Hot Topic - Whole of Life Continuation Benefit

In this life, nothing is certain except Death and Taxes …. & Whole of Life Continuation Benefit!

Paving the way for the next generation is part and parcel of our progress through life. As we get older, we wish for the success and prosperity of our children and grandchildren. 

Starting a Whole of Life plan could help ensure that your family is not burdened by inheritance tax on the assets you want to pass on to them.

Whole of Life, as you'd expect, is an insurance plan that lasts for a whole lifetime, and is not limited to a specific term. If you pass away, this policy will provide a lump sum payment to your family. It can also provide tax-efficient inheritance planning cover for your family, so as not to impact their inheritance.

How does it work?

When you take out a Whole of Life insurance plan, we'll help determine the level of cover you need. It will depend on your circumstances and those dependent on you. You will then pay a set amount on a regular basis, usually by direct debit. The policy will then pay out a lump sum to your family, should you die. The premium is also guaranteed never to increase.

Product Features

• Secure: Life Insurance means your loved ones are financially protected if misfortune strikes.

• Tax-efficient: This plan can cover the inheritance tax your family may be liable for if you die.

• Flexible: You can choose optional benefits for additional peace of mind.

• Considerate: Lump sum payment may be used to cover funeral expenses.

Who is Whole of Life Cover for?

This plan will suit people who wish to have cover for the rest of their life - and not just a specified term. It will appeal to those who have assets that they wish to protect against inheritance tax. Whole of Life Cover can be taken out by anyone aged between 45 and 74 years of age.

Inheritance Tax

Your family may be liable for inheritance tax on your assets when you die. This can be a massive burden, forcing them to borrow money or sell part of the inheritance you leave them to cover their tax bill. Whole of Life Cover removes this burden and protects loved ones from a large inheritance tax bill.

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

Hot Topic #19 : Get Wise - Make A Will

Less than 1 in 3 adults in Ireland have a formal Will! (Source: Irish Life July 2014)

A Will is important to ensure your loved ones are cared for, as you would like, following your death.  A Will gives peace of mind to those left behind.

• As a parent you can appoint guardians to look after your children.  Otherwise decisions about their care and education may be decided by the Courts.  You can also appoint a trustee to manage the financial side of things for the benefit of your children.

• A Will ensures that your estate will be divided according to your wishes and not as the Succession Act 1965 dictates.

• By making a Will you can make maximum use of the thresholds for your children’s and spouse’s exemption from inheritance tax and ensure that there is less potential for delays and disputes over your estate.

• A Will allows you to appoint someone trustworthy and capable to sort out your affairs after you die. You choose an ‘executor’ who takes on this responsibility. 

• A valid Will can save time and money for those left behind. 

• Making a Will automatically involves a checklist of your assets and liabilities. This can give you a good idea of whether or not you have made adequate financial arrangements for your dependants.  Will they have enough funds to manage financially over the long term?  Do they have immediate access to money in the short term or is everything in your name? 

 3 steps to putting your affairs in order 

1. Make a list of all of your assets and liabilities. 

2. Meet with your Financial Adviser to assess your protection needs. 

3. Make an appointment with your Solicitor 

See a solicitor if you need to make a Will or make changes to your existing Will. You will need to choose an executor or executors. If you have young children, you should consider appointing guardians and trustees. 

Make sure your partner or someone close to you knows you have made a Will and knows where to find important documents including your Will, Deeds of the house, mortgage details and other financial information

For a limited period, when you  buy your life insurance plan from Irish Life they  are offering you the opportunity to plan another step for the future and to put a basic ill in place for no additional cost. This offer applies to new plans applied for up to 26th August.  

If you’d like more information, please give Michael a call on 086 844 0541 or email info@mkfinancial.ie.

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

Hot Topic #18 - Life Cover for Parents

Life Cover for Parents

Have you ever thought about how you would like to be remembered?

For most of us, we’re the sum of many parts and some of the highlights might be …

• Winning goal scorer in a most important match

• Student who had perfect attendance at school

• Employee who succeeded in bringing in a great client

But for those who have a family, being the best parent is the ultimate prize of all. 

Taking care of your family and ensuing they have good times now and great memories in the future, is part of your everyday life and no doubt your main focus.

But how can you ensure that your family are protected and looked after should the unthinkable happen to you?  It’s an extremely uncomfortable thought!

By putting Life Cover in place you are ensuring that you can be remembered not only for the good times in the past, but by still being there to care for your family financially into the future.

Protecting your family is probably cheaper than you think and there are lots of discounts available at the moment.

For example €200,000 Life Cover for 30 years could cost you as little as €15.72 per month *

We hope you never have to face this scenario but it’s good to have peace of mind knowing that should it ever happen, your family will be taken care of financially.

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

* Term Assurance for a 30 year old non-smoker.  Premium includes Government levy (1%). Source: Money Advice. Valid as at 5/7/2016

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

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. 

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

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