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Pension fund v Coronavirus

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Comments

  • #92
    Jim2007
    Moderators, Business & Finance Moderators Posts: 10,360 Mod ✭✭✭✭Jim2007


    hobie21 wrote: »
    What's your problem you daft troll? I have plenty of assets and zero debts. Getting a loan serviced by a tiny portion of the rent i recieve to invest in bargain basement stocks makes perfect sense. Now fuk off back under your rock or bridge.

    Going from stocks to property to cash on the eve of a recession to borrowing does not make sense and if you have to resort to personal attacks and foul language to express yourself, there is only one place for you - the ignore list. bye.


  • #93
    hobie21
    Registered Users Posts: 139 ✭✭hobie21


    Big drops today especially in all bank stocks. US sentiment is turning very pesimistic. Looks like another property crash could happen in the near future.


  • #94
    hobie21
    Registered Users Posts: 139 ✭✭hobie21


    Can anyone confirm that an Irish private pension scheme can be cashed out at age 50 without any tax implications? I'm pretty sure I confirmed this with my provider. Just want to confirm it.


  • #95
    Henry Ford III
    Moderators, Business & Finance Moderators Posts: 17,737 Mod ✭✭✭✭Henry Ford III


    hobie21 wrote: »
    Can anyone confirm that an Irish private pension scheme can be cashed out at age 50 without any tax implications? I'm pretty sure I confirmed this with my provider. Just want to confirm it.

    Early retirement is possible under an employer scheme.

    What do you mean by cash out btw? The provider doesn't just write you a cheque


  • #96
    The J Stands for Jay
    Registered Users, Registered Users 2 Posts: 5,786 ✭✭✭The J Stands for Jay


    hobie21 wrote: »
    Can anyone confirm that an Irish private pension scheme can be cashed out at age 50 without any tax implications? I'm pretty sure I confirmed this with my provider. Just want to confirm it.

    There is no change to the tax treatment based on what age you take benefits from the scheme. You'll have tax calculated the same way if you're 50 or 70.


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  • #97
    The J Stands for Jay
    Registered Users, Registered Users 2 Posts: 5,786 ✭✭✭The J Stands for Jay


    Henry Ford III wrote: »
    Early retirement is possible under an employer scheme.

    What do you mean by cash out btw? The provider doesn't just write you a cheque

    They might write you a cheque, depending on your circumstances.

    Whatever you end up with, the pension administrator will have sorted out the tax on for you.


  • #98
    cefh17
    Registered Users Posts: 990 ✭✭✭cefh17


    hobie21 wrote: »
    Moved from stocks and property fund to cash 8 months ago. Good timing. I couldn't care less how you take my opinion.

    A broken clock is right twice a day


  • #99
    hobie21
    Registered Users Posts: 139 ✭✭hobie21


    McGaggs wrote: »
    They might write you a cheque, depending on your circumstances.

    Whatever you end up with, the pension administrator will have sorted out the tax on for you.


    I've never retired before so not sure of the process. Do you get an option to start drawing it down. Lump sum then installments?


  • #100
    hobie21
    Registered Users Posts: 139 ✭✭hobie21


    cefh17 wrote: »
    A broken clock is right twice a day


    Wow, what's with the negativity?. I was only responding to some fool on here who was trolling me. Shouldn't this be a forum for people to voice their options and help others with questions related to the topic.



    These are turbulent times. Fortunes will be made and lost. I'm sure people have great ideas to share. Then there is you with comments like this "A broken clock is right twice a day"


  • #101
    hobie21
    Registered Users Posts: 139 ✭✭hobie21


    McGaggs wrote: »
    There is no change to the tax treatment based on what age you take benefits from the scheme. You'll have tax calculated the same way if you're 50 or 70.


    I believe if you "cash out" before 50 the tax benefits that were applied are clawed back. After 50 you keep the tax benefits that were applied.


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  • #102
    The J Stands for Jay
    Registered Users, Registered Users 2 Posts: 5,786 ✭✭✭The J Stands for Jay


    hobie21 wrote: »
    I believe if you "cash out" before 50 the tax benefits that were applied are clawed back. After 50 you keep the tax benefits that were applied.

    You can't cash out before 50.


  • #103
    The J Stands for Jay
    Registered Users, Registered Users 2 Posts: 5,786 ✭✭✭The J Stands for Jay


    hobie21 wrote: »
    I've never retired before so not sure of the process. Do you get an option to start drawing it down. Lump sum then installments?

    It depends on various factors including your length of service with the employer and your salary. First step is to ask the administrator for retirement options. Second step is to get financial advice.


  • #104
    Lex Luthor
    Registered Users, Registered Users 2 Posts: 11,220 ✭✭✭✭Lex Luthor


    hobie21 wrote: »
    Big drops today especially in all bank stocks. US sentiment is turning very pesimistic. Looks like another property crash could happen in the near future.

    all those Airbnb owners who have multiple properties out on leverage and no bookings will probably start to flood the market with houses in the next few months

    Bargains will be had


  • #105
    hobie21
    Registered Users Posts: 139 ✭✭hobie21


    hobie21 wrote: »
    I moved mine to a cash fund because i believe worse is yet to come. So many things could trigger more massive losses in the fiinancial sector. 80 emerging market economies are begging for an IMF bailout now. Without it they default on their debts. These losses have to be crystalized somewhere. Probably at large US financial institutions. Then you have US REIT, with tenants not paying rents, massive debts cannot be services. Who provided the loans for these property purchases, and we're talking billions in loans. International financial institutions. Another bailout of the financial sector by taxpayers would be unpalatable. I'm 100 percent in cash here and applying for a loan today to pick up bargain stocks and efts when dow goes to 16k, the again at 13k


    Interesting headline article in the Financial Times today
    "Default warning spark fears of emerging market debt crunch"


    Pension funds invested in Emerging Markets are going to get hammered


  • #106
    Henry Ford III
    Moderators, Business & Finance Moderators Posts: 17,737 Mod ✭✭✭✭Henry Ford III


    hobie21 wrote: »
    Interesting headline article in the Financial Times today
    "Default warning spark fears of emerging market debt crunch"


    Pension funds invested in Emerging Markets are going to get hammered

    High risk funds can go down rapidly in volatile investment conditions.

    Who'd have thought that?


  • #107
    AlmightyCushion
    Moderators, Education Moderators, Technology & Internet Moderators Posts: 35,090 Mod ✭✭✭✭AlmightyCushion


    snoopboggybog wrote: »
    And this is why i will never sign up for a pension and just save my money instead.

    The value of my pension fund is less than what has been put into it. You might think this was a bad investment for me and that I would have been better off if I had just saved the cash in the bank but I wouldn't. My employer matches my pension contributions and pension contributions are before tax so my pension contributions only cost me about 25% of what they add to my fund. So, based on what I would have received if I didn't contribute to a pension, my fund is way up.


  • #108
    Heres Johnny
    Closed Accounts Posts: 2,738 ✭✭✭Heres Johnny


    I put 400 a month into my pension and my employer puts in 100. So I've 500 a month going in for last 10 years or so.
    Of that 500, my salary reduces by 240 after claiming tax relief.
    Now my pension fund is taking a walloping like others, but I'm still up on it, it hasn't dropped by 50% or anything like it. I know there's charges from pension company too.


  • #109
    mrcheez
    Registered Users, Registered Users 2 Posts: 13,814 ✭✭✭✭mrcheez


    Anyone making any policy changes with the "lengthy" recession due to hit, or just going to ride it out with same risk levels?


  • #110
    somewhere45
    Registered Users Posts: 28 ✭somewhere45


    mrcheez wrote: »
    Anyone making any policy changes with the "lengthy" recession due to hit, or just going to ride it out with same risk levels?

    Future contributions into cash fund until further notice, keeping fund/assets I already have (my time frame is long enough ).

    Dont think we have seen anything yet. The Us is a basket case and will tank very soon.

    3-4 Months and will then switch back to normal depending on the situation.
    Nearly always impossible to catch a falling knife but at least I feel like I have done something.
    Do nothing and you will be dollar-avg-down which is not the worst either.


  • #111
    randomname2005
    Registered Users Posts: 1,971 ✭✭✭randomname2005


    somewhere45 wrote: »
    Future contributions into cash fund until further notice, keeping fund/assets I already have (my time frame is long enough ).

    Dont think we have seen anything yet. The Us is a basket case and will tank very soon.

    3-4 Months and will then switch back to normal depending on the situation.
    Nearly always impossible to catch a falling knife but at least I feel like I have done something.
    Do nothing and you will be dollar-avg-down which is not the worst either.

    Fortuitously back when the trade war between China and USA was in full swing I dropped down two risk levels (5 to 3) and never got the feeling that things were stable enough to go back up. Thinking of doing like somewhere45 suggested and adding new funds to cash for a few months. Have a few decades (at current retirement age, expect that to be extended in the next budget to 70 :( )


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  • #112
    sunnyday1234
    Registered Users Posts: 540 ✭✭✭sunnyday1234


    The whole idea of a long term pension is to buy stock units when the stock market is tanking, that way you get them cheaper and a larger gain when they recover in the future. By moving to cash you are missing out on a huge opportunity to grow your pension


  • #113
    mrcheez
    Registered Users, Registered Users 2 Posts: 13,814 ✭✭✭✭mrcheez


    sunnyday1234 wrote: »
    The whole idea of a long term pension is to buy stock units when the stock market is tanking, that way you get them cheaper and a larger gain when they recover in the future. By moving to cash you are missing out on a huge opportunity to grow your pension

    So hold steady you reckon and gain rewards in a year or so?


  • #114
    sunnyday1234
    Registered Users Posts: 540 ✭✭✭sunnyday1234


    mrcheez wrote: »
    So hold steady you reckon and gain rewards in a year or so?

    It might be a few or many years but yes holding steady the way to do it. Whats the point is moving to cash ? You will lose the chance to buy units at a cheap price and will miss out of most of the move back upwards

    Some people think they are cleverer than most and have an edge and can time the markets - these people are mistaken


  • #115
    RedRochey
    Registered Users Posts: 1,298 ✭✭✭RedRochey


    The two main problems with trying to time the market is 1) very small chance you're going to time the market perfectly and in the world of investing perfect is the enemy of good, and 2) people forget the mental strain it'll have on you as well, you'll constantly be checking the market to see and nearly hoping that it's lower, always be wondering if you would've been better staying investing, etc.

    Especially in terms of pension funds when you have such a long term horizon, the thought of me moving around funds will drive me crazy, and you also have to remember that the pension offices aren't operating at full efficiency so that might affect you to when trying to move funds


  • #116
    sunnyday1234
    Registered Users Posts: 540 ✭✭✭sunnyday1234


    StockTwat29 wrote: »
    The two main problems with trying to time the market is 1) very small chance you're going to time the market perfectly and in the world of investing perfect is the enemy of good, and 2) people forget the mental strain it'll have on you as well, you'll constantly be checking the market to see and nearly hoping that it's lower, always be wondering if you would've been better staying investing, etc.

    Especially in terms of pension funds when you have such a long term horizon, the thought of me moving around funds will drive me crazy, and you also have to remember that the pension offices aren't operating at full efficiency so that might affect you to when trying to move funds

    Indeed - NO ONE can time the markets, even warren buffet and he is the first to admit its impossible to do. You might get lucky once but if you keep trying to time the market then you will lose a lot of money


  • #117
    mrcheez
    Registered Users, Registered Users 2 Posts: 13,814 ✭✭✭✭mrcheez


    sunnyday1234 wrote: »
    It might be a few or many years but yes holding steady the way to do it. Whats the point is moving to cash ? You will lose the chance to buy units at a cheap price and will miss out of most of the move back upwards

    Some people think they are cleverer than most and have an edge and can time the markets - these people are mistaken

    It might conceivably be beneficial to move up a risk and get some funds with an even steeper drop?


  • #118
    sunnyday1234
    Registered Users Posts: 540 ✭✭✭sunnyday1234


    mrcheez wrote: »
    It might conceivably be beneficial to move up a risk and get some funds with an even steeper drop?

    That would definetely be a better move than going to cash anyway (as long as you have a few decades to retirement)


  • #119
    Jim2007
    Moderators, Business & Finance Moderators Posts: 10,360 Mod ✭✭✭✭Jim2007


    mrcheez wrote: »
    So hold steady you reckon and gain rewards in a year or so?

    The thing is that if you don't stay the course, then the all project pensions planning goes down the tube. The planning assumes there will be bad times as well as good times over the 40 or so year period and if you are not in to take advantage of the down turns, your over all position will be less than expected.


  • #120
    The J Stands for Jay
    Registered Users, Registered Users 2 Posts: 5,786 ✭✭✭The J Stands for Jay


    Jim2007 wrote: »
    The thing is that if you don't stay the course, then the all project pensions planning goes down the tube. The planning assumes there will be bad times as well as good times over the 40 or so year period and if you are not in to take advantage of the down turns, your over all position will be less than expected.

    Your asset allocations are going to be based on long term investment, and will make allowance for downturns in the market. Of you're going to switch to cash for every downturn, you may as well go for 100% equities the rest of the time.


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