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Advice needed on moving pension

  • 09-08-2019 8:56am
    #1
    pclive
    Registered Users Posts: 453 ✭✭


    I am moving my AVC pension to Zurich funds. i am in my late 30s and i'm a public servant.

    Will be paying 700 a month into it into the following funds:
    Indexed top tech 100 20%
    Performance Pension and invest 30%
    Cautiously managed 30%
    5 stat 5 20%

    I have 30k already in the pension so i was thinking of putting 100% of this into cautiously managed for the next few years to be on the safe side.

    Any thoughts or advice?


Comments

  • #2
    Henry Ford III
    Moderators, Business & Finance Moderators Posts: 17,735 Mod ✭✭✭✭Henry Ford III


    Get proper advice. Get a risk/reward assessment done. Have a proper review done by a professional.


  • #3
    Jim2007
    Moderators, Business & Finance Moderators Posts: 10,358 Mod ✭✭✭✭Jim2007


    pclive wrote: »
    I have 30k already in the pension so i was thinking of putting 100% of this into cautiously managed for the next few years to be on the safe side.

    You need to start by recognising that fund managers are like car salesmen. Their sales people (and that is what they are) are there to make money for the company and themselves, not you.

    Products like this one are specifically designed to appear to be the safe option for the cautious investor, but they come at a cost and carry their own risks. Such products are generally best suited for investors coming towards pension age, say 50+ years old.

    At your age the objective is to build wealth and you don't do that by shying away from the products that are designed to do that. Paying in a fixed amount each month is the class 'Dollar Cost Averaging' strategy. When the NAVs are low during a recession or market correction, your money goes further as you end up buying more positions. There will be plenty of time over the next 30 years to move into 'safer funds' closer to retirement.

    The opportunity cost of missing out on growth now, is very real. If you dig around on the internet you should find research papers on this. Generally speaking female savers usually end up with a significantly smaller pension pot that males precisely because the follow your proposed strategy.


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