Will We Have Enough? – 5 Ways We Believe We Can Add Value

Will We Have Enough? – 5 Ways We Believe We Can Add Value

Time never stands still. Everything in the world seems to be moving at a quicker pace than before. Nowadays, the most common question we answer for the people we deal with is ‘Will I have enough?’. We are continuously looking for ways to improve how we answer this question and add proper value.  As Certified Financial Planners we are continuously evolving. Information gathered and used in the right way can help create a realistic financial plan. 

Truly Independent & Objective Advice

For many of us, money, although we may not what to admit it, is a very emotional subject for us and our families. It often hard to talk about, difficult to make decisions about, and it’s particularly difficult to make totally objective decisions. Part of the value of having a trusted advisor is a second opinion, someone who is completely independent of you or your family, who can provide advice without emotional attachment. In our experience, most individuals benefit greatly from an independent source of advice that allows you to focus on enjoying life instead of worrying about money.

Confidence 

Our initial complimentary consultations typically begin with a discussion about your investment portfolio, and your insurance policies. This transpires over time to a relationship that covers every aspect of your financial life. We try to give you the confidence and reassurance to know that while you are above ground, what type of lifestyle you can afford, and furthermore if you weren’t around, that your family would be taken care of.

By using lifetime cash-flow modelling tools we help you create a financial plan that matches your priorities and fits your lifestyle.

 

Asset Allocation
Considerable academic studies have shown that over 90% of variations in funds’ investment returns were attributable to the underlying strategic asset allocation. Setting an appropriate strategic portfolio mix, between equities, bonds, and other asset classes, is a starting point for all our clients before considering investment selection. This important decision will have a big impact on your investment outcomes.

“Wealth isn’t primarily determined by investment performance, but by investment behaviour.” Nick Murray

Behaviour

When asked how the stock market will perform, the financier JP Morgan said that “it will fluctuate”. We recognise that while investing is a long-term activity, the long-term is made up of a series of short-terms which can be difficult for investors. Because investing evokes emotion, we look to help you maintain a long-term perspective and a disciplined approach. We aim to help our clients to handle periodic volatility without abandoning their investment plan.

Tax

There are distinct measurable benefits to enlisting the services of a Certified Financial Planner, including disciplined rebalancing and tax loss harvesting. Also, the allocation of assets between taxable and tax-advantaged investment accounts, is one area we can add value each year, with an expectation that the benefits will compound through time. Deciding where to allocate assets from a taxation perspective is crucial to a client’s overall financial plan.

How we invest

“To invest successfully over a lifetime does not require a stratospheric IQ, unusual business insights, or inside information. What’s needed is a sound intellectual framework for making decisions and the ability to keep emotions from corroding that framework”

Benjamin Graham, (1894-1976) Legendary American Investor, scholar, teacher, and author of the book, “The Intelligent Investor”

 

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Pension Planning for Company Owners and Directors

Pension Planning for Company Owners and Directors

Pension Planning for Business Owners and Directors

It’s most likely you are familiar with creating and developing business plans. Most successful business plans have many different dimensions for that business to develop successfully. The strategy for building the desired income in retirement is no different. Pension planning is something that all business personnel should carefully consider.

Part of the strategy should include taking advantage of the many tax benefits of company pension planning. These benefits include:

  1. No Benefit in Kind on employer contributions
  2. Corporation tax relief in the year the contribution is made
  3. No PRSI payable on pension contributions
  4. Tax effective retirement lump sums
  5. No USC payable on pension contributions
  6. Tax-free investment growth throughout (No Pension Levy in 2016)
  7. Earnings cap for tax relief is not applicable to company contributions
  8. Death benefits of up to 4 times salary plus annuity
  9. Post-retirement flexibility and tax planning of the ARF option
  10. Ability to backdate an AVC and retrieve tax

What’s your business plan for extracting the wealth from your company required to achieve the lifestyle you want for you and your family?

Contact Infinity Financial Planning 

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Tax Write Off’s for Contractors and Small Business Owners

Tax Write Off’s for Contractors and Small Business Owners

Our esteemed friends working in the Revenue want you to pay them as much taxes as possible. Typically, we save our IT and Engineering Contract clients at least €100,000 in taxes over 20 years.  Infinity Financial Planning try to help contractors, directors and employees to get better organised financially. Our aim is to help you minimise your taxes and increase your bank balance.
Most people are busy working long hours. Successful people use financial planners like ourselves to help identify ways to legitimately make the most of what you earn. From our 35+ years in Financial Planning we have picked a few tricks along the way which we would like to share with you:

Small Gift Exemption and Other Perks

Let’s start with possibly the best perk. A €500 single voucher may be provided, to any employee or employer, without applying PAYE, PRSI and USC to that benefit. This is called the small gift exemption. It is allowed annually.

The small gift exemption is available to employees, contractors and company directors alike.

Below is the following additional examples of how you can pay yourself:

  1. Salary
  2. Professional memberships, journals and books
  3. Mileage Allowance, at Revenue Rates
  4. Subsistence Expenses, again at Revenue rates
  5. Further Education, if improving required skills
  6. Retirement plan contributions
  7. Bonuses and Benefits such as paternity leave, and maternity leave
  8. Employee Benefits such as income protection and death in service
  9. Foreign travel expenses, if you spent all of your time abroad on business!
  10. Small gift exemption

Tax Write Offs for Contractors and Directors of Limited Companies

So now that we’ve covered the good parts about how you can pay yourself best let’s look at the legitimate ways to minimise your personal and corporate taxes. Start-up costs vary in amounts and are likely to include items such as:

  • Advertising, utilities, office supplies, and any other business-related purchases.
  • Office rent is an obvious deductible expense.
  • Home office space is deductible by the square foot in proportion to liabilities, with certain limits, which need to be discussed with your friendly accountant.
  • Printers, copiers, paper, desks, software and filing cabinets are examples of hardware as business expenses.
  • Internet, email services, website hosting, software programs, postage, stationery are some more of the the obvious ones.
  • Food, coffee and kitchen maintenance items can all be claimed reasonably.

If time-sheets and expense receipts were important when you were an employee, then they are vitally important if you are a contractor, for either an umbrella company or even personal limited company.

Umbrella Companies

By the way, an umbrella company is a ready-made Limited Company that is owned and managed by an accountancy firm. The Umbrella Company acts as an intermediary between the contractor and their employer. Your umbrella company provider needs to keep your tax compliant.

The next most important job is to submit invoice’s on your behalf to your place of employment. How quickly payments are made to your personal bank account from said company account is a good barometer of the quality of service you will receive. How long you intend on being a contractor will dictate if you are going to be a PAYE employee of the umbrella company or a director of this ready-to-go limited business.

Professional Services Roles in Medical, IT, Financial and Engineering Industries

Most people we deal with are looking for assistance in implementing some or all of the 10 ways to maximise your personal wealth above. We don’t just look after money, we look after people we deal with as if the money was our own. If you are busy with life, and struggling to figure out the best options for you, just let us know. Our job is to help you get financially organised, minimising your tax liabilities and maximising your wealth.

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See what our financial planning experts can do for you.