Is Inflation still a concern?

February 27, 2024

Has the worst of inflation passed and is inflation still a concern or consideration?

These are two very different questions and from a financial planning point of view, inflation is always a concern or certainly a consideration even in more normal levels of inflation i.e If you’re seeking to retire in 10 years time or you’re looking to draw money down after saving up for something for 10 years.

If inflation is 2% (Not factoring in compounding) there should be a price increase of 20%, across goods and services, cost of living for retirement, or maybe if you’re saving up for something – So that needs to be factored into your financial planning.

Are we through the worst of inflation? It looks like we are. There still are risks that have been highlighted by the European Central Bank.

That is an increase in wages, which means there’s more money, so there’s more of a demand for products which can be inflationary.

The supply chain disruptions from geopolitical conflict mean the potential shortage of some goods and the potential increase in the price of oil, are both inflationary.

It does look like we are through the worst of inflation, but there might be a couple of spikes ahead, but certainly, from a financial planning point of view it always needs to be factored in.

If you have any queries about how inflation may affect your financial planning feel free to get in touch to start a conversation💬

Financial Planning During Uncertain Times

November 20, 2023

There’s a lot of uncertainty around at the moment and it’s in relation to inflation or how quickly that might subside. 

Interest rates might subside or stay high as the case might be and there will be an impact on economic growth and also the geopolitical conflict of wars that we’re experiencing at the moment. 

So the only certainty that you do have is planning, and it’s financial planning,  this is mapping out your financial future and it’s taking account of what’s happening at the moment and making provisions for them.

This requires you to have an emergency fund in place, so if there’s an unforeseen expense, or perhaps a redundancy, it’s making sure you have money for that. 

If things are worse again, it’s reviewing your life and illness policies to make sure that you have adequate coverage. 

It’s looking at your pensions and investments and making sure that you’re well diversified. 

If there is a recession, maybe some areas might be affected more than others and it’s just not to avoid an exposure to one of those. 

Really it’s taking a long-term view because we don’t know what will happen in the immediate term, but we do know what equities the long-term trend is up.

If you are a short or long-term investor and need advice or assistance on inflation or interest rates affecting you, feel free to get in touch, and let’s start a conversation! 

Inflation and Your Money

November 14, 2023

Inflation is at 6% in Ireland at the moment, having peaked last year during the summer at 9.5%, and it’s forecast to reduce to just over 3% next year. 

I believe the worst of the inflation is behind us and I expect to see a couple of spikes over the next 12 or 18 months.

The reason for that is the conflict in the Middle East, which has, historically speaking, increased oil prices and reduced the supply of food and minerals from Ukraine.

I believe we’ll see a spike in inflation, so it’s something to factor into investment decisions and financial planning decisions for the near term. 

Historically speaking, high interest rates have taken approximately 24 months to fully curtail inflation so we’re probably still in the middle of that too.

If you are a short or long-term investor and need advice or assistance on inflation, feel free to get in touch, and let’s start a conversation!

Recessions and how they impact your pension funds

November 6, 2023

Economic recession is something that’s re-entered conversations with clients this year. 

So in Ireland, we had a brief recession at the start of the year, which we have exited. 

Simply put, when a recession happens company revenues are down and that means their valuations reduce and across the board, that’ll mean a drop in the stock markets.

The below graph shows recessions and equity market performance – The context shows the long-term positive trend but the drops are not pleasant!

From the point of view of pension funds and investment funds, the most influential market is the US market – It’s the largest economy in the world and it’s the largest stock market in the world. 

Historically speaking, stock markets drop in the first 6 months of a recession, they rebound after that and typically will recover well ahead of the economy.

Drop-offs can be sharp, they can be approximately 20 to 30%, but it is temporary. 

For long-term investors, it’s something that needs to ride out the storm as such and maybe you can avail of lower valuations if possible.

If you are a short or long-term investor and need advice or assistance on your journey, feel free to get in touch, and let’s start a conversation today!

How much Income do you need in Retirement

October 9, 2023

How much income do I need in retirement, is a question that I get asked quite a bit.

When I was talking to a client, she had a conversation with a few friends about that and their view was that ultimately they didn’t want to spend any less in retirement than they were spending now.

They had their hobbies, their lifestyles and holidays that they liked and they wanted to continue that into retirement.

The industry would say 75% of your income should be enough to maintain your current lifestyle.

I think 75% of your income close to retirement will be enough but I think it’s a calculation that’s on a case-by-case basis.

You need to look at how much your lifestyle costs and you need to look at what your retirement income will be – What your retirement income will be and what it is projected to be.

Watch my full video HERE

If you need help understanding your retirement income feel free to get in touch for actionable advice backed up by experience!

Long Term Investing

September 25, 2023

Over the last 12 to 18 months investment returns in terms of managed funds have been subdued and that’s for a lot of reasons.

It’s the Russian invasion of the Ukraine, inflation levels, cost of living, and in long-term investing you do get periods like this where you might get a negative return, you might get modest returns over a yearly period and that’s part of investing.

Historically, if you look at investment returns and managed funds and projected returns over the next 10 years, the best returns will be investing.

So if your time frame is shorter maybe less than five years or you just want to make sure you’ve capital security on your set return there’s a place for a deposit.

But if you want to grow your money and to get a return over the long term then investing is the way to go.

Watch my full video HERE

If you need help understanding your #investment options feel free to get in touch for actionable advice backed up by experience!

Financial Habits and Tips

September 18, 2023

I shared an article from the ESRI last week that was in the Irish Independent and it covered what to do and more specifically what not to do in terms of financial planning.

Because as we get into the workforce and start to take out a financial commitment such as car loans and mortgages and perhaps have a family, these are very long-term commitments financially yet most of us haven’t been taught or really been given any information in terms of how to manage our money over the course of our lifetime and be able to pay for all this.

So between the ESRI findings and my own learnings. I’ll share some habits you should consider when financial planning.

The first thing is very simple, don’t spend everything that you earn, it saves the difference and that disposable income that you save will be used for your financial planning.

Create a habit of saving on a regular basis and any saving that you want to do over the long term, over 5 years I would look to invest it and see if you can get it at a higher return.

If you are looking to invest money I would talk to an adviser just to get a good idea of the risk that you’re potentially taking on.

Be as tax efficient as possible so if you’re looking at very long-term savings could you be getting a tax break on a pension or could you be paying for your life or your illness cover on a policy that has a tax break on the premium.

The last is just to map out the next 20, 30, 40 years and that’s going to cover everything over the time frame so that’ll be short, medium and long term and it’ll identify everything that needs to be paid for and then you can start to allocate resources according to that and that’ll be your financial roadmap.

Cash Flow Forecasting – Your Financial Roadmap

July 6, 2023

Today I’d like to write about Cash Flow Forecasting – Cash Flow Forecasting allows you to project your current assets and income together with your current and future expenditures and liabilities and can be a useful tool to help you understand if you are on track or not to achieve your lifetime goals.

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So you take your pay, your income, your expenses, your debts and your assets and you map having to afford all of the life events you can expect which could be maybe education costs, inheritance, retirement and also the events that you want which could be maybe related to a hobby or a landmark holiday.

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You map it all forward and you look to see how in terms of surplus income or savings and how you’re working towards each of those events or goals.

You may need to make an adjustment so that might be now, that might be in a few year’s time because it is a very long-term plan to help you to work towards those goals and objectives.

It’s particularly popular around retirement because individuals need to see when their pay stops and they need to draw on pensions and savings and investments to see can they maintain their lifestyle.

If you’re wondering what your current assets and income can do for you, consider Cash Flow Modelling – If you need help understanding this tool or other options feel free to get in touch and simply start a conversation!

Saving For Your Children

June 26, 2023

From experience of setting up monthly investment plans, most people set them up to be used as money for either children or nieces or nephews.

The likelihood is that most people will need to avail of money for education or for housing and also the other side of that I’ve seen that put a strain on people’s finances trying to find the money for mainly on education from what I’ve seen.

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So most people will take a long-term view, 10 to 20 years, and invest on a monthly basis between €140 and €250 a month.

€140 is a basic level of child benefit and €250 a month, which is three grand a year, will avail fully of the small gift allowance which should allow for a tax free inheritance.

When you’re looking at a time frame of 10 to 20 years you’ve got the greatest chance of positive investment returns as well.

If you found this article helpful and would like to learn more about your financial planning options for your children, please comment below, share with your network or tag a friend who might benefit from this information!

Feel free to connect and start a conversation or contact me directly at +353 (87) 778 5325☎️

Income Considerations in Retirement

June 23, 2023

For anybody who’s planning for retirement may not be at retirement age but planning for retirement, the big question is, how much income will I need in retirement?

There are rough rules of thumb such as 50% of your income or 66% of your income but for me, it’s on a case-by-case basis.

The state pension, if you’re entitled to it will cover a lot of the basic household bills but for things, and this is where it comes down to an individual basis such as the lifestyle that you want, your hobbies, holidays, and potential healthcare expenses.

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A lot of that will be funded through private pensions and private savings.

Now cash flow modeling is a very good tool that gives you a position whereby you project forward your potential expenses and what you have ring fenced for retirement in terms of private pensions and savings and it gives you the current position and you can then make a decision on whether you need to make any changes to your pension provisions.

If you found this article helpful and would like to learn more about your financial planning options for retirement, please comment below, share with your network or tag a friend who might benefit from this information!

Feel free to connect and start a conversation or contact me directly at +353 (87) 778 5325☎️