That example is both fascinating and reassuring Marc. Thanks for sharing.You are of course correct. I wasn't focusing on the exact mathematics more the practical principles.
We like to paint pictures to illustrate the points. This is a real client's ARF account over the last 5 years. The original capital is the red line showing the annual distributions coming off each year and the blue line is the account value. Working perfectly...
Best options for short term liquidity is still State Savings I recently updated my analysis here
How Do I Get The Best Return On My Savings? - Everlake
We strongly advocate that longer-term investments should be arranged via pensions and stock-market linked investment accounts.globalwealth.ie
to reflect the new less attractive, but still relatively good (compared to the bank) terms
Longer-term taxable investment accounts are best managed with a pure equity portfolio of non-EU ETFs and dial down the risk in the pension to accounts to compensate
In Search of the Perfect Investment Portfolio - Everlake
Many investors find it difficult to achieve returns offered by the markets due to a misunderstanding of investment risk, costs and taxes.globalwealth.ie
The account is under €2m and the investor under age 71 so 4% is the imputed distribution rising to 5% for no good reason (other than to soak more income tax) at age 71That example is both fascinating and reassuring Marc. Thanks for sharing.
What income are they drawing from it?
I would be interested in understanding your thinking here.Longer-term taxable investment accounts are best managed with a pure equity portfolio of non-EU ETFs and dial down the risk in the pension accounts to compensate
Why not?You're hardly going to retire at age 50?
What you're looking to do is possible but there will be a fair bit of paperwork involved.
That's how it could be done. I don't anything about your personal circumstances to comment about whether or not it should be done. I'd have a concern about your being heavily reliant on rental income and property.
- Transfer the PRB into the SSAS.
- Wind up the SSAS and transfer it and the PRSA into a self-administered PRSA (if the existing PRSA is not already a self-administered PRSA).
- Everything will then be in a PRSA. Retire this PRSA, withdraw 25% as a tax-free lump sum and leave the balance as a Vested PRSA. You will need to start drawing a 4% annual income from the Vested PRSA from the year you turn 61.
Regards,
Liam
www.FergA.com
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