10 year retirement fund

Thespoofer

As title says, looking for opinions on a 10 year retirement fund.

Just over the 50 year mark now and reckon I've a good 10 years left physically in Construction.

I've been frugal enough the last 15-20 years and made a couple of good financial decisions but don't have a decent pension in place.

Mortgage almost paid off now so looking for opinions on where to throw my disposable Income to get the best return by time I'm about 60.

Must be lots of guys in similar situ to me.

Thanks

Jim_Hodge

Good luck with the plans. To me it seems a bit late and short term for retirement planning. I spent the 10 years leading to retirement gradually moving 25 years of investments to less risky options and putting my funds in more cash based deposits. I'd be wary with any major risk so close to retirement.

Thespoofer

Thanks. TBH I know its too late to set uo a 'full pension' at this stage.

It's more of a case of putting away earnings between now and then which will subsidise a working part time type retirement. I don't see myself as laying down on a beach with cocktails and retired full time , never to work again.

I do see myself though working from time to time, maybe head off for couple of months during the darker months. So between the few quid I'd earn doing part time, a bit of a state pension ( if any by then ) and money earned/invested between then and now hopefully would see to my bills/lifestyle being paid for.

Shedite27

So with retirement planning, if you invest early, you don't get the benefit of the tax break for 30/40 years, but you get the compounding growth.

If you invest late like yourself, you won't get as much years for compounding, but you get the tax break in 10 years time. Any money you can put to your pension now, you'll get a chunk of it tax free in 10 years time, and the rest will make up your retirement fund (which you can start drawing down at retirement).

So I'd ignore many of the big stock accounts, look for something like a half bonds, half equities at most (depending on your risk tolerance), and just be happy that whatever you're putting away now, you're avoiding paying 40% (or 20%) income tax on

Yillan

https://www.boards.ie/discussion/comment/120517938#Comment_120517938

I don't follow this post. What is the tax break in 10 years? You get a tax break from a private pension all the way through and you get the compounding interest. What is this late ten year tax break that they'd get that someone with a long standing AVC wouldn't?

Also can you advise better on how they should look into half bonds etc.

My advice would be to go to an independent financial advisor. They'll set you up properly and advise what options are open to you for an initial fee. I went with investwise who i have found good.

Shedite27

https://www.boards.ie/discussion/comment/120523168#Comment_120523168

It's "the benefit of the tax break" that I said you get in 10 years. When you're paying into a pension, yes you get a tax break immediately in return for a larger benefit at age 65+

When you're 30 that benefit is gained in 35 years time.

When you're 55 that benefit is gained in 10 years time.

Jim_Hodge

https://www.boards.ie/discussion/comment/120528080#Comment_120528080

And you get compounded growth on the tax relief for 35 years - which can be massive.

Yillan

https://www.boards.ie/discussion/comment/120528080#Comment_120528080

Ah I think i understand what you mean but to me it just looks like you get the benefit of your reduced tax burden each year and then you also get all the money back that you invested when you retire as your pension, plus any interest.

If I put 20k in in a year, I'll get 8k back - there's the benefit. I keep the 20k that i invested and i get that back when i retire. I'm not sure I'd call getting the money i invested back as a tax break. I get the tax break each year, not when i retire.