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

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 3^rd 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

                  

Hot Topic #22 - Illness or an injury … a second opinion?

Diagnosed with an illness or suffer an injury … would you like a second opinion?

Being diagnosed with a serious illness would be an emotionally overwhelming experience if it happened to you.  You would have lots of questions … What will happen now?  Is the diagnosis correct?  Will the treatment be right?  How can I be sure?  Now, there is someone to help you answer these difficult questions.  The result could save your life.  If you or a loved one were diagnosed with serious illness, Best Doctors - Second Medical Opinion can help.

What is Best Doctors - Second Medical Opinion and how can their service help?

• Best Doctors - Second Medical Opinion is a global organisation which brings the world’s leading medical expertise to you and your family offering a second opinion when you need it most.
• Best Doctors - Second Medical Opinion has a unique and well-renowned network of medical professionals.  Having such expertise at their fingertips and supported by a truly caring service team, is the reason why thousands of people around the world turn to Best Doctors - Second Medical Opinion when they need it most.
• Best Doctors - Second Medical Opinion can help you with those questions that are likely to be racing around your mind if you were diagnosed with a serious illness.

An in-depth review of your medical files will be conducted by a Best Doctors medical specialist to help verify your diagnosis and treatment options.  The process can reduce potentially serious complications that can result from a misdiagnosis, and help you and your treating doctor determine the proper course of action.

But Best Doctors - Second Medical Opinion isn’t just for serious life threatening illness.  You can use the service for any chronic or troubling ailments affecting quality of life.

Here are just some of the conditions for which people rely on Best Doctors - Second Medical Opinion expertise:

                > Sports Injuries                                               > Musculoskeletal conditions

                > Skin Diseases                                                 > Cancer

                > Blood Diseases                                              > Circulatory system conditions

Best Doctors - Second Medical Opinion is available to -

• You
• Your spouse / partner
• Your children up to the age of 18 (or 23 if in full time education).
• Your parents and your spouse’s / partner’s parents

Contact Michael on 086 8440541 or email info@mkfinancial.ie to find out more.

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

Hot Topic #21 - Update 2nd August

More than half of Irish workers rely solely on the State pension

47% of the Irish workforce will only receive a state pension worth €230 per week when they retire, according to the Pensions Authority.

The figures emerge as Minister for Social Protection Leo Varadkar launched a consultation process to assess what reforms are required to streamline the existing complex pension system, and introduce a new universal scheme to provide wider pension coverage.

All workers who pay sufficient PRSI contributions are entitled to the state pension of €230 per week.

Out of the 1.9 million in the workforce, a massive 893,000 (47%) will only have that amount to live on in retirement - and face poverty in old age -  as they have made no provision for a supplementary pension.

A further 730,000 are in occupational schemes where both they and their employer make a contribution.

152,000 are funding a supplementary pension scheme on their own, with no employer contribution.

This means that over 1 million employees - a majority of the workforce - are receiving no pension contribution from their employers over and above PRSI.

Leo Varadkar voiced concern that with a growing older population as people live longer, the pension system will be under considerable strain.

The consultation process will focus first on administrative simplification of the pensions system, including issues like management charges, which can eat into benefits, and the qualifications for pension trustees. The Government is also anxious to introduce a universal supplementary workplace retirement scheme into which workers would probably be automatically enrolled - but would have the right to opt out.

The consultation process will consider a number of options, and Mr Varadkar said he was anxious to build a consensus approach.

However, he noted that introducing a new universal scheme could take ten years.

Observers on both employer and union sides acknowledge that reform is essential.

Do you want to be part of the 47% who will have to survive on €230 per week?

Now is a good time to review your Retirement Planning!

Tax Relief is available on contributions.                     

Have you already an arrangement in place that may need reviewing?

You may already have a personal Paid Up pension, or you may be a member of a company scheme of a former employer which you haven’t looked at for years.

This is your money so it is worthwhile to get advice on how best to utilise it for yourself.

You can contact Michael on 086 8440541 or email info@mkfinancial.ie  for a free consultation on how best to proceed.

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

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