Savings / Investment
Lump Sum Investments
With so many different ways to grow your savings, we will help you to find a solution that best suits your needs and preferences. Whether you have a specific goal in mind or perhaps you want to put money aside for a rainy day, it is important to ensure you choose the right product for you.
We will seek to understand your preferences, educate you on the different choices, ensuring you understand how these work. We assess your tolerance to investment risk, helping you build a portfolio that is aligned to your wishes.
With bank deposits paying little or no interest, the impact of inflation should be a priority. Often referred to as the silent enemy, this relentlessly eats in the the value of your savings on deposit. By way of example, 3% inflation per annum would reduce your savings in real terms by 13.7% after only five years, and it won’t stop there. Your initial target should be to outperform inflation, growing your capital above and beyond this again in real terms.
Choice
- One off Investment?
- Saving for a deposit for your first home?
- Easy access, in full or in part?
- Fixed period of time?
- Open ended options?
- Company surplus cash?
- Setting funds aside to pass to the next generation?
- Capital security?
- Multi Asset Funds / Equities / Bonds / Property / Passive / Active and more.
Understanding your needs, your tolerance to investment risk and your investment term, we will tailor an investment plan to suit you. Making sure you to better understand the different structures, only once you comfortable with the details, we then help you to place an investment with your provider of choice.
Small Gift Exemption
In Ireland an individual can gift another person €3,000 per annum, with no tax implications. A parent can gift €3,000 to a child or both parents jointly can gift up to €6,000. Where the child is married, you can gift up to €12,000 and if you add Grandkids into the mix, the numbers multiply.
This is a very useful and tax-efficient strategy for passing assets onto the next generation. These payments, and any interest earned where invested by the recipient, are all outside of the Inheritance Tax loop.
A structured savings plan that is invested over the period is the favoured choice. Payments can be paid annually or monthly to suit your preferences. Where a Child or Grandchild is under the age of 18, the saving account is set up under a Bare Trust until they reach adult age. It is out of reach for the duration and invested over the period, giving the opportunity to grow further still.
Especially for younger Children, a common trend is for parents to set up a regular saving plan under Trust. With the Trust expiring to transfer control when they reach adult age, we see these fund used toward College Fees or even deposits for their first home. The options are almost endless.
The Small Gift Exemption allows you to move your assets to reduce Inheritance Tax, while helping your loved ones at the same time.
School & College Fees
Saving for college fees is one of the main reasons we are asked to organise regular savings plans. TU Dublin Cost of Living Guide estimates the following costs for students, or more correctly for their parents, for the 2023 / 2024 college year:
- Cost of Living whilst living at home – €6,309 pa
- Cost of Living whilst in rented accommodation – €14,094 pa
For a 4 year course this adds up to €25,236 and €56,376 respectively. I can fully attest to these figures, with one of my own children now finishing 4 years living away from home whilst attending college in Cork. Over the period between accommodation, fees, food, transport etc, the total cost was approximately €48,000. Remembering also, this comes from after taxed income. There is also the scenario where you have more than one child in college at any one time. Yes, that happened to me too.
The key is to start saving early and to save regularly. Our advice is to use the Child Benefit, at a minimum, saving this to a regular savings investment plan. Out of reach and separate to your ordinary banking account(s), it can grow uninterrupted, whilst still being available to you on demand as required.
Most important – starting early WILL make all the difference!
Sustainability Factors
We also consider the impact of investment decisions on sustainability. As part of our research we examine the Product Producers literature to make an informed decision about ESG.
At all times we will act in your best interest and your preferences, also considering how sustainable risk might impact on investment, regular savings and pension returns.
