Review and Outlook Q 3 2022

October 17, 2022

As we begin Q4, in this morning’s article I want to share my thoughts on Q3 and what we can expect going forward๐Ÿ’ก

At the beginning of Q3, theย Stock Marketsย were recovering from a low point in June, which continued until the end of Q3 and this deteriorated again by mid-September๐Ÿ“ˆ

It’s been a difficult year for stock marketย investorsย due to high levels ofย inflationย and Central Banks increasing interest rates๐Ÿ“Š

Investors have been worried about the global economy in the Western world with high levels of consumer business and government debt.

Increasing interest rates will make it more difficult to service.

It will also dampen economic activity as we can see locally in theย mortgageย market, mortgage transactions have dropped by about 3% to 4% on the basis that mortgage approval amounts are lower due to higher interest rates.

So, again from an economic point of view globally, we haven’t gone into recession.

There isn’t aย recessionย from a global economy next year forecast either.

From an Irish point of view, we’re expected to have 9% economic growth in terms of GDP growth this year and a strong year next year as well.

Likely that will be pushed on by the multinational sector and I think in the domestic economy, particularly for consumers moving into the winter with energy bills increasing I think it will feel probably like a recession but from an economic forecasting point of view, it’s not expected to happen.

Some European countries are expected to go into recession but the US isn’t expected to.

From a stock market point of view, it’s difficult to see an improvement of the stock markets in the short term.

I think investors will look to see interest rates stop being increased and inflation start a trend downwards now.

The forecast for inflation is for it to start to decrease but remain on a high level so, moving from say maybe 8% to 9% towards 6% next year and then down towards 4% to 4.5% the following year depending on the region of the world, more the Western world.

A number of commentators have started to point out that from a long-term point of view there is value in the markets at the moment.

So, for investors and pension investors, it’s about remaining invested and cash in the recovery.

There is an opportunity to make investments now as commentators have pointed out.

From an economic point of view, we’re expected to skip a recession but I think certain parts of the economy particularly consumers in the Irish economy will feel a pinch with the energy bills coming into the winter.

If you found this article helpful and would like to learn more about how to protect 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

#Economy #FinancialPlanning #Income #Investment

Your Tax Bill and Pension Contribution

October 11, 2022

As we approach the income tax deadline, which is in November for online returns.

Individuals will begin to receive their tax bills and at this time, the best way to get a reduction on your tax bill is to make a personal pension contribution.

When you get your tax bill and you pay tax it goes to the provision of government services, so you can’t get the money back.

When you make a pension contribution you invest in yourself for retirement and the beneficiary of the pension will be you.

When you claim it at retirement age, not only does it help to reduce your tax bill, but ultimately you’re saving for yourself.

Given the investment markets at the moment I believe individuals might be concerned about investing and potentially incurring a loss.

So there are some very low-risk fund alternatives, temporary funds albeit, available but for long-term investors, I do believe there is value at the moment to be gained.

If you found this article helpful and would like to learn more about how to invest your money, feel free to connect and start a conversation or contact me directly at +353 (87) 778 5325

Financial Planning and Job Redundancy

September 28, 2022

In 2013 I took voluntary #redundancy and I asked myself a number of questions to help clarify the situation.

๐Ÿ’กHow long the lump sum would cover outgoings

๐Ÿ’กWould that period be long enough to find another job

Factors that I considered that would assist the process were…

โœ… Cash Flow Modeling

This will allow you to project forward monthly outgoings to see how long the cash lump sum will cover you.

โœ… Pensions

Getting advice on where I keep my pension, whether I can transfer it out and if you’re over the age of fifty you be able to access your pension depending on your scheme.

โœ… Financial Policy Review

If you’re paying into policies you should know your options within the terms and conditions i.e can you take a break from paying into the policies without having any impact on them should it get that far?

If you found this article helpful and would like to learn more about how to protect yourself in the midst of redundancy, feel free to connect and start a conversation or contact me directly at +353 (87) 778 5325

Protecting Your Most Important Asset

September 12, 2022

I write a lot about financial planning and increasing assets through regular contributions and savings policies, pensions policies, and investments to make your savings work harder for us with inflation running at 8 or 9%.

๐Ÿ’กWhat’s equally important is protecting what we have through insurance.

There are lots of insurances around, I’ll write about these over the next two weeks but today I’ll focus on income protection.

Our income and income potential over the course of our working career is the most important asset that we have because it pays for mortgages, pensions, lifestyle, holidays, and more, so when your income stops, all of that will come under pressure.

Income protection provides a regular monthly payment if you can’t work through illness or injury which will cover all the outgoings that I previously mentioned.

You can get up to 75% of your income, less any available state benefit or you can also go for a lower level depending on what is available to spend on it.

If you found this article helpful and would like to learn more about your financial planning options, 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 5325โ˜Ž๏ธ

Climate Change and Financial Planning

August 22, 2022

How will Climate Change impact on Financial Planning?

Firstlyย #climatechangeย 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 ๐„๐’๐† (๐„๐ง๐ฏ๐ข๐ซ๐จ๐ง๐ฆ๐ž๐ง๐ญ๐š๐ฅ, ๐’๐จ๐œ๐ข๐š๐ฅ, ๐š๐ง๐ ๐†๐จ๐ฏ๐ž๐ซ๐ง๐š๐ง๐œ๐ž) preferences with you and explain their definition plus how you can incorporate them into yourย #investmentย decision.

๐Ÿ’กAlso to note, due to the Russian invasion ofย #Ukraineย 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 ofย #ClimateChangeย 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 below๐Ÿ“š

Recently there has been a push from European regulations for a lot ofย #investmentย funds to move towardsย #sustainabilityย and ESG and over time I believe this is going to become even more common.

๐Ÿ’ก๐–๐ก๐š๐ญ ๐ข๐ฌ ๐„๐’๐†?
ESG investing incorporates environment, social and governance (ESG) elements into a fundโ€™s investment process, in addition to financial considerations.

I believe it is worth reviewing where yourย #pensionย fund is being invested and considering investing it into anย #ESGย 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 regularย #savingsย account or anย #investmentย 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 ofย #Financeย & Theย #Economicย 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 thatย #Irelandย will go into a recession.

๐Ÿ’กWith the rise inย #inflationย and the chance ofย #recession, I would expect consumers to continue spending less therefore theย #SMEย sector will be challenged.

Internationally, I believe theย #USย will go into a recession and we will seeย #China‘sย #economyย slow down with theย #EUย 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


โœ… ๐๐ž๐ซ๐ฌ๐จ๐ง๐š๐ฅ ๐๐ž๐ง๐ฌ๐ข๐จ๐ง ๐‚๐จ๐ง๐ญ๐ซ๐ข๐›๐ฎ๐ญ๐ข๐จ๐ง
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.

โœ… ๐„๐ฆ๐ฉ๐ฅ๐จ๐ฒ๐ฆ๐ž๐ง๐ญ ๐ˆ๐ง๐ฏ๐ž๐ฌ๐ญ๐ฆ๐ž๐ง๐ญ & ๐ˆ๐ง๐œ๐ž๐ง๐ญ๐ข๐ฏ๐ž ๐’๐œ๐ก๐ž๐ฆ๐ž
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.

โœ…ย ๐‚๐ก๐ข๐ฅ๐๐ซ๐ž๐ง & ๐ƒ๐ž๐ฉ๐ž๐ง๐๐ž๐ง๐ญ๐ฌ
If you take a simple equation by adding the value of your home or property, your pensions and your savings and take that as ๐— ๐ข๐ง ๐ญ๐ก๐ž ๐ž๐ช๐ฎ๐š๐ญ๐ข๐จ๐ง.

Then if you take the number of children you have and multiply that by 335,000 and that’s ๐˜ ๐ข๐ง ๐ญ๐ก๐ž ๐ž๐ช๐ฎ๐š๐ญ๐ข๐จ๐ง. – If X is greater than Y then your children and dependents will be liable for inheritance tax.

๐Ÿ’ก From a tax planning point of view there areย #insuranceย policies that will cover inheritance tax.

โœ… ๐’๐ฆ๐š๐ฅ๐ฅ ๐†๐ข๐Ÿ๐ญ ๐€๐ฅ๐ฅ๐จ๐ฐ๐š๐ง๐œ๐ž
You can gift anybody โ‚ฌ3,000 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!