Pension Advice

xckjoo

Can anyone give me a bit of advice on pensions as I'm a bit clueless. Currently in my 30s working for a start-up with no pension scheme in place. Previously paid PRSA into Irish Life with my last employer, but that was mainly due to convenience and was only for a short period. I'm looking to get things rolling again in the new place and want to do it right. Should I be shopping around in some form? I can't seem to find any details of fees I'm paying my broker anywhere, but I assume he's not working for free

howyegettinon1

Put in as much as you can as soon as you can. The more you have in the fund the more it will generate. IF what you have invested grows

Something the pension advisor said I found very interesting - when you build it up to about 100k you can look at buying an apartment with your fund. Rent it out and all the profit from the rent can be re-invested again. So renting it out at say 700 a month, your 100k should turn to 108k in a years’ time. That’s 8% growth on your money vs. a low risk investment in bonds/shares with growth of 2-4 % (again IF is a factor)


im only passing on the advice I got, anyone specialised in this field feel free to correct me

xckjoo

howyegettinon1 wrote: »

Put in as much as you can as soon as you can. The more you have in the fund the more it will generate. IF what you have invested grows

Something the pension advisor said I found very interesting - when you build it up to about 100k you can look at buying an apartment with your fund. Rent it out and all the profit from the rent can be re-invested again. So renting it out at say 700 a month, your 100k should turn to 108k in a years’ time. That’s 8% growth on your money vs. a low risk investment in bonds/shares with growth of 2-4 % (again IF is a factor)


im only passing on the advice I got, anyone specialised in this field feel free to correct me

Cheers, but I'm more wondering about how to go about finding a plan. I understand the compound interest side of things, just not sure about how I go about the shopping/buying part.

Sounds like your advisor advised a lot of people in the 00's

domrush

howyegettinon1 wrote: »

Put in as much as you can as soon as you can. The more you have in the fund the more it will generate. IF what you have invested grows

Something the pension advisor said I found very interesting - when you build it up to about 100k you can look at buying an apartment with your fund. Rent it out and all the profit from the rent can be re-invested again. So renting it out at say 700 a month, your 100k should turn to 108k in a years’ time. That’s 8% growth on your money vs. a low risk investment in bonds/shares with growth of 2-4 % (again IF is a factor)


im only passing on the advice I got, anyone specialised in this field feel free to correct me

Sorry this is not true, you cannot withdraw your pension early (at least not before the age of 50 and then you will still face a penalty).

In addition this is a massive oversimplification of property investment and completely unrealistic figures. Find a new pension advisor would be my advice.

OP there a number of providers on the market it is best to seek professional advice on the matter, Irish Life are the market leaders. Some plans give you more flexibility in how you can invest, some will leave the decisions entirely to you.

Best to pay in as much as you can as early as you can as mentioned.

xckjoo

domrush wrote: »

Sorry this is not true, you cannot withdraw your pension early (at least not before the age of 50 and then you will still face a penalty).

In addition this is a massive oversimplification of property investment and completely unrealistic figures. Find a new pension advisor would be my advice.

OP there a number of providers on the market it is best to seek professional advice on the matter, Irish Life are the market leaders. Some plans give you more flexibility in how you can invest, some will leave the decisions entirely to you.

Best to pay in as much as you can as early as you can as mentioned.

Thanks domrush. I think part of my issue is that current advisor feels a little too salesman-like. I don't necessarily think he's short-changing me, but I don't trust that he wouldn't .

A friend recommended their financial advisor to me. I might try meeting them before deciding if I should proceed with my existing advisor or move to them.

FernandoTorres

xckjoo wrote: »

Thanks domrush. I think part of my issue is that current advisor feels a little too salesman-like. I don't necessarily think he's short-changing me, but I don't trust that he wouldn't .

A friend recommended their financial advisor to me. I might try meeting them before deciding if I should proceed with my existing advisor or move to them.

You can pay into your existing PRSA with the new employer and they're obliged to organise this to be paid through your payroll. I'd be asking your adviser for a full list of product fees as well as his fee/commission. The main thing I'd look out for is allocation rate. If that's not 100% then you're being ripped off.

Heres Johnny

xckjoo wrote: »

Thanks domrush. I think part of my issue is that current advisor feels a little too salesman-like. I don't necessarily think he's short-changing me, but I don't trust that he wouldn't .

A friend recommended their financial advisor to me. I might try meeting them before deciding if I should proceed with my existing advisor or move to them.

Get someone you know, like and trust is the saying in the industry. You can invest directly in property through most pension funds without having to buy a property and have the headaches of being a landlord.

Equities have also outperformed property over the long term, if you time property well you can do very well but if you're looking for long term growth then equities are king, going on past performance.

I don't know where you got the 2 to 4 % figure for bonds and equities, equities have returned approx 10% a year. Bonds would be considered very low risk and return 2 to 4% but 50% binds and 50% equities should be up around the 7 to 8% mark long term. Get someone you trust and sees themselves as an advisor rather than a salesman.

Henry Ford III

FernandoTorres wrote: »

You can pay into your existing PRSA with the new employer and they're obliged to organise this to be paid through your payroll. I'd be asking your adviser for a full list of product fees as well as his fee/commission. The main thing I'd look out for is allocation rate. If that's not 100% then you're being ripped off.

Disclosure requirements will identify fees and/or commissions. They are mandatory.

Hani Kosti

FernandoTorres wrote:

You can pay into your existing PRSA with the new employer and they're obliged to organise this to be paid through your payroll. I'd be asking your adviser for a full list of product fees as well as his fee/commission. The main thing I'd look out for is allocation rate. If that's not 100% then you're being ripped off.

Let me correct you here. ER is obliged to provide you with an access to PRSA however there is no obligation on the ER to provide access to a PRSA chosen by you.