How should one invest their ARF?

Balancing Security & Performance: Our ARF Investment Strategy

 So you have built up your pension pot over the years, taken the generous tax free cash allowances available and are now wondering what the best strategy is to ensure your “fund” is invested prudently over the longer term, allowing you to draw an income from same

In 2019 we approached Zurich Life, with the idea of reducing people’s exposure to “market timing” i.e. the risk of investing all one’s money into the market at a particular point in time.

 We wanted to have a strategy that allowed people drip-feed their money into the market (through their fund) over a 12/24-month period

 The O’Leary Life Retirement strategy was born, designed around 3 main stages as outlined below:

We cannot for a minute claim that we saw an event like Covid-19 coming, however it does highlight that unforeseen things happen all the time resulting in stock markets rising & falling.

The investing stage reduces this risk, meaning that if stock markets fall, one is buying more units in the corresponding investment fund and they are not exposed to “market timing”

Over the long term, history has shown us, that once someone remains invested (obviously taking heed of their desired risk tolerance), they will be rewarded with positive returns. The growth stage allows for one’s fund to grow until they are aged 75.

 As one gets older, they may not want the hassle of constantly making investment decisions or following stock market performance and may wish to start reducing their overall level of risk. The De-Risking Stage, takes this hassle out of the investors hands by slowly reducing their exposure from their Growth Stage Fund back into a lower risk/ safer fund over a 15-year period

It is timely, as with all the stock market volatility at present, we have a huge uptake of this strategy by many of our customers, knowing that if they change their mind there is always the option of simply switching to a different fund at any time without incurring any cost.

  While this has proven a popular approach, this strategy will not suit everyone and as with all of our customers, we take an individual approach considering all requirements and wishes.

Should you or your family wish to discuss any pension requirement, please get in touch.

Author: Brian Goggin, Operations Director

bgoggin@olearylife.ie 021-4521312