Considerations When Investing Deposit Money

June 6, 2023

This morning I’d like to talk about those who have money on deposit and are looking at investing a part of it.

The first question is how much you can invest. So anything that you want to put the money towards over the next five years should remain on deposit in case of investment market volatility.

No alt text provided for this image

You need to keep an emergency fund in place and then if there’s some debt it’s worth considering paying some of that down too.

So you’ve finally arrived at the figure. It’s then about what we use the money for, whether it’s towards retirement or education costs, or long-term savings generally.

That will then tell you the term in terms of how long you want to invest.

Generally speaking with investing the longer the term, the better because you get a greater chance of positive returns. For deposit money, a good place to start can be a capital-secure bond, so a bond that’s 100% capital guaranteed if you invest for the entire term.

And then the last consideration then would be if you want access to the money.

Ideally, we’ve gone through the number crunching to see how much you need to leave aside for various requirements but just for conversation over the years lots of people just want to know, just in case, can they get at it.

Now if you’ve gone for a capital secure bond you may not be able to get access to that so you might not be able to get the two of those together but just some practical considerations if considering making an investment.

If you found this article helpful and would like to learn more about your investments, feel free to connect and start a conversation or contact me directly at +353 (87) 778 5325โ˜Ž๏ธ

๐‚๐ก๐ž๐œ๐ค ๐Ž๐ฎ๐ญ ๐ˆ๐ง๐ญ๐ž๐ ๐ซ๐š๐ฅ ๐…๐ข๐ง๐š๐ง๐œ๐ข๐š๐ฅ ๐๐ฅ๐š๐ง๐ง๐ข๐ง๐  ๐˜๐จ๐ฎ๐“๐ฎ๐›๐ž ๐‚๐ก๐š๐ง๐ง๐ž๐ฅย HERE

How Stock Markets Can Perform In A Recession๐Ÿ“ˆ

May 31, 2023

Across Ireland, the EU, and the US we’re seeing a slowdown in economic growth due to an increase in interest rates and while we’re not in a recession yet we may go into one.

No alt text provided for this image

I’ll talk today about what happens to stock markets and the investment of pension funds if we do go into a recession.

In a recession, you’ve got two consecutive quarters of negative economic growth.

No alt text provided for this image

Negative economic growth will mean lower company earnings and a drop off of in the stock markets.

You’ll see investment funds and pension funds can drop down in value.

They’ll stay at a lower level for the short term, the actual duration of it will depend on the duration of the recession and the severity of it as well.

Typically about 5 months, 6 months ahead of an economy coming out of recession the stock markets will recover or start to recover.

And on the basis of investors who believe that the worst is behind us will start to buy back in at better value.

For monthly investors and monthly pension investors, you’re buying in at a lower level that can represent an opportunity of value there.

Lump sum investors and pension investors unfortunately can be just riding out the storm and waiting for long-term returns.

If you found this article helpful and would like to learn more about your investments, feel free to connect and start a conversation or contact me directly at +353 (87) 778 5325โ˜Ž๏ธ

๐‚๐ก๐ž๐œ๐ค ๐Ž๐ฎ๐ญ ๐ˆ๐ง๐ญ๐ž๐ ๐ซ๐š๐ฅ ๐…๐ข๐ง๐š๐ง๐œ๐ข๐š๐ฅ ๐๐ฅ๐š๐ง๐ง๐ข๐ง๐  ๐˜๐จ๐ฎ๐“๐ฎ๐›๐ž ๐‚๐ก๐š๐ง๐ง๐ž๐ฅย 

Real Deposit Returns

May 22, 2023

With a 12-month deposit account yielding 1%, depending on the bank, and inflation running at 7.7% as of March this year that’s a negative return or depreciation in depositors money of 6.7% using those figures.

No alt text provided for this image

There are hundreds of billions on deposit in Ireland with the Irish banks.

Therefore it’s a cheap source of funding for the banks and they don’t have a need to increase their rates in line with the European Central Bank rates because deposit money isn’t moving elsewhere.

No alt text provided for this image

It is clear that capital security is important to Irish savers and investors but also it’s important to have your money grow in real terms and preserve the long-term value of it.

So the solution is to look at a capital-secure bond to invest part of your money into.

You need to keep some of it aside for liquidity and some of it to access when required.

If you found this article helpful and would like to learn more about deposit returns, feel free to connect and start a conversation or contact me directly at +353 (87) 778 5325โ˜Ž๏ธ

Understanding Pension Transfers

April 17, 2023

I’ve had a number of conversations with a client recently about amalgamating pensions into one pot or keeping them separate.

Now the client that I was talking to is approaching retirement so needs to make decisions pretty soon on whether they consolidate their pensions.

But there are lots of people with pensions around the place and I think it’s always worth looking at consolidating pensions if nothing but locating where they are because you can easily lose sight of where they are and as the years go on they’re harder to locate.

No alt text provided for this image

So in terms of amalgamating pensions into one pot, if you have company pensions and they’ve defined contributions you should be able to amalgamate them into the one pot.

And the advantage of doing that is that you keep everything under one roof, you have sight of everything, it’s easier to manage and you see the retirement income from the pension.

From a bereavement point of view it’s easier to manage in terms of estate management you just have to locate one pension.

In terms of keeping them separate, if you are 50 or over and you have a pension from a previous employment you can access that and a tax-free lump sum so that can become a contingency fund.

You can potentially have access to a wider range of funds across the market if you have different pensions in different places.

And it gives you greater flexibility in terms of if you want to continue to work in retirement, maybe part-time, you can access some of the pensions and leave the others as they are until age 75.

So it gives you greater control and flexibility in terms of when you draw the pensions down.

If you found this article helpful and would like to learn more about your pension transfer options, feel free to connect and start a conversation or contact me directly at +353 (87) 778 5325โ˜Ž๏ธ

๐‚๐ก๐ž๐œ๐ค ๐Ž๐ฎ๐ญ ๐ˆ๐ง๐ญ๐ž๐ ๐ซ๐š๐ฅ ๐…๐ข๐ง๐š๐ง๐œ๐ข๐š๐ฅ ๐๐ฅ๐š๐ง๐ง๐ข๐ง๐  ๐˜๐จ๐ฎ๐“๐ฎ๐›๐ž ๐‚๐ก๐š๐ง๐ง๐ž๐ฅ HERE

The Components of Financial Wellness

April 6, 2023

The 20th of March was the UN International Day of Happiness and there was a World Happiness Index Report released.

I was quite interested to see what criteria they used to evaluate world happiness and it’s interesting to see what money-related topics were mentioned.

  • Real Income Per Capita: This is the real income per person in the country.
  • Perception of the Government
  • Social supports
  • Freedom to pursue or make your own choices

And while I do believe the old adage that money can’t buy happiness, I do believe that money can relieve stress and pressure – Particularly with the high cost of living and a high rate of inflation.

I put some thoughts on to graphic to show what financial wellness or happiness can look like…

No alt text provided for this image

It’s having some disposable income and being able to save for a rainy day and retirement.

It’s being able to pursue your goals or your hobbies and having the money to have insurance and financial protection.

For most of us, given the cost of living and the rate of inflation being able to do all of those things means managing your money and sometimes making difficult choices.

Because often the case that financial wellness is financial management, it’s just putting a plan in place and sticking to it and managing your money, and this can create the disposable income that you need to do all those things.

If you found this article helpful and would like to learn more about your financial options, feel free to connect and start a conversation or contact me directly at +353 (87) 778 5325โ˜Ž๏ธ

๐‚๐ก๐ž๐œ๐ค ๐Ž๐ฎ๐ญ ๐ˆ๐ง๐ญ๐ž๐ ๐ซ๐š๐ฅ ๐…๐ข๐ง๐š๐ง๐œ๐ข๐š๐ฅ ๐๐ฅ๐š๐ง๐ง๐ข๐ง๐  ๐˜๐จ๐ฎ๐“๐ฎ๐›๐ž ๐‚๐ก๐š๐ง๐ง๐ž๐ฅย HERE

Check out the video at https://www.youtube.com/watch?v=1npKk3LsOsg

What Is Preventing You From Having Financial Wellness

February 28, 2023

What’s preventing you from achieving financial wellness or financial prosperity or financial independence?

In my experience of working in the industry whether it’s a business or an individual its costs creep up, so spending a little bit too much, high overheads through debt or mortgages or bills and obviously, the cost of living is something that’s making things more difficult as well.

So would a long-term financial plan help in turning things around or helping you achieve your goals?

Like a lot of things in life whether it’s sports, business, or finance, a well-thought-out and adhered to long-term plan tends to help an awful lot.

No alt text provided for this image

It is something you could do yourself but I think working with an industry professional is very beneficial.

Studies have shown in Ireland, Canada, and the US that those who work with financial planning professionals have a greater level of savings, higher pension contributions and a greater level of financial protection, and a greater sense of financial wellness.

No alt text provided for this image

So while financial planning can be difficult and there are trade-offs to be made, with potentially difficult decisions – Being under financial pressure is quite a bit worse.

If you found this article helpful and would like to learn more about your finance options, feel free to connect and start a conversation or contact me directly at +353 (87) 778 5325โ˜Ž๏ธ

๐‚๐ก๐ž๐œ๐ค ๐Ž๐ฎ๐ญ ๐ˆ๐ง๐ญ๐ž๐ ๐ซ๐š๐ฅ ๐…๐ข๐ง๐š๐ง๐œ๐ข๐š๐ฅ ๐๐ฅ๐š๐ง๐ง๐ข๐ง๐  ๐˜๐จ๐ฎ๐“๐ฎ๐›๐ž ๐‚๐ก๐š๐ง๐ง๐ž๐ฅ HERE

Published by

If this is something you’d like to learn more about feel free to connect and contact me to start a conversation! โ˜Ž๏ธ +353 (87) 778 5325 ๐Ÿ“งย hlambert@integralfinancialplanning.ie #FinancialAdviceย #Retirementย #Investmentย #Pension

Pension Options During Redundancy

February 13, 2023

I’d like to talk today about pension options if you have been made redundant or taken redundancy.

No alt text provided for this image

If you’re 50 or over you can access the pension, you can draw down the tax free lump sum and transfer the balance to an ARF or Annuity.

If you need additional cash that’s a good option.

If you don’t I think it’s better to leave the fund available for retirement as a retirement income.

If you’re not 50 then your options are you could transfer it to a personal retirement vehicle, like a Retirement Bond or a PRSA.

That allows you to track and manage the pension as part of your retirement plan.

There is some admin to be done in terms of making the transfer.

You can leave the pension on the scheme, obviously, there’s no admin with that.

I tend not to recommend that as I’ve seen too many people lose track of pensions and they can be difficult to find and sometimes they can’t be found at all.

The last option is to transfer onto a new company pension if you have moved and found another role with a pension scheme or if you do in the future you can make that transfer and there’s no time limit in terms of doing it.

Then you keep everything amalgamated and under one roof.

Other considerations will be just in some older pension schemes you can have restrictions in terms of a transfer or availing of early retirement, and also just to double check if there’s any costs associated with making a transfer out of the pension scheme, and the fund options available to where you’re transferring the money to or the pension too.

If you found this article helpful and would like to learn more about how to make the most of your finances, feel free to connect and start a conversation or contact me directly at +353 (87) 778 5325โ˜Ž๏ธ

๐‚๐ก๐ž๐œ๐ค ๐Ž๐ฎ๐ญ ๐ˆ๐ง๐ญ๐ž๐ ๐ซ๐š๐ฅ ๐…๐ข๐ง๐š๐ง๐œ๐ข๐š๐ฅ ๐๐ฅ๐š๐ง๐ง๐ข๐ง๐  ๐˜๐จ๐ฎ๐“๐ฎ๐›๐ž ๐‚๐ก๐š๐ง๐ง๐ž๐ฅ HERE

#FinancialAdvice #FinancialPlanning #Investing #Retirement #Pension

Create a Habit of Managing your Finances (from AIBF Podacast)

February 8, 2023

โ€œYou have to create the financial plans but you also have to look at the blockers for the plans as well and removing all of themโ€

Hugh Lambert is the Managing Director of Integral Financial Planning. Whether itโ€™s pensions, life cover, investment, or savings, Integral Financial Planning is committed to helping clients navigate the complex world of finance with confidence. They are dedicated to advising company directors and managers on how to structure their life cover, investments & pensions in a cost and tax-efficient manner.

Hugh joined our CEO, Elaine Carroll on the latest episode of AIBF Business Talk to share his insights on:

  • Tips to manage your finance,
  • The idea of creating a surplus,
  • Making a retirement plan,
  • Financial planning for your kids,
  • The future of Integral Financial Planning,
  • And much more.

The AIBF is delighted to be working with Hugh and Integral Financial Planning, which is a two-in-a-row Business All-Star. Hugh is also a proud recipient of All-Star Thought Leader in Financial Services accreditation by the All-Ireland Business Foundation (AIBF).

The AIBF would like to thank Hugh for sharing his valuable insights with fellow Business All-Star accredited TRIBE members and the wider public.

The Dreaded Bear (Market)

January 24, 2023

The last 11 months have been difficult for stock market investors and pension investors also investing in the stock markets.

That’s because a number of markets around the world moved into Bear Market territory which is a drop of 20% from the highest valuation.

Now focusing on the S&P 500 which is the US market and probably the most influential in the world – The S&P moved into bear market territory last year.

No alt text provided for this image

I posted an article from Forbes it went into a bit of detail about Bear Markets since 1945.

What we can expect is that over half of the Bear Markets peaked in terms of they hit their lowest valuation 2 months after going into Bear Market territory.

No alt text provided for this image

So, 2 months after dropping by 20% they hit their lowest valuation. Now, it remains to be seen as to whether that’s going to be the case.

Unfortunately, Bear Markets that coincide with recessions tend to last quite a bit longer so it’s about 449 days.

Typically markets respond quite quickly and recover quite quickly.

In a lot of the cases of Bear Markets, the 6 and 12-month forward returns are quite strong.

Now in all Bear Markets, the markets have recovered sometimes it does take a little bit longer such as the eventuality of a recession which I think we will see.

A lot of analysts are forecasting for the end of the year that inflation will have subsided from an increase in interest rates.

That will then lead to interest rates decreasing and that should be a catalyst for the global economy and stock markets to grow.

While we’re working our way through it we probably have a little bit to go yet but the markets will recover.

Although it has been a tough time for investors and for pension investors, I think over the long term I think the markets will still show strong returns.

If you found this article helpful and would like to learn more about how to make the most of your finances, feel free to connect and start a conversation or contact me directly at +353 (87) 778 5325โ˜Ž๏ธ

๐‚๐ก๐ž๐œ๐ค ๐Ž๐ฎ๐ญ ๐ˆ๐ง๐ญ๐ž๐ ๐ซ๐š๐ฅ ๐…๐ข๐ง๐š๐ง๐œ๐ข๐š๐ฅ ๐๐ฅ๐š๐ง๐ง๐ข๐ง๐  ๐˜๐จ๐ฎ๐“๐ฎ๐›๐ž ๐‚๐ก๐š๐ง๐ง๐ž๐ฅ HERE

#FinancialAdvice  #FinancialPlanning #Investing #SP500

Managing Your Finances in 2023

January 16, 2023

As we start into the New Year lots of us will be looking at trying to make improvements to finances, health, fitness and lifestyle through New Year’s resolutions.

The following Red X graphic it highlights the main reasons people don’t fulfill their resolutions.

No alt text provided for this image

Mainly the points I took from it were aiming too high, not writing the points down, and not tracking your progress.

Because of my background, I’ll suggest a process for reviewing finances from the point of view of New Year’s resolutions incorporating the Red X points and the graphic I shared last week.

No alt text provided for this image

Firstly, just to evaluate your current financial position and that’s from the point of view of if you’re saving every month or do you have money left over to save at the end of the month.

Are you running a deficit so you’re in negative territory? Do you need to make a cost saving? From the point of view of maybe changing your mortgage provider, shopping around for insurance, and utilities, also are you paying into a pension?

The next is to identify stressors, so if you’re sitting down to review your finances is there something on your mind, is there a reason that’s driving you to sit down to look at it?

We take setting a regular saver as something that you want to do.

Are there blockers to that? Do you need to first pay off some debt i.e personal debt?

Or maybe to shop around and make a cost-saving on your utilities to start that savings plan.

So after establishing all of that it’s about creating a plan and creating the steps within the plan and the time frame.

It’s getting those milestones that you can track your progress and then after that, it’s implementing the plan and reviewing periodically.

If you found this article helpful and would like to learn more about how to make the most of your finances, feel free to connect and start a conversation or contact me directly at +353 (87) 778 5325โ˜Ž๏ธ

๐‚๐ก๐ž๐œ๐ค ๐Ž๐ฎ๐ญ ๐ˆ๐ง๐ญ๐ž๐ ๐ซ๐š๐ฅ ๐…๐ข๐ง๐š๐ง๐œ๐ข๐š๐ฅ ๐๐ฅ๐š๐ง๐ง๐ข๐ง๐  ๐˜๐จ๐ฎ๐“๐ฎ๐›๐ž ๐‚๐ก๐š๐ง๐ง๐ž๐ฅ HERE