L
LucanMan
Guest
If you are interested in making one off AVC or starting new Additional Voluntary contributions and uncertain about immediate future of the funds here is one way to play safe.
I am putting this in context of the Irish Life Pension fund I am with (so you could extrapolate it to whichever fund you are with)
To play safe with uncertainity of the world stock market..... imminent recession...........etc you can invest in a safe fund for the next 6 months or year and then switch over to an aggressive fund when you fell the recovery has started.
Irish Life has a new "Saftey deposit Fund" which gives you ECB + 0.5% interest assured till 2010 exculding their charges. When you want to transfer all the amount from this fund at a later stage there is no penalty.
The other fund they have is capital protection fund with return of about 3-5% per annum but there will be a small percent charge if you switch the funds.
These funds are safer than any of the equity based funds if you are starting off new and expecting the markets to tank further in the next two quarters.
In the end it is very difficult to time a market but I have used the first option mentioned above for my one off AVC contributions.
I am putting this in context of the Irish Life Pension fund I am with (so you could extrapolate it to whichever fund you are with)
To play safe with uncertainity of the world stock market..... imminent recession...........etc you can invest in a safe fund for the next 6 months or year and then switch over to an aggressive fund when you fell the recovery has started.
Irish Life has a new "Saftey deposit Fund" which gives you ECB + 0.5% interest assured till 2010 exculding their charges. When you want to transfer all the amount from this fund at a later stage there is no penalty.
The other fund they have is capital protection fund with return of about 3-5% per annum but there will be a small percent charge if you switch the funds.
These funds are safer than any of the equity based funds if you are starting off new and expecting the markets to tank further in the next two quarters.
In the end it is very difficult to time a market but I have used the first option mentioned above for my one off AVC contributions.