Save for the future or spend it now?

This is a question most of us ask ourselves on a regular basis and depending on what stage we are in our lives or even what time of the year we ask the question; the answer may not always be the same.

It is not only individuals with this dilemma, countries and governments have that the same issue at times.

Currently the Irish exchequer is awash with revenues from corporation tax having seen receipts balloon from just over €4bn in 2014 to more than €22bn last year resulting in a substantial budget surplus. BBC News

Corporation tax is expected to raise €24.4bn this year, however, suggestion is that this good news will potentially be a one-off opportunity and cannot be relied upon to fund permanent future projects or tax cuts. By 2030, the Irish government expects to have to find €7bn to €8bn more a year for pensions than at the start of the decade.

Plans are afoot to set up a sovereign wealth fund similar to that of Norway, Japan and Australia as the Irish government seeks to future-proof its finances to meet these increasing pension costs. FT

As individuals, are we able to say with confidence that we have future proofed our own finances?

Ask yourself:

• What are my goals and aspirations?
• What does retirement look like for me?
• Have I sufficient provision in place to do all the things I want to do when I retire?
• How would I cope financially if I was unable to work?
• Will my family be ok if I am no longer here? 

Simple steps such as starting to fund for retirement as early as possible and having a robust financial plan in place are beneficial, but how do you know your plan is on track? 

At Law Society (NI) Financial Advice we utilise cash flow modelling technology to create a bespoke plan providing our clients with clarity on what’s needed to achieve their financial objectives. More importantly, this will be proactively reviewed each year to ensure your plans remain a reality. 

We have helped many of you and your clients over the years and as a reminder our services include: 

• Construction of a bespoke financial plan to give clients clarity over what’s needed to achieve their financial objectives. 
• Invest time to understand clients’ objectives and priorities, use leading industry tools to assess tolerance and capacity for investment risk and examine income and expenditure requirements. 
• The advice will encompass key areas of financial planning and wealth management requirements including advice on investment management, estate planning¹, retirement advice, protection issues and mortgages². 
• Once the plan is established this will be proactively reviewed each year with the client to ensure the plan remains on track and keep abreast of any challenges or opportunities that present themselves. 

If you feel you or any of your clients would benefit from our expertise in this area why not contact us below. 

Estate planning is not regulated by the Financial Conduct Authority.  Your home is at risk if you do not keep up repayments on your mortgage or other loans secured on it.

Important notes:

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