Lucas Financial Consulting Ltd

Why purchase Co-Director Insurance?

John — Tue, 20 Sep 2011 15:20:03 +0000

The directors of a company are often the major shareholders and make all the key decisions for the firm. A successful business depends on the close co-operation and experience of the directors.

The death and/or serious illness of one of the directors can have a serious impact on both the surviving directors and the deceased’s successor(s).

The remaining directors may be faced with a new shareholder and director who has little business expertise and contacts. If the deceased director owned more than 50% of the business, disagreements may arise if the deceased’s successor(s) – who would now be the majority shareholder(s) – has different plans for the future of the business.

Ideally, the remaining shareholders/directors or the company would buy back the deceased’s shares but may not have sufficient funds available to do this. The deceased’s successor(s), on the other hand, may not wish to become involved in the business and might find it difficult to sell their shareholding. They might indeed welcome a cash sum at this difficult time.

Co-Director Insurance gives the directors of a company peace of mind that there will be funds available to them on death of a director to buy back his/her shareholding from his/her successor(s), thereby maintaining their control of the company.

Contact Your Local Independent Financial Adviser

Lucas Financial Consulting Ltd is based near Carrickmacross Co Monaghan. As we straddle four counties – Louth, Monaghan, Cavan and Meath we are ideally placed to become your new Local Independent Financial Adviser.

Warning: The value of your investment may go down as well as up

Warning: Past performance is not a reliable guide to future performance

Warning: Funds may be affected by changes in currency exchange rates

Investment Outlook – 2011

John — Wed, 05 Jan 2011 17:26:24 +0000

What the fund managers say..

In this section we look at the House view of one of the leading Fund Managers operating in Ireland and importantly, what’s on the horizon for the following in 2011:-

Equity Markets, Economic Growth, Currency Markets, Interest Rates and Bonds, Overall

Equity Markets

While policy error remains a risk, equities could progress further on the back of stronger economic growth.

• Strong Asian economies and stabilised-to-improving developed economies provide the backdrop for better corporate earnings.

• While the current consensus is for above trend earnings’ growth of around 15% for 2011, better economic momentum and earnings’ revisions may provide positive surprises.

• Merger & acquisition activity, which picked up in the latter half of 2010, could provide additional support during 2011.

• Equity markets may be challenged by policy adjustments and political risk in Europe, meaning that volatility could re-emerge.

• Policy errors might result in rising long-term interest rates or premature withdrawal of liquidity.

Economic Growth

Could global economic growth surprise again on the upside?

• The continuation of economic stimulus measures introduced during 2009, together with further policies introduced in 2010, such as QE2, has helped to keep mature economies on an upward, though tentative, path.

• Authorities in much of the emerging world have been taking steps to ensure more measured growth. Interest rates are on the rise in countries such as China, Australia, India and Korea.

• A two-tiered economy has developed in Europe. The larger, core economies such as Germany and France have seen growth accelerate, while peripheral areas such as Ireland, Greece, Portugal and Spain are grappling with the effects of austerity budgets.

• Recent economic indicators from the US would suggest an upturn in economic activity, though the housing market remains weak and unemployment remains stubbornly high.

Currency & Commodity Markets – Will the euro remain weak in 2011?

• The US dollar strengthened versus the euro during 2010, despite the US pursuing a weaker dollar policy through quantitative easing. It closed the year quite a distance from the perceived equilibrium level, versus the euro, of 1.18. Expectations would be for the dollar to trade towards this equilibrium level in 2011.

• Euro weakness in 2010 was largely driven by severe economic turmoil in peripheral countries. These issues remain in the short-term and will continue to impact on the currency but, in the longer-term, a healthy euro will depend on strong political will, particularly from Germany.

• Soft and hard commodity prices are expected to rise further in 2011 on the back of China’s growing strength, along with weak currency policies being pursued by central banks around the world. Gold could rise further, with increased financial uncertainty fuelling investors’ flight into perceived safe-haven assets.

• The oil price continued its ascent in 2010 amid improving economic fortunes. Prices could rise further in 2011, provided the global economic recovery continues as projected.

Interest Rates & Bonds

Eurozone interest rates are not expected to rise until Q1 2012, with peripheral weakness offsetting core economy strength.

• The current view is that UK and eurozone base rates are not expected to rise until Q1 2012. The US is expected to move on rates during Q4 2011.

• In peripheral eurozone countries fiscal challenges remain acute. This has been reflected in dramatic yield spread widening over core country bonds, a situation that is unlikely to resolve itself in the near-term.

• Yields in core eurozone bond markets, especially Germany, and the US Treasury market have risen recently, reflecting improving economic data. This is a trend that could continue should the economic recovery momentum be sustained.

• Inflation pressures overall remain modest, reflecting weaker data in developed economies, while stronger readings in emerging economies and Asia, especially China, have led to interest rate rises.

Overall

On balance, for 2011, investors expect stable to gently rising bond yields and earnings-fuelled gains in equities. But expect another volatile period ahead, even if the net result is relatively benign.

Downside risks to outlook:

• Eurozone debt crisis induces bond and equity market volatility.

• Policy error from the ECB or Chinese authorities.

• Growth remains strong but investors focus instead on the rate of growth peaking.

Upside risks to outlook:

• Private demand gains further traction in the US.

• US house prices stabilise/begin to rise.

• Chinese ease policy as food-price driven inflation dissipates.

This outlook of potential investment market developments in 2011 does not constitute an offer and should not be taken as a recommendation. This is only the view and outlook of one of the Fund Managers operating in Ireland.

Warning: The value of your investment may go down as well as up
Warning: Past performance is not a reliable guide to future performance
Warning: Funds may be affected by changes in currency exchange rates

Budget Overview

John — Thu, 09 Dec 2010 08:39:42 +0000

In this section we summarise the main changes in the budget 2011……

1) Tax Bands remain at 20% and 41%

2) Our 12.5% corporation tax relief remains. The 3 year Tax Exemption for Start Up Companies is being extended to include start up companies which commence a new trade in 2011.

3) Deposit interest Retention tax and Exit tax are being increased by 2% to 27% for interest payments made annually or more frequently and 30% for Exit Tax ( ie life assurance policies).

4) Employee Tax Credit reduced from €1,830 to €1,650 (single) from €3,660 to €3,300 (married). One parent family credit from €1,830 to €1,650.

5).Tax bands have been reduced as folllows:

Single /widowed from €36,400 to €32,800.

Married one income from €45,400 to €41,800

Married two incomes from €72,800 to €65,600

One Parent/widowed parent from €40,400 to €36,800

6) Age Exemption ( income exempt for persons aged 65) has been reduced as follows:

Single from €20,000 to €18,000

Married from €40,000 to €36,000.

7) Health levy and Income levy to be abolished and replaced by a new Universal Social Charge (USC) at the following rates. These figures relate to persons under age 70:

0% < €4,004

2% 0 to €10,036

4% €10,037 to €16,016

7% > €16,016.

So reference to tax rate of 52% refers to 41% income tax rate , PRSI 4% and USC of 7%.

Persons aged 70 or over

0% < €4,004

2% 0 to €10,036

4% over €10,036

Removal of the ceiling on employee (Class A) PRSI currently €75,036. This will be a serious increase cost for high earners. The self employed (Class S) PRSI will be increased from 3% to 4%.

9) The PRSI and Health levy reliefs previously available for employee pension contributions are to be abolished. So from 01/1/11 employee contributions will be subject to employee PRSI and USC.

Employer PRSI relief on pensions contributions made by employees is being reduced by 50% from 01/01/11.

10) The annual earnings limit is being reduced from €150,000 to €115,000 for 2011. The annual earnings limit for the 2010 will also be deemed to be €115,000 ie when a contribution is paid in 2011 and tax relief elected to be backdated to 2010.

11) The maximum allowable pension fund on retirement for tax purposes is to be set at €2.3 million with effect from 7 Dec 2010.

Individuals with pension rights in excess of this lower SFT on Budget Day will be able to protect the capital value by claiming a Personal Fund Threshold (PFT). The higher threshold applies if on 7 Dec 2010, the capital value of an individual’s pension rights drawn down on or after 7 Dec 2005 (ie crystallised pension rights) when added to any uncrystallised pension rights as valued on 7 Dec 2010 are greater than €2.3 million and lower than €5,418,085. Individuals will have six months from Budget day to send details to the Revenue Commissioners. The factor to be used for DB schemes is 20. If the higher PFT above €5m has already been granted (under the earlier legislation that introduced lifetime limits in Dec 2005), then it still applies.

12) The annual imputed distribution on Approved Retirement Funds (ARF’s) of 3% is being increased to 5% in respect of asset values at 31 Dec 2010.

13) A Restriction of Pension tax free lump sum will come into effect from 01/01/11. The rates are as follows:

Amounts up to €200,000 will be taxed free.( down from €1.35m)

Sums between €200,001 and €575,000 ( being 25% of the €2.3m threshold) will be liable to tax at 20%.

Sums above €575,000 will be liable to marginal rate of tax.

Tax Free lump sums taken on or after 7 Dec 2005 will count towards using up the new tax free amount. So if an individual has already taken tax free lumps sums of €200,000 since 7 Dec 2005 any further lump sums will be taxable.

The tax benefits available to individuals retiring on or before 31 Dec 2010 would appear to be more advantageous that those that will apply from 01 January 2011.

14) ARF options will be made available to all members of DC schemes but new requirements have been set.

The AMRF option is being retained but the set aside requirement of €63,500 will now be the lesser of 10 times the maximum rate of the of the State Pension Contributory about €120,000 or the remainder of the fund after taking the tax free lump sum.

The guaranteed income requirement of €12,700 pa is being increased to 1.5 times the State Pension Contributory bringing the specified income close to €18,000 pa.

The guaranteed income level can be satisfied after retirement so an ARMF becomes an ARF.

As a transitional measure the guaranteed income requirement of €12,700 pa will continue for a 3 year period for those who have already retired. If individuals satisfy the existing requirement within 3 years (of the 2011 Finance Bill becoming law) their AMRF becomes an ARF. After this 3 year period the new higher guaranteed income test will have to be satisfied.

The deferral of annuity purchase arrangements for DC members is to be extended by the Revenue Commissioners.

15) Ex gratia payments – The Budget included a cap of €200,000 on tax free ex-gratia termination payments made on or after 01/01/2011.

16) Capital Acquisitions Tax ( inheritance and gift tax) have been reduced by 20%. The following rates now apply:

Group A ( parent to child) from €414,799 to €331,839.

Group B ( related persons from €41,481 to €33,185

Group C (non related persons) from €20,740 to €16,592.

Business relief and Agricultural relief of 90% remain. Tax rate is 25%.

17) Abolition of tax relief for Trade Union Subscriptions

18) A flat 1% for all transactions of residential property valued up to €1million with 2% applying to amounts above €1million. Abolishing all existing reliefs and exemptions for Stamp Duty on residential property ie, first time buyer relief. This applies to instruments executed on or after 8 Dec 2010.

Rent relief to be phased out over 8 years.

19) Excise duty – duty on petrol will increase by 4cent per litre. and duty on auto diesel will increase by 2cent per litre.

Car scrappage scheme is being extended for the period 01/01/11 to 30/06/11.

20) Air travel tax of €3 will be levied from 01/03/11. This replaces the previous two – tier system of €10 for flights over 300km, and €2 for lower.

21) Social Welfare payments

The State Pension (contributory ) remains unaltered. Under 80 (€230.30), Person with qualified adult under 66 (€383.80) Person with qualified adult aged 66 or over €436.60. However other social welfare benefits have suffered a reduction of about €8 per week.

22) Child Benefit reductions for first and second child are reducing from €150 to €140 per month. The benefit for the third child will be reduced from €187 to €167 per month with fourth and subsequent children reducing from €187 to €177.

23) Sovereign Annuities. This refers to Irish pension funds having the opportunity to invest in longer term Irish bonds at higher yields than are available elsewhere and to price their liabilities to pensioners on the basis of those higher yields. Details of this measure will be announced in the future.

24) A New Four Year National Solidarity Bond is being proposed. Further details will be introduced in the New Year.

Contact Your Local Independent Financial Adviser

Budget Summary 2011 – How does it affect my Pension?

John — Wed, 08 Dec 2010 15:02:33 +0000

Introduction

Minister Brian Lenihan, T.D. has outlined the Government’s planned budgetary adjustments for 2011 and given some further detail on some of the measures announced in the National Recovery Plan. According to Minister Lenihan “it is the Government’s strong view that the economy can continue to grow while we make the budgetary adjustments outlined in the National Recovery Plan.” In achieving this conomic growth it must be “built on solid foundations: that are sustainable socially, economically and environmentally.”

Key Issues for Pensions

• The allowable annual earnings limit will be reduced to €115,000 from 1 January 2011. These reduced limits apply for payments made in 2011 regardless of whether the pension contribution is against 2011 earnings or to the earnings of 2010. In order to maximise the benefit in 2010 (current threshold of €150,000), individuals may wish to make additional pension contributions before the end of the tax year.

• The Standard Fund Threshold (SFT) is being reduced as on and from Budget Day (7 December 2010) from €5.4 million to €2.3 million. Individuals with pension rights in excess of this lower SFT on Budget Day will be able to protect the capital value of those rights by claiming a Personal Fund Threshold (PFT) which must be applied for to the Revenue Commissioners within 6 months of Budget Day.

• The overall lifetime limit on the amount of tax-free retirement lump sums that an individual can draw down from pension arrangements is being reduced to €200,000. The excess of this amount will be taxed at the standard income tax rate (currently 20%) up to an amount equal to 25% of the new SFT (up to €575,000). The excess of retirement lump payments over that amount will be taxed at the taxpayer’s marginal rate of income tax.

• Tax-free retirement lump sums taken on or after 7 December 2005 will count towards “using up” the new tax free amount so if an individual has already taken tax free retirement lump sums of €200,000 or more since 7 December 2005, any further retirement lump sums paid to the individual on or after 1 January 2011 will be taxable. These earlier lump sums will also count towards determining how much of a lump sum paid on or after Budget day is to be charged at the standard or marginal tax rate. These changes take effect from 1 January 2011.

Amendments to Approved Retirement Funds (ARFs)

From 2011 ARFs will become more widely available with all members of Defined Contribution pension schemes now being eligible but an individual wishing to avail of the ARF options must satisfy the lower of the following new minimum set aside rules:

Invest the first €120,000 or so in a Minimum Retirement Fund

Other annual pension income of around €18,000 already in payment.

The Budget also increases the imputed distribution charge from 3% to 5% of the value of the ARF, at 31 December each year. This has the effect of increasing the withdrawal to 5% pa and individuals are taxed accordingly

PRSI on pension contributions

The PRSI and health levy reliefs available on pension contributions will cease with effect from 31 Decemeber 2010. Employee pension contributions will be subject to employee PRSI and the USC. Employer PRSI relief on pension contributions made by employees is also to be reduced by 50% from 1 January 2011.

Contact Your Local Independent Financial Adviser

Absolute Return Funds…Are they for you?

John — Mon, 15 Nov 2010 11:04:16 +0000

What is absolute return investing? A quick recap..

An investor with an ʻabsolute returnʼ strategy aims to generate positive returns in any stock market cycle – the fund manager does this by using techniques that enables them to profit from both the ups and downs in markets and stock prices.

Absolute Return Funds may be suitable if :

you wish to invest in a fund that aims to provide positive investment returns in a variety of market conditions
you’d like to form the core element of a portfolio or perhaps diversify your existing portfolio
you’re seeking to invest in an absolute return strategy and benefit from daily pricing and liquidity, transparency, low minimum investment and competitive fees.

However, Absolute Return Funds may not be right for you if:

you don’t want to take any risk with your capital
you’d prefer not to invest in a fund that makes significant use of financial derivatives
you have an investment time horizon of less than five years

Warning : not all absolute return funds are the same. Different fund managers have different remits, goals, charges and may invest in a wide range of assets including derivatives. There are different risks associated with each fund as no two funds are the same. It is essential that you seek Independent Financial Advice if you are considering investing in these funds.

Contact Your Local Independent Financial Adviser

Dual Income Tax Briefing

John — Thu, 02 Sep 2010 15:00:06 +0000

Tax Briefing 74: Crunch Time

Do not contribute to the wrong pension arrangement.

In September 2009, The Revenue Commissioners issued Tax Briefing Note 74: Tax Relief for Pension Contributions: Application of Earnings Limit. This briefing detailed how the earnings limit for pension contributions operates where an individual has two sources of income i.e. income from employment and income from self-employment and is making contributions to both an occupational pension scheme and a Personal Pension plan. The most obvious example of this would be a Medical Doctor / GP who has GMS income as well as earnings from his/her Private Practice.

It now transpires that if an individual has more than one source of income, they need to look very carefully at how their pension contributions qualify for tax relief. Having two sources of income (e.g. HSE and Private Practice) now means an individual can no longer contribute to a Personal Pension until their maximum capacity for AVC’s from their pensionable income has been used up.

In short, if income from pensionable employment is over €150,000 per annum an individual can no longer fund a Personal Pension or PRSA. This is because the earnings limit €150,000 has been used up through income earned through, for example, the HSE and therefore there is no more room to invest in a Personal Pension.

This applies not only to the current Tax year but also to pensions contributions being back-dated to 2009 for Tax relief purposes.

An example of how this operates is as follows:

An individual has the following income in 2009

1. HSE Income €100,000

2. Private Practice Income €100,000

Earnings Cap applicable €150,000

Current contribution to employer’s scheme 5%

Age 52 – Age related limit 30%

In this example the income of €100,000 is “pensionable” and the contribution rate is 5%. Therefore, the balance of the age related limit (30%) is 25% of €100,000 and this must be used as an AVC/PRSA or AVC contribution firstly.

This leaves a ‘residual earnings cap’ of €50,000 (i.e. €150,000 earnings limit less €100,000 HSE income).

30% of the €50,000 of earnings can be used to fund a Personal Pension or PRSA. Contributions relating to the excess over the €150,000 earnings cap (€150,000 to €200,000) would not be entitled to tax relief.

The result is that some contributions being made to Personal Pension plans and PRSAs are no longer eligible for tax relief from 7th September 2009 (subject to certain criteria).

So, it is crunch time.

Individuals will have to decide which contract they should be contributing to. If they are still contributing to a Personal Pension plan or PRSA they may not be able to get tax relief when they submit their tax return.

It is not all bad news. Individuals affected by this change can contribute to AVC PRSAs to get many of the same tax relief benefits which are associated with Personal Pensions or PRSAs and, they are also entitled to PRSI/Health Levy relief on their contributions. AVC PRSAs can be used for the following purposes on retirement:

• Increase tax-free lump sum where full service is not expected.

• Increase tax-free lump sum where there is scope to increase due to difference between maximum pension entitlement and actual pension entitlements.*

• Use the PRSA AVC Fund to transfer to an ARF on retirement to get the benefits associated with an ARF.

• Use the PRSA AVC fund to increase pension income by annuity purchase.

* For example all recent public sector recruits are now paying PRSI rates giving entitlement to the old age contributory pension. This benefit is integrated with the public sector superannuation scheme benefit, resulting in a reduction in “Pensionable Salary”. This reduction in “pensionable salary” provides significant further scope for AVC PRSAs as the state contributory old age pension may be ignored for the purposes of calculating the Revenue Maximum Allowance Pension Benefits.

Contact Your Local Independent Financial Adviser

Absolute Return Funds

John — Fri, 18 Jun 2010 11:25:34 +0000

What is absolute return investing?

The concept is actually very simple. An investor with an ʻabsolute returnʼ strategy aims to generate positive returns in any stock market cycle – the fund manager does this by using techniques that enables them to profit from both the ups and downs in markets and stock prices.

Absolute Return Funds are different because…

In many ways its a ” Proper Managed Fund” whereby the fund manager is given a blank canvas and is asked to invest in assets that they believe will deliver positive returns and reduce volatility. In this way the fund managers are unconstrained and can use their expertise accordingly to achieve their goals.

Traditionally a fund manager is given a remit to manage an asset class from a specific region or sector, for example a fund made up solely of north american equities. This remit allows them to then buy shares in that region or sector- with a view to outperforming their peers or benchmark ( SP500 index in this instance). That’s all well and good – but if the fund manager fundamentally believes that north american equities are going to fall, they still have to hold them. In this instance their main concern is their fund doesn’t fall as much as their competitors. Some fund managers in the past have been pleased with a 20% fall as their “benchmark” has fallen by 26%.

In absolute return funds if a fund manager doesn’t like an asset class such as north american equities he doesn’t have to hold them – he may even “short” them aiming to make profit if the market falls.

What kind of returns can an investor expect?

The absolute return investor should not expect to make the sort of significant short-term gains that stock markets can deliver over a relatively short-term period. Conversely, absolute return funds should not decline as sharply as markets during periods of market correction. Generally, the sort of result that an absolute return investor can expect, is to beat cash deposits by an appreciable margin over a given period of time. But not all absolute return funds are the same….

What levels of risk is the investor exposed to?

Most absolute return funds aim to meet their objectives of generating positive returns in all market environments, over a rolling period (typically 3 years). This type of investing takes a much lower level of market risk relative to traditional relative return funds such as managed funds. Absolute return funds aim to be uncorrelated to markets and other traditional asset classes, targeting lower volatility, demonstrating that the fund’s performance is not related to market movements but the result of the skill of the fund manager. It is important to note that these funds are not guaranteed – they do however aim to have a short term volatility more consistent with fixed interest assets (such as Government bonds) but with the long term return closer to that of equities.

Contact Your Local Independent Financial Adviser

Your Destiny in Your Own Hands

John — Fri, 09 Apr 2010 09:18:06 +0000

Are you tired of banks and financial institutions losing your money?

Would you like real control over where your money is invested?

We can give you full control over your pension, allowing you to invest in Commodities, Shares, Exchange Traded Funds (ETF’s), Bank Deposits, Property and traditional funds all in the one pension portfolio.

When you’re investing for the long term, it’s important to have the freedom to choose how and where you invest your money – and the option to change your investment choices whenever you need or want to.

Whether you’ve a got a Personal or Company Pension through to a Buy out Bond or Post Retirement Product (ARF’s AMRF’s) , We can help you get the control you need to shape your future.

Contact Your Local Independent Financial Adviser

New Rules for Pension Scheme Trustees

John — Fri, 09 Apr 2010 08:54:05 +0000

We wish to advise that the Pensions Board has launched its interactive e-learning training course for pension scheme trustees.

The Pensions Act was amended to include a requirement for pension scheme trustees to undertake training at regular intervals. New trustees are now required to undertake training within six months of being appointed, while existing trustees must be trained within two years. All trustees will then be required to undertake training every two years thereafter.

The trustee training requirement can be met by completing the Pensions Board’s online course.

There are 9 Lessons (listed below). Each Lesson takes approximately 1 hour and contains 6/7 topics.

1) Understanding pensions
2) Being a trustee
3) Scheme rules, contributions and benefits
4) Running a scheme
5) Scheme financing for defined benefit schemes
6) Investing a scheme’s assets
7) Administration and accounting
Member communication
9) Managing problems

Further details are available on the Pensions Board website www.pensionsboard.ie

Please note that the Pensions Board has previously confirmed:

There is no distinction between Individual Schemes and Group Schemes when it comes to trustee training – if the employer is the pension scheme trustee then the training requirements apply to all directors.

If the employer is the trustee, it is not possible to nominate just one or two directors to act on behalf of all directors. In this situation all directors of the employer must complete the training.

The only exemption to the trustee training requirements is if the employer is a joint trustee with either a Corporate Trustee or a Pensioneer Trustee – this removes the requirement for the employer to undertake trustee training.

Please note there is no requirement for trustee training for Death Benefit only schemes (this will help if such schemes are set up by employers to provide Life Cover alongside Group PRSA or our new Fusion schemes).

Disclosure of Trustee Training

Details of training undertaken by trustees will have to be included in the scheme’s annual report. Trustees will also need to confirm in the annual report that they have access to the most recent edition of the Pensions Board trustee training handbook (available free on the Pensions Board website) and the Pensions Board Guidance Notes.

Self Directed Pensions & ARF’s

John — Wed, 10 Mar 2010 20:52:01 +0000

The latest development in the world of pensions is self-directed options. While these have been available for some time they have traditionally been aimed at a very small portion of the marketplace. Now providers have opened up these attractive options to a wider market, which means many more people can get in on the act.

The idea behind self-directed options is that people can manage their own retirement funds personally. Individuals can now have greater control by in effect directing the placement of their funds themselves.

Deposit Accounts allows you the freedom to place your pension money in a nominated deposit account, which can be a great short-term option for you.

Exchange Traded Funds ( ETF’s) & Quoted Shares allows you to buy and sell shares through a pension arrangement thereby giving you the following tax benefits:

Tax relief on pension contributions

No Capital Gains Tax on growth

No Income Tax on dividends received

Access to Direct Property through a pension arrangement again allows for efficient tax planning while allowing you to buy residential or commercial property within your pension fund. Providers have recently opened up this option with the client being in complete control by personally selecting the property they wish to invest in.

Traditional Insured Funds are available across many products on the marketplace but this new development means you can invest your money in anything from a ” vanilla” Managed Fund to self-directed options, and all through one tax efficient pension product.

Historically these options were only available for Company Directors via Small Self Administered Schemes ( SSAS ). However these options are now available via the following Individuals:

Company Directors and Employees via Executive Pension Plans

Self-Employed via Personal Pension Plans

Post Retirement Planning via Approved Retirement Funds ( Arf’s & Amrf”s)

Buy Out Bonds / Personal Retirement Bonds

In general self-directed options allow you more flexibility and choice. Even if you’re not interested in these options right now you may be in the future. Choosing a Pre or Post Retirement Product now that can give you these options in the future, should you need, them is well worth considering.