If you’re mortgage free then you should definitely look to make the most of your tax incentives through a pension.
You can see your options here.
Kevin
www.thepensionstore.ie
cavanMan,
You can do a PRSA or a Personal Pension (RAC).
Your next big decision is whether you want to go the 'advisory' route or the 'execution only' route.
That'll depend on your own knowledge of pensions/providers and how comfortable you are with selecting funds.
Brief description of both here and here but this is just one product provider.
If you haven't a clue on what product to go for, what provider to select or what fund/s to invest in then you're probably better off engaging the services of a financial advisor/broker to guide you. There are subtle differences in the rules that govern both products, the funds available to invest in and the charging structures of them. Just pay particular attention to the charges on both products. The higher they are, the worse it is for the size of your pension pot at retirement age.
You're assuming the 400k is in there from year one rather than being built up over 20 years.Even if you get a net 3.75% p.a. return after charges you would end up with €835,427 after 20 years.
You're assuming the 400k is in there from year one rather than being built up over 20 years.
I think with a steady 3.75%, on monthly deposits of 1667 over 20 years, the figure should be around 592k.
so the pension would return 580k and the cash deposit would return 592 based on 3.75%?
Why lock up the cash in a pension then
Firstly, you won't get 3.75% on any deposit, now or for many years to come (Not to mind DIRT).so the pension would return 580k and the cash deposit would return 592 based on 3.75%?
Why lock up the cash in a pension then
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