Safeguarding your finances

There is plenty that is uncertain right now – our lives are being dramatically affected by the coronavirus pandemic, with the majority of us confined to our homes during lockdown.

If you have time on your hands, you may find some peace of mind from using this to secure your financial well-being.

Here are some considerations.

1. Think about long-term goals

Interest rates on cash savings are in the doldrums, with most bank deposit rates at negligible levels. Meanwhile, the stock market is volatile. Yet dips in the market can present buying opportunities if you are focused on long term goals.

History shows that, over the long term, shares have historically risen and outperformed cash. The graph below shows the comparative returns from cash, bonds and global equities.

2. Make or update your will

Ensuring you have an up-to-date will means your estate will go to who you want, and that your wishes are carried out after your death. If you already have a will you may need to amend this if there have been any substantial changes to your situation – such as getting married or having children. You might also want to seek guidance on creating an Advance Healthcare Directive, sometimes known as a ‘living will’ which is a statement about the type and extent of medical or surgical treatment you want in the future, on the assumption that you will not be able to make that decision at the relevant time.

3. Plan for future generations

You can save tax-efficiently to help secure your children or grandchildren’s financial future. You and your spouse can each gift up to €3,000 to each of your children and any grandchildren on a tax free basis. Over time this can amount to a significant amount of tax free transfer of wealth. In addition you can ensure that your will maximises the use of inheritance tax allowances to grandchildren.

4. Review your protection

Protecting your financial situation may seem more vital than ever. But it can be tricky putting the right combination of insurance policies together.

You might want to consider professional advice to ensure you have the most suitable level and cover for you from, for example, income protection, life assurance, and critical illness cover

5. Draw up a retirement plan

It is useful to step back and consider the life you want to live in retirement. You can then build a financial plan around this when you’ve got time on your hands.

A financial planner can help you clarify your goals, and develop and manage a tailor-made retirement plan, whatever your stage of life.

This plan can stress test how different growth rates, inflation, or other economic events, for example, might impact on your goals. Most importantly, remember to focus on a long-term investment horizon.

If you would like to find out more about estate planning and your finances, submit a callback request.

The value of your investment may go down as well as up.
Past performance is not reliable guide to future.
You may lose some or all of the money you invest.
Our investment may be affected by changes in currency.
Any income you get from this investment my go down as well as up.
Tax treatment depends on your individual circumstances; therefore you should not rely on this information without seeking professional advice from a qualified tax adviser.