Investing IN Retirement is different to Investing
FOR Retirement.
With annuities currently expensive, Approved Retirement
Funds (ARFs) are extremely popular for people retiring nowadays. Not only do
they give you increased control and flexibility, any remaining funds on death
are included in your estate.
However, there are challenges involved with an ARF;
1. You assume the risk for your ARF,
2. Make sure it generates income long enough to last for the rest of your life,
3. Early losses have a big impact.
Your investor profile will have changed considerably from when you were working. You will typically be looking for calmer water.
1. You are older,
2. You are not saving from earned income,
3. You are withdrawing from your saved income,
4. Your ARF will be a primary source of income to maintain your standard of living.
PRE-RETIREMENT - THE FOCUS IS ON
GROWTH
POST-RETIREMENT - THE FOCUS IS ON
RISK/RETURN/FLEXIBILITY/INCOME/LONGEVITY
ARF’s that incur
early losses will bomb out quicker. Good diversification and risk management
key as withdrawals will magnify volatility.
Irish Life have recognised this challenge and launched a range of funds designed specifically for people in retirement:-
1. Defensive equity strategy,
2. Income generating focus,
3. Risk management strategies like their popular Multi Asset, MAPS funds,
4. Different funds available to meet investors different risk profile,
5. Management charge only 0.15% above base.
When preparing for retirement, speak to a trusted adviser on the specialised post retirement funds now
available.
Arrange a meeting with Mind My Money
Warning: The value of your investment may go down as well as
up
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