Tuesday, December 6, 2016

Family Home Relief - Update



The much awaited changes to Family Home Relief under Section 86 Capital Acquisitions Tax Consolidation Act 2003 also known as Dwelling House Relief were published in the second amendments to the Finance Bill 2016 on Friday 4th November.

The whole section has been re-written with significant changes to the relief both for gifts and inheritances proposed.

The proposals provide that relief from inheritance tax will only be given under ‘family home relief’ if the disponer is living in the property at the date of their death. However if the disponer is absent from the property due to mental or physical infirmity this condition will not apply.
The proposals also include a change to the rules around beneficiaries owning additional property at the date of the inheritance which allows them to inherit an additional property at the same time as the dwelling house but still obtain relief from inheritance tax subject to the normal conditions applying.

Also proposed is that relief from gift tax is effectively almost abolished and will only be given if the property is gifted to a dependant relative which is defined as a relative who is ...

(a)    permanently and totally incapacitated by reason of mental or physical infirmity from maintaining himself or herself ...or...
(b) of the age of 65 years or over.

There have also been some other minor changes proposed around the conditions under which it is acceptable for a beneficiary to cease to occupy the house after the inheritance / gift, for example the concession that if a beneficiary leaves the property as a result of requiring long term care, has been tightened up and also the age at which the concession applies has been increased to age 65 from age 55.

There is still a considerable amount of discussion and lobbying around the changes and there could be some changes before they are finalised.

When the new legislation is finalised on the passing of the Finance Act, we will update you fully.
Source:  Irish Life plc, Life Advisory Services (November 2016)

Michael Keville T/A MK Financial is regulated by the Central Bank of Ireland




Tuesday, November 29, 2016

Life Protection – Health Status Q & A


How does my health status affect the premiums I pay for Life Assurance?

The premiums you pay for your life assurance policy is partly decided by your current health status.
Knowing your medical history helps the company work out how much you should pay for your cover.
It also lets them give a fairer price to all customers. It is important that you do not leave out any essential information, such as a pre-existing condition, that might have an impact on this.
It is also important to be honest as non-disclosure can render a policy void and the insurance company are not obliged to pay out on the policy.
Your health information is personal and sensitive and all details are confidential to the Life Company.  They are only shared them with the people who manage your plan.
               

Should I still apply for Life Assurance if I have an existing medical condition?

Yes. You might be refused cover depending on your condition but  your medical history and personal details will always be reviewed before any decision is made.
You may be offered life assurance at an increased price or with a medical exclusion.
This means that you may get cover on the understanding that you cannot make any claim for your existing condition.

Why are Life Companies concerned with my medical condition when my doctor may not be?

If you have a medical problem that does not need immediate attention, your doctor may not take any action.
They will only act if and when your condition gets more serious or if there are any complications. In that case, they will start treatment or carry out tests.
However, when your health is being assessed for Life Cover there is only a narrow window of time to consider your condition and predict now it may change in the future.

Do I need to take a medical examination or get a report from my GP and if so, will I have to pay for it?

Medicals reports, examinations and tests help the Underwriters make an informed decision about whether or not you can be offered cover.
If you need to take a medical examination, or get a report from your GP, this is usually arranged by the Insurance Company who also pay for any medical reports, examinations or other tests which may be asked for.

If you would like further information please contact Michael on 086 8440541 or email info@mkfinancial.ie .


Michael Keville T/A MK Financial is regulated by the Central Bank of Ireland.

Wednesday, November 16, 2016

Update 17th November : Life Protection – the Basics


What types of life protection are most commonly offered?
There are four main types of protection to give you and your family a lump sum or a regular income in the event of an illness, accident or death:
·         Life Assurance
·         Mortgage Protection
·         Income Protection
·         Specified Illness cover
You can choose and combine these plans according to your needs
                                                                                                                                                        
What is Life Assurance?
Life assurance gives your family a cash payment if you die during the term of your plan. Your family can use this money however they choose. There are different types of life assurance:
·         Whole of life cover lasts until you die or for as long as you decide to make your monthly payments. Your payments can be increased throughout the life of your plan to make sure you get the lump sum you want.
·         Term life cover is a policy you pay for over a specified period. You can also use it to provide life cover during the term of your mortgage.
·         Mortgage protection is a lump sum paid on your death, or that of your spouse, to help your loved ones pay off the outstanding balance on your mortgage.  Mortgage lenders usually require you to have mortgage protection in place for the length of your mortgage. We offer mortgage protection plans that cover just you, or that include both you and your partner/spouse.

What is Income Protection?
Income protection provides you with a replacement income if an accident or illness affects your ability to work and earn a living, for a period longer than 4 weeks.
You get regular payments that begin after you have been on sick leave for a certain period of time. This is called a deferred period and you choose whether you want to set it to 4, 13, 26 or 52 weeks when you are setting up your policy.

What is Specified Illness Cover?
Specified illness cover is a health insurance plan. It provides you with a cash payment if you are diagnosed with any of a specific list of illnesses, including Alzheimers, cancer, cardiac arrest, multiple sclerosis or stroke.
You can take out specified illness cover alone, or combine it with life assurance to increase your protection

What is Accelerated Specified Illness Cover?
Accelerated Specified Illness cover is life assurance and specified illness cover in a single policy.
If you make a specified illness claim under this type of policy, the amount of money paid out on your death will be reduced by the amount you have already claimed.

If you would like further information please contact Michael on 086 8440541 or email info@mkfinancial.ie .

Michael Keville T/A MK Financial is regulated by the Central Bank of Ireland.




Wednesday, November 9, 2016

Update 9th November - Life Cover – Protect what matters most


Who knows what will happen next in our lives!
We always hope it will be something good, but nothing is certain in life. Fortunately, it’s possible to protect yourself from some of the financial uncertainties that come with unexpected events in your life.

Sudden or untimely death is not as rare as you think

·         Approximately 10,000 people die each year from cardiovascular disease including coronary heart disease and stroke. It’s the most common cause of death in Ireland, accounting for 36% of all deaths**.

·         One in three people in Ireland will develop cancer during their lifetime, and an average of 30,000 cases of cancer are diagnosed each year. Cancer is the second most common cause of death in Ireland, and accounts for over one quarter of the annual death toll.*
                * Cancer.ie, January 2014
                ** Irish Heart Foundation, January 2014

The unfortunate reality is that when you die, taxes, bills, mortgages, loans, education and grocery bills don’t stop and life must go on for your loved ones.

Affordable Peace of Mind
Life Cover is a lot more affordable, flexible and accessible get than you might think. You simply choose the level of cover that fits you and your family’s needs and the level of payments you can afford to make. You choose the length of time you want the cover to last and the amount of the lump sum that your family would receive if you were to die while the cover was in place.


Sample Life Cover Quote (subject to normal underwriting conditions)
€19.41 per month (approx. 64c per day)
20 year term
€200,000 Total Life Cover
Cover for one person, non-smoker, age 37
 Very little money for complete peace of mind!

Wednesday, November 2, 2016

Update 2nd November - What is income protection?


Income protection provides a replacement income if you cannot work due to illness or injury after a certain period of time.
How it works …
·         You must be in full-time paid work as a self-employed person, an employee or a company director to qualify for income protection.
·         Your occupation, health status and age could also affect your eligibility for the cover.
·         As a company director or employer, you can also offer group income protection to your full-time staff.
·         Decide how much of your income you want to protect. This depends on your salary, your sick pay arrangements and the amount of money you need to pay your bills and maintain your lifestyle. You can insure up to 75% of your normal income up to a maximum benefit of €262,500, less any social welfare payments.
·         Decide when you want your income protection to start.  The time between the start of your sick leave and your first income protection payment is called your deferred period. You decide whether it should be 13, 26 or 52 weeks. For example, if your employer will pay you for 6 months, go for a deferred period of 26 weeks. The longer your deferred period, the cheaper the cost of your income protection policy.
·         Decide how you want to manage your payments
Your options …
Guaranteed Premium

·         Your premium level is set and does not change
·         Your benefit level is set and does not change
Reviewable Premium
  • Your premium can be reviewed every 5 years, which will give you an option of an increase in premium or a reduction in benefit
Indexation
·         You can choose indexation on both of these options. This will make sure that your benefit increases as the cost of living goes up. Just remember, if your benefit increases, so will your premium.
Term
Decide how long you want to keep your income protection. Many people keep their income protection until they retire. But you can pick any age between 55 and 70.
What it costs
How much you pay each month depends on:
  • Your age
  • Your occupation
  • Your health status
  • Whether you are a smoker
  • How much of your income you want to protect
  • Deferred period
It won’t increase if you make a claim and you can claim tax relief on what you pay.        
We at MK Financial will take you through all of the above decisions and can then recommend the best plan to suit your circumstances.
If you’d like more information, please give Michael a call on 086 8440541 or email info@mkfinancial.ie.


Michael Keville T/A MK Financial is regulated by the Central Bank of Ireland

Tuesday, October 25, 2016

Update 25th October 2016

Capital Acquisitions Tax for Business Owners
As a business owner you have probably created a successful and profitable business and you and your family enjoy a comfortable lifestyle.
With the changes to Capital Acquisitions Tax announced in the recent Budget, now might be a good time for you to take a look at the implications of CAT especially if you are thinking about passing on your business to your family when you die. Inheritance tax or Capital Acquisition Tax can become a real burden when financial resources are tied up in a business

There are some tax free thresholds but these depend on the recipient’s relationship to the business owner.

Did you know?
·         Your children can only inherit €310,000* from you tax free.
·         Anything in excess of this, per child, is taxable at 33%.
·         Leaving assets to your children may result in them having to pay Inheritance Tax.
Source: Capital Acquisitions Tax Consolidation Act 2003 (as updated). *Group 1 Threshold available from 12 October 2016.
If you do not plan ahead, your family could be faced with a difficult decision between having to sell the business or borrow the money to pay the tax liability.
There are a number of solutions including taking out a life assurance policy to cover the cost of the inheritance tax liability thus ensuring that the business won’t have to be sold off.
Every business should have a succession plan in place, even if retirement or sale is not a current prospect.
For further information contact Michael on 086 8440541 or email info@mkfinancial.ie

Michael Keville T/A MK Financial is regulated by the Central Bank of Ireland.

Tuesday, October 18, 2016

Why should I start a pension?

A pension is a smarter way to save.
If you like saving money but hate paying tax, you will love retirement savings. Unlike a deposit account where you pay DIRT on any growth, with a pension you can actually claim tax back!
• Tax relief available on contributions
• Tax free growth on your pension fund
• Regular income in retirement, potentially income tax free

Your income could drop by up to 66% in retirement.
When you retire, you’ll probably expect to maintain the same standard of living. However, unless you put a retirement plan in place, your income could drop by nearly 66% when you retire. The State
Pension Contributory is €12,132*, but the average industrial wage is €35,874**.
You need to save for your retirement to help avoid a big drop in income.
* Source: Weekly State Pension Contributory 2016, www.welfare.ie.
** Source: CSO, Average weekly Industrial Wage, Earning and Labour Costs, 31 March 2014.

You may need an income for up to 30 years or more when you retire.
You may be retired for up to a third of your life and that’s why it’s so important to have a savings plan that ensures that the money you earn during your working life lasts your whole life.
It can provide you with the security of a regular income to ensure a comfortable standard of living for your retirement.
Your retirement could amount to as much as a third of your life so it makes sense to save now so that you can relax and enjoy this time.

If you do qualify for the State Pension, you could be 68 before you receive it.
The age of eligibility for the State Pension (Contributory) has changed and no longer starts at age 65.
That’s potentially a three year gap in retirement income!
• If you were born on or after 1 January 1955 the minimum qualifying State Pension age will be 67
• If you were born on or after 1 January 1961 the minimum qualifying State Pension age will be 68

Don’t delay, talk to MK Financial today!
Call us on 086 8440541 or email info@mkfinancial.ie        


Michael Keville T/A MK Financial is regulated by the Central Bank of Ireland

Wednesday, October 12, 2016

Review your pension BEFORE the tax deadline!


Calling all Employees and Self Employed Individuals

If you are an employee or are self-employed, then you have a once off opportunity to maximise your tax savings and increase your pension contributions. But you must act now!

The Opportunity
You may be able to make a once off, lump sum payment into your pension before the tax deadline of October 31st and offset it against last year’s tax bill. This will allow you to increase your retirement savings and save tax!

Save Tax and Increase Your Pension Contributions in 3 Easy Steps
1.       Check out the Revenue limits table below or contact your local tax office, to ensure you are entitled to claim tax relief on the extra amount you now wish to save for the 2015 tax year.

2.       Pay the amount you wish to save by October 31st, and you will then be issued with proof of
payment.  Payments must be received by the October 31st, so don’t delay!

3.       Contact your local Revenue office with proof of payment by October 31st, stating that this contribution has been paid against your 2015 income.

Save Tax      


If you paid tax at 40% in 2015, then a €1000 investment into your pension now could only cost €600, as you could claim a refund of €400* from Revenue.
Tax Bands
40% Tax
20% Tax
Gross Payment
€1,000
€1,000
Tax Relief Available
-  €400
 - €200
Net Cost To You
   €600
   €800

Terms and conditions apply
* Revenue limits, terms and conditions apply. It is important to note that tax relief is not automatically granted, you must   apply to and satisfy the Revenue requirements. Your benefits at retirement may be subject to tax.

Revenue Limits


The maximum percentage of your salary/earnings that you can normally save into your pension each year and claim tax relief on, is shown in the table opposite.
For example, if you are 35 years of age and already contributing 5% of gross earnings to your pension plan, you could be able to pay up to 15% extra as a lump sum now!

Age
Revenue Tax Relief Limits
Under 30
15%
30 – 39
20%
40 – 49
25%
50 – 54
30%
55 – 59
35%
60 & over
40%

Warning: The value of your investment may go down as well as up.
Warning: If you invest in this product you will not have access to your money until you retire.

Don’t delay, talk to MK Financial today!
Call us on 086 8440541 or email info@mkfinancial.ie        


Michael Keville T/A MK Financial is regulated by the Central Bank of Ireland

Tuesday, October 4, 2016

Update 4th October - PROTECT YOU AND YOUR FAMILY


 If you earn an income, own a home, have a family, a business or an investment property, then protecting you and your family against the financial impact of ill-health, terminal illness or death is one of the most important decisions you can make.
 Having the facts to hand means you can make an informed decision on what life insurance you and your family need.
 
What should you be protecting?
We insure our home, our car, our holidays and sometimes even our family pets but the very thing we often overlook to insure is the most important of all, ourselves and our families.

Many people do not realise the financial impact that an unexpected serious illness, injury or premature death can have on a family. The unfortunate reality is that Irish families are struck by these events every day and the financial impact can be significant and long lasting.

You probably have mortgage protection to clear your mortgage and secure your home, but have you thought about how your family would cope with all the other outgoings each month if you got seriously ill or died prematurely?

Having a life insurance plan is an effective way of providing peace of mind knowing that should the worst happen, your loved ones will have the financial security they need at such a difficult time.
You can set up your life cover to pay a lump sum amount, a monthly income amount or both on a Single, Joint or Dual Life basis.

• Lump Sum on Death Benefit: this pays out a lump sum in the event of death, or in certain circumstances on diagnosis of a terminal illness, during the term of cover.
• Income on Death Benefit: this pays out a monthly income on death or, in certain circumstances on diagnosis of a terminal illness, for the remainder of the term of cover.
• Whole of Life Benefit: this pays out a lump sum of up to €50,000 on death. The difference with this benefit is that it will be paid out even if death occurs following the end of the term of cover for the main benefits. If, for example, your term of cover ends at age 65 for other benefits and you die at age 90, this benefit will still be paid out provided that you have paid all premiums when due.

What is the difference between single, dual and joint life insurance?

Single Life – Covers only one life insured.
Joint Life – A joint life insurance policy covers two lives and may provide for a payment in the event of death of the first or last life covered depending on the type of policy you have. For example:  Joint Life First Death cover will pay on the first claim for a benefit. The cover in respect of that benefit will then cease for other lives.
Dual Life – Covers two people independently. Dual cover could potentially pay out two separate payments for each benefit covered.  In the event of a claim by one of the lives insured, the cover on the other life insured will continue as before.
You can also protect your income (Income protection), your mortgage (Mortgage protection) or your assets (Business protection). 
If you’d like more information, please give Michael a call on 086 8440541 or email info@mkfinancial.ie.


Michael Keville T/A MK Financial is regulated by the Central Bank of Ireland

Tuesday, September 27, 2016

Update 28th September - All about Pensions


I’m New to Pensions!
While you’re working, you probably don’t think too much about your retirement – except maybe how nice it would be to enjoy all that free time. But unless you plan for your retirement during your working years, you may not be able to enjoy a comfortable lifestyle in retirement.
While your retirement may seem like a long way off, the sooner you start saving for it the better. Putting a little away now can make a big difference later on. And don’t forget that you can avail of very attractive tax relief on contributions you make into your pension.

I have a Pension!
If you’ve already started your pension, you need to review it each year to ensure your retirement plans remain on track. If you are saving for retirement through your company pension plan, it’s important to make sure that you’re saving enough to provide you with lifestyle that you want in retirement. Employees in a company pension plan can boost their pension savings to provide a greater income in retirement through Additional Voluntary Contributions (AVCs).
If you don’t have access to a company pension plan then one of the best ways to save for your retirement is by taking out a Personal Retirement Savings Account (PRSA). A PRSA is a cost efficient pension plan that anyone can take out to build up a fund for retirement.
One of the best things about saving into a pension is the generous tax relief available, up to 40%* for a higher rate tax payer.
*It is important to note that tax relief is not automatically guaranteed; you must apply to and satisfy Revenue requirements. Revenue limits, terms and conditions apply.

I’m a Public Sector Employee!
As a member of a Public Sector Plan you may have a number of options available to you to maximise your pension benefits at retirement while making the most of the tax advantages of retirement planning. Additional Voluntary Contribution (AVC) plans can be used to enhance your benefits and options at retirement.
It is important to consider whether you can purchase ‘added years’ in respect of your membership of your Public Sector Pension Scheme. Further information can be obtained from your HR Dept.
Remember if you are a PAYE worker, you may be able to make a contribution to your pension before 31st October and claim tax back for 2015.  

I’m fast approaching Retirement!
Your retirement is a time you have worked hard for.  To ensure you are able to make the most of your retirement you will want to ensure you are financially independent. Especially since your retirement could last for 20 years or more.
You now have an important financial decision to make regarding your pension fund and how it could be best used to meet you and your family’s needs in the future.
Two of the most important factors you should consider are the way in which you wish to use your pension fund to provide an income in retirement and whether you wish to pass the balance of your fund to your dependants after your death.
What you can do with the proceeds of your pension plan depends on which employment category you fall into and the type of pension plans you currently hold. Depending on your circumstances there are different options for you to consider at retirement. 
Most people will choose to take the very attractive tax-free retirement lump sum option of up to €200,000 from their pension fund (subject to Revenue rules) and then use the balance to meet their financial needs in retirement through one of three further retirement options:
1. Purchasing a pension income for life (also known as an Annuity),
2. Investing in an Approved Retirement Fund (ARF) or,
3. Taking a taxable lump sum

If you’d like more information on Pensions, or indeed any financial advice, why not contact us at info@mkfinancial.ie

Michael Keville T/A MK Financial is regulated by the Central Bank of Ireland





Thursday, September 22, 2016

YOU CAN’T PREDICT THE FUTURE BUT YOU CAN PLAN FOR IT

Protecting your income protects a lot more

WHAT IS INCOME PROTECTION?
Your income is probably your most important asset. It funds your whole lifestyle from what’s in your fridge to where you go on holidays. Your children depend on it from birth, right through to college and often beyond.

WHY DO YOU NEED IT?
An Income Protection plan pays you a monthly income if you are unable to work due to any illness, accident or injury. You can ensure you continue to meet your monthly mortgage repayments and household bills and maintain your current standard of living. It will continue to pay you an income until you are well enough to return to work, or if not, until your retirement age.
Income Protection can protect up to 75% of your earned income up to age 65.
The cost of the cover will never increase during the term of your plan (unless you chose to index it or apply to increase your cover)

ASK YOURSELF
  • What would happen if your income suddenly stopped because of ill health?
  • How long would your employer pay you if you were on prolonged sick leave?
  • How would you and your family cope financially after that?

DID YOU KNOW?
Many employers don’t provide any form of sick pay and of those that do, many will only pay you for six months.
If you are self-employed you are not entitled to the State Illness Benefit if you are unable to work due to illness.

AFFORDABLE COVER
Income Protection is more competitive than you may think – the younger you start the less it will cost. And remember your premiums should be eligible for tax relief at your marginal rate of tax.
If you would like to talk about this or need any other financial advice, please call Michael on
086 8440541 or email info@mkfinancial.ie  to arrange an appointment.


Michael Keville T/A MK Financial is regulated by the Central Bank of Ireland

Tuesday, September 13, 2016

Don’t forget - 31st October Tax Deadline!


An Opportunity to Reduce your 2015 Income Tax Bill
Individuals who both pay and file their tax returns through the Revenue On-line Service (ROS) have until Thursday 10th November 2016 to pay a pension contribution and elect to backdate the income tax relief against the 2015 tax year. Those who do not qualify for the ROS extension must do this by 31st October 2016.
How Much Can You Contribute to a Personal Pension, PRSA, PRSA AVC or AVC?
For contributions paid in 2016 and set against 2015 earnings, an earnings cap of €115,000 applies for tax relief purposes to total contributions to PRSAs, Personal Pensions and Employee / AVC contributions to Occupational Pension schemes.
Who Can Contribute?
·         The self-employed,
·         Proprietary Directors (those who own more than 15% of a company)
·         People with non-PAYE income
·         Employees
·         Directors
If you are already in an Occupational Pension Scheme you can also reduce your 2015 tax bill by making an AVC single premium on or before 31st October 2016.

Who can claim Income Tax Relief on AVCs or PRSA AVCs?
Income tax relief on AVCs or PRSA AVCs can be claimed by individuals who are:
·         Employees (Schedule E, PAYE and a member of a company pension scheme)
·         Directors of companies (Schedule E, PAYE and a member of a company pension scheme)
Examples of Schedule E income would include salary, bonuses and benefit-in-kind (BIK).
Where a client has changed employment this may affect their ability to make a pension contribution and backdate the tax relief to the previous year. Once a client leaves an employment where they were a member of a company pension scheme, they cannot make any further pension contributions in respect of the earnings from that employment.
Note: a termination payment made on leaving employment is not considered remuneration for pension purposes. This would include termination payments on redundancy, payment in lieu of notice and other ex-gratia payments. However, part or all of such a termination payment may qualify for tax relief under other available exemptions.

To check if you’re eligible to reduce your tax or receive a rebate for 2015, while helping to fund your pension, contact Michael on 086 8440541 or email info@mkfinancial.ie

Michael Keville T/A MK Financial is regulated by the Central Bank of Ireland


Tuesday, September 6, 2016

Hot Topic #26 Negative Interest Rates – Where to now?


Central banks in Denmark, Sweden, Switzerland and Japan along with the ECB have adopted negative interest rates in a bid to further stimulate lending and boost economic growth. It is debatable as to how effective negative rates are in achieving these aims but central bankers have been credited with helping the world economy recover from the financial crisis and they continue to experiment with unconventional methods.

Negative rates are a drag on the retail banks' profitability as excess reserves put on deposit with the ECB attract a negative rate of 0.4%. The central banks want retail banks to lend this money instead of putting it on deposit with them. Retail banks argue that there isn't the demand.

The banks have, so far, resisted passing negative rates along to retail customers but there are signs that this could be changing: RBS recently sent letters to business customers highlighting a change to its terms & conditions and the possibility of negative deposit rates. A German co-op savings bank will pass on the 0.4% negative charge on deposits over €100,000 from September onwards. Bank of Ireland is to charge corporate and institutional customers on deposits of €10m or more while German insurer Munich Re is reported to have stored in excess of €10m in a vault as a way of avoiding negative rates.

One major problem the banks have with passing negative rates along to the general public is that they would likely see massive withdrawals as customers take their cash out of the banks rather than accept a negative rate. This is clearly easier for customers with smaller levels of savings than corporate customers with millions on deposit (where would Apple Inc. store its $200 billion cash pile?). This would create new problems for the banking system, not to mention the spike in crime that would accompany it.

One possible solution has been proposed: a cashless society. If cash was confined to the history books and all transactions involved a digital transfer through one method or another (plastic cards, phones, apps, etc) financial institutions could impose negative rates on customers and we wouldn't have much choice but to accept it (barter could make a comeback). It is unlikely to happen in the near future but we are heading towards a cashless society and all the pros and cons that go with that.

Most of us do not have to worry about negative interest rates for the moment but, if you have large cash deposits, you should consider diversifying across other asset classes.

Source:  David Coffey - Senior Portfolio Manager, Cantor Fitzgerald

Michael Keville T/A MK Financial is regulated by the Central Bank of Ireland

Tuesday, August 30, 2016

Hot topic #24: It’s time to plan for the longest holiday of your life


Your retirement could last a long time – 20 years would not be exceptional. This is the time that you have worked hard for. Time you owe yourself. Time to spend doing all those things you have always promised yourself.

Without the stresses of having to earn a living, your time will probably be spent travelling. Visiting family or friends in other parts of the world – or visiting places that you’ve always wanted to see. Some of your time perhaps will be spent on hobbies, enjoying existing ones and even picking up new ones. And of course spending quality time with your partner, family and friends. But there’s no such thing as a free holiday. Everything has to be paid for. So will you have enough money to enjoy your retirement to the full? It’s time to plan for the longest holiday of your life Mind the Gap Or will you be faced with a gap in your funds?

As we come into what is the height of the pension season it may be worthwhile reviewing you retirement planning. This is important for everyone whether you are a PAYE worker, Self Employed or a company director.

• PAYE workers are allowed by revenue to make a contribution to an approved retirement scheme before the 31 October 2016 and offset that against tax that was paid in 2015 which may result in a refund from 2015.

• Self-employed can make a contribution before 31 October 2016 and offset this against their final tax bill for 2015 helping them to fund for retirement and also reducing their tax liability.
Company Directors can make a contribution before 31 October 2016 and offset this against their personal liability for 2015.

If you would like to know more ... call Michael on 086 8440541 or email info@mkfinancial.ie for further information.

Michael Keville T/A MK Financial is regulated by the Central Bank of Ireland

Wednesday, August 24, 2016

Hot topic #23: Forget about the Olympics – the big news item this week is the CAO offers

Forget about the Olympics – the big news item this week is the CAO offers …

Have you a child starting school next week or returning to Primary education? 
Everyone wants to give their children a good start in life, and in today’s competitive environment, a degree or professional qualification can be the key to a rewarding career. 
Now is the time to start planning for their 3rd level education.
But don’t delay! You should start building this educational fund as soon as possible. This will spread the cost over the longest possible period – and give you the maximum opportunity to benefit from potential investment growth. These factors will reduce the amount you need to set aside each year – and might make it more affordable.      
There are three main ways in which you can pre-fund the cost of education – and the most appropriate one for you will depend on your personal circumstances, and how soon the fees will be required:
·       • A capital sum can be invested now
·       •  Regular savings can be set aside out of income and invested
·      •  A combination of a capital sum and regular savings can be arranged.     

The monthly costs incurred by the average student in 2015/2016 were estimated to be: 
    


Cost of living at home
Cost of living away from home

Rent
N/A
€372
*
Utilities
€33
€33

Parental Subsidy
N/A
€168

Student Contribution Charge
€306
€306

Subsistence - Food & Travel
€184
€291

Books & Class Materials
€33
€74

Personal - Clothing, Toiletries
€77
€77

Social/Miscellaneous
€132
€132

Total
€765
€1,453

Source: Dublin Institute of Technology, 2016. Please note that these are MONTHLY costs

*€372 figure is mean of single room rent in Dublin


Need help with planning ahead ... call Michael on 086 8440541 or email info@mkfinancial.ie for further information.
Michael Keville T/A MK Financial is regulated by the Central Bank of Ireland