I didn't think that they had that option given that they're already drawing the occupational pension. Don't you have to "mature" the AVC at the same time as the main occupational pension?
Moneymakeover Recently retired and in need of investment advice for some extra income.
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Brendan Burgess
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I don't know the intricacies.
I assumed it was separate from their Occupational Pension and could be managed differently, but maybe not.
I assumed it was separate from their Occupational Pension and could be managed differently, but maybe not.
Very interesting posts and a lot of food for thought, thanks so much. I will need to read them all again to make sure I understand everything, as already pointed out I know very little about finance.
Very interesting point about spending my savings. I guess like a lot of people I'm a bit wary of that but I can see the reasoning. I would agree though about not needing to budget.
I also see the reasoning behind not maturing the AVC, however it's in the process of being matured so I think I'll run with it. It will bring my income up to 44K so maybe I won't need to be doing much contract work as I'll be into a higher tax bracket. And that is something I hadn't thought of.
@Bronte, lol re the gallivanting.
But it's one of life's big pleasures, imo and I'd dispute a stop to the gallop after 80. My mother still travels in her 90s. So I'll be doing it as long as health permits. And no I don't rent out the place in Spain. That's hassle I neither want nor need.
Very interesting point about spending my savings. I guess like a lot of people I'm a bit wary of that but I can see the reasoning. I would agree though about not needing to budget.
I also see the reasoning behind not maturing the AVC, however it's in the process of being matured so I think I'll run with it. It will bring my income up to 44K so maybe I won't need to be doing much contract work as I'll be into a higher tax bracket. And that is something I hadn't thought of.
@Bronte, lol re the gallivanting.
But it's one of life's big pleasures, imo and I'd dispute a stop to the gallop after 80. My mother still travels in her 90s. So I'll be doing it as long as health permits. And no I don't rent out the place in Spain. That's hassle I neither want nor need.Occupational pension schemes
This page gives information on occupational pension schemes
www.revenue.ie
eh? Why does the OP need to be "stopped" from travelling?
Not a good plan given the current legislation.
Rent a room would be worth thinking about; someone to take care of Fido as well.
Why does the OP need to do this? And who wants to live with their parent in their 60s?
I'd love to conduct a social experiment & post the same details but with the inference that the OP is a man & see if the responses would be different.
How many different shares are you suggesting in order to spread the risk ?
I have lots of shares for over 30 years. There is a very considerable amount of time and effort involved in the management of these shares.
I would not advise that a 66 year old retiree should take this on.
I am leaning towards investing something in one of the Zurich prismas. Could someone give me a brief explanation of how the tax works please. I'm aware of deemed disposal but is that not after 8 years? Do you only pay tax on the gains and how often must you do this? Yearly? On maturity? If I invested, say 50K, in a prisma 4 for 5 years, roughly how much could I expect to make? Thanks.
Better decision than buying maybe 50 different shares to spread your risk.
All the tax is handled by Zurich.
You just deposit your money into the fund and withdraw any amounts you want all tax paid by Zurich.
That depends on how the investment funds perform over time.
You could make a profit or a loss.
You can check past performance on Zurich's website, but you have no guarantee that future years will be better or worse than past years.
38% on any gain every 8 years or when you sell units. The life assurance company takes care of all of this. There's some information here and probably in other threads.
41% to 38% exit tax on Unit Linked Investments
Hi, I made the purchase 9 years ago, and the exit tax have been deducted at the end of 8 years at 41%. If I dispose them on 02/01/26 how will the final exit tax be calculated when the rate will 38%? Will all the gain (sales proceeds less purchase cost) be taxed at 38% and I would most likely be...
www.askaboutmoney.com
www.bond.ie | Low Cost Prisma Funds | Ireland
Unit Linked Funds Ireland Low Cost Prisma Funds Zurich Life Investments Unit Linked Investment Mutual Funds Ireland www.bond.ie
www.bond.ie
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There are four types of assets:
(1) cash
(2) bonds
(3) shares
(4) property
Only holding asset (1) cash means that the principal is guaranteed, but the real value may fall over time due to inflation.
The other assets offer higher returns, with some added risk.
My wife's situation is somewhat similar to this.
This is what she is doing....
She makes the maximum allowable PRSA contributions from her approximate 2k earnings. This maximum amount is €1525.
She gets tax relief @ 40% on this amount.
When she ceases this extra employment she will take benefits from her PRSA. 25% tax free lump sum and add the remainder to her ARF.
In your case you could do as follows each year.
(Take your extra employment as 2k.)
Open a PRSA and contribute €1525.
Drawdown €3525 from your ARF.
You now have total income of €45525
Your €1525 PRSA contributions will get tax relief at 40%.
This reduces your taxable income to 44k. You have now maximised your 20% tax band.
Do similar to this each year until you cease the extra employment. Then take the benefits from the PRSA.
25% tax free lump sum and balance into your existing ARF.
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The cash fund would guarantee your 50k.
But if you are afraid to take on any risk you might be better off with this plan.
But if you are afraid to take on any risk you might be better off with this plan.
It was a joke about the travelling, off with her, but it does cost. We have a man on another thread on a probably nine month renovation project, he has 3 months in the parents home and could rent the other six months off Acequoin, some people only want short term. On yet another thread we have a man in mid 30’s moved back home… rent a room could be the solution, and there’s plenty only want Monday after work to Friday morning in the capital.
Which fund are you referring to? In the context of Zurich Prisma:
Prisma Funds / AAA Funds| Zurich Life Funds
Prisma funds aim to generate long-term capital growth by targeting specific levels of volatility with returns appropriate to individual investor risk profiles.
www.zurich.ie
Prisma Low | Zurich Life Funds
Prisma Low is a Zurich Life, low risk multi-asset fund that invests in a diversified range of global asset classes for long-term gain.
www.zurich.ie
Having said all that, in order to do better than deposit returns (which could be nil or even negative in real terms after tax and inflation) some investment risk has to be taken.
A general cash fund as mentioned here.
Moneymakeover - Recently retired and in need of investment advice for some extra income.
So you have an AVC. I would advise against maturing it. I didn't think that they had that option given that they're already drawing the occupational pension. Don't you have to "mature" the AVC at the same time as the main occupational pension?
www.askaboutmoney.com