CALL US TO TALK ABOUT YOUR FINANCES TODAY.

MASON WEALTH MANAGEMENT BLOG

Lifelong Learnings after 35 years in the Financial Planning Business

Author
Phil Farrelly QFA RPA SIA CFP
Certified Financial Planner | Mason Wealth Management

Money isn’t everything.

The most important thing is to have just enough money so you can sleep at night, and enough purpose so you can get up in the morning.

Protect yourself against catastrophic life events.

It’s all very well having great money management processes in place, however, if you die prematurely or suffer a life-changing disability this will have a huge impact on your family. Protect yourself and your family by taking out sufficient life cover & income protection cover.

Spend less than you earn.

This may seem like an obvious statement. Many people have no idea how much they are spending each month and they wonder why they are getting further into debt. Spend no more than you are earning.

Ignore the investment media.

The media have their own agenda. They have to tell the news in a way that will help them sell newspapers. When it comes to investments the media tend to exaggerate both good news but especially bad news. The media tend to focus on “the next great…

Author Phil Farrelly QFA RPA SIA CFP Certified Financial Planner | Mason Wealth Management Money isn’t everything. The most important thing is to have just enough money so you...

admin, May 23, 2021

Author
Phil Farrelly QFA RPA SIA CFP
Certified Financial Planner | Mason Wealth Management

Have a Financial Plan

Most successful investors have a plan. They know exactly where they are going and how they are going to get there. Without a financial plan, you don’t really know where you are going. We know that short-term volatility will happen at some stage. If you have a long-term plan that is reviewed annually, you will not be concerned when things get a little bumpy on the investment journey. Any decent financial planner can incorporate a number of “what if” scenarios in the plan which will take account of market fluctuations.

Stay in the market long term

There is a famous saying that the stock market is a place where impatient people simply give their money to patient people.  People that enter the market looking for a quick return generally get badly burned.  In order to maximise returns, you must remain in the market through thick and thin.

Do not try and time the market

Timing the market is a futile exercise.  It simply does not…

Author Phil Farrelly QFA RPA SIA CFP Certified Financial Planner | Mason Wealth Management Have a Financial Plan Most successful investors have a plan. They know exactly where they...

Author
Phil Farrelly QFA RPA SIA CFP
Certified Financial Planner | Mason Wealth Management

If you are thinking about retiring you really should have a financial plan.  Without a plan and assuming that you do not have the luxury of a Defined Benefit pension scheme you really are in a vulnerable position.     With the impact of inflation and the fact that people are living longer, you run the risk of running out of money

 

The financial advice business has moved to a better place in recent years.  In the past, people were sold pensions and Life policies by commission-only salespeople.  There was very little follow up and there was little or no effort made to try and ‘ bring everything together’.

 

Clients had no understanding of what it would all mean in terms of retirement funding.    This resulted in people having a variety of policies, generally held with different insurance companies, with no particular structure or strategy.

 

After 30 years in the financial planning business we now know that if clients have a financial plan and follow the rules of a simple investment process, they generally will receive…

Author Phil Farrelly QFA RPA SIA CFP Certified Financial Planner | Mason Wealth Management If you are thinking about retiring you really should have a financial plan.  Without a...

admin, May 18, 2021

Author
Phil Farrelly QFA RPA SIA CFP
Certified Financial Planner | Mason Wealth Management

Spend less than you earn 

This may seem like an obvious statement.  Many people have no idea how much they are spending each month and then they wonder why they are getting further into debt.  Spend no more than you are earning.

A simple money management technique is to open 2 separate bank accounts. A spending account and a bills bank account.  Add up all your fixed costs that have to be paid each month (include utility costs, direct debits, bank loans, mortgage, life assurance, sky sports etc).  Lodge your salary into the “bills” bank account.  Total up all the above known monthly outgoings.  The remaining balance of your net income is what is left to spend each month.  That amount should be transferred to your “spending” account.  At any given time, you can see clearly what you have left to spend before the next payday.

Pay yourself first

In the New York Times bestseller, The Automatic Millionaire, the author David Bach explains that people should ‘pay themselves…

Author Phil Farrelly QFA RPA SIA CFP Certified Financial Planner | Mason Wealth Management Spend less than you earn  This may seem like an obvious statement.  Many people have...

Author
Phil Farrelly QFA RPA SIA CFP
Certified Financial Planner | Mason Wealth Management

What does retirement mean?

Retirement really means being financially independent. It does not mean being able to stop working on a given day and then doing nothing. It is the date when you can stop working because you can afford to. You only work because you want to. Retirement is now a bit more flexible than it was in the past. It could mean reducing your hours to a 3 day week. Perhaps even remaining on in a part-time capacity. This could work for you especially if your pension funds are insufficient for a complete exit.

Time to take Action

Up until now, you have had lots to think about – building your career, educating your children, paying down debt. These were important, however, it’s probably fair to say not as important as building an income for the rest of your life. If you are within 10 years of retirement, it’s time to take action. If you don’t take advantage of the last 10 years of your working life, you will miss a valuable opportunity.

You need to…

Author Phil Farrelly QFA RPA SIA CFP Certified Financial Planner | Mason Wealth Management What does retirement mean? Retirement really means being financially independent. It does not mean being able...

admin, Feb 01, 2021

After spending much of your working life building your quality of life, savings, and paying off your property, you want to be able to ensure these go to the intended recipients without lumbering them with a huge tax bill. Capital Acquisitions Tax is charged on all money or property that is inherited or gifted to someone, and it’s the responsibility of the recipient to ensure the tax is paid.

This can lead to a situation where people have to sell an inherited property to pay the tax. However, planning ahead can help to reduce the tax liability and ensure as much of your wealth as possible ends up with the person you want to have it. The only exemptions to CAT are when it is gifted or inheritedfrom your spouse or civil partner, or on any gift below €3,000 in any one year.

What do I have to pay inheritance or gift tax on?

Many of the items that fall under the Capital Acquisitions Tax are things that would be considered part of an inheritance, such as cash, jewellery, cars, property…

After spending much of your working life building your quality of life, savings, and paying off your property, you want to be able to ensure these go to the...

admin, Jan 15, 2021

Evidence Based Investing (EBI) is gathering more and more supporters and advocates around the world, and as a result is starting to appear quite frequently in investment commentary and indeed the mainstream media. It is a term that you may or may not be familiar with, so we’re taking the opportunity to inform you of what you need to know about it.

 

What is Evidence Based Investing?

EBI is an investing style grounded in academic research, the long-term observation of markets and how they actually work, while removing the need and the temptation for speculation and magic formulas in achieving investment success.

The EBI approach is based on the very best, peer reviewed empirical research, as opposed to the hunches and skill of active managers. It recognises that academic research tends to be independent in its nature, unlike much of the research produced in the fund management industry where commercial interests inevitably and often play a part in the direction of research findings. Academics simply don’t have anything to lose by concluding with findings that may be unfavourable for certain fund managers…

Evidence Based Investing (EBI) is gathering more and more supporters and advocates around the world, and as a result is starting to appear quite frequently in investment commentary and...

admin, Jan 04, 2021

OK we admit – this may not sound like the most exciting topic in the world, but it just might make a significant difference to your financial future…

There is a surprisingly large amount of money sitting unclaimed in pension schemes in Ireland, the estimated amount of this ranges anywhere between €500million and €1billion. This money is owned by the beneficiaries – most likely ex-employees. An important point to remember about this is that all of this money is held in trust and completely separate to the assets of the employer. So even if the company is no longer in existence, the money is still sitting there, somewhere, waiting to be claimed by its owner – the ex-employee.

Some people dismiss this as not worth the hassle. However time and compound interest do wonderful things to pensions funds. Let’s assume for a minute that you left your first employer at age 30 and left behind your pension fund with €10,000 in it. The company is gone, you’ve no idea where to start looking for the money and don’t think it’s worth the…

OK we admit – this may not sound like the most exciting topic in the world, but it just might make a significant difference to your financial future… There...

admin, Dec 20, 2020

Towards the end of the Summer, Bank of Ireland introduced negative interest rates of 0.65% for any Corporate or pension monies left with them on Deposit. All the other banks charge similar rates. This negative return for leaving money with a bank received a lot of publicity but also helped focus our minds on the impact of low and negative interest rates for us all.

 

In addition to this, Covid-19 helped supercharge deposits with an extra €11 Billion being put on Deposit over the last 9 months. There is now €120 Billion in savings and deposits with various institutions in Ireland.

 

This is referred to in one of the articles linked to this Newsletter called “Saving Ireland – how Covid-19 turbo-charges deposits.”

 

 

We would like to talk about 2 areas that are important.

  • Deposits and Risk
  • Low-Risk Portfolios

 

Deposits and risk 

Most people keep monies on deposit because they feel it provides security. If you can get a rate that equals or is in excess of inflation then it does tick that Security box, however, if…

Towards the end of the Summer, Bank of Ireland introduced negative interest rates of 0.65% for any Corporate or pension monies left with them on Deposit. All the other...

admin, Dec 10, 2020

Where do you start with Warren Buffett? Widely recognised as the world’s shrewdest investor, the “Sage of Omaha” is now 90 years young and still doling out nuggets of advice to investors across the globe. Using his investment expertise, he had amassed a fortune of some $79 billion as of August 2020, making him the 4th wealthiest individual in the world.

Buffett is chairman and CEO of the Omaha (Nebraska) headquartered conglomerate, Berkshire Hathaway. His annual letter to shareholders is highly valued and their annual shareholder’s meeting has grown into an enormous event, attracting crowds some years in excess of 40,000 people! People want to hear what Buffett has to say.

The only infuriating factor in all of this is that he makes it all sound so simple… While of course it is not, he is guided by a series of principles that he sticks to and he regularly speaks of these through pithy and highly valued quotes. The challenge we faced in picking out some of his best quotes was reducing them to the number below. Here are seven of Warren…

Where do you start with Warren Buffett? Widely recognised as the world’s shrewdest investor, the “Sage of Omaha” is now 90 years young and still doling out nuggets of...