Archive for the 'Retirement' Category

Variable income in retirement

Ever go to conference? Ever notice that people return to the same seat after breaks. If it is two day conference, everyone will be sitting in the seats they had the day before.  We are creatures of habit and we like routine. One certainty we love the most is getting that pay cheque every month. […]

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Sequence Risk

When we think about investment returns, we think of long term averages. It doesn’t work like that though with returns varying from year to year. If you are assuming a 6% annualised return, there will be years of double digit returns but also years of negative returns. This is fine when contributing to your pension. […]

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Making your retirement income last

There is a vulnerability to retiring and not earning an income anymore. Instead of money coming in every month and your savings increasing, you are spending that money that you have saved over the decades. And not knowing how long we will live for means we don’t know how long our savings have to last […]

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Going from being a saver to a spender

You have spent your working lifetime saving. Putting money away into your pension and an extra few quid when you had the money. By being frugal and living below your means, you have accumulated a substantial amount of money and you have reached the financial planners holy grail…you are financially independent. You are now in […]

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Should you de-risk your pension before retirement?

As people near retirement, they tend to de-risk their pension investment by moving it into bonds and cash before they mature their pension plan. But will most retirees investing in ARF’s post retirement, should they really be reducing their risk exposure at all? Annuity The idea to de-risk your pension came about originally when the […]

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Time to start spending

You have spent decades diligently putting away money, always contributing to your work pension scheme, not spending all of your take home pay to keep your cost of living low. At times it was hard when there was a recession but you kept saving. Other times you saw others with a new car that you […]

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Be in control of your own retirement

On June 29, 2011, the Social Welfare and Pensions Act became law in Ireland. In that Act, the State pension age was gradually increased, starting in January 2014 by increasing the State pension age for those born between 1 January 1949 and 31 December 1954 to age 66. For those born between 1 January 1955 […]

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Imputed Distribution

When the ARF was first introduced, you were under no obligation to make any withdrawals from it if you didn’t want to. This was was very useful for those with other sources of income, especially if those other sources were taxed as income. You could just let your ARF accumulate in value in a tax […]

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What happens if my pension is over €2m threshold?

Up until 2005, you could have as big a pension pot as you wanted. Then, because some very wealthy people took advantage of this rule, a cap of €5m was imposed. This was increased to €5,418,085 by 2008 before it being reduced to €2.3m in 2010 and further still to €2m in 2014. The majority […]

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Guest Blog: Taxation reliefs on sale of your business or retirement

Working with a lot of business owners, I see that a lot of their wealth is tied up in their business. It is therefore vital that they are able to build up as much values as they can in their business and then sell it in the most tax efficient manner. This week, we have […]

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