Wednesday, June 29, 2016

Hot Topic #17 : Reasons to Invest in a Pension – Part 2



Make the most of tax free savings 
You are entitled to claim generous tax relief on pension contributions. If you are a higher rate taxpayer, for every €1 you save, you can benefit from up to 40%* in tax relief. So if you make an overall monthly contribution of €100, this means it will actually only cost you €60 after tax relief. 
* Assuming higher rate tax payer (40%). It is important to note that tax relief is not automatically granted. You must apply to and satisfy Revenue requirements.


A pension can give great opportunity for growth
Getting growth on your money is important as inflation can reduce the buying power of that money over the long term. Investing your money in a pension gives you access to a wide range of investment funds which can give your money the best potential for growth over the longer term.

Up to €200,000 as a tax free retirement lump sum
On reaching retirement, you may be able to take part of your retirement fund tax free, subject to a limit of €200,000. Even where the retirement lump sum is greater than €200,000, the next €300,000 is only taxed at the standard rate (currently 20%). This very attractive benefit is not available on any other savings plan! 
Note: There is a limit on the maximum fund that can be built up on retirement. This is currently €2,000,000. This figure includes all of your pension funds, including the capital value of any retirement benefits drawn down since 7th December 2005. Where the relevant limit is exceeded, the excess in your pension funds at retirement will be liable to a once off Income Tax charge.


A wide range of Investment Funds 
You have access to a wide range of investment funds from global and specialist investment managers to suit most risk appetites including funds which are aimed specifically at providing for your retirement.

It’s never too late to start your pension.
The percentage of income that you can contribute to your pension and obtain tax relief on increases as you get older. Depending on your age, you can potentially save up to 40% of your personal income into a pension and claim full tax relief so even if you are starting your pension late, there’s still time to catch-up! You also have the option of making top up contributions to your pension (subject to Revenue rules


Feel free to contact Michael on (086) 8440541 or email us at info@mkfinancial.ie
Michael Keville T/A MK Financial is regulated by the Central Bank of Ireland

Wednesday, June 15, 2016

Hot Topic #16 - Reasons to Invest in a Pension

Reasons to Invest in 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!

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.
This means your retirement savings plan is arguably one of the most important savings plans you will ever contribute to. It can provide you with the security of a regular income to ensure a comfortable standard of living for your retirement 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.

The earlier you start contributing to your pension the better
The sooner you start your pension, the longer it has to potentially grow which could make a big difference to your retirement fund. The table shows how starting pension contributions early can have a significant impact on your retirement fund. 

Wednesday, June 8, 2016

Hot Topic #15 Valuable Advice is Invaluable

Valuable Advice is Invaluable

Last week we spoke about savings and investments and, with the current low rates on savings, people are looking at various investments to get a better return on their money.  This is where good financial advice becomes important if you want to make your money work for you.

There are lots of financial advisers out there, but it pays to know the different types and what exactly is offered in terms of advice.

All firms and individuals authorised to advise on investment products are registered with The Central Bank and a list of these may be found on the Central Bank website.

Tied Agents sell products from one company. They are limited in what they can advise as they can only tell you about the products they sell for their company.
Multi Agency Intermediaries can offer advice about different products from a range of selected investment firms that they have a relationship with. 
Authorised Advisors consider all the financial products that meet your needs, and act in your best interest at all times.   You will get impartial advice tailored to your needs.  You will get a document stating their terms of business which includes a list of companies they are authorised to do business with and also get a letter explaining the reason for any recommendation.

If you’re thinking of investing the most important consideration is to have the right investment time frame and the right investment risk profile. Talking to a Financial Advisor can help you decide what investment is right for you, be it a product that can offer 100% capital security or a high risk fund that can offer the potential for higher returns.


Feel free to contact Michael on 086  844 0541 or email us at info@mkfinancial.ie

Wednesday, June 1, 2016

Hot Topic #14

Why Invest?
At the moment the returns on savings are disappointing and if you have some money saved you may be considering investing it to get a better return.  
For people considering investing money over the medium to long term, typically, it’s because they want their money to grow. They are looking for better growth potential than what deposit accounts can offer at the moment.

How can you make the most of your money? 
It is widely acknowledged that one of the best ways to increase the value of money over the medium to longer term is to invest in assets such as shares and property. 
History has shown that investments in these types of assets offer one of the best opportunities to beat both inflation and deposit rates and to grow your money. 
However, investments in these assets can be risky as the value of these assets can rise and fall over time. Sometimes, particularly over short timeframes, these can experience significant changes in their value. 
• There are many ways to invest - ways that suit you, your goals and most importantly your attitude to risk.
• If you thinking of investing why not call us and see how we can help you make the most of your money

Feel free to contact Michael on (086) 8440541 or email us at info@mkfinancial.ie
Michael Keville T/A MK Financial is regulated by the Central Bank of Ireland