Zurich Pension Fund - SuperCAPP - Terrible Performance

fistophobia said:
5 years, started early 40s, went all-out, 80% savings rate. Its not a popular topic on here so send me a PM.
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I've retired early myself so it's not something I'm looking to get into, was just curious as to how long it took you and how dedicated you were to it. It's an interesting concept.
 
I was aiming for 5 years, stretched it to 7 years, due to lockdown.
Yes, I was hardcore. I got plenty of negativity from friends, family, and people on the interweb.
I was described as, being tighter than the skin on a grape. I take that as a compliment.
I just kept repeating the process each month.
Sure I will be losing in opportunity cost, years of foregone salary.
I dont know whats around the corner, but I know that I value my time more than more money.
 
There is so much that’s wrong in your post, I’m not sure where to start…

You claim that you want to learn but then claim to be ‘financially savvy’. What does that even mean? There is also a risk of learning too much when it comes to investing.

Your experience of the property market over the last six years is irrelevant; we’ve been living in a world of quantitative easing where almost everything has appreciated in value.

Nobody is ridiculing you, but I do find your claims about being retired at 36 a little hard to believe. This has all the hallmarks of inherited wealth.

Your point about asking your tax man about your pension investment makes very little sense. You need investment advice. It sounds like you don’t understand investment risk and might be overexposed to property.

Let’s not forget that yesterday you were suggesting that pension investing is a waste of time because your SuperCAPP pension investment has done so badly and that personal/direct property investment is probably a better bet. Go and get some good investment advice. Do not speak to your accountant or tax adviser.
 
fistophobia said:
5 years, started early 40s, went all-out, 80% savings rate. Its not a popular topic on here so send me a PM.
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I think this would make a really interesting case study if you are willing to share your journey.

If I understand the maths correctly, the plan was to save 20 years worth of living expenses and then stop working in your mid-40s. What happens when that runs out in your mid-60s?
 
Sarenco said:
What happens when that runs out in your mid-60s?
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If your living in a frugal way would the state pension not be enough providing of course that you're entitled to it
I wouldn't think we'd be classed as living fugitively but the state pension as it stands now would be more than enough to have an enjoyable life
 
Cervelo said:
If your living in a frugal way would the state pension not be enough providing of course that you're entitled to it
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I wouldn’t fancy trying to live on €12.5k per annum. Even with a mortgage free home, it would be a fairly grim existence.
 
Cervelo said:
If your living in a frugal way would the state pension not be enough providing of course that you're entitled to it
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With the early retirement ages mentioned in this thread it's very unlikely that one would have sufficient PRSI contributions for a full contributory pension. If one has blown the FIRE funds then the means tested non-contributory pension might be an option. But increasing pension ages would also have to be considered...

Raise the pension age to 68 or face €13bn hole in old-age costs every year, OECD tells Government

The Government should scrap its commitment t o keep the State pension age at 66 and continually increase the threshold for retirement in line with life expectancy to keep debt under control, the Organisation for Economic Cooperation and Development (OECD) has said.
m.independent.ie
Cervelo said:
I wouldn't think we'd be classed as living fugitively but the state pension as it stands now would be more than enough to have an enjoyable life
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I don't think that the state has resorted to hunting pensioners down just yet, but you never know and no harm in being careful...
 
ClubMan said:
don't think that the state has resorted to hunting pensioners down just yet, but you never know and no harm in being careful...
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I think the mood might have changed by then though, they have just ruled it out for now.
The ESRI making noises and studies lately on "intergenerational wealth transfer" that means this issue is now in their crosshairs. Expect to see more and more studies in this direction to soften up the public. The next irish debt crisis will probably be the impetus for the big changes
 
Sarenco said:
I wouldn’t fancy trying to live on €12.5k per annum. Even with a mortgage free home, it would be a fairly grim existence.
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Obviously it depends on where you're coming from, you are of the opinion that €12.5k would be a grim existence
Me and just me, I wouldn't class it as grim, it most defiantly would be a challenge but one that I could if I had to make it work
But for the true advocate of the FIRE lifestyle it would be more than enough for a single person
That is if my understanding of FIRE is to step away from consumerism and reduce you consumption to the bear minimum

I retired at 44 and at that stage I had 28 years of full contributions, I now have 39 and by end of 2023 I'll have reached the magical 40
The Op at 36 has the same options as me, if he doesn't have an income that will keep him entitled to the pension he can always buy the years
Will the state pension still be there when I'm 66,67 or 68 or will the entitlement be pushed out even further??
Who knows but I don't want to live my life on "if, buts and maybes" I live in the now
or as Fistophobia says
fistophobia said:
I dont know whats around the corner, but I know that I value my time more than more money.
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Gordon Gekko said:
Go and get some good investment advice. Do not speak to your accountant or tax adviser.
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In my opinion, investment advice, tax advice or any financial advice actually is / are not mutually exclusive. Just because I say I will speak to my tax man does not mean I am not consulting with investment experts. That would be completely asinine. In fact, one of the first things an investment expert will do upon being engaged by you is to liaise with your tax expert and discuss the implications of potential investments.

"Do not speak to your accountant or tax advisor" - speaking of hard to believe, I find this "advice" particularly ludicrous, especially on a platform such as this. So although I come here for advice on particular topics and as such I appreciate peoples feedback, that indicates to me that your advice and what I consider to be helpful / smart advice are at opposite ends of the spectrum. In light of that, I will kindly pass your advice.
 
Okay, so just to make sure that I am clear, when you say “tax advice”, it’s a catch-all term encompassing taxation, legals, and investment?

“Do not speak to your tax adviser” is in the context of investment advice because tax advisers know very little about investments.

2000-2008 is littered with the dead bodies of people who went to their accountant or tax consultant for investment advice.

It’s sounds like you need investment advice around where to allocate your money and also how to avoid concentration risk (e.g. too much property, not enough outside of Ireland).
 
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https://www.zurichlife.ie/funds/fund-performance-chart/
About €10,050
The relatively low risk prisma 3 would be €10,700 and high risk Top Tech €14,000

March 22 - March 23 saw almost all funds underwater. At that point the super capp was the better performance fund due to the very low risk.
 
GSheehy said:
Is the fund value not on your portal?
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Didn’t buy it myself so can’t access portal, family member asked me about it a few years ago and just came across the details and was curious.

Think my advice at the time was that it was too conservative and looks like I wasn’t too far wrong.
 
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