David gives advice on Galway Bay FM, 13th September 2012

Question:  I took out a personal pension some years ago and I am looking for advice on same, have you any suggestions?

Answer:  Unfortunately in the last few years a lot of people with personal pension plans stopped making contributions.  This does not mean that you should not keep a close eye on how your past contributions were invested.  I believe that your pension should be reviewed every 5 years and alterations made to the investment strategy if necessary.

Question:  I invested €50,000 in a managed fund 6 years ago and I am losing a considerable sum at present.  Have you any advice?

Answer:  It has been my experience that a lot of investors who invested in managed funds over the years where not fully aware of the risks involved.  Investment returns have been extremely poor over the 6 year period that you were invested and it is not surprising that you are looking at a considerable loss.

Despite the current position that you find yourself in with this investment, it does not mean that you should blindly continue leaving the monies where they are.  It is possible that it may be more advantageous to you to move from the fund your in and consider an alternative option which would continue with the same type of risk level that your currently exposed to or possibly, if you want complete security in a capital guaranteed option.

Question:  I have a life policy and have been informed recently that the premiums are going to double if I want to maintain the cover I have.  I am 60 years of age and this is giving me cause for considerable concern.  What should I do?

Answer:  Unfortunately it is apparent that you have a whole of life policy, which as the name suggests continues for your entire lifetime until it is cancelled.  The problem with these policies is that most people were not aware that the premium can increase as you get older. I would suggest that if you cannot afford the premiums then your only alternative is to reduce the cover and keep the premiums at a level that is affordable.

There is no easy answer with these type of policies and all you can do is make the alternations that suit your circumstances, as taking out a new policy at your age is not an option.