Background

Recently Elevate had a yearly review with our client, lets call him John. Last year he had three previous occupational pensions and Elevate organised them by applying them to a personal retirement bond. One year on and Elevate said we will have a look how the funds are performing.

Having regular reviews helps with any other financial needs and objectives that may arise throughout the year. It also gives the client opportunities to change the investment strategy if they are not comfortable with their risk tolerance anymore.

John mentioned that he wasn’t receiving a pension in his current company and asked could he set one up himself through Elevate. He also mentioned that his two kids will be heading to college in the next 8-10 years and wanted to look into some kind of savings scheme.

PRSA

I looked at John’s disposable income to see what kind of contributions he can opt into it. Being eligible for the tax relief on contributions, John opted for a higher option that suited his needs. This will John on his retirement journey.

I also mentioned that if his employer ever decided to contribute, he can so with this policy. Plenty of opportunity there to grow the pension pot efficiently.

Savings

I advised John into contributing into a regular savings policy for his kids. This will go towards college and other educational costs in the future.

Just like the pensions, we were able to decide on a well-diversified portfolio. He set up two separate savings accounts and is currently applying regular premiums.

We both thought that there was too much money on deposit in the bank and I recommended he apply a single premium from that deposit account into each savings policy.

This will create better return for John and his kid’s future.