On behalf of Lifestyle Financial Planners, I would like to wish you all a very Happy Christmas & all the very best in 2018 & beyond.
I have been busy the past few weeks but will hopefully post some new blogs in the New Year…. Paul
Over the years, I’ve seen the best and hardest of working people put everything they’ve ever earned straight back into their businesses. This is fine, so long as it’s not to the financial detriment of the business owner personally. I’ve also been around long enough to see how quickly things can change. And things are going to change even faster going forward. Many of those previously very successful businesses are all of a sudden out of fashion. Business’s which were in vogue yesterday, out of favour today. More relevant, jobs that are in demand today might not be so popular tomorrow.
Acknowledging the above, I am now going to focus on the great annual giveaway. And no, I’m not talking about the Christmas Bonus; it’s too early for that. Besides, it’s something much greater! This is an opportunity not to be missed, but unfortunately one which is left behind by many. Some fill their boots with as much as they are entitled to get, while others drag their feet and miss the boat. But what am I talking about, what is this annual giveaway and how can you get yours? [Read more…]
Against the background of a strong domestic economic recovery, we had Budget 2017. Unemployment rates have fallen from a peak of 15.2% to just 6.1% this year. Property prices continue to make a strong recovery, with residential prices up 12.3% year on year. Regardless of this strong recovery, our debt levels remain high. In the lead-up to this budget, the minister for Finance highlighted this. Despite falling in recent years, it’s still too high and needs to be reduced further. So, what did we get from Budget 2017 and what does it mean to you? Well, apart from tinkering with USC & Income Tax bands which won’t mean a lot to most, the following are some key points. [Read more…]
The Employment & Investment Incentive Scheme (EIIS) explained.
The Employment & Investment Incentive Scheme is a tax-incentivised investment. It allows personal investors to invest in qualifying small to medium sized Irish businesses. Investors can deduct the cost of their qualifying investment from their total income, for income tax purposes. Alongside pension contributions, it is one of the few remaining sources of total income tax relief still available. [Read more…]
If you’re a company director with company money on deposit, you really need to be reading this.
Most Irish resident companies are “close companies”. A “close company” is controlled by 5 or fewer participators. For the most part, directors usually draw a small salary for themselves and their spouse. They normally get the company to fund a pension also. This would be considered a fairly solid and tax efficient financial planning strategy.
Thereafter however, many company directors choose not to withdraw the remaining company profits, leaving these on deposit instead.
In my last blog, I looked at some of the key benefits of Lifestyle Financial Planning. Reduced stress, Peace of Mind, Clarity and a Road Map for your Future were just some of the benefits that jumped out. This week, as promised, I am going to look at a couple of case studies.
Take for example, that of a recently retired couple in their early 60’s, with no kids and who had just sold up their business. Besides their pensions, they now had a lump sum on which they wanted to get a good return to have enough money to live out their lives. To satisfy this requirement, they had spoken to 3 different advisors. All three had recommended adventurous investment scenarios in line with the risk/reward profile given by the clients. [Read more…]
First off, this is a really good question because it’s a difficult enough concept to explain. Why you might well ask? Well, probably because most people just don’t understand Lifestyle Financial Planning. Not unless that is, you’re one of the lucky people to have already experienced it.
Lifestyle Financial Planning focuses on you and the bigger picture around your desired future life. It does so because while everyone has an idea of the lifestyle they would like to live, most are unsure where to start. There are so many moving parts, and so many things to be done at any given time that most postpone any kind of planning to another time. In doing so however, you have to learn to live with the consequences. The consequence of constant stress, anxiety, fear of the unknown, sleepless nights, guilt around spending, the list goes on. [Read more…]
For those of you lucky enough to remember the last time you holidayed for a couple of weeks or more, this blog may resonate with you. Reflect back and there’s a good chance you spent the first week lounging around trying to find your bearings. All the time in the world to get round to doing all those things you had planned for ages to do while on holiday. The first week was all about chilling. And rightly so says you, isn’t that the whole point of a holiday! You’d do the city tour, the mountain climb, the Medina market and all the other excursions in good time. But then bang, all of a sudden, you’re into the 2nd week of your holiday and you’ve all these things still to do. Time, isn’t on your side anymore and a sense of urgency abounds. A financial planning colleague of mine, Paul Armson in the UK eloquently paints this picture of time and the two-week holiday scenario. [Read more…]
If you’re sick, or unable to work, it’s possible you’d feel an awful lot better if you received a tax-free lump sum or had replacement income coming in. In previous blogs, I covered off on these two quite different forms of protection. Specified Illness Cover and Income Protection sometimes referred to as Permanent Health Insurance. Whilst quite different in nature, they both offer valuable cover. It is very important to have a clear understanding of the subtle differences between the two. There are many statistics and figures available on claims and the way these types of cover can be set up so I see no need to rehash these. My aim as always is to keep the message as simple as possible so you can grasp the principal points.
Critical illness cover wasn’t invented by an insurance company as many would believe. No, it was the brainchild of a renowned heart surgeon working in South Africa. He spotted the need for people to have financial protection should they become critically ill, but survive.
As a surgeon, Dr Bernard was used to saving lives. He was acutely aware however, that he couldn’t do anything about the long-term financial implications for those he saved. [Read more…]