Some good savings and protection ideas!!

Turn those monthly savings into worthwhile plans and investments!!

Mortgage rates have reduced significantly since last October. As a result clients have come to us to see what should be done with these savings.

For those of you who are paying a mortgage and are currently on a variable rate, you should be around €245 per month better off now than last October.*

*based on a mortgage of €200,000 over 25 years at a rate of 2.75% now and 5% last October

Here are some useful ideas to make you and your family more financially astute and protected.

· If you are married and you now have a family of your own, take out that extra bit of Life Assurance that you have put to the back of your mind. You know that it is the right thing to do.

o A dual life level term policy for €500,000 over 25 years would cost as little as €76.98 per month.* Life assurance is not expensive, living without it could be!

* based on New Ireland’s level term contract for male 35 next birthday and female 35 nb both non smokers.

· Protect your biggest asset – your income! You may have looked at this cover when taking out the mortgage but that’s all you did.

o To cover income of €400 per week it would cost €52.76 per month. * Tax relief is available against this premium.

* based on male 33 nb non smoker and on Friends First guaranteed product deferred for 26 weeks. Occupation class 2 has been used in this illustration

· Start a savings plan now to ensure that when your children decide that they want to go to college you do not need to re-mortgage to cover this cost.

o A savings plan starting with a monthly premium of €150 would amount to apx €41,600 after 15 years assuming 6% annualised growth.*

* based on Eagle Star’s Savings Plus contract

· Start your pension. You are already paying someone else’s pension through the PAYE and PRSI that you pay each week or month. Now do something about your own. Remember for every Euro you save in a pension you will receive tax relief of either 20% or 41% and PRSI relief up to 6%.

o Based on a contribution of €200 per month you could expect to have a retirement fund of circa €227,300 based on a male 35 nb retiring at age 65.*

* Figures based on Hibernian’s Standard PRSA product and 6% annualised growth.

· Start your own AVC plan to boost retirement benefits and save on the amount of tax and PRSI you are currently paying!

· Pay extra off your mortgage and extra €100 per month could mean a reduction of 4 years off the term of your loan.

We would be delighted to sit down to discuss your financial needs and circumstances to devise the best suited plans for you and your family. Please contact Ken O’Neill QFA (Qualified Financial Advisor) on 071 9159222 to make an appointment.

Tuesday, April 7th, 2009, by admin and is filed under "Financial Services ". You can leave a response here, or send a Trackback from your own site.