Ah you’re on the older scheme so! No need for avcs so
The banter in auditing circles used to be if you’re auditing a DB scheme and doesn’t have a deficit, don’t audit it, join it.
Ha ha ha.
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It wasn’t funny then either.
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Oh no I’m definitely on whatever the newest worse scheme is, just the site only gave a two options that I could see.
You are years behind
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A regular topic of debate.
Pension is no 1 option
But overpayment say at 3% rate on mortgage (probably low over life of it) gteed compounded return with no tax implications I can see why its attractive
The investment fund is OK and better than deposit. I have one each for kids but its after tax money, invested with no guarantee, and taxed again on the way out. Its not without its drawbacks
If you could knock 10 years off your mortgage by overpaying then you would have for e.g. 1k a month for 10 years… 120k of a lump sum built up from not paying it at the back end…and at a time when you maybe most need it close to retirement etc…
Its also a factor that a lot of people would like to retire at 60 or at least step back from full tilt but wont get pension for another 6 years… Early repayment of mortgage goes a long way to facilitating that
Key downside in overpaying is lack of liquidity in getting the overpayment back if you badly need it
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@glasagusban if you are on Instagram there is an account there called askpaul now… He is a financial advisor
If you can get past the strong Dub accent and the cheeky chappy persona I think he gives really good practical advice on his account in a straightforward way. Lot of saved highlights with details around investment funds etc
He’s obviously not a completely independent voice in that he is selling himself, and would like to sell you some investment products… But well worth a look IMVHO
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I had a call with a pension adviser today as it happens I have 3 old work pensions apart from my current one he’s going to package them into one ARF and I will have access to withdraw 25% tax free from when I am 50 up to when I am 70 and draw down the rest as an income stream. Had a good chat today and agreed on the investment portfolios I will be going into based on my risk profile. It will transfer to my missus if I croak it first as opposed to an annuity which dies with you. He got my authorisation to contact the 3 pension providers and the current balances are a lot more than I expected, that said markets have performed strongly over the last 5-10 years. Good to have them all packaged up under one provider now though.
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Well worth doing that. The point about the ARF though, at the moment you don’t have an annuity… You have a pension fund … You only buy an annuity when you retire and access your pension… So what happens your existing pension fund with your employer if you do most likely there is insurance on your life as part of it and also your wife would get an income from it
It’s also worth keeping some of your pensions apart… If you are made redundant in your 50s you can access some of your pension funds tax free… In that situation worth having pension funds in couple of places because you can crack open one and let the other one alone…
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You’d want to live to be a million to get value with an annuity.
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Yep…there is a death in benefit with my current employer with an income stream for the spouse. All a bit morbid but better to have your affairs in order I suppose.
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Just be careful you arent worth more dead than alive
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General thinking would be if you’re not, you need to make sure you are!
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AP higher scale goes into PO normal scale no?..
ETF’s are a good way for people to diversify cheaply and gain broad market exposure. However, isn’t the tax treatment in Ireland quite complicated?
You can’t use losses to offset profits.
yep, AP1 goes into PO scale but there’s a catch: they are only used fully as a grade by 3 departments and if youre in a department that isnt one of those the grade is like gold dust and there’s murders every time there’s a competition announced for it
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On top of which its not Capital Gains Tax?