Irish life consensus fund as regular saver

F

frunzy

Registered User
Messages
59
hi there,

we have this policy for the past few years having put around €30,000 into it over a period of 5 years in the form of regular monthly amounts. We are up about €3,000 based on what we've put in. This policy buys 'units' every month in over 4,000 worldwide companies. This is primarily an education fund for our kids in 8-10 years time. We are toying with the idea of:

1. putting it in to the 5.5 year state savings account as at least its guaranteed?

2. Leave it where it is and continue with monthly contributions?

3. Leave it where it is and stop or reduce contributions and put them into a guaranteed regular saver around 3%?

Opinions/advise appreciated.
 
Why not consider protecting the capital you've accrued from market falls via state savings and continue buying units on a monthly basis in your existing plan. Best of both worlds, decent tax free return on lump sum, potential stock market gains on regular savings element
 
thanks for reply, yep would like to protect what we've got so far! and at least its guaranteed.

cheers
 
it's also only 21% over 5 years 6 months, what has your existing fund returned over the past 12 months?
 
If you cash in your gains you’ll pay exist tax. Irish Life has a cash fund. If you can within the same policy switch your gains to the cash fund you can lock in the gains (if you are willing to accept the counterparty risk to which the gains would then be exposed in the cash fund). In this way you will not pay exit tax on the gains until you cash in the fund. You could keep up the monthly contributions to the consensus fund and switch the gains over every year (or whenever you think the market has peaked) to the cash fund. You could actually switch over slightly less as the consensus fund also includes an allocation to cash. [Disclaimer: The above is comment / observation and is not a recommendation to follow any particular investment strategy or to buy / not buy any particular fund or stock.]
 
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