Call today 041 988 8043 Email help@informeddecisions.ie
client login

Podcast103: Real Returns: Invest in Low Cost Funds Or A Pension

informed decisions blog

Podcast103: Real Returns: Invest in Low Cost Funds Or A Pension

3rd September 2018

Paddy Delaney

share

This week we are hoping to answer several questions we have had from listeners in the past 6 weeks or so. It has been put to me that it would be valuable to share our thoughts and to explore whether it would be more beneficial to invest in a low-cost investment plan, achieve a decent level of return and pay whatever tax is due on withdrawal, or to invest into a pension, achieve the same level of return, pay what tax is due on withdrawal…….on the face of it, to me at least, it seems there will be no competition, but you know what they say about assumptions (My favourite quote about assumptions is…… ‘Don’t Make Assumptions’!)

Welcome to Ireland’s only dedicated and straight-talking Personal Finance & Financial Planning Blog. We are on a mission to make a positive difference and to help people take control of their finances in a meaningful way. If you have a suggestion, question or feedback for us please do drop me a mail here, love to hear from readers. Oh, and one more thing, we are trying to make a difference, so if you feel anything you hear or read on this site might be useful to a friend please do send them a link……they might even thank you for it!

Invest or Pension……?

To be frank when I sat to do this analysis I wasn’t sure where to start, I may have resembled the confused looking dog on the cover for a while initially! It is not a question that I have ever really been asked before in detail, so it took quite a lot of thought! The essence of the questions that I have received from listeners is, factoring-in the potential returns, fees and taxation of the 2 options, which one will yield greatest net return, an investment in a low-cost fund (if such a thing actually really exists!) or a pension in a regular managed fund!? We are making one BIG assumption here, and that is that in the investment you are paying low fees and in the pension you are paying high fees. I say this is an assumption because this is not always the case of course…..but it was the question posed so let’s take it head-on!

Paddy Delaney

your next steps

What best describes you?

Business Owners

We understand that running a business AND prioritising your own personal wealth is not as easy as it sounds. We help business owners to put strategies in place to maximise their personal wealth through tax efficient planning, exit strategy or business sale.

find out more

Preparing For Retirement

The 5 years before retirement are critical to successfully ‘graduating’ from full-time employment. We help people to arrange their assets in the optimum way, ensure they are benefiting from all the opportunities available to them in this key phase of life.

find out more

Already Retired

Because many people in this phase of life which we speak to, want to ensure they maximise the resources they have, that is what we do. We help them remove concern so that they can go about enjoying life. You may have one eye on providing for loved-ones but the priority must first be you!

find out more