Starting a pension

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bms1

Registered User
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Just started a pension with irish life putting in 100 week between me and my wife we are both 33, Just wondering is it wise to do this right now as am been told by alot of people we are crazy i believe it is a good time because you are getting more units for your investment right now would appreciate some informed reassurance.
 
Arguments for and against I guess. You are getting more value for your money though and from what I can see, the markets will come good again, may take time, but they should.
 
PaddyW said:
Arguments for and against I guess. You are getting more value for your money though and from what I can see, the markets will come good again, may take time, but they should.
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I would agree - give it a few years and should improve.,
 
Is it a good time to start a pension?

It depends on the stock that it's based on. If it's a good stock do start one because right now you would be buying low making you more money as time goes. People are letting good stock go right now because of panic. The young should have no problem in the long run.
 
bms1 said:
Just started a pension with irish life putting in 100 week between me and my wife we are both 33, Just wondering is it wise to do this right now as am been told by alot of people we are crazy i believe it is a good time because you are getting more units for your investment right now would appreciate some informed reassurance.
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Are you paying higher rate tax?

If so you can offset your contributions against the tax.

Your €100 pw will effectively only cost you €59 pw as you save €41 tax.

There are plenty of pensions offering a fixed rate of interest now, so you don't have to worry about the stock markets.

If people are telling you starting a pension is crazy because the stock markets are crazy then they are giving you very bad advice. There is no need to put your money anywhere near stocks
 
No we are both on the lower tax rate off the top of my head i think it is roughly 67 euro for every 50 we put in.Thanks for the info.
 
Its likely that whichever fund you are invested in you are purchasing units much cheaper compared to their price of recent years.The benefit of current economic downturn is that you are building up a vast amount of units at low prices,so the longer the downturn remains the better for your pension,as when/if economic upturn arrives you will enjoy an enormous lift in your fund value compared to contributions paid in.Fund values may rise and fall significantly over the term of your pension,but you benefit from Euro cost averaging i.e.buying extra units when unit price falls.Check that you have an investment strategy built into your pension that reduces your risk as you get nearer to retirement.
 
upport said:
Its likely that whichever fund you are invested in you are purchasing units much cheaper compared to their price of recent years.The benefit of current economic downturn is that you are building up a vast amount of units at low prices,so the longer the downturn remains the better for your pension,as when/if economic upturn arrives you will enjoy an enormous lift in your fund value compared to contributions paid in.Fund values may rise and fall significantly over the term of your pension,but you benefit from Euro cost averaging i.e.buying extra units when unit price falls.Check that you have an investment strategy built into your pension that reduces your risk as you get nearer to retirement.
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Couldn't say it better myself. For someone looking at 20-30 years away from retirement then this is a golden opportunity to buy the market cheap.

Granted I think things will fall further, but unless the Western world is going to do a Japan, these are the best times we will see for the LONG TERM investor.
 
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