You’re sitting at your kitchen table on a Sunday evening, laptop open, staring at your pension dashboard. The numbers look good on paper, but there’s something still nagging at you…

The spreadsheets show progress. The pension’s growing. The investments are performing. But you still catch yourself wondering: “Is this really going to give me the freedom I want?”

In this blog, we’ll look at how understanding financial planning beyond money delivers real advantages like:

• Freedom to make choices without financial constraints dictating decisions
• Time back in your day because money stress isn’t consuming your mental energy
• Enhanced confidence in your financial future and retirement timeline
• Improved peace of mind about your family’s security

Here’s something that’ll surprise you: the smartest, most successful professionals and business owners I meet often struggle with financial planning beyond money.

I’m talking about people €150k+ who can’t sleep because they don’t know if they’re saving enough. Professionals who’ve built brilliant careers but freeze up when choosing between pension providers.

Sound familiar? Traditional financial advice has got this completely wrong. It treats money like numbers on a spreadsheet. But real financial planning isn’t about becoming the richest person in the graveyard.

Let me show you why most people never get there and what actually works instead. Why Smart Professionals Make Poor Financial Decisions

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The Control Trap That’s Costing You

Sarah runs a marketing consultancy in Galway. Smart woman. Built her business from nothing to €120k annual revenue. She spent three years researching pension options without making a single decision.

Why? Because Sarah needed to understand every detail before committing.

The same control instinct that built her business was paralysing her financial future. I see this constantly with successful professionals.

You’ve achieved everything by taking charge, so naturally you think you should manage your money the same way.

Financial planning isn’t like running a business. You can’t control markets or predict regulatory changes. The professionals who actually build wealth focus on controlling what matters (and outsource the rest).

Yes, you can control how much you save each month, your asset allocation strategy, when you start planning, and who you work with. But you can’t control market returns year to year, government policy changes, when you’ll need the money, or how long you’ll live.

Trying to control everything is like trying to steer a car by grabbing the steering wheel, pressing all the pedals, and adjusting the mirrors simultaneously. You’ll crash. Better to focus on the steering wheel and let the car’s systems handle the rest.

Why Your ‘Friends’ Investment Returns Don’t Matter

Social media ‘finfluencers’ (think LinkedIn, Tik Tok, Instagram…) are financial planning poison. Every second post seems to be someone bragging about their crypto gains or property deals.

Your golf partner mentions his pension is up 15% this year. Suddenly you’re wondering if you’re missing out.

Stop. This is how smart people make stupid decisions.

Your colleague’s 15% pension return might look brilliant until you learn he’s taking twice the risk you’re comfortable with.

Your neighbour’s property success means nothing if he’s leveraged to the eyeballs and you prefer sleeping at night.

Financial planning beyond money isn’t a competition.

For a tech contractor, success might mean building enough wealth to ride out contract gaps without stress.

For a restaurant owner, it’s creating income streams that don’t depend on working 70-hour weeks.

What matters is whether your strategy gets you where you want to go.

Not whether it beats everyone else’s.

Instead of asking “Am I beating the market?” ask “Am I on track for my goals?”

Much more useful question.

The Real Reason You Keep Procrastinating

Let’s be honest about why that pension review has been on your to-do list for ‘two years’… It’s not because you’re too busy. You found time to research that new car for six weeks.

It’s because financial planning feels overwhelming. Not the concepts – you understand compound interest and tax relief. The sheer volume of decisions and options and providers and paperwork.

Should you increase pension contributions or max out the company scheme first? What about AVCs versus PRSAs? Which investment funds make sense?

Your brain does what all smart brains do when faced with too many variables: it postpones the decision.

Meanwhile, every month you delay costs you real money. Not just potential returns – the actual tax relief you’re missing. The employer matching you’re leaving on the table.

Here’s what actually works: break it down into individual decisions with clear timelines.

This week, check your current pension contribution percentage.

Next week, calculate the maximum tax relief available to you.

Week three, book a consultation to understand your options.

Week four, make one change – even if it’s not perfect.

Perfect planning that never happens is worthless. Good planning that starts today compounds for decades.

Three Mental Models That Cut Through Confusion

When clients feel stuck, I use three approaches that create clarity.

First Principles: Strip away all the financial jargon. What do you really want?

Most people say “financial security” but dig deeper and you’ll find specific goals like “I want to know I can quit my job if it becomes toxic without panicking about money” or “I want my kids to inherit something meaningful but not so much they lose motivation.”

Once you’re clear on the actual outcome, the strategy becomes obvious. You’re not trying to maximise wealth – you’re funding a specific lifestyle.

Inversion: Work backwards from failure. What scenarios would completely derail your financial future? Business income drying up for six months.

Market crash right before you planned to retire. Serious illness requiring expensive treatment.

Most people avoid thinking about these scenarios because they’re depressing.

But identifying risks lets you protect against them. Emergency funds prevent desperate decisions during tough periods. Income protection keeps your family afloat if you can’t work.

Systems Thinking: Change one thing and everything else shifts. Increase your pension contribution and your take-home pay drops but your tax bill falls and your future income rises.

This is why DIY financial planning often backfires. You optimise one area without realising how it affects everything else.

Why DIY Usually Fails

The problem isn’t that you can’t learn financial planning. The problem is that you won’t consistently execute it. Think about areas where you’ve tried the DIY approach before. Home renovation. Car maintenance. Tax returns.

How did that work out? You probably started enthusiastically, got decent initial results, then let it slide as other priorities took over.

Financial planning beyond money requires consistent attention over decades. Regular reviews. Strategy adjustments. Performance monitoring.

When was the last time you reviewed your pension fund choices? If the answer is “too long ago,” you’re proving my point.

The value of professional advice isn’t just the initial strategy. It’s the systematic execution and ongoing optimisation that you’re unlikely to maintain yourself.

What Actually Works

Start with clarity, not complexity. Before talking to any adviser, get clear on your specific goals. Not “I want to be comfortable” but “I want €4,000 monthly income starting at age 60.”

Focus on tax efficiency first. This is where professional advice pays for itself immediately. Maximising pension contributions, structuring investments properly, timing decisions around tax years – the savings often exceed the advice fees.

Build systems, not just strategies. The best plans run automatically. Direct debits for savings. Automated pension contributions. Regular rebalancing. Systems reduce ongoing effort to nearly zero.

Know when to DIY and when to delegate. Basic savings and simple pensions? Probably fine to handle yourself. Estate planning, business succession, complex tax strategies? Worth paying for expertise.

Your Starting Point

Write down your current financial position. All accounts, all debts, all assets. List your financial goals with specific amounts and timeframes. “Retire comfortably” becomes “Generate €5,000 monthly income starting January 2040.”

Check your pension contribution rate. If it’s below your age-related maximum, increase it to capture full tax relief. Set up automatic transfers to build emergency funds. Review your insurance coverage.

If your situation is complex or you’re not confident about the strategy, schedule consultations with qualified advisers. Ask specific questions about your biggest concerns rather than requesting generic advice.

Measuring Real Success

Investment returns grab attention but they’re not how to measure success. Better metrics: Are you sleeping soundly because you know you’re sorted? Can you evaluate opportunities quickly based on clear criteria? How much mental energy do you spend on financial problems versus focusing on work and family?

Financial planning beyond money isn’t about becoming obsessed with wealth. It’s about creating enough financial security that money stops dominating your decisions.

The professionals who thrive won’t necessarily have the highest returns. They’ll have systems that support their lifestyle goals while requiring minimal ongoing attention.

You don’t need perfect knowledge or optimal strategies. You need clarity about your goals and consistent execution of good-enough plans. The freedom, time, options, and peace of mind you want are absolutely achievable.

But only if you stop planning to plan and actually begin.

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For personalised advice on pension and retirement planning or any other financial advice question, book a Quick Chat at O’Leary Financial Planning.

Alternatively email us at advice@olearys.ie for more information.

Disclaimer: This content is for informational purposes only and does not constitute financial or legal advice. Always seek professional guidance before making decisions.

The post Why Smart Professionals Make Poor Financial Decisions appeared first on O’Leary Financial Planning.

Smart investing in Ireland isn’t about chasing trends – it’s about building momentum through strategy, consistency, and clarity. For financially focused professionals and business owners, it’s less about what you invest in and more about how you approach it.

You’re not just seeking returns – you’re looking for control, confidence, and long-term direction.

And even with pensions, savings, or investments in place, it can still feel disconnected.

You’re not alone – and it’s more common than you think.

In this blog, we unpack the real story behind smarter investing in Ireland – and how small mindset shifts can lead to big long-term outcomes, including:

• Clearer decision-making – when you understand what actually matters, you stop getting distracted by noise.
• Better portfolio discipline – a consistent strategy grounded in your plan, not the headlines.
• More confident progress – realising investing isn’t about complexity – it’s about consistency, time and clarity.

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What’s Holding You Back Isn’t Just Strategy:

Pension consolidation involves bringing together multiple pension pots into a single arrangement. It’s a strategic approach to simplifying your retirement planning while potentially improving investment performance and reducing costs.

You might expect us to talk about diversification or tax wrappers. That’s part of the picture – but it’s not the biggest issue.

Here’s what really gets in the way for people who should feel confident about their finances:

The fear of making a wrong move: When you’ve worked hard to get where you are, taking risks with your future feels heavy. Even minor investment decisions can feel paralysing.

Not knowing if it’s ‘enough’: You might have money across pensions and accounts, but that nagging feeling persists – “Is this all going to add up to what I want?”

The mental clutter of too many options: There’s no shortage of online advice, product comparisons, or financial influencers. But trying to decode what applies to you only creates more confusion.

Emotional Blocks That Go Unnoticed:

We’ve worked with clients across their 30s, 40s and 50s who say things like:

• “I should know more about this by now.”
• “It feels like everyone else has it sorted.”
• “I’m nervous to ask the wrong question.”

Here’s the truth: you’re not behind. You don’t need a finance degree. And you certainly don’t have to figure this out alone.

But what’s often unspoken are the emotional money blocks sitting beneath the surface.

Things like:

• Feeling guilty for not paying more attention earlier
• The pressure of being ‘the provider’ in your family
• Worrying about what happens if things don’t go to plan

Good investing advice doesn’t just deal with spreadsheets. It helps unpack the stuff no one talks about.

The Real Dreams You’re Working Towards:

Let’s be honest – it’s not about numbers on a screen. What you’re really chasing is peace of mind and more choice over how you live, work, and retire.

That might mean:

• Having options at 55 instead of waiting until 67
• Building a safety net that gives you breathing space at work
• Setting your children up financially while still enjoying life yourself

It’s about using money to build a life that fits. Not the other way around.

The Question You Should Be Asking Yourself:

If you’re in your prime earning years, these are the conversations worth having:

• Are my current investments aligned with what I actually want?
• What’s the risk I’m taking – or not taking – and is it helping?
• Is my pension on track to give me real flexibility down the road?
• Do I even know what I’m working toward – or is it all on autopilot?

You don’t need to overhaul everything overnight. But asking better questions can lead to smarter decisions.

Why This Is The Right Time:

If you’re earning well and saving consistently – great. That’s a strong foundation.

But investing is what turns a good income into real wealth. And the earlier you get strategic about it, the more powerful it becomes.

Many of our clients come to us with the basics in place: a pension, a savings account, maybe a few investments. But what they’re missing is clarity and a proper structure.

And that’s what changes everything.

With the right strategy, you can:

• Consolidate what you’ve already built
• Create a plan that grows with your goals
• Reduce unnecessary fees and complexity
• Align your money with your bigger picture

It’s Not About Giving Up Control:

Some people hesitate to get advice because they’re worried they’ll lose control. Or that they’ll be told what to do.

That’s not how we operate.

At OLFP, we act as a thinking partner – helping you make informed decisions, not pushing you into things that don’t fit. Our role is to give you clarity, structure, and the tools to move forward with confidence.

It’s about building a financial life that gives you more control – not less.

For personalised advice on pension consolidation or any other financial advice question, book a Quick Chat at O’Leary Financial Planning.

Alternatively, email us at advice@olearys.ie for more information.

If you’re ready to get serious about investing – not just in the markets, but in your future – this is the right time.

The post Smart Investing in Ireland: The Real Story for Wealth Accumulators appeared first on O’Leary Financial Planning.

“Schools teach you how to work for money, but don’t teach how to make it work for you.” — Robert Kiyosaki

1. Spend less than you earn

This is a discipline. In order to achieve this goal, you have to know where your money is going each month. Everyone hates the word Budget but given that we all work so hard for our paycheck, taking a little bit of time to see where your money is going every month is worthwhile.

2. You don’t need a reason to save

Saving for a particular goal in mind is great in a predictable world, however, if the last 12 months have taught us anything life is not predictable. Saving is boring but having the protection and flexibility against uncertainty will definitely make it worthwhile. Pay yourself first. Put money aside before the rest of your bills are taken from your account.

3. You are your most valuable asset!

If you are anyway reliant on your income, you need to think about insuring it. Rent, Mortgage payments, food, broadband, etc, if you can’t get up and go to work, how will you continue to pay for these things, or even how would you continue to save for your next holiday/car/retirement?

4. Good Debt v’s Bad (crappy) Debt

Create a distinction between the two. Borrowing for your home is considered good debt, the expectation is that the value of your asset will rise as you pay off the loan thus increasing your net worth over time. Bad debt is generally unsecured debt, allowing you to buy something now and pay for it in the future. Credit card debt, overdrafts or personal loans can be difficult to get away from, but it is a downward spiral of wasted money.

5. Saving and Investing

what is the difference? Savings is short-term in nature – think of saving for that Holiday, next Car, home improvements? Do you need the money in less than 5 years – this is a good guide.

Investing is putting money away for future consumption, generally, in funds linked to stock markets (growth assets). You are hoping to increase the value of your money over time, at the very least beat Inflation. The core mandate for the bankers at the ECB is to use Interest rates to control Inflation. They have a target inflation rate of 2% per annum. This means that the purchasing power of your money over a 10-year period would decrease by 18%. (€10,000 would have the purchasing power of €8,200)

Mentally these things are very different, get your Savings in order so that you can Invest, as investing is what can grow your money.

6. Starting early is better than finishing strong

Compounding is like Magic! The more frequently your money earns interest, the faster and bigger your balance will grow. Setting up your retirement account when you start work may seem a ridiculous idea, but by putting small amounts away early, the hard work will be done when you are really starting to think about retirement.

7. Cash is not always king

Thinking that Cash is safe is the biggest mistake that I see people make. It is really difficult to beat inflation without some kind of investment strategy. The value of your money is being silently eroded over time. Have your Emergency/buffer fund and your savings in cash but no more.

8. Investing isn’t gambling when it is done right

Investing should be like watching paint dry; buying Bitcoin is not investing. By investing you are taking a level of risk with the aim of being rewarded for taking that risk. Your capital is not guaranteed. By Investing in a globally diversified fund, you are tapping into the ingenuity of the best companies in the world. This quote from British Financier James Goldsmith sums it up brilliantly “if you see a bandwagon, it’s too late’

9. Don’t neglect the basics

There are 2 big documents that you need to have – A WILL; we all hate talking about Death but unless you want your family to pay exorbitant legal fees and have a ton more paperwork, organize a Will this week. The second document is an Enduring Power of Attorney; this allows someone else to act on your behalf if you are temporarily unable to make your own decisions through illness or disability. It’s particularly important for health and financial decisions. Both documents can be organized by your Solicitor.

10. Money doesn’t give you happiness, but it can give you choices.

I have never met a client that regretted being financially secure. With a few simple steps, that can be you. Click here to request a call

The post 10 Things about Money You Weren’t Taught at School… appeared first on O’Leary Financial Planning.

Corporate savings represent a valuable tool for business owners seeking to enhance financial resilience, optimize tax efficiency, and secure long-term prosperity. Only withdrawals, surrenders, maturities, assignments, events every eight years, and death trigger taxation on the investment growth. This allows the investment growth to compound without being reduced by annual taxes.

Establishing a corporate savings account not only provides a safety net for unforeseen expenses but also offers significant tax advantages. In this blog, we’ll delve into the benefits of corporate savings for Business Owners and Company Directors. We focus in particular, on the 25% tax option compared to the Standard Investment Exit Tax rate of 41% or Deposit Interest Retention Tax (DIRT) of 33% that they would otherwise face.

Traditionally, Irish companies have held cash reserves in deposit or current accounts to manage cash flow and savings needs. As interest rates fail to keep pace with inflation, this strategy may no longer suit funds not needed for short-term cash flow. In other words, low interest rates mean companies may be losing money on their cash reserves by keeping them in these accounts eroding the purchasing power of your company’s savings over time.

What’s the solution?

As a Business Owner/Company Director you need to look at how you can earn better returns for your surplus cash while also reducing the tax burden. Consider the following factors when deciding on what to do with the current surplus that your company holds and for future surplus cash flows that maybe generated;

1. How much am I willing to invest?
2. Access to funds – Cash flow planning is crucial to understand how much surplus cash your company has available for investment, along with your future expected earnings.
3. Time horizon – How long are you looking to invest for
4. Risk Profile – the level of risk your company is willing to take

Tax Efficiency

One of the most compelling reasons for business owners to prioritize corporate savings is the favourable tax treatment it offers. Unlike DIRT, which deducts tax at source, the 25% tax option allows businesses to defer tax payments until profits are realized. This improves cash flow management, providing greater flexibility in allocating resources according to business priorities.

The tax only applies to investment growth upon withdrawal, surrender, maturity, assignment, every eight years, or upon death; it does not reduce the investment growth each year by tax. This gives your company’s savings the potential to work hard and benefit from compounding. The longer you can leave your investment in place the better the potential for long term growth. It also provides:

• more flexible options for both short and medium term investments depending on your need for liquidity
• the option of varying the regular payments if required and to add a lump sum into your policy at the beginning
• the option to increase, decrease, start and stop your saving contributions to meet your cash flow requirements
• change the fund you are invested in any time without charge

Reduced Tax Liability: businesses can potentially lower their overall tax burden on investment returns. This means more retained earnings available for reinvestment, dividends, or other strategic initiatives.

Strategic Investment Opportunities: With a lower effective tax rate, businesses can allocate more capital towards productive investments, such as research and development, infrastructure upgrades, or market expansion. This fosters innovation and competitiveness, driving long-term growth and sustainability.

Building Financial Resilience

Corporate savings provide a financial cushion against economic downturns, unexpected expenses or challenges, and opportunities for expansion. Consistently setting aside funds helps mitigate risks and ensure stability, enabling continuity during transitions. Proactively building a reserve allows business owners to navigate uncertainties with confidence, safeguarding their enterprise’s value and minimizing disruptions to stakeholders.

Corporate Savings are a strategic cornerstone for financial success. By prioritizing a dedicated savings plan, business owners and company directors can unlock a multitude of benefits. The 25% tax option emerges as a powerful tool for maximizing returns, presenting significant advantages compared to traditional deposit accounts and their associated tax burdens.

In conclusion, a well-crafted corporate savings strategy goes beyond tax efficiency. It’s about building a robust financial safety net, fueling long-term growth through strategic investments, and ensuring business resilience. Take control of your company’s financial future now to navigate challenges with confidence, empower innovation, and pave the way for lasting prosperity.

Are you ready to unlock the power of corporate savings for your business? Talk to one of our Financial Planners to explore the options that better align with your specific goals and risk tolerance.

Warning: The value of your investment may go down as well as up.
Warning: These funds may be affected by changes in currency exchange rates.
Warning: If you invest in a particular product you may lose some or all of the money you invest.

This is for information purposes only and should not be used or interpreted as financial advice. You should always obtain your own independent financial, tax and legal advice based on your own particular circumstances, before entering into any financial contract.

The post Maximizing Returns: The Benefits of Corporate Savings for Business Owners & the 25% Tax Option appeared first on O’Leary Financial Planning.

You marry someone you can’t live without” – unknown

Ok so it’s not the most romantic reason for a proposal, but there are many financial and practical reasons to tie the knot. As well as the joy of sharing your life with the love of your life there are also financial benefits that include tax breaks and welfare benefits not necessarily available to cohabiting couples. Below are just some of the financial reasons to say “I do”.

Favourable Tax

Married couples can choose how they want to be taxed – joint assessment, separate assessment, or single assessment whichever produces the most favourable tax advantages given your personal circumstances. You can share tax credits if one person earns less than the other. You can be taxed as one unit and allowed some tax concessions not used by one spouse to be transferred to the other. The standard tax cut-off point is €51,000 for a married couple (€42,000 if you’re single/co-habiting).  If both partners are working you can earn up to €84,000. This means that one person can have a cut-off point of up to €51,000 and the other person can have a cut-off point of up to €33,000.

The increase in the standard rate band is not transferable between spouses, so the tax bands for 2024 would be:

• €51,000 @ 20% (= €10,200) and €4,000 @ 40% (= €1,600) for the first spouse
• €33,000 @ 20% (= €6,600) and €2,000 @ 40% (= €800) for the second spouse

Spouse has more rights when it comes to inheritance

Spouses’ don’t pay inheritance tax.

When a spouse dies, irrespective of a will or the deceased person’s wishes their spouse has a legal right to one-third of their estate. However the same can’t be said for co-habiting couples. Co-habiting couples have no automatic rights to a share in their partner’s estate. They must be named specifically in a will to inherit and may be liable for inheritance tax. A co-habiting partner is treated as a stranger for inheritance tax purposes and is liable for 33% tax on any inheritance over €16,250.00.

The payout from a life assurance policy to yourself or your spouse is tax-free, provided you or your spouse were the original beneficial owners.

Spouses can gift each other money with limited tax consequences. If you are married you can transfer gains between spouses and offset the losses of one against the profit of the other. This is not applicable to cohabiting couples.

Pension Benefits

Pension benefits can be transferred to spouses. If a person dies before retiring, their spouse is entitled to death-in-service benefits from the pension pot. If the spouse has already retired then a pension can be paid to the survivor depending on the particular scheme. Make sure you speak to your financial adviser. When it comes to pensions, those who are not married or in a civil partnership cannot guarantee access to their other half’s pension savings.

No Stamp Duty for Married Couples

Married couples don’t have to pay stamp duty when they transfer assets from one to another. They are not subject to capital gains tax either.

Self-employed – tax savings if you employ your spouse

If you are self-employed or run your own business you can reduce your tax bill by employing your spouse and share tax credits. If the company funds a pension for you and your spouse it can result in significant income tax savings for you and the company.

Capital losses made by one spouse can be used by the other spouse to reduce a capital gains tax bill.

Life is full of surprises and things can change in a heartbeat. The key is to anticipate those bumps in the road & be prepared for them. It is so important to discuss your finances with your partner & make important decisions together. Don’t wait until there is an issue to be addressed talk to us t put a plan in place, it doesn’t have to be elaborate, that way neither party is in the dark should something happen.

Don’t be left thinking… if only…

Click on the button below to Request a Call Back or arrange an appointment.

The post 5 financial reasons to say “I do”… appeared first on O’Leary Financial Planning.

It’s time to improve your overall financial knowledge

Get clear on your options. Taking the time to understand your current financial position will help you identify the challenges that you may face (both now and in the future). The sooner you identify these, the sooner you can remedy them and get back on track to financial independence.

Have a strategy

A ‘plan of action’ to follow so you know where you’re heading and how you will get there. It’s important to have clear goals and objectives to ensure you have some financial security in the future, the journey can and should be just as meaningful and fulfilling. Your financial journey cannot be geared solely towards your future financial stability, you have to also allow yourself to save for and enjoy life now. A prudent financial plan takes into account your needs for the future but also your needs right now… holidays, children’s school trips, changing the car, renovations to the house, etc.

Enjoy your life more

Life is is for living so enjoy your life more knowing that you have the cash flow to fund your lifestyle. Critical to maintaining positive cash flow is knowing & keeping track of your income sources and ensuring that they remain constant. It will determine the quality and standard of your lifestyle choices.  The key is to strike a balance between setting and working toward your goals and enjoying the present moment. Goals should enhance your life, not become a source of stress or unhappiness. It’s essential to set realistic and flexible goals that allow room for spontaneity and enjoying life as it comes too.

Take an interest in your finances again

Most people know deep down that they don’t give their finances the time and attention they deserve… When you finally make the decision to turn things around, you approach things with a renewed sense of energy. Financial planning is a tool to help you achieve financial freedom and peace of mind so that you can concentrate on what brings you joy and fulfilment. It’s not about being overly frugal or sacrificing all present enjoyment for a distant future goal but rather striking a balance between enjoying life today and securing your financial well-being for the future. The key is to create a plan that aligns with your values and allows you to have fun while making informed, responsible financial decisions.

Make smarter decisions around your money

Think more carefully about the way you spend & invest. One of the least painful ways to save and invest is to automate the amounts you want to set aside each month. With steady, ongoing contributions to retirement plans, recurring deposits into savings accounts, and smart investment decisions it’s possible to create your own safety net of financial security.

Contribute to a Retirement Savings Plan

How many of you do not have any personal provision for your retirement? How many of you are confident you will have sufficient income for when you retire? Does your company offer an employee pension scheme? If you haven’t already got a retirement plan in place now is the time. Your future is not guaranteed. There may be speed bumps ahead in your life, and you might encounter some money troubles, having a retirement plan will put you in the best place to deal with them. Start your retirement savings now, delaying your contributions means you’ll have to save more every month to end up in the same position.

Get the right Insurance

Financial security is something too many of us leave to chance! For some reason, most people don’t want to think about something going wrong or contemplate potential issues that may arise … Until it’s TOO LATE! Hope for the best, PLAN for the worst. Get the right advice for your situation.

‘Bulletproof’ confidence

Improve your financial wellbeing knowing that – no matter what life throws at you – you have a plan, money in reserve, and a ‘backup plan’ in place when it comes to money and finances. Financial security can be yours.

STRESS less!

When you are in control of your money, life just seems to get better. Things get easier. You have greater peace of mind and can replace worry with confidence. When you understand your finances, you take back control, and have greater financial CLARITY, CERTAINTY, AND CONFIDENCE because you have informed CHOICES!

…And finally, Make an Appointment with your FINANCIAL PLANNER at O’Leary Financial Planning. We can provide you with the best weapon for taking control – CHOICE! We’re here to ensure you make informed decisions about managing your money, stay focused on the prize, and achieve your financial ambitions.

Well worth the effort, wouldn’t you agree…?

The post 10 Reasons to Jump Start Your Financial Future… appeared first on O’Leary Financial Planning.

The cost of third level education is increasing every year, with accommodation causing the greatest stress for most parents. The early you can set up a savings and investment plan for your children the better. You have a timeframe and a rough idea of what you will need to support your child through third level education, if they choose this path. This immediately clarifies your investment objectives and defines the outcome for your saving and investment strategy. So how are you planning to reach this goal?

Start Saving Early

Most people try to save their child benefit (€140 per month), it’s a guaranteed monthly payment until your child turns 18 and it’s not taxed. If you can afford to save this, it can be a significant amount to help cover the cost of going to college. Of course, the sooner you start saving, the more time your money has to grow through compound interest. However, everyone’s circumstances are different so you should save what is reasonable for you. The most important thing is to start saving as soon as you can. Set up a regular contribution plan that aligns with your budget. Even small contributions can make a significant difference over the long term.

• Regular Savings Accounts: can help you achieve your savings goals. It’s a medium to long-term investment option for your savings, so if you need access to your money, that’s no problem as there are options available that give you access to your money without any penalties.

• Investment Accounts: These accounts can provide higher returns over the long term but come with more risk. Know what you’re prepared to invest? Know how long you want to invest for? What’s the minimum return you need from your investment? Can you afford to tolerate any potential storm?

• Diversify Investments: If you’re investing for the long term, diversifying your investments can help manage risk. Diversification involves spreading your investments across different asset classes to reduce the impact of poor performance in any single investment.

Avail of the Gift Tax Exemption

Another option is for grandparents to take advantage of the €3,000 tax-free annual gift allowance.  Under the Small Gift Exemption each grandparent can gift up to €3,000 per child in a calendar year without having to pay Capital Gains Tax (CAT). That’s €6,000 per child per year tax free.

Every family’s financial situation is unique, so it’s important to tailor your savings strategy to your own circumstances and goals.  Your savings don’t have to be earmarked for their education, maybe you want it for something else – to help with their first car, a deposit on a first home, etc. Whatever you’re saving for taking the time now to plan for their future can make all the difference in 10, 20 years. Talk to one of our financial planners for personalized guidance to help you make the right choice for your child’s future.

If we had a euro for every time someone said “I wish I had started a savings plan for the kids when they were young” …., well…

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

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The post How are you Saving for your Child’s Future appeared first on O’Leary Financial Planning.

How do you view your business in the context of your overall financial goals?

You might find that relying on your business to fund your retirement restricts your options for the future… 

Building and maintaining a new business in the current climate is not an easy task, but it’s vital that you look after yourself and any family members who are helping you grow your business from the start. In addition to your insurance make sure you have the right protections in place, you’re availing of all relevant tax reliefs & you’re future proofing yourself regardless of what happens in your business. This will benefit the company and your personal finances in the long term.

Here we look at some useful financial tips for business owners to help improve your future financial security and …. maybe encourage you not to put all your eggs in your business’s basket.

Many small business owners are often too focused on growing and running their business to think about managing their own finances, particularly when it comes to their financial security. However, you could be benefiting from your business while it’s growing by availing of tax reliefs and building valuable service time to protect and benefit you and your family in the long run.

Look after yourself as well as your business

Separate your personal and business goals

Take the time to distinguish between your personal and business financial goals. It can be easy to put the business goals ahead of your personal goals when you’re running your own business.  It’s just as important to set out your personal financial goals and how you’re planning to achieve them such as funding your children’s education or your retirement.

Draw a Salary

All too often business owners don’t draw a salary from the business in the early years. Those who do usually do so ad-hoc – expenses, dividends, etc. It’s so important as a business owner that you draw PAYE earnings as soon as you can in order to create service for tax purposes. The number of years of service that you have is dictated by the number of years that you’ve had remuneration from a tax perspective. The more service you have accrued the better for you in the long run, in terms of your pension or a possible termination payment from the company. Make sure to pay yourself first. It’s a good habit to set aside money consistently as this provides a safety net for any unexpected expenses.

Protect your Income

Life is unpredictable and as a business owner/self-employed it can be even more so, especially in the early years. Income protection or serious illness cover is something you should consider especially if you have a family relying on your income. Income protection insurance pays out a regular cash payment that replaces part of your lost income if you can’t work due to a medium to long-term illness or disability.

Studies from Zurich and Irish Life show that in 2022 there were over twice as many claims for living benefits as for death. Cancer accounted for the majority of all income protection/serious illness claims.  The average age of serious illness claimants was between 51 and 53 years. Claimants of income protection were around 46 years of age. As a business owner/self-employed you may not be entitled to sick pay, but even if you are it may not be enough to meet your monthly expenses. This is something the company can pay for while availing of tax relief on premiums.  Make sure you’re availing of it.

Protect your Share of the Business

Businesses insure their premises and equipment against financial loss, but very often they overlook their key business assets, their people. Key staff represents the beating heart of every business, especially in a small, family business. While insurance can’t replace key personnel, it can provide cash to buy time, cover the costs of temporary staff, recruitment, loss of profits or provide a cash injection. Prolonged absence through serious illness or even death can be detrimental for some of these firms. The risks are the same whether it’s a limited company, partnership, or sole trader.

It’s vital that you have a shareholder agreement in place as well as adequate business protection to ensure you retain control of your business in the event of the death or serious illness of your business partner. It also helps to preserve the continuity and survival of your business. Having proper protective structures in place can help lessen the financial impact of such an event giving you a financial cushion to allow you to decide on what to do next.

Extract Value from your Business

So, how do you extract your share from a business in the most tax-efficient manner?

• A company can fund a pension scheme on behalf of its owners/ directors based on the level of income they are earning and claim tax relief on it which can be significant. It’s a great way to save tax-efficiently for retirement subject to certain rules.
• Retirement relief from capital gains tax can potentially reduce a business owner’s tax bill substantially when they dispose of their share of the business and they can still continue to work in the business if they wish.
• The third option to consider is possible termination payments such as severance pay, ex-gratia payments, redundancy, etc. The business can make a potential payment of up to €200,000 tax-free to any employee including its owners. This is very much subject to length of service, which is why it’s important to draw a salary from your business immediately.

Invest in your Future

Making contributions into a pension not only ensures you have a sufficient income when you retire, it also provides you with generous tax relief that you can’t get elsewhere, so you keep more of your hard earned income whilst growing your wealth. A salaried director of a limited company can avail of very attractive levels of pension funding with tax relief for themselves and the company. Your Pension should be an essential part of your financial plan. Both the tax relief and the long-term nature of a pension makes it one of the best retirement planning and wealth extraction tools available for Co-Directors and Business Owners today. Click here for more information on the benefits of setting up a retirement plan for yourself and your company

Employ your Spouse or a Family Member

Employing a spouse or family member is something we’ve spoken about consistently to business owners and self-employed clients. If your spouse or a family member is “helping out” with admin, marketing, accounts, etc unpaid, they’re not technically employed by the company, so they cannot avail of any benefits. Should the company become cash-rich, instead of taking out some of the profits put them into a pension.  You can’t do this if that person has no service record, i.e. doesn’t pay PAYE. If you have family members doing any work for the company set them up as a PAYE employee.

Building a new business is not an easy task. It’s vital that you look after yourself and any family members helping you grow your business from the start.  You can build their service record and avail of all tax reliefs at the same time. This will benefit the company and your personal finances in the long term.

This article is intended to provide general information and is not intended to be financial, tax, or legal advice. Every situation is different, and legislation can change. Before making any decisions, you should discuss your specific situation with your tax and legal advisors… and if you need help get in touch

The post Personal Financial Planning for Business Owners appeared first on O’Leary Financial Planning.

With careful estate and tax planning, it is possible to minimize or even eliminate the amount of tax payable on the transfer of your assets to your loved ones.

Small Gift Exception

Under the Small Gift Exemption you can give a gift up to the value of €3,000 to any person in a calendar year without having to pay Capital Gains Tax (CAT).  You may also take a gift from several people in the same calendar year and the first €3,000 from each person is exempt from CAT (Capitial Acquisition Tax).  Gifts within this limit are not taken into account in computing tax and are not included for aggregation purposes.  It’s well worth utilising this annual exemption from gift tax as part of your inheritance planning strategy, especially since gift and inheritance tax is levied at a rate of 33%.

Making use of the Small Gift Tax Exemption

Are you thinking of setting up a savings plan for your children, a niece, nephew or Godchild?  Make use of the annual small gift tax exemption by setting up a regular saving plan to which you make a regular monthly or annual contribution.  This is invested in your chosen fund from a range of funds available in the market.  The fund selection will apply for the life of the plan.  To ensure these savings maximise the Gift Tax Exemption for the child, you must legally assign the plan to that child.  By assigning the plan over, the child will be entitled to the proceeds of the policy tax-free because they are the owner of the plan as assignees.

Gift Tax Planning

Under the small gift exemption a person can take a gift from several people in the same calendar year. The first €3,000 from each person is exempt from CAT.  So if you’re thinking of helping your son or daughter and their respective partners with a deposit for a house – if it is done right, four parents (his and hers) could gift a couple €48,000 in total without a tax implication over the two months (December and January).

While there is no limit on who can give to whom under the small gift exemption. You could, technically, give to neighbours, friends or even perfect strangers if your funds allowed and the fancy took you. There are two restrictions:

1. You can only gift a maximum of the €3,000 to any one person in any one tax year. And it doesn’t have to be in one payment – you could, for instance, make 10 payments of €300.
2. The second rule is the one where you will find Revenue getting picky. The gift must be for the benefit of the person receiving it. For instance, if you gave this son €3,000 and then gave someone else €3,000 with the intention that they, too, would give it to your son, Revenue would not be at all happy.

Section 73 – Gift Tax Exemption

If you wish to leave a gift over and above the threshold careful Tax Planning is required to minimize your family’s inheritance / gift tax liability so that as much of your wealth as is possible passes to your beneficiaries.  To avoid a hefty tax liability, should you decide to pass on your assets during your lifetime, you can set up a Section 73 Savings Policy, recognised by Revenue, to pay this gift tax liability if it’s above the annual exemption threshold of €3,000. This allows your assets to be transferred and utilised sooner whilst providing a substantial saving for your beneficiary. In addition, any further growth in value of assets after the transfer falls outside the CAT regime.

This Revenue approved savings plan can be set up for anyone who has assets that they want to transfer to their children (or other beneficiaries) during their lifetime.  The relief allows people to plan for the payment of gift tax in a tax efficient way, but if you decide not to utilise it for this purpose you still have savings to use however you wish. Furthermore, if a Section 73 savings plan is put in place to provide for the payment of gift tax, Revenue will not charge Capital Acquisitions Tax on the plan proceeds if the money is actually used to pay gift tax.

If you would like to know more about the Small Gift Exemption, Inheritance Tax Planning or general Estate Planning so you can minimise your tax burden, click the ‘request a chat’ button below to schedule an appointment.

This is for information purposes only and should not be used or interpreted as financial advice. You should always obtain your own independent financial, tax and legal advice based on your own particular circumstances, before entering into any financial contract.

The post Are you planning to give a gift of money or other assets to someone other than your spouse or civil partner in the future? appeared first on O’Leary Financial Planning.

Here’s something to think about:

The most tax efficient way for a business owner to extract some of the wealth from their business into their own name is through a Pension. A salaried director of a limited company can avail of very attractive levels of pension funding with tax relief for themselves and the company, whilst a senior company executive has the option of paying into a Personal Retirement Savings Account (PRSA) with greater benefits, funding flexibility and tax relief.

If your business is profitable, you can extract much of that wealth from the company by making significant contributions to a PRSA for yourself and your family. You can extract this wealth for your spouse and/or any family member over the age of 18 who is employed by the company, regardless of their salary or length of service.

If you have already accessed your workplace pension, you may be able to further fund towards your retirement pot using a PRSA structure.

Since January 1st it looks like the old rule book has been thrown out. Make sure all funding is done with the blessing of your Tax Advisor.

Changes to the Finance Act 2022

Changes to the Finance Act 2022 that came into effect since 1^st January 2023 mean PRSAs have become a more attractive option for individuals, particularly company directors who may be drawing lower salaries and are not in an occupational pension scheme. The new PRSA option provides greater flexibility of funding, benefits, features, and investment choices, including:

• Improved funding limits* for employees and company directors, all employer contributions receive tax relief in the year they are paid
• Full PRSA fund is paid to employees’ estate should they die in service
• Company directors and Business owners who employ their spouse can provide enhanced pension funding for them whilst at the same time reducing the company’s tax bill
• Includes sole traders & partnerships
• Company directors who already accessed benefits but are still in employment
• Not subject to investment rules, trusteeship established by new legislation
• Client & advisor have more control
• PRSA at the centre of every retirement plan

*subject to Standard Fund Threshold

Why are the changes important?

• Since January 1, 2023 an Employer Contribution to a Personal Retirement Savings Account (PRSA) is no longer treated as a Benefit in Kind
• (a BIK is any non-cash benefit of monetary value that is provided by the employer to the employee and as such is treated as taxable income)
• for income tax purposes
• Employer Contributions to a PRSA are no longer restricted by age related limits
• Employee Contributions to PRSAs aren’t restricted by any Employer Contribution paid which was the case up to now. Employees can now contribute more and claim tax relief via PRSA
• There is no restriction on Employer PRSA Contributions in any way and it is not based on the employee’s salary or length of service
• Currently, tax relief on all employer PRSA contributions can be claimed in the accounting period in which it is paid
• Moving forward an Employer can make any Employer Contribution to a PRSA. The only limit being the overall Standard Fund Threshold of €2 Million. These benefits are taxed at a punitive tax rate of 71%
• An Employer can make an Unlimited Employer Contribution (linked to the employee/self-employed income) to a PRSA and claim tax relief in the accounting period in which its paid based on the current legislation
• It applies to Employees and 20% Directors. Applies to 20% Directors of Investment Companies, where the director is registered as an employee of that company and receives a salary under Schedule E
• Self Employed Person or Partnership can pay a Benefit in Kind Free Employer PRSA Contribution for an employee
• An Employer can contribute to a scheme and a PRSA at the same time, for the same employee
• An aspect of the PRSA which some directors may find attractive is the death benefit claim for an active member. PRSA funds can now be paid in full to the estate of the deceased member in the event of death. Occupational pension schemes place restrictions on the maximum allowable lump sum payable. The residual funds are used to provide a pension via an Annuity or to purchase an Approved Retirement Fund (ARF) for a spouse or dependents.

This is brand new ground for the Pensions Industry, so we are all grappling with the impact these new rules will have for customers but talk to us today to see how we can help you…  click here to book a chat.

The post Changes to the Finance Act 2022 that could greatly benefit your Retirement Plan appeared first on O’Leary Financial Planning.