Moneymakeover Recently retired and in need of investment advice for some extra income.

S class said:
The charges for Zurich funds can be lower if you deal with a broker. The broker in the link below also does lump sum Zurich investments. Prisma 3 or 4 are probably suitable for you.
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A little late seeing this thread but a lot of great advice and commentary - thank you all contributors.

Some related questions on charges (which to me are very confusing) mentioned in extract above:

How much cheaper is it going to Zurich (or other) via a broker and would Zurich give any extra value (advice) for the extra charge?
If you move the funds, after say 3 years, is there any difference in exit charges by going through a broker?
 
Hi again. Since opening this thread I've not done anything as I'm waiting to have my AVC matured and was away on holidays. However war has since broken out in the Gulf so how has that impacted investments? Someone on this thread was only pointing out how volatile geopolitical relations are and with Trump in such a position of power should we all be holding onto our funds? I was about to invest in a Prisma but am not so sure now. What do people think now?
 
acequion said:
However war has since broken out in the Gulf so how has that impacted investments?
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Check your pension's current and recent historical valuations.
acequion said:
I was about to invest in a Prisma but am not so sure now. What do people think now?
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Timing the market is a mug's game.
acequion said:
I'm waiting to have my AVC matured
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What exactly do you mean by "matured" here? Are you taking 25% tax free lump sum and moving the rest into an ARF or something else?
 
acequion said:
Hi again. Since opening this thread I've not done anything as I'm waiting to have my AVC matured and was away on holidays. However war has since broken out in the Gulf so how has that impacted investments? Someone on this thread was only pointing out how volatile geopolitical relations are and with Trump in such a position of power should we all be holding onto our funds? I was about to invest in a Prisma but am not so sure now. What do people think now?
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Maybe drip feed the money into the markets over 6 to 12 months, more a case of minimising regret risk rather than trying to time the markets
 
@acequion, couple of questions
When you say occupational pension, what is this and where is it invested??
You say you'd like to invest for additional income, how much additional income are you looking for or expecting??

From reading your posts here I'd say your mindset is more risk adverse then low risk and that needs to change if you're going to invest
And unfortunately there's only one way this is going to change and that's to bite the bullet and invest

Personally speaking I think you're in a great position at the moment with an income of €40k and €220k in savings and more in the distant future
You're spending your income which is great, that's what it's there for, but so is your savings, that's what you saved it for, is it not??

You can well afford to invest the €50k even in these turbulent times as you don't have to draw from it until you need it which could be years
After a year or so you'll have a better idea as to your true risk tolerance and then decide what's best for you going forward
 
acequion said:
However war has since broken out in the Gulf so how has that impacted investments?
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It's definitely had an effect; the stock market indices I look in on occasionally have slipped down a bit. When you look at the graph for an index (try googling S&P 500 or Nikkei 225) you will see the drop. Handily, that google search will show you a graph, and you can pick a timeframe. In the context of the last year, both are way up. My point here is that you can choose a particular window of time to look at the market, and it use it to back up a hunch. If you are looking to invest and beat or equal inflation, you don't have many options other than some market related investment, but there will be no guaranteed increase, nor indeed, guarantee against decrease in overall fund value. The Zurich funds you've mentioned have the merit of simplicity, particularly in how tax etc is treated, ie it's all done for you. They all have fact sheets and risk ratings - crystal balls that show you the past, but I guess better than nothing.

I sympathise with your dilemma though - the political volatility right now would make me nervous about starting an investment. However, I'm already riding that tiger, so I get to hold on and see where it takes me.
 
Thanks so much for the replies. Political volatility, Trump in charge, oil prices soaring and no sign of a solution on the horizon, all that makes me jittery about my hard earned funds. Yes I'm reasonably well off and definitely have some plans to spend some of the savings, but I'm just wary of investing. Then again, as some of you say, the time is never right and there is no crystal ball. I most likely will end up investing as it is just sitting there making nothing, perhaps drip feed is a better way to go for now.
 
acequion said:
Thanks so much for the replies. Political volatility, Trump in charge, oil prices soaring and no sign of a solution on the horizon, all that makes me jittery about my hard earned funds.
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You are looking at this in the wrong way. I see it as a buying opportunity.

Buy the dip because it will invariably recover/bounce back.

Never waste a good recession sort of thinking.

When everyone else is fearful be greedy ( Warren Buffet)
 
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OP,
I was in a very similar situation last year, whether to liquidate an AVC or not. I was hesitant at buying into an ARF, as the markets were at an all time high, and could only go one way, I thought.. I took the plunge however, into Prisma 5. Since then the fund has risen by about 10%, and Im glad I went in. Neither am I worried about what happens to it, as I don't intend withdrawing from it anytime soon. So my advice is that no one knows what will happen with these funds, but if you're not in a hurry to liquidate it, you'll be fine. Yes, you'll be taxed on withdrawl, but don't forget that you got relief on the way in.
 
Thanks so much @publicservice1 for your words of encouragement. May I ask if you also went ahead with the ARF? I have pretty much decided on an ARF for the AVC savings. And will most likely go ahead with a Prisma investment for some of the lump sum. You're right that nobody knows what might happen as absolutely nobody can predict the future. We have to get on with things in the meantime and hope for the best.
 
Hi All

Many thanks for this highly informative post and contributions.

I am considering some Zurich funds myself as part of an ARF but cannot see how they (or their proceeds) are taxed more highly than those of any other ARF provider.

Income tax rates are set by Revenue and apply across the board by all ARF providers.

ETFs on the other hand are subject to tax via deemed disposal and the 8 year rule, but as far as I know, only when held outside of an ARF.

Am I correct in saying that ETF funds held within an ARF are not subject any taxes other than PAYE, USC and PRSI (if under 66 years of age)?.

Many thanks

LT
 
There is no tax on the gains made on any asset held within an ARF.

The income tax applies on income drawn down from an ARF.

Normal income tax rules apply to income drawn down from an ARF.
 
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