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MASON WEALTH MANAGEMENT BLOG

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...

Les Knott, Nov 30, 2020

Currently, you can take your state pension in Ireland at 66, but the age is going to increase to 67 and then 68 in the not-too-distant future. Not everyone will want to work until that age by choice, and some won’t be able to because their health will not be good enough for them to continue working. Being awarded a full pension depends on you having made sufficient PRSI contributions. If you have not made sufficient contributions, you can apply for State Pension (Non-Contributory) but this is means tested.

The overall picture for state pensioners of the future is not good, and that is not just a problem in Ireland. People are living a lot longer than when these schemes were first introduced meaning there are more pensioners drawing from the state for longer periods. Governments all over the world are facing the same problem of financing state pensions.

Some countries have just stopped new state pensions for anyone that is currently below 45. All employers will have to have a contributory pension scheme and the self-employed have to have…

Currently, you can take your state pension in Ireland at 66, but the age is going to increase to 67 and then 68 in the not-too-distant future. Not everyone...

admin, Oct 27, 2020

With everything that has been going on in the world lately you’d be forgiven for thinking most things have been put on hold. Especially if you’re self-employed, as an increasing number of businesses seem to be struggling with the economic downturn caused by the Covid-19 pandemic.

An uncertain financial future is even more reason to seek the services of a professional financial advisor, as a solid financial plan will help you to weather the storm of the changing economic landscape. When the crash of 2008 happened, as with all recessions before, the economy starts its slow recovery and over the course of several years gets back to where it was before the recession.

A professional financial advisor should be a priority

You may, in the past, have turned to a financial advisor for help with retirement planning, mortgages, investments, and making the most of the money you have. The need for these services hasn’t disappeared. Life will continue the best it can through the pandemic and return to normal afterwards.

Some people will need to be smarter with their money to successfully navigate…

With everything that has been going on in the world lately you’d be forgiven for thinking most things have been put on hold. Especially if you’re self-employed, as an...

admin, Oct 20, 2020

It’s not an easy ride for investors today, when you consider some of the actual and potential headwinds facing you,

  • Covid-19
  • GDP down 6% in Ireland in Quarter 2 2020
  • A market fall of >30% earlier this year
  • Negative interest rates on offer in the Irish banks
  • Brexit – will there be a deal?
  • US presidential elections – what will happen there?

Any one of these on their own would appear like a big deal. But all of them within one year – wow!

It can be difficult to remain calm with all this swirling around. But that is exactly what’s needed here – to remain calm. And it’s our job to help you do that. We’ve seen these situations before, where the sense of needing to take action, even any action at all seems to be right course. But it’s not, instead it’s important to follow the well-worn path of staying focused on your plan. Here are a few thoughts to help you to stay committed to that plan.

 

Remember your time horizon

Short-term volatility is just that, short-term. Your investment time…

It’s not an easy ride for investors today, when you consider some of the actual and potential headwinds facing you, Covid-19 GDP down 6% in Ireland in Quarter 2...

Look, it happens regularly… people realise that with their current retirement planning approach, they are going to fall short of achieving the lifestyle they want in retirement. This happens for a whole lot of reasons – not having a plan, starting to save too late, not saving enough or the wrong investment strategy.

The starting point has to be getting a clear and realistic picture of where you actually stand. We can help you here, by assisting you in,

  1. Identifying the lifestyle to want in retirement
  2. Putting a cost on that lifestyle – the fund you will need to achieve it
  3. Seeing if you are on course to achieve your targeted lifestyle with your current retirement funding plan (including all sources of income in retirement)
  4. Identifying any shortfall
  5. Coming up with a plan to address the shortfall.

Let’s assume you’ve done all of this, have identified a shortfall and want to do something about it. Here are a few options that you can consider,

 

Work longer

The state pension age will soon be out to age 68, some feel this will be extended…

Look, it happens regularly… people realise that with their current retirement planning approach, they are going to fall short of achieving the lifestyle they want in retirement. This happens...

admin, Sep 28, 2020

There are advantages and disadvantages to being self-employed. For some people becoming their own boss is the best thing they did during their working life, and for others, they prefer not to have the responsibilities that accompany working for yourself.

Some people get very nervous about the thought of having to deal with Revenue, about having to fill in tax returns, and if their business grows, having to employ other people. However, being your own boss can mean more freedom in the work you undertake, the hours you work, and no one is going to stop you from taking a day off if you want one.

Accountants are there to help you deal with your financial affairs and to make sure your returns are accurate and filed on time. They will be able to advise you about what expenses you can claim, what sort of records you need to keep, and should generally save you more than they cost you as well as providing you with peace of mind.

They will also advise you of ways you can save tax, which…

There are advantages and disadvantages to being self-employed. For some people becoming their own boss is the best thing they did during their working life, and for others, they...