# ARF's - best one in market



## Ned_ie (31 Aug 2009)

Hi all

I am a financial advisor and sell pensions but from 65 on I haven't a clue!!!

My dad is retiring and has about 120k in a pension fund (well a few different ones) and wants to move the money to an arf now. He also wants a tax free element which should be ok under the plans and will have a seperate income so no need for an amrf. 

here is my problem - what is the best ARF on the market. Is there anything in particular I should be looking for???

Please help - he is driving me nuts about this!!!!


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## Conan (1 Sep 2009)

If you really are a Financial Advisor (though I worry about the "sell pensions" comment) you should at least know the criteria for determining what might be the "best" ARF for your father ("from 65 on" is what its all about).
The issues to be considered might include:
- ARF or Annuity
- If ARF, will a regular income be drawn down (beyond the 3% compulsory drawdown)
- Attitude to investment risk
- Desired investment return 
- State of health

There are a limited number of ARF providers. If you are a Financial Advisor you should be able to compare the various products (unless you are a tied agent!). Based on what you say it is impossible to determine what might be the "best" ARF.


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## Ned_ie (1 Sep 2009)

Thanks Conan - and sorry for the sell pensions comment! I am a tied agent and as such we do not deal with ARF's

My dad has always used a guy who deals with New Ireland and is thinking of going with him. What I am trying to find out is who is the best in terms of charges adn investment returns over the next few years.

Dad is 57 and as I said wants to take the 25% tax free. He has no need of the income from the ARF until 65. Although I note the 3% deemed distribution from 60.

Is an annuity better than an ARF? 

in terms of risk he would be a balanced type of investor in excellent health. As for desired investment return - the highest possible!!!

thanks


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## LDFerguson (1 Sep 2009)

Ned_ie said:


> What I am trying to find out is who is the best in terms of charges adn investment returns over the next few years.


 
Nobody can tell you which funds are going to be best in terms of investment returns over the next few years. 



Ned_ie said:


> Dad is 57 and as I said wants to take the 25% tax free. He has no need of the income from the ARF until 65.


 
Depending on the type of policies his funds were accumulated in, and his personal circumstances now, he *may* be able to transfer them to a PRSA instead of an ARF, withdraw his 25% tax-free lump sum and leave the balance invested until 65 or later, thus avoiding the ARF 3% annual withdrawal. 

Liam D. Ferguson


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## G123 (1 Sep 2009)

Surely if he takes his tax free lump sum from a PRSA the remaining funds would be pensionable (or ARFable depending on circumstances.) Am I missing something here?

Ned ie, I believe that the same principals apply to choosing an ARF. Decide on investment strategy then choose based on charges - I would say look at Allocation rate, Early Encashment Penalties, Bid Offer, Annual management Charge


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## LDFerguson (1 Sep 2009)

G123 said:


> Surely if he takes his tax free lump sum from a PRSA the remaining funds would be pensionable (or ARFable depending on circumstances.) Am I missing something here?


 
You can take your tax-free lump sum from a PRSA now and deal with the balance of the fund later. There's no requirement for you to *immediately* buy an annuity or an ARF with the balance - you can defer that until later, up to age 75. 

Don't know if ned's father is eligible to transfer to a PRSA now though.


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## Ned_ie (2 Sep 2009)

He is in executive pensions at the moment.

If it were you, would you go for an ARF or an annuity???


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## LDFerguson (2 Sep 2009)

Ned_ie said:


> If it were you, would you go for an ARF or an annuity???


 
What I, or any other AAM poster would do is irrelevant as we are not your father and only he should make the decision. Annuities and ARFs are different products, each with their own relative merits. Neither is inherently better than the other. They're different and serve different needs. He has a decision to make about a sizeable sum of money and he should discuss his options with someone who can explain the differences to him and recommend the most suitable product for his specific needs and requirements.

Conan has outlined some of the specific questions above that need to be answered before advice can be given.


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## Ned_ie (3 Sep 2009)

thanks folks


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