Zurich prisma funds arf

[tammy1]

Hi,

I started a new thread as diff question. I need some advice re prisma plans. I have 100k in pension pot. I have turned 50 so taking 25% tax free and investing the other 75% in ARF with Zurich. I have no financial advisor so filling out the options myself. I have prisma options ranging from 2 to 5. 2 having a lower risk, 5 max risk. Given my age and the 75K should I go with a 2/3 prisma risk level. Any advice appreciated.

 

[Dave Vanian]

An ARF is a new product. Even though you're dealing directly with Zurich Life it's likely that someone in Zurich is getting paid commission. Ask Zurich to clarify what the charges on your ARF will be and how much commission will be paid to one of their sales agents. It's possible that one of the brokers that post regularly here on Askaboutmoney.com would be able to set it up for you with lower charges.

Attitude to risk / volatility is personal to you and two people with the same circumstances might have a different requirement. Zurich Life have a risk profiler on their website which should help you narrow down the shortlist.

 

[Redzer]

Given your age and the presumption that you won't need to access the ARF for 10-15 years, I'd lean towards a higher risk level with a strong equity element. You can review it after several years depending on your personal circumstances and risk appetite. This is what I'm doing but that's my personal risk appetite. The returns on higher risk products are generally higher but more volatile. I'm happy to ignore the volatility in the short-medium term but will review my position again closer to actual retirement.