Could the returns that @Gordon Gekko mentioned be net of dividend income over the 10 years perhaps?
Could the returns that @Gordon Gekko mentioned be net of dividend income over the 10 years perhaps?Not too sound rude but the returns seem small in comparison to an SP500 Index; Since mid-2014, the S&P 500 has produced a total return of 233.6%.
Investing in a trust like JAM/ATT/PCT would have made better returns and probably cost less in fees.
€1m for a house and car (Personally I would go more on the house,. You can buy a very mediocre house in nice Dublin for €1m)
€3m invested in an etf (Diversified equities). You should be safe to draw an income of 4% €120k, fully fund wife's pension
€1m to actively invest.
In 5 years time if your active investments outperform your etf maybe readjust the allocation.
It’s a global mandate for a person living in Ireland with Euro expenses, so the return generated by a specific market in a single geography in a different currency isn’t a like for like comparison.Not too sound rude but the returns seem small in comparison to an SP500 Index; Since mid-2014, the S&P 500 has produced a total return of 233.6%.
Investing in a trust like JAM/ATT/PCT would have made better returns and probably cost less in fees.
I agree with > 1M on house budget. Althoough it might involve buying at <1M and spending 0.5M on renovations.€1m for a house and car (Personally I would go more on the house,. You can buy a very mediocre house in nice Dublin for €1m)
€3m invested in an etf (Diversified equities). You should be safe to draw an income of 4% €120k, fully fund wife's pension
€1m to actively invest.
In 5 years time if your active investments outperform your etf maybe readjust the allocation.
It's a great read. I truley enjoyed reading it. Not a quick read but a good read!I guess I've just recently finished 'A Random Walk on Wall Street' and I'm biased towards Indexes and thinking about when in 2008, Warren Buffet made an open bet that no fund could out-perform the S&P 500. I think only one person took him up on the bet, and did not win. So investing in funds, or self directed equity portfolios carries a statistical likelihood you will lose money compared to the market index.
She is...It's a small optimisation, but if your wife is working, she should max her pension contributions.
I quit my job and never had a pension which I now see was a big mistake. Now I want to protect/grow my wealth without working for someone else but I can't create my own pension. We're gonna have a baby and I wanna be at home to look after it. My wife is in medicine and doesn't want to leave work.
The reply delay may be explained here?Thanks everyone for the replies so far, some really sound advice. Unfortunately, I don't have the option to 'Like' your comments or reply frequently on this forum (maybe cos I'm a new account)
I'm wondering if that is a bit short sighted, I understand why you say don't start one as there is no taxable benefit on the way inIf you do return to employment or set up your own business, then you can look at pensions.
Is there any inheritance tax advantage to funds in a PRSA?The OP could quite comfortable tie up half a million in a PRSA now which could be worth €1.5 to €2 million by the time his state pension kicks in
presuming of course he keeps up his PRSI payments to avail of the OAP
I wouldn’t do that.For financial advice on 5M, I would probably go to @Marc (Marc Westlake) for advice. He puts out some of the best content I have seen (check out everlake/his feed on linkedin). And from his content, and some past posts on this site, he seems to think very holistically, about how to maximise investments, including minimising total tax burden on you and your family over your and their lifetime.
I can's say if I would actually 100% follow's Marc advice, as I haven't used his services, or seen what an exact plan would look like from him. Based on some very old post on the site, IIRC, He seems to have some very specific investment packages that he has setup/brokered/deisgned. They may well reflect the best solutions available, but without them being fully discussed in open forums I would remain a bit nervous.
E.g. I have seen him raise things like US estate tax, tax efficient investing for your kids, using pension for tax benefits, even when the contributions are not tax relieved, based on tax free compounding and/or inheritance tax planning. And he also seems to be very aware of hidden costs in funds etc.,
Since mid-2014, the S&P 500 has produced a total return of 233.6%.
Warren Buffet made an open bet that no fund could out-perform the S&P 500. I think only one person took him up on the bet, and did not win.
Pardon the ignorance but what are their differences? Steven already kindly weighed in on this thread.I wouldn’t do that.
I’d much rather an S Barrett type adviser.
I'm wondering if that is a bit short sighted, I understand why you say don't start one as there is no taxable benefit on the way in
but I feel that is only one element of the pension wrapper, what about compounding and the tax free growth for the next 30 years??
The OP could quite comfortable tie up half a million in a PRSA now which could be worth €1.5 to €2 million by the time his state pension kicks in
presuming of course he keeps up his PRSI payments to avail of the OAP
Maybe you should have a re-read of my post as I made no reference to having a job or starting a business for the purpose of adding to a pension!!Ideally I would have had a pension. But in my current situation would not be able to comfortably tie any sums up in it as I walked away from a job and not sure if I can get one back so readily, nor do I see myself launching a business that brings in income with which I can add to my pension.
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