It is with increasingly certainty that I believe this new generation of bright, young individuals in our blazing fast society is woefully inept at taking the basic steps necessary to secure their financial future. Please don’t think that I’m saying this young tribe isn’t smart. Far from it as this is probably the most intellectually talented generation we’ve seen.
In my experience; the majority of people I work with for the first time have generally ignored the importance of financial planning and goal setting and as a result have either taken unnecessary or inappropriate risks with their money, and with bad investing decisions have failed to diversify their portfolios properly and are generally paying too much in fees and charges. All of which combined lead to poor investment returns.
Financial Planning in its essence deals with individuals and families and their long-term financial goals. However, a large majority of my clients tend to be business owners or professionals and I am continually amazed at how often the protection of their source of your income is overlooked.
Investing in property with your pension is possible through a Self-Administered Pension Scheme or Self Directed Pension Trust as they are otherwise known. One of the key features of a Self-Administered Pension Scheme is the complete flexibility and control over your retirement wealth creation. Your scheme can invest directly in residential and commercial property (However, it is important to point out that current lending rules only permit mortgage borrowings for residential property).
With the self-assessment income tax deadline extended for online filing until midnight on the 16th of November this year, for many self-employed people a pension contribution remains high on the agenda and is usually fuelled by the significant tax reliefs associated with pension contributions.
If anything, the ‘Snowmageddon’ over the past few days have shown us the general inability of the Irish people to plan for major events and has been demonstrated once again by the fact that every supermarket was sold out of bread, and not a single supermarket was sold out of toilet paper (insert bread joke or meme here)! It makes you question what we Irish deem as priorities.
It is a sad fact that sooner or later all of us will pass away. Because of this fact, life insurance should be an extremely important part of your financial plan. However, in many cases this doesn’t always happen as most people that do engage in financial planning tend to be more focused on longer term retirement and investments goals with little or no consideration given to the ever present financial risks that your family are exposed to if you were to die, or worse – you were to suffer an illness or injury that would prevent you from earning an income.
October is here again and with it comes the self-assessment tax return deadline. As with many self-employed people (myself included) a pension contribution remains high on the agenda and is usually fueled by the significant tax reliefs associated with pension contributions.