PRSA alternatives to equities

Hi

I have a PRSA with Zurich. At the moment it is invested in equities. I would like to move some of it to other types of investment, such as government bonds, property, gold, etc. I am aiming for a medium to low risk investment with returns around 3% to 4% p.a.

What types of investment do people consider worth trying? What do you think are the prospects of those investments in the next year or two?

Thanks in advance for your help.

G

Hi mnbvcxz

I'm afraid nobody can accurately predict the short term price movements of any asset class.

If you are happy with your current provider, you may want to consider the Zurich Balanced Fund, which has roughly 70% of its funds allocated to a globally diversified portfolio of equities with the balance split between cash and bonds.

That would generally be regarded as a medium to high risk allocation that may be suitable for an investor with a medium to long term (15 to 25 year) investment horizon.

Determining what is appropriate to your individual circumstances depends on a variety of factors but a balanced fund is generally a reasonable default option for mid-term asset accumulators.

I don't believe it currently possible to get a return of 3-4% with medium to low risk investments.

Either you review your attitude to risk or settle for a lower return.

The only asset class that you can invest in with certainty is cash. You know what the deposit rate is at the outset. With everything else, there are loads of variables that can effect your return. It is impossible to tell you with certainty that any particular asset class or combination of asset classes with give you 3% - 4% per annum. Remember, for an average return of 4%, you can have a return of 8% and 0% in consecutive years.

On the asset classes you are talking about, Zurich Life don't do direct property investment, they never have. If you are in a Standard PRSA, gold won't be available either (it may not be available under the non standard contract either. Their website is down, so I can't check).

I'd keep it simple, bonds and equities.

Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)

Its hard to aim for exactly 3-4% , I think nobody knows what equities will bring but we hope that time is on our side and we should see good returns over time , but that's not guaranteed. I think its important to do a little bit of everything to keep you well diversified , Bonds equities , maybe gold , hold some REIT's also , peer to peer lending etc. Thats what I do anyways I don't think you need to be all into one area. I also hold cash for opportunities that may arise.