T McGibney
Registered User
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No. Where did you get that from?
Likewise.
My point was in support of Brendan's reasonable point that
No. Where did you get that from?Are we now arguing that we do away with The Central Bank as regulation seems an unnecessary expense altogether.
Likewise.I mean if everyone has the risk capacity for 100% equities for their retirement and a massive pension fraud is a moderate inconvenience
A person who has their own home and the OAP can withstand their equity portfolio bombing out.
You are adding additional risk to him by sending him to a financial advisor who should tell him that anyway, but might well sell him products which are in the advisor's interest and not his.
It's pretty simple. People tend to trade certainty for opportunity. It's been discussed to death already, but some people prefer the former while others prefer the latter. Everyone has a spreadsheet or graph (and usually some ridiculous straw man) to support their perspective.There is a chance that the equity premium is due to some risk that is priced in by the market, but one that hasn't happened in 100 years. A long duration war, a pandemic without a vaccine, AI driven game changes etc. So betting on it not happening is a personal choice/bet.
Alternatively, the premium is just due to people not liking market fluctuations and buy and holders can buy fluctuating assets at a discount and hold them through turbulence earning a premium. In that case the risk is that the premium might disappear down the line if investing practice changes, we all start using 'MoneyGPT', or other financial innovations to smooth returns become popular.
History tends to repeat, but we live in very interesting times and I'm not sure anyone knows how AI and financial innovation is going to impact on market dynamics over the next 10 or 20 years. For me, it's risk driving that return and the risk is that you don't maintain your investment goal within the desired timeframe (to quote Keynes 'in the long run we are all dead'). Also, in the case of retirement you might not be dead but you also could have a lot less opportunities to spend money as time goes by, so the consumption is front loaded.
You are inferring that the whole financial advice profession in Ireland is less well positioned to guide someone than your website which isn’t regulated, carries no PI insurance, isn’t required to compete a fact find, has many anonymous posters and some conflicts of interest and which frequently defaults to ignore advisers and go for a discount execution only service as often the default response @ClubMan et al without first even assessing the poster’s knowledge and experience.
Post in thread 'Setting up a PRSA - Fund Management Charge 1.4%'
I generally suggest that to somebody who is already looking for that sort of service and/or the lowest charges and always endeavour to qualify it with "if in doubt, get professional advice". And in very many cases I suggest to people that they at least post a Money Makeover here in order to allow others to provide better specific feedback. I resent the implication that I somehow give people misleading or inappropriate feedback based on what they post.
I should've stuck a few charts in to mask my master plan of misleading the pension investing public...Post in thread 'Setting up a PRSA - Fund Management Charge 1.4%'
https://www.askaboutmoney.com/threa...und-management-charge-1-4.238753/post-1914294
No attempt to ask questions. Straight to discount broker
And the original poster's query was specifically about charges.On the other hand maybe some people are happy to pay such a high fee for more involvement by the broker, ongoing reviews etc.
If you search for existing threads you'll probably find more info and suggestions about PRSAs in general and ones using SL Vanguard funds in particular.
I should've stuck a few charts in to mask my master plan of misleading the pension investing public...
In any case, I also qualified my comments...
And the original poster's query was specifically about charges.
And you wonder why some people don't take intermediaries at their word?As they say in Dragons Den, I’m out.
Is this man married? No
how old is their spouse or partner? single
What is their financial position? comfortable
What is his state of health? top notch
Does he smoke?no
How many children does this man have? 7
How old are they? all over 25
Does he own a car? 2 of them
How old is it? 3 and 5 yra
How old is the house? 50yra old
What state of repair is it in? fantastic
What energy rating is it? b2
Does he have solar panels? yup
it insulated properly? Yup
Double glazing etc? Yup
oes he have a boiler? No a heat pump
What age is that? 5 yrs
What are his essential monthly household expenses? Food heating etc typical, average not luxurious, manageable
What quality of life does he desire? A great one
Discretionary spending.
What is his desire leave a legacy relative to his own financial security? Zero
You can’t deflect your inappropriate position by personal attacksAnd you wonder why some people don't take intermediaries at their word?
It would be good advice in the opinion regulators (see FCA position on capacity for loss)And that'd be poor advice in my opinion. Yes its a more conservative option but he potentially foregoing a lot of growth.
If he sauntered up to me id tell him - based on the profile laid out above - go 100% into equities. For all the reasons outlined above not least that he will have a far better return on average and in all probability. And, he has plenty of capacity to take on the risk for the reward. Simples.
That'd take 5 mins of a chat would be free of charge and i wouldnt try sell him anything.
You are free to post as many times as you want to correct any bias.You defaulted to DIY investing and execution only with no attempt to assist the poster to understand why one might pay for advice.
That is the bias of this site.
You can’t deflect your inappropriate position by personal attacks
How about...And if the market tanks like it did in the 1930s the 1970s and 2000s and the client lives to 100 what do we tell them?
As they say in Dragons Den, I’m out.
Is HELOC readily available to most people in Ireland?I think this is key.........IMO one should think of their home equity as something akin to a cash reserve/bond allocation inside of their wider retirement asset pool allowing IMO a much higher allocation to equities in your ARF than is typically recommended >
95% equities /5% treasuries would be what I'd go for......
In sustained bear markets one would expect that monetary authorities will have reduced interest rates.....which provides a kind of counter-cyclical opportunity to access a home equity line of credit (reverse mortgage) at a relatively low interest rate which allows for continued equity market participation.
Now Ireland forces retirees to withdraw 5% a year from their ARF.....which complicates matters...the 5% treasury allocation in my portfolio above allows for a kind of painless & uncomplicated withdrawal without touching your equities in Year One of a bear market (say in a 2022 scenario)....however given the compulsory 5% withdrawal rate in Year Two of said bear market you've got a problem cause you've exhausted your bond bucket in year one...lets call this a multi-year GFC type event...so the strategy above would advocate for a retiree to take those forced equity withdrawals in Year Two from their ARF and immediately investing the net proceeds back into a taxable brokerage account that mirrors the forced withdrawal that just occured from the ARF index funds....funding of your day to day living expenses would now switch in this period to the proceeds from your home equity line of credit......and this would continue until the equity market recovers to baseline.
It's a strategy by which the damage of drawdowns & Ireland's forced 5% ARF withdrawal is mitigated.....but it requires discipline.
You mean an equity release "life loan"?Is HELOC readily available to most people in Ireland?
1. Do you agree that investment strategy should be aligned to one's investment objectives? (It's pretty much a yes/no question)
2. Do you think it is possible for someone to prefer a less volatile income stream over maximising income? (again pretty much yes/no)
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