The future will be here before you know it. If you have just trundled on with no financial planning in place, you could reach retirement and not have enough money to live comfortably. It is easy to think that things will work out, but with the Irish state pension being about one third of the average wage, you seriously have to ask yourself if you can manage on this reduced amount.
When you are looking at financial planning Ireland, there are several things you need to consider.
Current And Future Liabilities
You need to look at all the payments you have to make every week or month. Do you have debts you can settle, for example? If you are trying to pay off credit cards or a loan, just a small increase in your monthly payments can reduce the amount of interest you are being charged and help you to clear them quicker. With credit cards, you should take advantage of any offers for interest free periods, or consider having a bank loan to clear them. The interest the banks charge is a lot less than credit card companies, and this is a way of reducing your liabilities.
Check through your bank statements and see if there are any subscriptions that you no longer need. These can be a drain on your finances.
Looking to future liabilities, you need to keep these as small as possible. Will your mortgage be paid off, or do you rent, so there will be no difference to your property cost? You can save money on your utility bills with just a few simple things like insulation, changing lights to LED, and reducing your heating temperature by just 2 degrees.
You need to keep your future payments as small as you can.
Financial Planning Ireland For Pensions And Investments
Pensions and investments are a vital part of financial planning Ireland, and the earlier you start the better. You may think you have many years before you finish working, but those will soon disappear.
Each year you pay into an investment or pension means the following year you have your contributions and profits earning money for you, and so it builds. The difference between starting a pension in your 30’s compared to your 50’s is amazing. Although at 50 you can contribute a larger slice of your income, you will have lost out on 20 years of profits, and that can be a considerable amount.
Whether a pension plan or other type of investment is the best for you is something that needs the help of professionals to decide. There are so many rules and regulations you may have no choice in the matter, without causing yourself tax implications, or losing the tax benefits.
Financial Planning Ireland To Reach Your Goals
Everyone has different ideas about what they want to do in retirement. Some people are happy just to do nothing at all apart from maybe spend more time in their gardens or socialise more with friends and family. Some retirees have been waiting to have the time to take up a new hobby they have always wanted to try, but never had the time. Others want to travel and see more of the world, and some even move to another country to live.
Whatever your goals in life are, you need financial planning Ireland to be able to achieve them, as the state pension will do little more than let you survive.
You also need to consider at what age you want to stop working. The government pension is currently not paid until you are 66, do you want to finish work before then? With a private pension you can retire at the age of 60, and take a tax-free lump sum when you do.
Financial Planning Ireland For Property and Assets
If you own the property you live in, or have any other assets, such as a business, they need to be part of your financial planning Ireland. You might want to downsize your home if you no longer need all the space you currently have. If you have a business, the way and when it is sold is vital to lessen the tax implications of the sale.
This is all better and more straightforward if it is planned in advance with the right professional help to put you on the right road. No one wants to hand over more money to the tax man than they need to.
The Stages of Financial Planning Ireland
There is no one solution that fits everyone. First of all, the information needs to be gathered together about liabilities, outgoings, income and assets. Then you need to decide on your goals. If part of the information is missing, any proposed plan will not work, so it is crucial to spend time putting everything together.
Then you need to find a firm of advisors that can help you with your plan. A company that has the correct qualifications, knowledge, and experience is will help you achieve your goals.
At Masons Wealth Management, we have been assisting people just like you for more than 20 years, and not only do we have all the qualifications that are legally required to provide you with advice, we have more, which means we are able to give you the highest level of service.
We can help whether you are planning for your future retirement or you have already retired.
We also assist business owners with financial planning to ensure the future for them and their family is secure. We hold a Business Clinic, which covers tax advice for business exit strategy, business development and marketing, among other things.
If you would like to know more about how we can help you, why not call us for a free no obligation chat. 01 969 5786 is the number to ring. If you prefer to send us an email the address is firstname.lastname@example.org. You have nothing to lose by getting in touch so why not do it today?