01 669 1040

All Lenders under one roof

For the first time in our 29 years in business, Irish Mortgage Corporation has access to all lenders in the residential property market. We can now rightly be called a ‘one-stop-shop’ for our mortgage clients, saving them time and money.

These clients extend from first-time buyers, to trader-uppers, to people looking to save money on their existing mortgage, to people returning to or moving to Ireland, to self-employed individuals and even to people with a poor credit history. We also advise clients who are weighing up paying down their mortgage or investing their savings elsewhere.

Our advisors have in-depth knowledge on each lender’s criteria and we can drill down to identify the most suitable product for each client’s financial situation, best interest rate (fixed or variable) and the most competitive rate.

We streamline the entire mortgage application process from your initial enquiry all the way to cheque issue so that you know where your application is at and what needs to be done to make it a success.

One area that we have significant expertise in, is looking after people looking to move or return to Ireland, especially where the balance of funds is in a non-euro denominated currency.

In recent years the Central Bank has encouraged existing borrowers to shop around and look for better value from their mortgage. Many of these borrowers may be on fixed rates and think they can only switch out of this rate at the end of the fixed rate period. This is no longer the case, and the cost of breaking the fixed rate may well be small and recoverable through the lower alternative rates. Your first step should be to find out from your lender what the break cost is. We can do the rest.

In recent years, one of our more successful initiatives is our ‘Mortgage-Ready Facility’, where we assess your mortgage needs and circumstances and point out any issues which might prevent you from making a successful application now. We agree a plan of action with you, which if followed, will enable an application to be made in an agreed time frame, say, 6 or 12-months’ time.

Happy Feet for Sophia

Friday 22nd March 2019 marked the official launch of “Happy Feet for Sophia”.

Sophia Griffin is a wonderful little girl from Dundalk in Ireland who just celebrated her 4^th birthday.  Unfortunately, Sophia has been diagnosed with spastic diplegic cerebral palsy and faces increasing difficulty with her mobility. Every day, Sophia has to undergo therapies and treatments to aid her mobility.

Fortunately, there is a surgical procedure available in America called Selective Dorsal Rhizotomy which will change her life and those of her family forever. Without this surgery, Sophia faces a future confined to a wheelchair. Naturally, this kind of surgery is expensive and Sophia’s family cannot afford to cover the cost on their own.

They need help. Our help.

“Happy Feet for Sophia” has a goal of raising €100,000 to improve her life and to help her to walk, run and dance unaided. Her family want her to have a normal life, to be able to do the things we and our children take for granted.

Irish Mortgage Corporation and MoneyCoach have made “Happy Feet for Sophia” our charity partner for 2019.

We are asking our friends, clients, suppliers and everyone else to help us help Sophia get this life-changing surgery as soon as possible.

If you would like to donate and learn more about Sophia’s story, you can do so by visiting the “Happy Feet for Sophia” Facebook and Just Giving pages below

Facebook Page: https://www.facebook.com/HappyFeetForSophia/

Just Giving Fundraising Page https://www.justgiving.com/campaigns/charity/just4children/happyfeetforsophia

See also you tube link to Sophia’s video

https://youtu.be/WZVkTl8QcmI

Please help in whatever way you can. Every euro received will make a difference to this little girl’s future. After you help, why not follow Sophia’s progress on Facebook and share with your friends.

Thank you for helping.

So, You won The Lotto – What Next?

Many of us were dreaming of winning the €175 million Euro Millions jackpot and someone in Ireland has realised that dream. Fantastic for them, but what do they do next?

It takes time for someone to comprehend and understand what it means to suddenly acquire such huge wealth. For some, it can be overwhelming and seeking advice from financial professionals and, perhaps, also psychological experts as soon as possible really helps.

Simple things like just giving money away can become an absolute minefield, both from an emotional perspective as well as the tax implications. Remember the most you can give away to immediate family members (son or daughter) in 2019 is €320,000. For all other family members, the maximum before tax is just €32,500 and for everyone else just €16,250. Any amount above these levels attracts tax at 33%!

So, whilst the lotto cash is paid tax free as soon as you start to distribute that cash it can very soon be subject to large amounts of tax!

As Financial Planners, we regularly help individuals and families not only to manage their money, but also to pass wealth to intended recipients in the most tax efficient way possible, and at the right time, even if that is after they have passed on.

If you or someone you know would benefit from similar help, please contact us on 01 669 1040 or info@moneycoach.ie

Protect your income, protect your lifestyle!

There was a collective sigh of relief last week as the long-awaited January pay cheques landed in accounts all over the country. The mortgage or rent got paid, bills were cleared, and we could begin implementing that New Year resolution to be better with money!!

But what if that pay cheque hadn’t landed?  What if you didn’t know when there might be a pay cheque again?

If you become ill or injured and are unable to work, some employers might pay some, or all, of your salary for up to 6 months but most will pay you nothing beyond the first couple of days. If you’re self-employed, you’re completely on your own.

Income Protection cover allows you to insure up to 75% of your income should you be unable to work due to any illness or injury for a prolonged period. It means that your health woes are not further complicated or indeed, exacerbated by financial issues. It will pay you a monthly income until you are either fit enough to return to work or reach your retirement age.

Contrary to popular belief, these policies cover a lot more than one might think. In 2017, 25% of claims were for orthopaedic (back, etc) problems, 21% related to mental health claims and 20% were for cancer sufferers.

Friends First, who paid out over €37.5 million in Income Protection claims in 2017, say that the average duration of a claim is 6.5 years. That’s a long time to be without an income.

As an added incentive, you will receive tax relief on your monthly premiums, so this type of protection is probably more affordable than you think.

Contact us today on 1850 444 474 to speak to an adviser to see how best to protect your most valuable asset; your income.

4 Mistakes We all Make with Money and Why it’s so Hard to Avoid Them.

In recent years interest in behavioral economics has entered the mainstream. Nobel Laureates like Richard Thaler & Daniel Kahneman, among many others, teach us a lot about why we make the mistakes we do when it comes to money, and why we will keep making them.

Our first blog of the year gave practical and simple tips that will allow you take control of your finances for the year ahead. This one will hopefully to explain some of the reasons why it’s so hard to stick to our plans.

Everyone would like to make more considered and rational choices when making financial decisions. Unfortunately, our emotions and built-in biases can work against our best intentions.

Here are 4 examples of common mistakes we are all guilty of;

1.Mental Accounting  

Objectively speaking, each euro is of equal value, but we tend to value money differently depending on how we got it or how we plan to spend it. One glaring example of mental accounting is how we treat money we win, versus money we earn.

Have you ever won money on a scratch card, or at the races? No doubt you were a lot more comfortable splashing out with those funds, than spending your hard-earned salary.

2.The Endowment Effect 

This is a common phenomenon that we all can relate to. We tend to fool ourselves into putting greater value on things we own, over things we don’t own. Sentiment is a powerful emotion.

A perfect example of the endowment effect is the person who thinks their own home is worth €50,000 more than other houses on the street. Another example would be people who own shares and refuse to let them go, even when the writing is on the wall. Are you listening, former Bank of Ireland or AIB shareholders? 

 3. Hot States 

Remember the last thing you felt you had to buy straight away?  Even if it meant sticking it on the credit card? Most likely, you let your emotions get the better of you. The impulse to buy just took over, with complete disregard for your bank balance.

This impulse for immediate gratification or ‘Hot State’, overrides our rational thinking. It is fed by that little plastic card you have in your pocket. It is so much easier to pay with your credit or debit card, then to count out the cash and hand it over. The very act of handing over your card makes it harder for our brains to assess the true cost.

4. Saving for the Future vs Fun Right Now 

A lot of financial planning requires giving up some of your monthly income for a specific long-term goal like your retirement fund or paying for insurance to protect yourself and loved ones.

While we might all agree that saving for the future is essential, whether it be for retirement or for that worrisome ‘rainy day’, we can all certainly agree that it is easier said (and planned) than done.

Behavioral economics demonstrates that humans are very short-term oriented and find it very hard to picture and adequately assess their future needs.  Foregoing enjoyment today, for some nebulous future goal, requires us to fight against the immediate pleasure of a payday reward.

Nobody’s perfect and the science suggests we will not be able to avoid these mistakes completely. However, by being aware of our pre-programmed vulnerabilities, we can try to apply some rules and routines to compensate, and to reduce the all too often feeling of dread, when we do look at our bank balance.

Get your finances in shape for 2019

With all the ‘New Year, New Me’ clichés clogging up your newsfeed, it can be easy to put off making any resolutions at all. However, the beginning of the year really is the best time to start implementing changes in your expenditure to ensure that 2019 is as financially rewarding as possible. Here are 3 simple steps you can take immediately to start the year off on the right financial foot;

1. Create a BUDGET

Admittedly, this might feel like a chore, but proper budgeting is fundamental to good financial management. If you find the thought of an excel spreadsheet, however effective, too reminiscent of a Junior Cert Bus Org class, there are plenty of helpful apps available. Just search ‘Budget Planner’ in your app store and choose the one that appeals to you. http://www.fudget.com is a popular, easy to use option. ‘Home Budget Plan with Sync’ is a good choice for families whilst https://www.splitwise.com is helpful for those with housemates seeking to track and share bills and other expenses.

2. Make the SWITCH

There are potentially hundreds of euro that households can save each year by switching one or two providers. https://switcher.ie allows you to easily compare and change providers (Gas & Electricity, Broadband & TV & Mobile). While several high street banks offer free banking, online app-based banks, such as https://www.revolut.com are shaking up the system and can provide a great, cost effective alternative, particularly if you travel or transfer money abroad with any regularity. There are also significant savings to be made in the area of insurance. Again, price comparison sites allow you identify savings that can be made on your car and home insurance. However, do make sure you are comparing on a like for like basis so that you do not lose valuable benefits for the sake of minor savings. This is particularly important when it comes to family or mortgage protection policies. Don’t do it yourself, rely on a financial advisor to make sure you are adequately protected and not paying over the odds.

3. Start to SAVE

From your ‘rainy day fund’ to your retirement, it is important to give due consideration to how much you are already saving or indeed what you should be saving. Even if your budget only extends to saving a few euro per week, try to build up an emergency fund of 2-3 months, if possible. When did you last review your pension? Will it be enough to provide what you require at retirement? As well as ensuring it is invested correctly for your circumstances, it is critical that your capital is not being eroded by unnecessarily high charging structures.

Contact us today to organise a financial review of your savings, pension or protection plans on 01 669 1040 or email us at info@moneycoach.ie

Christmas Greetings

It doesn’t seem like 12 months have passed since Christmas 2017. It has been an astonishingly fast year, and like most years, not without its highs & lows. Thankfully, we have reached the point in the year where we can catch our collective breaths, take stock and look forward to catching up with family and old friends.

Christmas is finally here and, hot on its heels, follows 2019, with its promise of brighter mornings, evenings and perhaps even a summer to match the one just gone.

On behalf of the directors and staff of Irish Mortgage Corporation / MoneyCoach, I would like to wish all our readers & friends a happy, healthy and peaceful Christmas and New Year.

Nollaig shona daoibh

Don’t be an ‘Ass’ with your Retirement Planning!

Many people seem to treat retirement planning like a game of “Pin the Tail on the Donkey” – you know the one where you’re blindfolded and must stick a tail on the right part of a donkey’s anatomy?

Great fun when you’re twelve years’ old, but not much of a financial strategy for ensuring you have adequate income in retirement.

It’s “Tax Return Season” and at this time of year, too many people are blindfolded by the benefits of tax relief on their contributions and do not pay enough attention to the ultimate prize, their total fund at retirement.

Proper retirement planning requires establishing the level of income, and therefore the size of fund, you will need to maintain your standard of living once you stop work. Once you know this figure, you can work out how much you need to contribute to your fund each month or year and how much investment risk you need to accept to achieve your target. Taking too much, or not enough risk with your pension could have a material and long lasting impact on your lifestyle post retirement.

Retirement planning is an important process and mistakes can prove to be expensive. Professional advice costs money, but good advice is worth every penny.

• If your strategy is not working, you need to change it
• If you do not know what your targeted fund is, you need an advisor
• If you do not know what income you will need in retirement, you need MoneyCoach

Talk to one of our advisors today on 01 669 1040 or email us at info@moneycoach.ie

6 Important Pension Questions Answered

This is the time of year when tax returns are due, and I get a lot of queries about pensions and retirement planning in general. So, I thought I’d put together a brief note for both the self-employed and employed about the main considerations when thinking about pensions.

I hope these 6 points will help you, but no amount of internet surfing will replace advice from a qualified advisor! Talk to MoneyCoach on 01 669 1040 or email info@moneycoach.ie

MoneyCoach has an experienced team of retirement planning advisors who can help you establish your retirement goals, review your current arrangements and design a retirement plan unique to your own needs and objectives.

What are the tax benefits?

 A) Tax relief on both company & personal contributions

 B) Tax-free growth on investment gains within the pension

 C) 25% tax-free lump sum at retirement or up to 150% of your final salary[1]

How will my money be invested?

You can choose from a wide range of investment options but typically most will be invested in a fund which is diversified across a range of asset classes, like stocks & shares, government & corporate bonds, property, & cash. The mix of investments within your fund will dictate the potential level of risk and rate of return you can reasonably expect.

Find out the risks and make a change if you don’t feel comfortable!

What are the charges?

Typically, there is an annual management charge levied on your accumulated funds and a charge on your contributions. There are other costs, which may be hidden so ask your advisor for the TER (total expense ratio) or OCF (ongoing charges figure) on your fund. Watch out for exit penalties if you are thinking of switching provider or accessing your funds earlier than planned.

When will I be entitled to the State Pension Benefit & what will I get?

The current state pension age is 66. This will increase to 67 in 2021 and to 68 in 2028

The current state pension is €243.30 per week or €12,651 per year[2] 

Need more than €12,651 a year to live? Well then, you need to get saving!

Start with working out how much you need to live on in retirement. Your advisor will calculate the fund you require to generate that income. The size of your target fund will dictate how much you need to put in to your pension and what level of investment risk you will need to take

When can I access the proceeds of my pension?

The earliest you can access your pension is age 60, but in some cases, access will be allowed from 50 onwards, subject to certain conditions

Contact the MoneyCoach team on 01 669 1040 or info@moneycoach.ie for more information

[1] Subject to lifetime limit of €200,000 in tax-free lump sums from pension. Lump sum options also depend on pension type. If pension funds are coming from employer scheme, your years’ service and salary with related company will impact lump sum options.

[2] You may not be entitled to the full pension if you do not have enough PRSI contributions, if you have a dependent spouse, you may be entitled to a higher figure, see the Citizens Information Website for more. http://www.citizensinformation.ie/en/social_welfare/social_welfare_payments/older_and_retired_people/state_pension_contributory.html

Estate Planning

For those of us fortunate enough to be able to leave assets to our children when we die, we may not be happy to do so knowing that up to 33% of their value will be given to the State for the privilege. Having spent years building up a portfolio of properties to provide a sense of financial independence, we might not want to find our hard work penalised when passing this sense of security onto our children, through the necessary sale of some of the properties to fund their inheritance tax liability.

It may seem harsh to tax assets that have typically been generated through taxed income or have been subject to taxation through the years of ownership, but the fact remains that Ireland requires substantial tax income to operate its public services.

There are a few things one can do to make the transfer of wealth easier;

Make a Will

Some people mistakenly believe that there is no need to make a Will as their financial affairs and familial situation are uncomplicated and the existing legislation will deal with the matter as efficiently as if there is a Will in place. However, in most cases, assets cannot be transferred without a grant of probate. This can take 6-9 months, even with a Will in place. Make that Will!

Have Assets in Joint Names with your Spouse

Assuming neither of you have debt issues, this is a very straight-forward protection to put in place. It means that upon the sudden death or incapacity of either spouse, their partner has access to, and control over, bank accounts and other assets and remains able to make financial decisions for the benefit of the family.

Make an Enduring Power of Attorney

This is every bit as important as making a Will. In the event you are suddenly incapacitated, your partner, or some other trusted individual is empowered by the courts to make decisions on your behalf ostensibly for your and your family’s benefit.

Make Full Use of the Small Gifts Exemption

You may make gifts of up to €3,000 each year to any individual without creating a tax liability for that person. You and your partner could gift €6,000 to each of your children, their partners and children every year without any of the gifts creating a tax liability for them.

Set up a Discretionary Trust

Ring-fencing assets in a trust for your children can postpone or stagger a large inheritance tax bill. However, there is a once-off charge of 6% on the value of the assets followed by an annual charge of 1%. The once-off charge will be applied on your death or, if later, when all the beneficiaries of the trust are over the age of 21. No potential inheritance tax liability applies until property is released from the trust to a beneficiary. If the discretionary trust is created under your Will, the tax may be backdated to the date of your death regardless of how long it may take to administer the estate.

Use a Life Policy to Fund for the Inheritance Tax Bill

Taking out a life policy on your lives is one way to deal with the inheritance tax bill. As most couples leave their worldly goods to each other and then to their children, these life policies are typically arranged on a joint life second death basis.

On death, the sum assured is used to pay towards the inheritance tax bill. If there is a surplus, this surplus is itself taxed and the balance dispersed amongst your beneficiaries.

Proper estate planning requires professional expertise. MoneyCoach liaises with your legal and taxation advisors to ensure that the most appropriate solutions are put in place for the benefit of you and your family.  Contact us today on 01 669 1040.