As per a previous post, I set up an execution-only PRSA AVC with Zurich in recent weeks.
When it came to choosing my fund(s), I wanted to keep it as simple as possible, so I chose the default investment strategy (ARF), which essentially means my contributions are invested 100% in the Zurich Dynamic fund, which is a multi-asset fund but which is predominantly equities (as of today, 89% equities, 5% sovereign bonds, 1% corporate bonds, 5% cash).
In 3 years’ time (i.e. when I am 25 years to retirement), I transition automatically and my contributions will be made to the Zurich Performance Fund, which is a similar fund but slightly “safer”, I guess (as of today, 78% equities, 12% sovereign bonds, 6% corporate bonds, 4% cash).
In 13 years’ time, (i.e. when I am 15 years to retirement), I transition automatically to and my contributions will be made to the Zurich Balanced Fund, again a “safer” fund (as of today, 64% equities, 23% sovereign bonds, 6% corporate bonds, 7% cash).
There are no further automatic transitions e.g. I won’t transition to the Active Fixed Income Fund like I would if had chosen the default investment strategy (annuity).
Does the above look broadly sensible? I’m aware that I could have higher exposure to equities with something like the 5 Star 5 Global or International Equity fund, and I can change my funds whenever I like if I do decide to go down that road, but I don’t want to choose a blend of multiple funds or be chopping and changing funds (I have young kids and a busy job so I just don’t have time at the moment), so I just want to pick something fairly straightforward and hopefully see some good returns.
Would you stick with my plan above, or change to an equity fund? Thanks.
When it came to choosing my fund(s), I wanted to keep it as simple as possible, so I chose the default investment strategy (ARF), which essentially means my contributions are invested 100% in the Zurich Dynamic fund, which is a multi-asset fund but which is predominantly equities (as of today, 89% equities, 5% sovereign bonds, 1% corporate bonds, 5% cash).
In 3 years’ time (i.e. when I am 25 years to retirement), I transition automatically and my contributions will be made to the Zurich Performance Fund, which is a similar fund but slightly “safer”, I guess (as of today, 78% equities, 12% sovereign bonds, 6% corporate bonds, 4% cash).
In 13 years’ time, (i.e. when I am 15 years to retirement), I transition automatically to and my contributions will be made to the Zurich Balanced Fund, again a “safer” fund (as of today, 64% equities, 23% sovereign bonds, 6% corporate bonds, 7% cash).
There are no further automatic transitions e.g. I won’t transition to the Active Fixed Income Fund like I would if had chosen the default investment strategy (annuity).
Does the above look broadly sensible? I’m aware that I could have higher exposure to equities with something like the 5 Star 5 Global or International Equity fund, and I can change my funds whenever I like if I do decide to go down that road, but I don’t want to choose a blend of multiple funds or be chopping and changing funds (I have young kids and a busy job so I just don’t have time at the moment), so I just want to pick something fairly straightforward and hopefully see some good returns.
Would you stick with my plan above, or change to an equity fund? Thanks.