This week I aim to share some brief insights that might be worth knowing when you are building an investment portfolio in Ireland.
When it comes to investing it’s probably fair to say that there is so much choice, probably too much! Reminds me of that weird situation referred to as the ‘paradox of choice’ where, when confronted with too much choice we can stall, suffer from inaction and often make choices that are far from the ones that really wanted! Barry Schwartz’s TED Talk is here, worth a watch!
That same paradox seemingly happens to often to investors and pension-holders in Ireland also. When we are faced with a choice of multi-asset funds, private banking funds, insurance products, index funds, Lithuanian car parks, Alaskan leisure centres, you name it, there are options available for all tastes!
Paddy QFA RPA APA
Expat Tax is a subject that I often get asked about from listeners. These are individuals that may be leaving or returning to Ireland. Tax being such a specialist area I felt the best thing to do was to invite someone onto the show who specialises in tax mobility.
I was delighted to be joined by Barry Murphy of Expat Tax Services Ireland (www.etsi.ie). In this episode we discussed and chatted about:
- Tax Domicile and Residence, and the impact these have
- Pension transfers across different countries
- Applying for tax reliefs and grants on relocation
- Employment Tax Reliefs
- How to benefit from State Pension if living/relocating from abroad
- Special Assignee Relief Programme (SARP Ireland)
- How to split your tax year between countries
- Foreign Earning Deduction (FED Ireland)
Expat Tax is such a niche area, with limited credible information available.
If you know anyone currently living abroad whose thinking of coming back to these fair shores, do them a favour and send this to them! And vice-versa!
I hope it is of value.
Ever wondered which is the best multi-asset investment Fund in Ireland?? Well if you have, you came to the right place!
Welcome back to Ireland's dedicated Investment and Financial Planning Blog & Podcast! In my work with clients I frequently get asked about Multi-Asset Investments, whether they are any good, and which ones might be best. So this week I aim to answer a question that I think has yet to be answered in these parts; which is the best Multi-Asset Investment Fund in Ireland!
Owning any investment is kinda like 'Pick n Mix' sweets, you can have all of one type of you can have lots of different types in the one bag!
Paddy Delaney QFA RPA APA
'Mind the pennies and the pounds will look after themselves' is a well-worn saying, the origin of which I have no idea! While it might give the perception of being 'mean' or 'tight' I reckon it's basis is in being proactive and deliberate in our approach to managing our personal finances.
This week I share 10 small changes that can have a siginificant and positive result for you as an investor, saver or retiree.
I hope it helps.
Ever wonder about Financial Advice in Ireland? Are financial advisors worth their salt? Are financial advisors worth paying? Should I bother getting financial advice? My take is that it totally depends on what you are hoping to achieve, and what support you are hoping to get.
The thing that strikes me about both of the examples above is that both Client A and Client B are probably already PAYING for financial advice, irrepsective of whether they are actually benefiting from it or not! In pretty-much every retail financial product relating to financial planning (investments, protection, pension, savings) there is probably a commission going to the advisor or agency that you bought it through, even if you have not seen sight nor sound of them since! Unfortunately this it totally true, and what I believe is as equally as unfortunate is that you could potentially be benefiting from the equivalent of an extra 3% in investment returns per year!
I was fortunate enough to get to attend the annual Nucleus Platform Conference in Manchester last week. They had an agenda with some of the most exciting speakers in Financial Planning from Canada and USA. While Nucleus are a UK-only platform I was really chuffed to get on the ticket, and made full use of my day over there, meeting lots of quality advisors, hearing some extra-ordinary speakers, and have a super fun time too!
In this episode I get to share insights with you from the following:
Westside Financial Planning, Sheffield.
I hope it is of some value!
When it comes to Financial Planning in Ireland it is fair to say that it is a pretty new service to many. It seems many of us are aware of the role of traditional Brokers and Insurance Agents, but perhaps not the same level of awareness or understanding of Financial Planning. In this short piece I hope to convey what Financial Planning is and how it can potentially be of significant value to people.
I frequently get asked by listeners and readers about funding into a Self Administered Pension. There seems to be a lot of confusion about what it is, or indeed isn't, and who they are or aren't well suited to. So that is this weeks' objective, to answer these very queries. I hope it is of use.
My father used to shoot. He'd go out with his busted old shotgun with the stock taped on with insulation tape! He'd walk around fields for what seemed like days at a time, coming home with the occasional pheasant! As frowned upon and macabre as that may seem to some today, when you are from the midlands of Ireland that was (and remains) the equivalent of golfers hunting for birdies today! I remember vividly the first time he took me out shooting. Being fiercely animal-centered I wasn't up for shooting any live animal, but I do remember taking my first shot with a shot-gun in the wilds of Kilkenny. Aiming for a tree, with nerves and an unsteady hand (I was 10!) I let fly a cartridge, missed the tree and very nearly shot a passing duck. Luckily he passed unharmed, but that was essentially the beginning and the end of my shooting career! Whenever I see a duck these days I'm reminded of that fond memory.
If It Looks Like A Duck, Quacks Like A Duck, Its A Duck!
A Small Self-Administered Pension Scheme (SSAS) is just that, a pension, which is small in number of members, and which is self-administered! There are lots of misconceptions about what they do and don't do. If you like detail then I strongly suggest reading this, Chapter 19 of the Revenue's Pension Manual. That will keep you going for a while!
I get a lot of questions about Self-Administered Schemes, so here are some of the typical questions I get asked about them, and a broad answer to help get some clarity around them.
Thanks for your time.
Welcome back to Ireland's award-winning Financial Planning Blog & Podcast, with me Paddy Delaney. Delighted you have decided to join me! This week we are going to explore an approach to retirement income planning that I mentioned months ago. It is customary for retirees in Ireland to decide to generate pension income by using either an annuity, or an ARF. In Blog113 we explored the pros and cons of both of these in isolation. However, as we like to look at things a little differently here we're going to dissect the merit or otherwise of using a combination of the two.
If you google it you'll find millions of results for articles and pieces outlining why an ARF or why an Annuity, but you might struggle to find one which addresses the topic we are about to! We will briefly summarise the probable outcome from using an ARF only, an annuity only, and only then will we analyse using a combination of both.
Paddy Delaney RPA QFA APA
Welcome to Ireland's award-winning Personal Finance Blog & Podcast. This week we explore a topic which is being asked more and more, what fees are payable, and what is the impact of these fees on a pension, with particular focus on Approved Retirement Fund (ARF). We will not just determine the impact monetarily but also the impact on how long that ARF might actually last you, which is kind of a big deal! This won't be a long episode, but I sure hope it helps shed some light on a dark corner! If you haven't already caught last weeks' episode, which helps explain how to maximise the duration of your ARF, you can grab that here.
Now it goes without saying that you get nothing for nothing, and that we will pay fees in both the accumulation phase of pension/retirement planning, and in the spending-phase. Much like an egg-timer, where you turn it over, there is no halting it, there is a finite amount of grains in the top and there is a finite amount of time before they all pass through. We are precious of every grain, we only have so many to use. I guess in this case what we are trying to do is to be aware of any grains that might be escaping out the sides without us even knowing about it. We're looking to plug any leaks!
The focus of this piece is very much on the impact of the fees on our ability to draw income from an Approved Retirement Fund over the course of our 'Life 2'!
Welcome to Ireland's #1 Personal Finance Blog and Podcast, with me Paddy Delaney! This week we explore an important topic for many, and that is managing our income when we leave full-time employment. When we enter 'Life 2' we are switching from accumulation to spending, which is a big shift for many people to take. I hope this piece offers some insights that will help you.
In this article I aim to answer the following questions that I frequently hear in working with clients who are in this stage, and for many are a cause of concern, until answered:
Drop me a mail here.
Paddy Delaney - Informed Decisions
Welcome back to the #1 Investment and Retirement Planning Blog & Podcast in Ireland. Of late our focus has been very much around preparing our finances in advance of, and indeed after we leave full-time employment. Some people call it retirement, other people don't like that term (hear Fin's interview here!).
This week, as promised we will explore that big question for many, When can I retire? A few readers got in touch after Blog 118, where we looked at maximising the income you achieve from an ARF. They were asking why not just retire earlier? So here we go!
Oh, for those of you that don't like the term 'retirement' I'm delighted to share an alternative! I came work by a US guy, Don Ezra recently. All about preparing for retirement. He calls retirement phase 'Life Two'. He suggests it came about when the accronym for 'Life After Full Time Work' (LAFTWO) was converted into 'Life Two'. I like it! I also like 'Accumulation' phase and 'Spending' phase however if you are anything like many who find their calling in Life Two you may find yourself so busy that you don't have much time for spending!
See website for full Blog 119
The concept of Financial Independence Retire Early means different things to different people. Friend of the show, Fin Goulding has no shortage of experience when it comes to the investment and insurance industry, and joins us on the show to share his own take on FIRE, and how people can achieve Financial Independence.
Be sure to stay till the end where Fin shares his take on how to manage and achieve long term investment success.
If you have, or are soon to have, an Approved Retirement Fund (ARF) you might benefit from the following research. Wondering how to make your ARF last longer? How to generate as much income as feasible from your ARF? This week we continue where we left off 2 weeks ago, and as promised share some strategies that can
Welcome to Ireland's #1 Finance Blog, where we're on a mission to share insights that'll hopefully help you with money. If you have any questions, feedback or suggestions on the back of this piece please do get in touch with me directly here. Would love to hear from you.
Welcome to Informed Decisions Podcast, Ireland's #1 Finance Blog & Podcast.
As we continue out focus on managing and optimising pension and retirement income in Ireland we are delighted to bring you one of the leading lights in the academic research of this topic, Abraham Okusanya.
As the creator of Finalytiq in the UK, author of 'Beyond the 4% Rule', and host of the 'Science Of Retirement' Conference there is not much that he does not know about delivering results for customers in their investing and retirement planning. Sit back and enjoy!
P.S. apologies for the dodgy sound quality when I am speaking - my fault entirely. Will sort it for the next interview!
How long will my ARF Income last? This week we continue our analysis of how we can actually go about drawing and maximising our pension and ARF incomes when we reach the age where we start to 'spend' instead of 'accumulate' our money.
For me at least this is the fun bit for us. We don't have pensions because we want a pension, we have pensions because we want what it can potentially give us. Ultimately what it will hopefully give each and every one of us is financial independence and choice when we get to that stage of life. Unfortunately this is the bit that doesn't get very well covered in media and education. What we tend to read and hear about is 'the pension' or 'the ARF' (the products people are trying to sell us!) - we rarely hear about the finer details, and the details that will be the most significant when we get to that stage. I aim to arm you with the ideas and knowledge now so that you can achieve tangible results when you get there yourself and you are drawing an income from your ARF or other pension funds.
We will be looking at two core aspect to Retirement Income Planning; Withdrawal Rates, and Dynamic Spending Strategies. First up are Withdrawal Rates.
Investing in Bonds, particularly in retirement (or once we stop working full time!) is the norm. If you are a member of an Occupational Pension scheme or you have a mass-market pension fund you are more than likely signed-up to LifeStyling on your scheme. We covered it in Blog 53. What LifeStyling will do is move a large chunk of your pension or investment portfolio from Equities and into Bonds as you approach your 'normal retirement age'. Can be a good thing, can be a not-so-good-thing.
This week I aim to share a short piece outlining the key aspects of Bonds, how they work, what you need to know about them if investing in them, and how they can stand to benefit/hinder investors in the mature stages of their financial planning. We will focus on Bond funds, and Bond Index Funds specifically in this weeks' edition.
Welcome, and thanks for checking out Informed Decisions Blog. Over the past couple of weeks we have focused on managing finances in later life. Last week we explored the 2 options many of us have when we get to draw our retirement funds, Annuity or ARF.
Seeing as it currently accounts for the majority of retirement income strategies it will form a large part of coming weeks. We will be exploring how one can attempt to maximise the income one gets from an ARF. Make sure you stay till the end because we will also be exploring how you can aim to ensure that your ARF lasts at least as long as you do - and hopefully longer, potentially leaving a sizeable legacy to loved-ones.
This week we will now share insights on some really important aspects of Approved Retirement Funds (ARFs). I was being a little cheeky calling this 'what you should know about ARFs' but I do honestly believe these are the basics. I also believe that knowing these fundamentals will help, whether you already have an ARF, or will have one in the future.
We will determine how ARF-income is taxed, how it is handled on death, and explore how you can maximise the income you get from your ARF. This latter element is an entire science on it's own however I will intro the main aspects to consider.
Should I buy an Annuity or Approved Retirement Fund (ARF)? Unless we are retiring from a defined benefit (DB) pension scheme we will have this decision to make in regards how to access our pension benefits. Once we take out tax free lump sum we will have this decision to make with the balance. It is a big decision with multiple complexities involved, both financial and emotional.
Do I want the predictable route or do I want the less predictable but potentially more lucrative route? Do I want the peace of mind knowing that I'll get €x every month for the rest of my days, or do I want the potential to get more every month and potentially leave a legacy? Do I want a piggy-back down Everest or do I want to navigate it on my own two feet? That last sentence might seem odd but bear with me. Before I outline the considerations I believe we should make before deciding on annuity or ARF, I want to put this decision in a little context.
I was speaking at a recent 'Point of Retirement' event in Croke Park. As part of my piece I compared managing one's income in retirement to climbing and descending Everest. I made the comparison that when we are in 'accumulation' phase of building and preparing for leaving full-time work we are on the 'ascent' of the mountain. We reach the peak at the time we depart full time employment - however as anyone who has ever climbed a mountain will confirm - the descent is far from easy. One stumble and it could be damaging or indeed fatal. This is a much lesser risk when we are ascending, a fall or stumble has a much lesser probability of significantly screwing-up our accumulation plan.
While some could argue it is slightly dramatic, I do believe that managing our income in retirement is very similar to ascending and then descending Everest. Given the potential dangers, the impact of a stumble financially, and the significant importance of staying on track draws many comparisons. One of the attendees at the session sent me a link that very night, which was breaking news of the Irish climber who had unfortunately gone missing on the descent of Everest, only for another Irish climber to be confirmed dead a week later, again on the descent. It was obviously a pure (and really awful) coincidence but it surely hammered home the point about the dangers of descending, or in this situation, of navigating our 'spending phase'.
Welcome back to Informed Decisions with me, Paddy Delaney!
A couple of weeks ago I mentioned that the coming 'season' would be focused on how to prepare for and importantly, navigate our incomes in retirement. It's not that I am breaking a promise but this week I want to take a very slight diversion from that, for two very valid reasons a) an article I wrote was published int he Sunday Times this week, and b) I didn't allow myself sufficient time this week to complete the next piece as fully as I had hoped.....so you'll have to wait till next week for that one I'm afraid! Sorry!
It is not everyday that someone like you and I gets a full article published in one of the main weekend papers - and for someone that has been an admirer of these papers, and of the people who write articles in them, it was a big deal! So I'd love to share the article with you, in the hope that it is of value.
Before I do that I have an ask of you. I have been blogging and podcasting (or 'casting pods' as my mate Lenny calls it!) for 3 years now. I absolutely love writing and creating the Blog every week, get tons of feedback and emails from people, and indeed some of you have become hugely valued clients who I work with on an on-going basis.
During the 3 years I have had a strong desire to do more, to reach out and connect personally, to perhaps meet as part of a group or community of sorts. In my mind at least there is nothing more rewarding than spending time with people who are interested in similar things and sharing ideas, forming new relationships, and learning from each other.
With that in mind, if you are reading this in June or July of 2019, I would really love your thoughts on the following:
If I were to host a Personal Finance/Investing/Retirement conference, meeting or Webinar, would you be interested in attending? If so, have you any suggestions on the specific topics or aspects you feel would be of most value and importance to you?
I have some ideas on what I feel would be of value to people, and based on my own years as a facilitator and coach feel would be able to bring something of real value - the question in my mind however, would there be anyone else there apart from me!? So who better to ask than you, my supporters. Would love you thoughts, email me here with your thoughts.
Pause me, reflect on this, would you attend, and what topics or format would be of value to you? Let me know either way! Once you've that done have a read of the following Sunday Times article as of 2nd June 2019.
The Generation Game… click here to read full article.
Financial Planning in Ireland is on the up. Based on my experience at least, Planning is what people really really want. They may NEED a product to help them achieve their plan, maybe. But they want a plan first and foremost. They want to know that they will be OK financially, that they can afford to do xyz, that they can graduate from full-time employ at x age, and any number of other personal money-dependent goals.
Sure, the actual planning can be hard work, can require work, time, thought, challenge, compromise, debate and decision-making. These activities can and will stir up all sorts of emotions; fear, hope, pain, love, excitement, regret, joy, the list goes on. It is the emotion that it creates is what I get a real kick from. Helping people to plan, and to witness these emotions is what I love most about the work that I do with individual clients. It was in a conversation last week with a client that the topic of inflation came up. It had been mentioned in the news recently, inflation has hit a 7 year high of 1.7%. This blog topic is one I have had on 'the list' for a very long time. It is a huge topic, and some may be disappointed at how short a piece this is, given it's significance, but I feel less is more on this topic - it is a simple concept, too often over-complicated.
Inheritance tax planning is most certainly a balancing act, is fraught with concerns and challenges, and is one that I see individuals struggling with quite often. When you die you may want your estate to pass to your children or other loved-ones but them having to potentially pay a significant % of the estate in Inheritance Tax may reduce greatly the amount that goes to those you intended, and increase the amount that goes to Revenue. I often hear people say 'sure I won't be here to worry about how much tax they have to pay', and I fully accept that logic. I do however also know that many of us would prefer not to see a significant portion of our assets go to the Revenue due to a lack of planning or perhaps a little foresight.
This week on Ireland's #1 finance blog and podcast I will share some ideas that I hope will help anyone that is struggling with this particular conundrum, or indeed may have this conundrum but doesn't yet realise it! I do hope you find it an excellent guide in the main aspects of inheritance tax planning, and I would also caution that everyone's scenario is obviously different, and what might work for one person may not be the optimum route for someone else, so please do bear that in mind as you digest this!
ARFs, AMRFs, AVCs, Annuities all form part of retirement planning, but as usual there's far more to it than products! Welcome back to Informed Decisions Finance Blog.
As part of my own motive to share information and to help others with their financial education I am a volunteer representative of the CCPC (State body that aims to help consumers, check out their website - tons of useful resources). I was delivering a talk to a large group last week in Dundalk, at the end of which we have time for Q&A. What struck me was that most of the questions relate to retirement planning, and indeed how to ensure that the planning we do is effective and of value to us when we get to the 'spending' phase after retirement. What also struck me is that in the past I have typically varied our topics, jumping from beginning to invest, to managing existing investments, regular savings, borrowings, mindset, education etc.
Based on feedback and also based on this recent experience the Blog will take a fairly heavy retirement-planning and indeed income-planning slant over the coming weeks at least. Having said that I hope to share ideas that are as relevant to those that are in 'accumulation' phase (mid-career) as much as it does to those that are in the 'spending' phase (retired or close to it!).
I was talking to a friend of the family a few weeks back, recently retired and full of energy. This lady loves life, has a huge network of friends and family and is looking forward to hopefully many years of good times! When she asked me 'what are you doing these days' and I proceeded to tell her, she informed me that she has only 1 major regret, that she didn't plan a little better financially for her retirement. She doesn't have as much income as she would like in order to do the stuff she would like. It got me to thinking, about my own situation, and indeed of the situations of many people that I have come across over the years who have one eye on their graduation from full-time employment to a more leisure-based lifestyle!
We all obviously have differing circumstances and different opportunities and constraints however there are at least 5 pretty common mistakes I have seen happen again and again. Here I share the culmination of those thoughts, into '5 common retirement planning mistakes', in the hope that they might be of value to you, or indeed to your loved-ones.
you can enjoy in years to come......so buckle in!
It's been mentioned to me a handful of times that the topics of the Blog tend to be focused on the 'upper end' of things, and that for most 'ordinary people' the figures I talk about here are out of reach. To be fair the figures I sometimes talk about are aspirational, I get that. At the same time I fell that irrespective of the level you are aiming for the principles are the same, the ideas are the same. So whether the figures are 2x or 5x what you are aiming for, go with it and hopefully you'll gain some insights that'll help you get to where you want to get. Also, we gotta surely aim big....or as a friend of mine says 'keep your eyes on the stars and your feet on the ground'!
I covered 'can a couple retire with €1m' last year, and this week I will explore how to actually get to that level of a pension pot! In this relatively short piece I will explore the impact of different ages and different strategies in retirement planning, and we'll see how they each impact. The strategies differ in regards the duration of 'accumulation phase', asset allocation and fee structure.....
Many of us have heard of FIRE (Financial Independence - Retire Early) but not many of us have met many that are actually doing it! In this episode we chat with Michael to hear his story, how he is working on his own financial independence, and the vehicles he is using to maximise his own financial future.
Michael stresses that his approach works for him, and that everyone should find their own way based on what they feel will work for them, so please don't replicate what he does without determining the risks and the suitability to you first.
Michael's website is here, and we hope you enjoy the interview.