Pension issues facing you today

Messages on September 13th, 2012 No Comments
  •  Pension Levy
  • Imposition of an annual 0.6% levy on nearly all pension benefit structures
  •  Will be in place until 2014 and is based on the value of scheme assets at the 30th June
  •  Look at ways of offsetting the cost of the levy – i.e. lower cost structures
  • Can you access lower cost structures through reduced product charges?
  • ARF Planning  Imputed distribution remains at 5% for funds < €2m
  • New 6% rate for funds > €2m
  • Not just ARFs that are taken into account in determining fund size – now applies to Vested PRSAs as well
  • AMRF reduced back to €63,500

What positive action can you take?

  • Help maintain ARF values by looking at lower cost structures
  • Review your Asset choice to help maintain underlying capital value
  • Ringfence €63,500 into an AMRF – not liable to imputed distribution Earnings Planning
  • Move to company contributions where possible  but beware of salary sacrifice rules
  • If you are self employed it might be worth looking at the following –
  1.                                            Incorporation
  2.                                            Parallel employment
  3.                                            Service company structures
  4.                                            Opportunities for employing a spouse.

Fund Threshold Planning

Standard Fund Threshold of €2.3m now applies to pension funds.

Avoid high-tax rollup by triggering BCEs where possible – Manage risk / reward strategy – to ensure the SFT is not breached

Fund a spouse’s pension – i.e. double the allowance

Contact Your Local Independent Financial Adviser

Lucas Financial Consulting Ltd are 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: These funds may be affected by changes in currency exchange rates.

 

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

 

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

 

Warning: If you invest in these funds you may lose some or all the money you invest.

 

Warning: A deferral period may apply to withdrawals and/or switches from certain funds. Please refer to your product documentation for further details.   

 

 

 

Portfolio construction and investment returns

Messages on July 27th, 2012 No Comments

Investment returns – where have they come from?

Research has shown that about 90% of the return from a typical Pension or Investment Fund is determined by the asset mix – ie the proportions held in equities, property, bonds and cash.

This makes sense if we think of property for example. If the market is strong, then most properties will tend to do well, no matter the location. So it’s the behaviour of the property market as a whole that’s important. The same argument goes for equities and bonds.

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What’s on the horizon for Bonds

Messages on July 23rd, 2012 No Comments

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 Government and Corporate Bonds

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What’s on the horizon for Currencies, Commodities and Cash

Messages on July 20th, 2012 No Comments

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 their current position and view on global currency and commodities markets.

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ARF & AMRF – New rules at the Point of Retirement

Messages on July 15th, 2012 No Comments

The Revenue recently confirmed the following change in Revenue practice

“Re previous emails in relation to the application of the new ARF/AMRF rules

introduced by Finance Act 2011 with effect from 6 February 2011, having

considered the matter further in conjunction with Income & Capital Taxes Division,

Revenue will now interpret the provision as meaning that where an individual has,

prior to 6 February 2011, met in full the AMRF or specified income test applying

up to that date, no further amounts need be set aside in the AMRF in respect of

pension benefits maturing on or after that date.”

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Whats on the horizon for Equities

Messages on July 15th, 2012 No Comments

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 their current position and view on equities around the world.

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Why purchase Co-Director Insurance?

Messages on September 20th, 2011 No Comments

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.

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Investment Outlook – 2011

Uncategorized on January 5th, 2011 No Comments

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

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Budget Overview

Budgets on December 9th, 2010 No Comments

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

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Budget Summary 2011 – How does it affect my Pension?

Budgets on December 8th, 2010 No Comments

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.”

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