Climate Change and Financial Planning

August 22, 2022

How will Climate Change impact on Financial Planning?

Firstly #climatechange will impact the investments you make such as regular monthly savers, a pension or a lump sum investment.

From August your financial advisor will be required to discuss your 𝐄𝐒𝐆 (𝐄𝐧𝐯𝐢𝐫𝐨𝐧𝐦𝐞𝐧𝐭𝐚𝐥, 𝐒𝐨𝐜𝐢𝐚𝐥, 𝐚𝐧𝐝 𝐆𝐨𝐯𝐞𝐫𝐧𝐚𝐧𝐜𝐞) preferences with you and explain their definition plus how you can incorporate them into your #investment decision.

💡Also to note, due to the Russian invasion of #Ukraine and lack of supply, energy prices have increased substantially.

From a cash flow modelling point of view, businesses and individuals can invest to lower their energy bills. This may be something that has to be done given the high cost of energy at present.

Contact us today to learn more on hlambert@integralfinancialplanning.ie.

Climate Change and Retirement Planning

August 15, 2022

On Friday I shared a video briefly (https://www.youtube.com/channel/UC7KIR9TRnOcE_mEyIpguRDQ) chatting about the impact of #ClimateChange on financial planning and for the next 3 weeks, I’ll share a series covering this topic.

I’ve recapped these points into today’s article with the main points outlined below📚

Recently there has been a push from European regulations for a lot of #investment funds to move towards #sustainability and ESG and over time I believe this is going to become even more common.

💡𝐖𝐡𝐚𝐭 𝐢𝐬 𝐄𝐒𝐆?
ESG investing incorporates environment, social and governance (ESG) elements into a fund’s investment process, in addition to financial considerations.

I believe it is worth reviewing where your #pension fund is being invested and considering investing it into an #ESG or sustainable fund.

It is also a good idea to consider expenditures and if they might be required when you are retirement planning.

For more information you can check out the link – https://www.forbes.com/sites/stevevernon/2022/08/02/climate-change-is-emerging-as-a-mainstream-retirement-issue/?sh=7ebef7775d40

The Importance of an Emergency Fund

July 21, 2022

Over the past 2 years or so we have had to overcome a pandemic, lockdowns, recessions, wars and inflation at record levels. It has been a tough economic landscape with many who have been out of work or had a significant income drop.

When money comes into a household or business there is always something it can be spent on but I do believe it is crucial that we cycle part of our income for an emergency fund to help ease the burden of hard economic circumstances.

If an emergency fund isn’t in place it’s as simple as setting up a monthly direct debit into a regular #savings account or an #investment policy with a modest level of risk. Get in touch today if this is of interest.

The Impact of Rising Interest Rates

July 11, 2022

We’ve seen inflation remain stubbornly highly at around 8%.

Central Banks have a mandate to keep, certainly the ECB, inflation at 2%.

When inflation remains stubbornly high they look to act and increasing interest rates is one of the ways they (Central Banks) will look to curb inflation they are looking to increase interest rates probably at every periodic meeting for the foreseeable future.

The inflationary pressure we’re seeing at the moment is a lack of consumer goods coming from China, it’s from manufacturing disruption from Covid lockdowns, it’s from sanctions on Russia, which is limiting oil and gas supply and it’s from lack of foods and grains from Ukraine because of the invasion.

Now, increasing interest rates isn’t going to increase the supply of consumer goods or foods or fuels, while it will obviously, curb other parts of inflation.

Another consideration for central banks is the level of debt.

The level of debt globally between governments, companies and individuals in 2021 was $300 trillion.

So an increase in interest rates is going to have an impact.

A lot of that debt will be fixed rate but taking a local example of individuals looking for mortgages the cost of mortgages will increase for new mortgages which means individuals will be able to borrow less and standard variable rates will go up and that will obviously put more financial pressure on people.

Other considerations then would also be that in the last maybe 10 or 15 years or so, we’ve seen low interest rates and bond-buying has had a big impact on stock markets and property markets, we’ve seen a big increase there (in stock markets and property markets).

Stopping bond-buying (by Central Banks) and increasing interest rates will put pressure on opening markets.

I think what to do is, for those with mortgages if you’re in the position to review or to change, I think it might be time to look into that while interest rates are low, it might save some money when other things are getting more expensive.

I think for investors and for pension investors who have funds based on the stock markets or direct stocks, I think it’s to look at your time horizon.

If you’re looking at a ten-year time horizon, long-term growth in the stock markets is positive, so I would be mindful of that and keep an eye on your time frame as opposed to short stock market volatility, which is unfortunately just part of investing.

If you found this article helpful and would like to learn more, please comment below, share with your network or send a friend who might benefit from this information!

Are We (In Ireland) Heading For A Recession?

July 4, 2022

Currently, we are not in a recession and The Department of #Finance & The #Economic Social Research Institute are guiding us that we will not go into a recession.

Whereas a number of financial experts are expecting that it is likely that #Ireland will go into a recession.

💡With the rise in #inflation and the chance of #recession, I would expect consumers to continue spending less therefore the #SME sector will be challenged.

Internationally, I believe the #US will go into a recession and we will see #China‘s #economy slow down with the #EU expected to have a lower level of growth but not to go into a recession.

If you found this article helpful and would like to learn more, please comment below, share with your network or DM me – hlambert@hjlambert. Thanks for reading.

Tax Efficient Investment Options For Those In The Multinational Sector

June 15, 2022


✅ 𝐏𝐞𝐫𝐬𝐨𝐧𝐚𝐥 𝐏𝐞𝐧𝐬𝐢𝐨𝐧 𝐂𝐨𝐧𝐭𝐫𝐢𝐛𝐮𝐭𝐢𝐨𝐧
There should be a company pension scheme in place.

This will allow you to make an employee contribution or an additional voluntary contribution to your pension scheme and claim tax relief, and income tax relief on the money that you’re contributing.

✅ 𝐄𝐦𝐩𝐥𝐨𝐲𝐦𝐞𝐧𝐭 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 & 𝐈𝐧𝐜𝐞𝐧𝐭𝐢𝐯𝐞 𝐒𝐜𝐡𝐞𝐦𝐞
This is done on a personal basis, separate from your company.

You can invest in a basket of companies on a 4-7 year timeline and typically your investment serves as a type of funding for companies who are scaling their business.

✅ 𝐂𝐡𝐢𝐥𝐝𝐫𝐞𝐧 & 𝐃𝐞𝐩𝐞𝐧𝐝𝐞𝐧𝐭𝐬
If you take a simple equation by adding the value of your home or property, your pensions and your savings and take that as 𝐗 𝐢𝐧 𝐭𝐡𝐞 𝐞𝐪𝐮𝐚𝐭𝐢𝐨𝐧.

Then if you take the number of children you have and multiply that by 335,000 and that’s 𝐘 𝐢𝐧 𝐭𝐡𝐞 𝐞𝐪𝐮𝐚𝐭𝐢𝐨𝐧. – If X is greater than Y then your children and dependents will be liable for inheritance tax.

💡 From a tax planning point of view there are #insurance policies that will cover inheritance tax.

✅ 𝐒𝐦𝐚𝐥𝐥 𝐆𝐢𝐟𝐭 𝐀𝐥𝐥𝐨𝐰𝐚𝐧𝐜𝐞
You can gift anybody €3,000 a year tax-free – This will be tax-efficient inheritance.

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

Investment Alternatives to Stock Options

June 8, 2022

For three weeks starting this week, I’d like to talk about some financial advice for those working in the multinational sector.

This week I’ll talk a little bit about some of the investment alternatives to those who have built up money through stock options.

Stock options are part of remuneration to multinational sectors through bonuses, pay or whatever it might be, and individuals can build up pretty significant sums over the years.

Stock options, by their nature are in one share in one industry, and when the markets turn or take a drop as they have this year you could face the full brunt of the drop.

There will be those who are happy to sit and wait for the price to recover.

And I certainly wouldn’t  advocate selling in a loss making situation.

But there will also be those who maybe aren’t as comfortable with the level of volatility that they’re experiencing, and they’ll be those who have that money earmarked for something in future may now be looking to try and protect it a bit more than it is now.

So for those individuals, there are lower risk and diversified options available and I’d be happy to discuss at any point.

I should also say that selling stock options does will likely incur a tax liability.

Potential Tax Bill For Co-Habiting Couples Buying A Home

May 30, 2022

Over the past week I have had three separate conversations with individuals who want to buy a property or a home with their partner, so I will write a little bit about that today.

Buying a property or home is one of the biggest purchases that most of us will make, and there’s plenty of insurance is around that, such as home insurance and mortgage protection, which will pay a lump sum to the bank, which should cover most of the mortgage if one person passes or one of the homeowners passed.

For partners or for cohabiting couples, in that scenario, if one person passes, their surviving partner goes from being the joint owner of the property to the seller of the property and that can trigger a capital acquisitions tax liability.

Depending on circumstances, that can be a significant sum.

So it’s just something to be mindful of when buying a property with a partner.

There are life insurance policies called life for another, which can provide a payment to provide some protection for surviving partner in that instance.

Company Investment Options

May 19, 2022

For three weeks starting two weeks ago, I’ve spoken about how company directors can gain more financial security and benefit from company profits and tax efficient way.

The first week I spoke about financial security and last week and this week will be about benefiting from company profits in a tax efficient way, and I’ll leave both links in the comments box below.

A lot of companies have built up significant cash reserves over the years, from retained profits. Company directors will always have to manage cash flow as a key part of the business, but some companies will have a surplus of cash over and above what they need to manage the company on a day to day basis or a year to year basis.

So with inflation at 6.5% and deposit rates at 0%, it’s difficult to justify keeping all money all money on deposit. What companies can do is that they can invest in a managed fund or an investment fund through the company.

The investment fund can set it up to full access just in case it might needed it in case of an emergency.

The taxation on the gains through a company is more efficient than on an individual basis, so it makes sense from that point of view as well.

Tax Efficiency For Company Directors

May 16, 2022

For three weeks from last week, I’d like to write about how company directors can get more financial security and can benefit from company profits in a tax efficient way.

Last week I wrote about financial security and this week I’ll talk about benefiting from company profits. 

I’ve had many conversations over the years with company directors and business owners, and most would like to or would intend to sell the business at retirement to generate a cash lump sum. 

One of the most tax efficient ways to generate a cash lump sum from business is through a pension. 

As a company director, if you have 20 years’ service in the in the company, you can take 1.5 times your final salary as a tax free lump sum from the pension (that’s limited to €200,000). 

But it’s a substantial cash lump sum that you can generate from the business, and that can be in conjunction with the sale of a business so you can have the two.

In some instances a business isn’t sellable, and that’s usually because the Co. director or business owner is the business through their contacts, their capabilities, the relationships or whatever might be. 

So in that instance, it might be that the pension is the only way to generate the cash lump sum from the business.