As we move from winter into spring, it’s a good time to take stock of your household financial situation.
Here are five topics to consider and address with your Financial Adviser:
1. Pension, Saving, Investing
Retirement planning is about freedom; the ability to do what we want, when we want, with whoever we want.
Whether you’re aged 25 or 75, reviewing your retirement accounts each year is essential.
Are you contributing enough; maximising tax benefits; Do you have the right mix of investments; Are you being charged reasonable and transparent fees?
2. Holding cash and getting poorer each day
Irish banks have been paying 0% interest on call deposits for years.
Clients of Financial Advisers have been earning 3%+ with highly secure money market funds, or better still have been investing the portion of cash that won’t be needed for years to come.
3. Risk of owning individual US stocks
I regularly meet clients with large holdings in individual US stocks (often that of their employer). They are usually unaware of their US tax risk, in addition to being under diversified.
In the unlikely event of death, up to 40% of the value must be paid to the US taxman – and that responsibility falls to the executor of your estate (is he/she aware?).
A good adviser will explain how to reduce this risk.
4. Life & Income Insurance
If you have dependents and only have a mortgage protection policy, you are massively under-insured.
If you don’t have income protection insurance, how do you pay your mortgage and household running costs if your income stops?
Insuring these risks is not expensive, especially when you consider the peace of mind that your dependents are adequately protected.
5. Your Financial Goals
Have you defined and written down your financial goals, and if so are you on track to achieve them?
Financial Planners use cutting edge software to analyse your income, spending, debt, and assets. This helps us build lifetime cashflow projections and show whether or not families are on track to meet their goals – e.g. paying for the kids college expenses, extending or moving home, starting a business, having the option to stop working at a particular age – and much more, such as gifting assets and inheritance tax planning.
In Summary
Taking the time to address these five areas with your Financial Adviser can provide clarity, confidence, and peace of mind as you move forward. After all, a well-structured financial plan isn’t just about numbers—it’s about creating a life that aligns with your goals and values, no matter the season.
John McWey
Ardbrack Financial Limited
Office: 021-4773833 / Mobile: 083-4115277
Disclaimer: The content of this article is for general information purposes only. It does not constitute tax or investment advice as it does not take into account the investment objectives, knowledge and experience or financial situation of any particular person or persons. You are advised to obtain professional tax and investment advice suitable to your own individual circumstances. Ardbrack Financial Limited makes no representations as to the accuracy; validity or completeness of the information contained herein and will not be held liable for any errors or omissions.
