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Sunrise Newsletter 2017
- 1. NEWSLETTER WELCOME TO OUR AUTUMN 2017 YOUR FINANCIAL FUTURE We consider all aspects of your financial future and the changes that may happen along the way: Financial planning and budgeting Protecting your family Protecting your wealth Protecting your business Providing for your retirement Inheritance tax planning As the Greek philosopher Heraclitus once said The only constant is change. This year has been a year of change for Sunrise Insurance Brokers. With the passing of our founder Mr. Paddy Ryan there have been many changes and a sense of deep loss - not just the loss of a founder, but also a father and a friend. It seems fitting that as we head into Autumn, the season of change, that we have taken this opportunity to re-launch Sunrise with our new name - Sunrise Financial Planning. Our new name is not drastically different from our old name, as we wish to hold on to and acknowledge our origins and experience, but a name which we hope illustrates more clearly what we do. Hopefully we wont receive any more phone calls about car insurance! As our company has grown, we too have evolved. Our holistic approach means that we provide a personal, tailor-made plan for all our clients. We have adopted a long-term approach to your financial planning. Our Lifetime Approach means that we manage your money for your future, protecting you if the unexpected happens. As a family run business, we pride ourselves on our reputation which is focused on our integrity, and providing you - our clients - with the highest quality, professional and friendly service in Munster. We look forward to the coming years and the changes they may bring. I hope you enjoy our newsletter and our tribute to Paddy. Gr叩inne Ryan & all the Team at Sunrise Financial Planning
- 2. WHY PENSIONS STILL MAKE SENSE The current State Contributory Pension (over age 66) will be 243.30 per week which is 12,652 per year (from March 2018) and many people are relying on this for their retirement. Changes are already on the way in terms of how you qualify for the State Contributory Pension as the government are under increasing pressure to fund the State Pension. Demographic and budgetary pressures are pushing our retirement age further into the distance. By the year 2028 you will need to be age 68 before you are entitled to the State Pension meaning that most of us will have to work longer. If you combine this with our increasing life expectancy in Ireland, it means that people can expect to have between 20 and 25 years in retirement. It makes sense to plan ahead for your retirement, as putting money into a pension is one of the most tax-efficient investments you can make and it will help you sustain your current standard of living. How Much Tax Relief is Available? Whether you are an employee or self-employed you can pay premiums into a pension and claim tax relief either through an Approved Pension Scheme or through a Retirement Annuity Contract (RAC). The Government offer many tax-free incentives to encourage you to invest in your pension: 1.Tax Relief on payments into your pension plan at your marginal rate of tax Tax Rate Contribution Tax Back Net Cost to You 20% 100 20 80 40% 100 40 60 2.Your pension fund grows tax free throughout its lifetime Any growth in your pension fund is not taxed whilst invested (unlike a savings plan). 3. Tax-free lump sum of up 200,000 when you access your pension Depending on your fund value upon retirement you can access the following : Lump Sum Tax Applied First 200,000 Tax Free 200,001 to 500,000 20% tax 500,001 + Marginal Rate of Tax + Universal Social Charge There is a total lifetime limit, even when lump sums are accessed at different times or from different pension funds. If the value of your total pension fund goes over 2 million you may be subject to tax penalties. Maximum % of total pay that you can pay each year to a pension account AGE MAXIMUM PERCENTAGE OF TOTAL PAY* UNDER AGE 30 15% of Total Pay AGE 30 TO 39 20% of Total Pay AGE 40 TO 49 25% of Total Pay AGE 50 TO 54 30% of Total Pay AGE 55 TO 59 35% of Total Pay AGE 60 AND OVER 40% of Total Pay * Subject to Revenue Maximum of 115,000
- 3. A tribute to our Founder, Father and great Friend Firstly,I would like to thank all the clients and friends who supported us during our great loss. Paddy passed away suddenly on 30th December 2016. There was a huge outpouring of grief but what stood out to us is that people shared so many happy memories of Paddy. His funeral was a celebration of his life,exactly how he would have wanted. So many people took the time to write to us to share their memories and stories,and the over-whelming feeling of warmth shone through and really helped us through this difficult time. It is a true testament to him that he forged such close bonds and friendships with so many people. Paddys innate charm and charisma made him a natural sales person and led him to founding Sunrise Insurance Brokers in 1975.Ignoring all conventions,he went door to door in many neighbourhoods and towns where no broker had gone before and developed life-long relationships. He travelled all over Munster and continued to work and travel the country until the very end. Over the years in business,Paddy faced many challenges in the industry and saw huge changes from crippling interest rates in the 70s to historically low ones in the last few years and many market crashes along the way.However his resilience and determination enabled him to grow the business to where it is today. His many awards and recognitions within the insurance industry reveal that his was a distinguished career of great importance! He met Teddy Black during the 1980s and the two of them worked together until the end. They were instrumental in securing competitive rates for Fishermen for Life Cover,at a time when Life Companies were not offering them.Paddy built a strong team around him with Fiona,Deirdre and myself in the office,and Teddy in Castletownbere. Celebrating 40 years in business in 2015 was a great milestone for us all. His poetry and quotes are greatly missed and the formal sense of occasion he brought to our Sunrise events! Paddys success can be contributed to his love of people and his emotional intelligence.He was fortunate to be a natural peoples person and from the moment he walked into a room he had your full attention. Will we ever forget his distinctive voice,his firm handshake, and that laugh.It amazed me how he remembered so much about his clients and their families. His determination to do the right thing for his clients and go that extra mile has been ingrained in us all in Sunrise,and the ethos of our business today is to stay true to our clients and true to ourselves. Pat OSullivan (Chief Executive of the LIA) summed up Paddy nicely when he said He brought an old fashioned sense of fun to all our lives which is missing a lot these days in this such complex and serious financial world! In addition to his devotion to Sunrise and to his beloved Garryowen he was also a devoted family man. He celebrated each of our differences and unique personalities and always encouraged us to be the best we could be. Paddy may be gone from this life,but I have no doubt he has not gone from your lives,or the lives of all his family,friends & colleagues.May he rest in peace. Gr叩inne
- 4. Teach your Children about Money! Budgeting This is the first financial challenge that many young adults are faced with when they leave home,so it is important to teach young children about how and why to budget.You could use an occasion such as shopping for Christmas presents to start teaching them about budgeting. Beware borrowing Again one for the young adults,this is all about being careful in relation to debt.While debt features in all our lives,at least in the form of mortgages,children need to learn to plan debt carefully and to avoid expensive debt.This starts out by avoiding impulse purchases using credit cards that they wont be able to immediately pay off. Get them to plan their financial future This is probably the most important lesson of them allFinancial planning shouldnt start when people hit their forties and start worrying about retirement.Financial planning should start at a very young age; when children are thinking about all the things they want,but cant afford.This continues through to when they start working. Choices have to be made,careful decisions need to be taken and a plan needs to be put in place to manage their limited resources to achieve the maximum effect.This will apply at every stage of life! There are lots of lessons we can teach our kids,and lessons about money are useful to help guide them through a complex area of their lives. Research shows that theres a bit of a habit among parents in Ireland not to talk to their children about money.We teach our children about many things to help them in their lives,to teach them new skills and to help them develop good behaviours.But not about money! Research also shows that people learn more valuable lessons about money skills from their parents than any other source. So were setting out a few thoughts as to how you can approach the whole subject of money with your children. Start early Research suggests that money habits are set by the age of seven,so you should start teaching children early and tailor lessons for their age,as financial lessons must be age appropriate to have effect. Parents should make money the topic of regular family discussions and also reinforce these around dates when the children are due to receive a cash gift,such as when making their communion. Manage pocket money carefully As your children start to get pocket money,encourage them not to spend it all as they receive it,and instead to save for a bigger treat to be bought every few weeks or months.We all know the benefit, as weve got older of saving for holidays and cars etc.instead of borrowing and paying back far more than the actual cost.Also, children should have to do something for their pocket money,as this will help them place a value on it - even if its younger children picking their clothes up off the floor! Want versus need Children often ask for the latest most popular toy,which is often very expensive.Getting them to understand the difference between wanting the toy and needing the toy will help them make sensible spending decisions from a very young age.Parents should reinforce through words and actions that its important not to spend more money than you have. Setting Goals One of the best ways to help children learn about money management is to encourage them to open a savings account.Help them to understand why they are saving by sitting down with them and decide on a savings goal. You can set them short-term goals to begin with,and then a longer-term goal such as saving money for summer holidays . Sunrise Financial Planning 34 OConnell Street, Limerick Tel: 061 412388 Email: info@sunrisefinancialplanning.ie www.sunrisefinancialplanning.ie Sunrise Financial Planning is regulated by the Central Bank of Ireland.