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PRSA

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  • 25-02-2010 4:49pm
    #1
    chirodoody
    Registered Users Posts: 39 ✭


    I was wondering if anyone else has one?
    If so how has it been performing?
    I started one 2 years ago to encourage me to save.
    I pay approx E220 p/m and it's now valued at E 5,043 after 2 years
    This represents an increase of E120, with charges taken into consideration.
    The projected value when i started was about E 10,500.
    I know the markets are bad but...!!!
    :eek:


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    #2
    [Deleted User]
    Posts: 281 ✭✭ [Deleted User]


    The projected value after what period of time was €10,500?


  • Options
    #3
    Andymfinancial
    Closed Accounts Posts: 60 ✭✭Andymfinancial


    chirodoody wrote: »
    I was wondering if anyone else has one?
    If so how has it been performing?
    I started one 2 years ago to encourage me to save.
    I pay approx E220 p/m and it's now valued at E 5,043 after 2 years
    This represents an increase of E120, with charges taken into consideration.
    The projected value when i started was about E 10,500.
    I know the markets are bad but...!!!
    :eek:


    The past 2yrs have seen one of the worst decreases for many years. The main advantage to yourself is that you are continuing to buy the units on a monthly basis. These units are now being purchased on the cheap. Eventually when markets recover you will be rewarded for the fact that you kept paying. My advice is continue your contributions and you should see the benefit in the long term. The projected values mean absolutely nothing because they are regulated figures and are based on a set return which is not guaranteed.


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    #4
    nonashmot
    Registered Users Posts: 6 ✭nonashmot


    You mention that you started a PRSA in order to save some money. A Prsa is a pension product and can not be drawn down until retirement age. So the question you should be asking is not what value your fund is after 2 years of the worst return in markets since '29,are you contrbuting to a savings plan or a pension plan?
    You might think this a trivial question but it is important as some day you may wish to access this money and you will soon find out that this is not possible till your NRA. In Defense of PRSA's they are flexable products compared to other pension products, you may want to review your fund choice when you took out the PRSA and may consider a fund more in line to your risk profile


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    #5
    Henry Ford III
    Moderators, Business & Finance Moderators Posts: 17,711 Mod ✭✭✭✭Henry Ford III


    Consider the possible tax relief, and also Google "pound cost averaging".


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