlier plans.
While we will probably also invest in some shares directly, our first move was to look at ETF products managed by an insurance company with funds that are similar to some PRSA.
I have a couple of PRSA as I am self-employed. However, as my income is very low and I started to invest in my pension only a few years ago, the chance of me paying more than 20 per cent tax in retirement is fairly slim and in 10 years, my personal pension pot would probably not exceed 150k if I stay in my current occupation. I was wondering if it would be an idea to put some of this money (perhaps 50K) in a new PRSA. If I continue in my current occupation, I would be able to slowly get the tax relief on a yearly basis. If I was to change occupation in some point, I would pay a maximum of 20 per cent tax (after a free lump sum) on the investment instead of 41 per cent on the gain. Could that make sense or not at all?