Advice on AMRF

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breege

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I have a PRSA €70,000 approx. due to mature this year. It is with Irish Life.
After I take my tax free lump sum, the amount to invest in an AMRF is quite small. Is it worth moving from Irish Life? I am not adverse to a certain amount of risk.
Any advice would be appreciated.
 
Not really sure what your query is.
If you are proposing to invest c€50k into an AMRF there are obviously a wide range of providers and fund options. You should initially focus on two charge issues:
- any entry costs that might be charged
- the ongoing fund management charge

You need to keep both as low as possible.
As for funds, well that depends on your attitude to risk and your target return objective. If you are prepared to take a medium to long term investment perspective then perhaps a Managed Fund might suffice.
As to whether Irish Life or some other provider might be best...... well that’s impossible to predict. In simple terms I would tend to stick with the major providers (eg Irish Life, New Ireland, Zurich, Standard, Aviva etc).
 
Thank you Conan. I know very little about AMRFs.
A couple of questions.
Charges, do the “big providers” have roughly similar charges?
How do I find out what funds are available and/or any recommendations for medium term with medium risk funds?
 
If you are going for a non-specialist fund then the annual management charges will be similar. In terms of entry costs, these can vary and a broker may be able to get you a better deal. But since you investment amount is small there may be limited room to negotiate.
If you look at the various websites you should be able to see the range of fund options and the annual management charges. Most providers will risk rate their funds (typically out of 7). So a rating of 3 or 4 will be mid range.
 
From Irish Life

"If you do not have a guaranteed pension income for life of €12,700 a year, you must invest the first €63,500 (or the balance of the fund if less) in an AMRF or buy an annuity for the same amount. ... An AMRF is similar to an ARF, except that there are restrictions on what you can take from the fund."


So you need €63,500 for your amrf

Only leaves you with €6,500 lump sum
 
Last edited:
moneymakeover said:
From Irish Life

"If you do not have a guaranteed pension income for life of €12,700 a year, you must invest the first €63,500 (or the balance of the fund if less) in an AMRF or buy an annuity for the same amount. ... An AMRF is similar to an ARF, except that there are restrictions on what you can take from the fund."


So you need €63,500 for your amrf

Only leaves you with €6,500 lump sum
Click to expand...

That applies after the tax free lump sum is deducted. So Breege will get €17,500 lump sum and €52,500 can go into an AMRF.

Breege, there is not much to know about AMRF's. You can invest in the same range of funds that you can invest in a pension. You have the option of taking out 4% a year but don't have to if you don't want to. From age 75 onwards, it becomes an ARF where you have full access to the fund and you have to take 5% from the fund or else the Revenue will take what it is owed directly from the fund.

You also have the option of an annuity, although rates are pretty poor at present.

With regards to staying with Irish Life or not, you need to look at the charges on the contract.



Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
 
So the 52,500 will form the amrf?

But is that a proper amrf?

To be an approved minimum RF
It should have 63,500
And then can create an ARF?

I'm just new to all this
 
You missed the "or balance of the fund if less"

The maximum allowed in an AMRF is €63,500, it is not a minimum.


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
 
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