What does financial freedom look like to you?

Don’t rely on the State Pension! To quality for the state pension you need a minimum 10 year’s Pay Related Social Insurance Contributions (PRSI is deducted from your monthly salary). You can think of this as a savings fund that adds up to €250,000 by the time you reach 66. This fund will then be paid out to you as an income of c.€14,000 per year. Is this enough to support your lifestyle?

Start your own Pension Retirement Savings. Account (PRSA). If you start saving €1,000 per month over the next 20 years you could build a compound fund of c.€400,000. This fund will then be paid out to you as €100,000 TAX FREE and the balance (€300,000) as an income of Approx €24,000 per year. Is this enough to support your lifestyle? (€38,000 per year when combined with the State Pension).

Review your financial wellness every year.

Set a budget, monitor and review progress, focus on your priorities.

Review your Mortgage interest rates – Fixed, Variable, Green mortgages rates and loan to value (LTV). Consider top up payments to help pay off the mortgage sooner.

Review and reduce all other debts: Car loans, Credit Unions, Credit cards, Personal loans, etc.

Review Pension Savings Accounts. Check what investment funds your money is being put into?

Review Savings Accounts. Set up 3 pots for Short, Medium and Long Term saving objectives (household expenses, holidays, cars, retirement etc.)

Review costs of all insurances: Healthcare, Life cover, Car and Home.

Review your Taxes: Claim all allowances using Revenue online (myAccount). Register with MyGovID.ie.

Reduce your TAX. If you are paying 52% tax, review the Employment Investment Incentive Scheme (EIIS).

Where do I start? Contact your financial advisor. If you don’t know anyone, I can recommend;

Nick Charalambous, AlphaWealth, nick@alphawealth.ie

Alan Turner, Finlay Mulligan & Co, aturner@fmco.ie

Leave a Reply

Your email address will not be published. Required fields are marked *

What does financial freedom look like to you?

Don’t rely on the State Pension! To quality for the state pension you need a minimum 10 year’s Pay Related Social Insurance Contributions (PRSI is deducted from your monthly salary). You can think of this as a savings fund that adds up to €250,000 by the time you reach 66. This fund will then be paid out to you as an income of c.€14,000 per year. Is this enough to support your lifestyle?

Start your own Pension Retirement Savings. Account (PRSA). If you start saving €1,000 per month over the next 20 years you could build a compound fund of c.€400,000. This fund will then be paid out to you as €100,000 TAX FREE and the balance (€300,000) as an income of Approx €24,000 per year. Is this enough to support your lifestyle? (€38,000 per year when combined with the State Pension).

Review your financial wellness every year.

Set a budget, monitor and review progress, focus on your priorities.

Review your Mortgage interest rates – Fixed, Variable, Green mortgages rates and loan to value (LTV). Consider top up payments to help pay off the mortgage sooner.

Review and reduce all other debts: Car loans, Credit Unions, Credit cards, Personal loans, etc.

Review Pension Savings Accounts. Check what investment funds your money is being put into?

Review Savings Accounts. Set up 3 pots for Short, Medium and Long Term saving objectives (household expenses, holidays, cars, retirement etc.)

Review costs of all insurances: Healthcare, Life cover, Car and Home.

Review your Taxes: Claim all allowances using Revenue online (myAccount). Register with MyGovID.ie.

Reduce your TAX. If you are paying 52% tax, review the Employment Investment Incentive Scheme (EIIS).

Where do I start? Contact your financial advisor. If you don’t know anyone, I can recommend;

Nick Charalambous, AlphaWealth, nick@alphawealth.ie

Alan Turner, Finlay Mulligan & Co, aturner@fmco.ie