9 tips for a better financial year in 2016 from Nelson Life

As we plan for the beginning of the new year and write out our new years resolutions it can be difficult to focus our attention of the cold reality of personal finances.

The top New Years resolutions tend to focus on holidays, better diets and more exercise.

However, we all need to plan for the year(s) ahead and allocating time to organise our finances is something we all motivate ourselves to do.

We all allocate time to earn money, in the same way we should make time to meet our independent advisor and save money.

Sometimes the results can significant.

So what are  your options and what is your next step ?Nelson Life are trusted financial advisor based in Galway City and have 9 quick starting points for consideration :

1.What are your key numbers?

Know your starting point - do you know your annual Income, expenditure, assets and liabilities?

Every figure tells a story.

2. Spending versus saving

Looking more closely how we spend our earned income and savings.

Highlight payments on your credit card & debit over the last 12 months that you will shop around for in 2016 - e.g. life cover, home insurance, car insurance, health insurance, mobile phone, heating costs, television provider, electricity.

Your independent financial advisor will help you with these.

Then look more closely on discretionary expenditures on clothes, gym membership, meals out, lunches and coffees on the move.

Increased awareness is not meant to be painful, however, more insight will allow you to see where your money can be redirected to shorter and longer term savings goals.

Selling things that you don't use or need on www.eBay.ie or www.donedeal.ie can generate cash very quickly.

This money can be used for new purchases.

3. Protecting yourself, your dependants and your business with adequate insurance/assurnace

Life insurance, salary protection and specified serious illness are things that most of us prefer to defer discussing with our financial advisor.

Think about the exact financial loss will be if the worst happened - what would your dependants need and how quickly would they need it?

Using a financial advisor like Nelson Life will ensure all available options are considered and best value product is used to protect the financial loss.

4. Pay off expensive debt faster

Most people are initially badly informed about the costs associated with borrowing.

Paying off expensive debt and prioritising these borrowings will save a lot of money in the longer term.

Big opportunity at this time of year to transfer credit card balance to a 0.00% provider - this way ensuring all your payments go towards debt reduction.

Being debt free is a major financial goal for most of us and making extra payments on your mortgage maybe worth consideration.

5. Better saving and investing habits - it is a skill that needs to be worked on

Make sure that you understand clearly the trade off between risk and return.

At Nelson Life we use psychometric tools to assist risk calibration, in addition to client discussions about past experience.

Making sure your money is well diversified between asset classes is critical for longer term increases in wealth and sticking to the plan - many companies now offer Multi Asset investment funds that are calibrated to your appetite to risk.

Your choice of product is also a critical choice : deposits taxed under DIRT, Gross Roll Up investment funds, Tax Free investment Bonds, Capital Gains Tax investments and tax free Pension investment.

Using a combination will ensure you always have access to emergency monies and make use of the huge tax relief available to pension fund investors - 40% to the marginal tax payer.

The annual management charges on your savings, pension and investment are also a very important variable and should be reviewed annually with you financial advisor.

Before you make any changes to an existing contract make sure there are no surrender penalties, protected bonuses, underlying guarantees. Vow to increase contributions this year to your savings and your pension.

6. Hire a professional advisor immediately

Having a good open relationship with your advisor is very important and make sure they are not tied to one or a small number of companies.

7. File your returns & taxes early if you are business owner or self employed

Doing this puts you under less pressure at the deadline point and forcing you to make pressured decisions.

More importantly it gives you a picture of finances normally 6 months in advance, so you can react to the figures and change habits sooner.

Ask your financial accountant what they think you should do more of ....... and less of !Make sure that you claim all the tax relief available to you, for example tax relief on pensions paid by direct debit, salary protection tax relief, pension term assurance tax relief  and DIRT exemptions on deposit.

8. Planning what needs to happen on death or serious illness

Unfortunately, it’s a hard fact that we will all die.

You owe it to you loved ones to have a clear plan on death.

A professional financial advisor will ensure that all your policies and contract numbers are readily available to beneficiaries. In the event of the worst happening they will assist your beneficiaries accessing benefits.

Nelson Life always recommend your Solicitor is consulted with to ensure your legal affairs, Will and Power of Attorney correctly reflect your wishes.

9. Health care provision for the longer term

Your health is your wealth. We all vow to start the year with a better fitness regime and disciplined diets.

However, think about and discuss the shape of long term care you require in the event of sickness with your nearest and dearest.

Discuss this with your family and your financial advisor at your next meeting 

Want to know more? We are available to discuss your options, and we look forward to hearing from you.

Our job is to help you choose a product and structure that will help you meet your goals.

telephone | 091441188 and/or email | office@nelsonlife.ie

RETIREMENT & PENSIONS |  INVESTMENTS | FINANCIAL PLANNING | LIFE INSURANCE

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