Financial Tips For 50 Year Old's

For most people by the time, they have reached 50 years of ages they have experienced most of their major expenses such as a mortgage, a wedding and having children. We’re not saying that all major expenses are now non-existent as you may still have children’s college expenses, a new car etc. Everyone is different and has different goals and responsibilities at different stages of life.

In this blog we’ve picked tips that we believe will be most relevant to people in their 50’s but if you don’t see what you’re looking for here be sure to look at our previous blogs. We’ve covered different milestones for different age categories throughout our previous blogs.

 

  1. Review Your Pension

The retirement age in Ireland to receive the state pension is currently set at 66 which if your currently 50 means you’ve about 16 years before you can claim it. If you do not have a private pension, it’s never too late to start to try and provide...

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What should I do with my money in my 40's?

Retirement

No one really likes getting older but it is a fact of life and realistically you need to plan for the day that you eventually get to retire, ride off into the sunset and enjoy your golden years. If you’re in your 40’s you’ve still got 20 years before your retirement and you still have a decent amount of time to plan for it.

If you don’t have a pension it might be time to look into it. If you do have one reviewing it now may ensure you maximise its efficiency.

Housing

There are two elements to this part. You either own a house currently or you don’t. Either way planning for your future accommodation needs is important. Renting is becoming more common place it’s quite expensive to rent for your lifetime especially in densely populated areas. If renting long term is not for you then looking at buying a house might be the solution.

If you currently own and a house and have a mortgage you should review it every 2 to 3 years to ensure you are...

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What should I do with my money in my 30's?

1: Get Rid of Bad Debt:

This step will be very relevant to anyone looking to get a mortgage, as bad debt makes it much harder (if not impossible) to acquire one. The highest rate of interest you will pay is on short term debt and credit cards which is a major drain on cash flow. Interest rates on short term loans including car loans can really eat away at your income and with some credit cards carrying a rate of 20% these unpaid bills can very quickly add up. The first step in any financial plan should be to work on clearing this debt and as your cashflow improves you will find it easier to save.

2: Build up An Emergency Fund:

This will often be known as a rainy-day fund and is exactly what it says on the tin. It’s a fund that you have in case of emergency because unfortunately emergencies happen and no matter how good you’re at budgeting you can’t plan for everything. This money should be kept in an easy access savings account. These accounts offer very...

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4 Financial Habits to start in your 20’s.......or any age

1. Budget

Perhaps the most obvious piece of advice, this is something many people avoid at all costs – literally. But creating a budget is nothing more than exerting your own control over the financial side of your life in a mindful way. Sit down with an excel spreadsheet (or any planner) and enter your costs and incomes, within an hour you’ll be done.

Don’t look at this as an exercise to limit yourself but rather to enable your future self.

2. Save (surprising tip)

Just 50% of Irish people save regularly. If you’re part of the 50% who don’t save regularly there’s no better time to start than the present. It doesn’t mean putting €500 a month away but rather put anything that you can afford away into a savings account. By getting into a routine of saving you can eventually begin to save more and more. Creating a good habit of saving is the hard part.

3. Set realistic goals

Setting high goals seems great in theory but much like a new...

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The Pros and Cons of Whole of Life Cover

There are two main types of life insurance, Whole of Life cover and Term Assurance cover.

As the name suggests, Whole of Life insurance can cover you for your entire life whereas Term Assurance is put in place for a set term such as 10, 20 or 30 years.

Whole of Life insurance often costs more in premiums but means you get a guaranteed sum of money when you pass away at any age, so some people will see it as a form of savings account for their next of kin when they pass away.

Term insurance costs less in premiums but if you don’t pass away during the term of the cover, there will be no payment and so the money you’ve paid in is gone forever.

In this blog we’ll delve into the pros and cons of Whole of Life insurance.

Pros

Permanent – As long as you keep paying your premiums the policy can last for the rest of your life. There are certain options available in the market where you pay premiums for so many years, similar to term insurance, but then you stop, and...

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What is Life Cover?

What is Life Cover/Insurance?

Life insurance or life cover pays out a tax-free lump sum if you die during the term of the policy. It’s possible to have single life cover, where only one person is insured, or joint life cover or dual life cover, where two people are insured under the one policy.

Do I need Life Cover?

Like most insurances the answer to that question depends very much on your personal circumstances. For example, if you have no dependents or anyone who relies on your income, then you more than likely do not require life cover. Some people may have cover through work or a pension plan, so they usually do not require additional cover.

If you have dependents or someone who relies on your income such as a spouse, then you more than likely need life cover.

It is always recommended to talk to a financial advisor before purchasing cover so that they can perform a full financial review to ensure you are making the best choice for you.

How much Life Cover do I need?

...

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What is estate planning? Is it a preserve of the wealthy?

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Estate planning, is a term that when you hear it, sounds like a lofty concept…..but it isn’t!

Estate or inheritance tax planning as it is also known is for anyone with the following assets that they wish to pass on to a loved one:

  • Home
  • Holiday home
  • Land
  • Pension
  • Savings

It is increasingly a requirement for middle Ireland, with smaller family units and the modern family pressures of society. Without a plan, a sudden death or unplanned estate can have a long and costly impact on all those left behind.

Setting up a will, trust, figuring out what a small gift exemption is as well as minimising what Capital Acquisitions Tax (CAT) your beneficiaries will pay are all simpler than they sound.

A specific type of life policy can be set up to minimise the stealth tax that happens upon death when passing on an inheritance. There is a 33% tax on your accumulated assets after you have worked and built up personal assets. Nobody likes tax!

In a simple scenario of two adult...

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Are you in a good relationship with your money?

Perhaps this is an oddly phrased topic, however, it is important, particularly with all the idealism of a new year, that it is addressed.

Ask 100 people what their biggest worries are, health and money tend to top the list. We all traditionally join a gym, change diets and get moving when we get worried about health, yet we tend to do the opposite with our personal finances!  We ignore, procrastinate, fear and dream about money. Having a good salary does not necessarily mean you are in a state of “financial wellness” either. It is your relationship with money, not the income itself, which makes the differences that will improve your life.

Having a better relationship with your money is financial wellness. Wellness is a new term that is being applied to mental, health & dietary improvements. If you wish to add financial wellbeing to your checklist, here is some low hanging fruit for you to tackle:

  • When was the last time we sat down with someone or even...
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I started that job with a guaranteed Pension…is it still guaranteed?

The retirement/pensions industry is guilty of technical jargon that baffles anybody not working in Pensions!

This is particularly prevalent in group pension schemes. If you are that person who recalls being told of a guaranteed pension many moons ago, you may well remember terms like defined benefit, 50% salary etc.

This promise of a guaranteed monthly pension has rapidly evaporated in Ireland, high profile and particularly negative stories like Waterford Crystal pension scheme is a case in point. Thankfully most are not like this, however, they are under financial strain. Group DB schemes are now asking members to consider taking a set amount from these schemes and exiting.

The simple reason is cost, it is a promise that for many they can no longer be kept. However, like anything related to money, it is rarely straightforward! There are a few key questions one needs to ask of their scheme/trustee/themselves or a financial adviser:

  • Am I being asked or pressured to take a...
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What can we learn from Warren Buffett?

 

What can we learn from Warren Buffett?

  

Where do you start with Warren Buffett? Widely recognised as the world’s shrewdest investor, the “Sage of Omaha” is now 90 years young and still doling out nuggets of advice to investors across the globe. Using his investment expertise, he had amassed a fortune of some $79 billion as of August 2020, making him the 4th wealthiest individual in the world.

Buffett is chairman and CEO of the Omaha (Nebraska) headquartered conglomerate, Berkshire Hathaway. His annual letter to shareholders is highly valued and their annual shareholder’s meeting has grown into an enormous event, attracting crowds some years in excess of 40,000 people! People want to hear what Buffett has to say.

The only infuriating factor in all of this is that he makes it all sound so simple… While of course it is not, he is guided by a series of principles that he sticks to and he regularly speaks of these through pithy and highly...

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