Are you a first-time buyer in Ireland looking to step onto the property ladder? The journey to homeownership can feel overwhelming, but the Irish government has introduced several schemes to make it easier for first-time buyers. One of the most popular is the Help to Buy (HTB) scheme, designed to help you secure your dream home. In this blog post, we’ll explore everything you need to know about the first-time buyer scheme, including what is the HTB scheme, key benefits, and how to navigate the process of buying a second-hand house or securing a first-time buyer mortgage.
The HTB scheme is a government initiative aimed at assisting first-time buyers in Ireland. It provides a refund of certain taxes paid over the previous four years, up to €30,000, which can be used towards the deposit for a new home or a self-build property.
To qualify for the first-time buyer grant under the HTB scheme, you must meet the following criteria:
If you’re purchasing a second-hand house, note that the HTB scheme only applies to newly built properties. However, other supports may be available for first-time buyers in Ireland, such as the vacant home scheme.
A qualifying property under the HTB scheme must meet the following conditions:
The amount you can claim under the HTB scheme depends on several factors:
For example, if you’re a first-time buyer purchasing a property worth €450,000, you could claim up to €30,000. This refund can significantly reduce the deposit required for your first-time buyer mortgage.
The Stamp Duty rates on private dwelling home purchases are as follows, regardless if first time buyer or second/ subsequent buyer:
Applying for the HTB scheme involves three main stages:
Yes, Revenue can claw back your HTB refund if:
It’s essential to ensure you meet all the conditions of the HTB scheme to avoid any issues.
Navigating the help to buy scheme and securing a first-time buyer mortgage can be complex. Seeking expert mortgage advice is crucial to ensure you make informed decisions and maximise the financial supports available to you.
At Fairstone, we provide expert mortgage advice tailored to your unique needs. Our team will guide you through every step of the process, from understanding the Help to Buy Scheme to securing the best mortgage deal for your new home.
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The journey to leadership is often fraught with unique challenges, especially for women. Despite progress in gender parity, women remain underrepresented in senior management roles globally. In Ireland, for instance, the Grant Thornton Women in Business 2024 report highlights that only 33% of senior management roles are held by women. As women continue to break barriers in business, financial planning becomes a critical tool to help them balance career ambitions, wealth accumulation, and personal life goals.
This blog explores the importance of financial planning for women in leadership, addressing the unique challenges they face and offering actionable insights to achieve financial independence and security.
Despite strides toward gender equality, the lack of women in senior management remains a persistent issue. The Grant Thornton Women in Business 2024 report reveals that while progress has been made, women still face systemic barriers, including unconscious bias and limited access to mentorship opportunities. In Ireland, the numbers are improving but still fall short of true gender parity.
Research consistently shows that diversity in leadership drives better business performance. Companies with gender-diverse leadership teams are more innovative, financially successful, and better equipped to navigate complex challenges. Achieving gender parity in leadership is not just a moral imperative but a business necessity.
Women in leadership often face unique financial challenges, including the gender pay gap, career interruptions for caregiving, and longer life expectancies. These factors can significantly impact their ability to build wealth and achieve long-term financial security.
The gender pay gap remains a significant barrier for women in leadership. On average, women earn less than men, which affects their ability to save and invest for the future. Closing this gap is essential for achieving financial equality.
Many women take career breaks to care for children or ageing parents, which can disrupt their earning potential and retirement savings. Effective financial planning can help mitigate the impact of these interruptions by creating a safety net and ensuring continued financial growth.
Women generally live longer than men, which means they need to plan for a longer retirement period. This requires careful financial planning to ensure that savings and investments last throughout their lifetime.
Women in leadership roles often juggle demanding careers with personal responsibilities, such as raising children or caring for ageing parents. Effective financial planning helps them balance these competing priorities while ensuring their financial goals remain on track.
Start by creating a comprehensive financial plan that includes budgeting, saving, and investing. A solid financial foundation provides the stability needed to pursue long-term goals, such as retirement planning or funding a child’s education.
Budgeting is the cornerstone of financial planning. It helps you track your income and expenses, identify areas for savings, and allocate funds toward your financial goals. Building an emergency fund is also crucial to cover unexpected expenses without derailing your financial plan.
Women often tend to be more risk-averse when it comes to investing. However, investing is essential for wealth accumulation. Consider working with a financial advisor to develop an investment strategy aligned with your risk tolerance and financial goals.
Diversifying your investment portfolio can help mitigate risks and maximise returns. A mix of stocks, bonds, and other assets can provide a balanced approach to growing your wealth over time.
With longer life expectancies, women need to plan for a retirement that could last 30 years or more. Maximise contributions to retirement accounts and explore additional savings vehicles to ensure a comfortable retirement.
Take full advantage of employer-sponsored pension plans and consider additional retirement savings options, such as personal pensions or Additional Voluntary Contributions (AVCs). Regularly review your retirement plan to ensure it aligns with your long-term goals.
Insurance is a critical component of financial planning. Ensure you have adequate coverage, including life, health, and disability insurance, to protect your wealth and provide for your loved ones in case of unforeseen events.
Estate planning is another essential aspect of protecting your wealth. Creating a will and setting up trusts can ensure that your assets are distributed according to your wishes and provide for your family’s future.
Navigating the complexities of financial planning can be overwhelming. A financial advisor can provide tailored advice to help you achieve your goals, whether it’s growing your wealth, planning for retirement, or balancing career and life priorities.
A financial advisor can help you create a personalised financial plan that addresses your unique circumstances and goals. They can also provide ongoing support and guidance to help you stay on track and adapt your plan as your needs evolve.
Financial planning is not a one-size-fits-all process. For women in leadership, the complexities of balancing career, wealth, and life goals require a personalised approach. Seeking professional financial advice ensures that your financial plan is tailored to your unique circumstances and goals.
At Fairstone Ireland, we understand the challenges women in leadership face. Our team of experienced financial advisors provides tailored financial advice to help you achieve financial independence and security. Whether you’re planning for retirement, investing for the future, or balancing competing priorities, we’re here to support you every step of the way.
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This article is for general information purposes and is not an invitation to deal or address your specific requirements.
Financial planning is a critical step in securing your financial future, whether you’re planning for retirement, managing investments, or navigating life’s unexpected challenges. For many, the idea of meeting with a financial advisor in Ireland can feel daunting, but understanding what to expect from a financial planning consultation can help you approach the process with confidence. In this blog post, we’ll walk you through what a financial planning consultation typically involves, why it matters, and how it can benefit you.
Before diving into the consultation process, it’s important to understand what a financial advisor does. A financial advisor, also known as a financial consultant or financial planner, is a professional who provides expert guidance on managing your finances. Their role is to help you make informed decisions about your money, whether it’s planning for retirement, investing, saving for a major life goal, or protecting your wealth.
In Ireland, financial planners work closely with clients to create tailored strategies that align with their unique financial goals and circumstances. From Irish pensions and finance to investment management, a financial advisor can offer comprehensive support to help you achieve financial stability and growth.
The first step in the financial planning process is preparation. Before meeting with a financial advisor, it’s helpful to gather relevant documents and information. This might include:
Having this information ready will allow your financial consultant to gain a clear understanding of your current financial position and provide more accurate advice.
The consultation typically begins with a thorough review of your current financial situation. Your financial advisor will ask questions about your income, expenses, assets, and liabilities. This helps them understand your financial health and identify any areas that may need attention.
For example, if you’re based in Ireland, your advisor may discuss your Irish pensions, savings, and investments to assess how well they align with your goals. This step is crucial for creating a financial plan that is both realistic and effective.*
*Fairstone Ireland can only provide advice to Irish residents. We are not authorised to transact business for non-residents or offer advice on non-Irish pensions or investments.
Next, your financial planner will work with you to define your financial goals. These could include saving for a home, funding your children’s education, planning for retirement, or building an investment portfolio.
By understanding your aspirations, your advisor can tailor their recommendations to suit your needs. Whether you’re looking for short-term solutions or long-term financial planning in Ireland, this step ensures that your plan is aligned with your priorities.
During the consultation, your financial advisor will also identify potential challenges that could impact your financial future. This might include market volatility, inflation, or changes in tax legislation.
Additionally, a critical challenge to address is protection against unexpected events such as accidents, illness, or injury, which could derail your financial goals. Your advisor can recommend strategies to safeguard your income and ensure you’re prepared for life’s uncertainties.
At the same time, they will highlight opportunities to grow your wealth, such as tax-efficient investments or strategies to maximise your Irish pensions. By addressing both challenges and opportunities, your advisor can help you build a resilient financial plan.
Based on the information gathered, your financial consultant will create a customised financial plan tailored to your unique circumstances. This plan may include:
Your financial planner will explain each aspect of the plan in detail, ensuring you understand how it works and how it will help you achieve your goals.
A key part of the consultation is addressing any questions or concerns you may have. Whether you’re unsure about the best way to invest or want to know more about Irish pensions and finance, your advisor is there to provide clear, expert guidance.
This is also an opportunity to discuss any changes in your life that might affect your financial plan, such as a new job, marriage, or the birth of a child.
Read more about Financial Planning for Major Life Transitions in the following link.
Seeking expert financial advice is crucial for making informed decisions about your money. A financial advisor in Ireland can provide valuable insights and strategies that you may not have considered on your own. Here are some reasons why professional financial planning matters:
Every individual’s financial situation is unique. A financial consultant can create a plan that is tailored to your specific needs and goals, ensuring you get the most out of your money.
Financial planners in Ireland have in-depth knowledge of the local market, pension options, and investment opportunities. This expertise allows them to provide advice that is both relevant and effective.
By working with a financial advisor, you can build a plan that not only addresses your immediate needs but also secures your financial future. Whether it’s planning for retirement or protecting your wealth, expert advice can help you achieve long-term stability.
Knowing that your finances are in good hands can provide significant peace of mind. With a clear plan in place, you can focus on enjoying life without worrying about money.
At Fairstone, we understand that financial planning is about more than just numbers—it’s about helping you achieve your dreams and secure your future. Our team of expert financial advisors in Ireland is dedicated to providing personalised, professional advice that meets your unique needs.
Whether you’re looking to grow your wealth, plan for retirement, or navigate a major life change, we’re here to help. Our comprehensive approach to financial planning ensures that every aspect of your finances is considered, from Irish pensions to investments and wealth protection.
Get in touch with Fairstone today to book a no-obligation financial planning consultation and take the first step toward achieving your financial goals. With our expert guidance, you can transform uncertainty into opportunity and build a brighter financial future.
Fairstone Ireland does not provide tax, legal, or accounting advice. For more information, please consult a qualified tax professional.
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In today’s competitive business environment, companies are constantly seeking ways to grow their wealth and secure their financial future. One effective strategy that has gained traction is corporate investing. By opening a corporate investment account, businesses can leverage their surplus cash to generate returns, diversify their assets, and achieve long-term financial goals. But what exactly is corporate investment, and how can it benefit your business?
Corporate investment refers to the process of using a company’s surplus funds to invest in various financial instruments, such as stocks, bonds, mutual funds, or even direct investments in other businesses. Unlike personal investing, corporate investing is done through a dedicated corporate investment account, which is specifically designed for businesses.
This approach allows companies to grow their capital while maintaining liquidity and flexibility. Whether your business has excess cash from profits or is looking to reinvest earnings, a corporate investment account can be a powerful tool to maximise returns and achieve strategic financial objectives.
A corporate investment account offers numerous advantages for businesses looking to optimise their financial resources. Here are some key benefits:
Leaving surplus cash in a standard business bank account often yields minimal interest. In contrast, corporate investing allows businesses to access higher returns by investing in a diversified portfolio tailored to their risk appetite and financial goals.
Corporate investment accounts can offer tax advantages, depending on the jurisdiction and the type of investments made. For example, capital gains tax rates may be lower than corporate tax rates, making investing a tax-efficient way to grow your business’s wealth.
By investing in a range of asset classes, businesses can reduce risk and protect themselves against market volatility. Diversification ensures that your company’s financial health is not overly reliant on a single revenue stream or market condition.
Corporate investing is an excellent way to build long-term wealth for your business. Whether you’re saving for future expansion, acquisitions, or retirement planning for key stakeholders, a corporate investment account can help you achieve these goals.
Unlike personal investment accounts, corporate investment accounts provide businesses with greater control over how their funds are managed. Companies can choose from a wide range of investment options and adjust their strategies as their financial needs evolve.
One common question businesses have is, “Can I directly invest in a company?” The answer is yes. Direct investment involves purchasing shares or stakes in another business, either as a strategic partnership or purely for financial returns.
Direct investments can be highly rewarding, especially if the target company is in a growth phase or operates in a complementary industry. However, they also come with risks, such as market volatility and the potential for illiquidity. Therefore, it’s crucial to conduct thorough due diligence and seek professional advice before making such decisions.
Many businesses opt to keep their surplus cash in deposit accounts, believing it to be the safest option. While cash on deposit offers security and easy access to funds, it often generates minimal returns, especially in a low-interest-rate environment.
In contrast, a corporate investment account provides the opportunity to earn higher returns while still maintaining a level of liquidity. By balancing cash reserves with strategic investments, businesses can optimise their financial resources and achieve better outcomes.
A close company is defined as a company controlled by five or fewer participants. These companies may be subject to a Close Company Surcharge, an additional 20% tax on undistributed investment or deposit income retained for more than 18 months after the end of the accounting period in which it arose. This surcharge can significantly increase the tax burden on businesses that hold surplus cash in traditional deposit accounts.
However, investing through certain financial instruments, such as life assurance policies (e.g., Aviva Savings Plan or Investment Bond), can help companies avoid this surcharge. Here’s how:
By leveraging these investment options, businesses can not only grow their wealth more effectively but also mitigate the impact of the Close Company Surcharge.
Every investment carries some level of risk, and corporate investing is no exception. It’s essential to assess your business’s risk tolerance and develop a strategy that balances potential returns with acceptable levels of risk. Diversification, as mentioned earlier, is a key component of effective risk management.
Your investment horizon—the length of time you plan to hold an investment—plays a crucial role in determining the appropriate investment strategy. Short-term goals may require more liquid and lower-risk investments, while long-term goals can accommodate higher-risk, higher-reward options.
Corporate investing is subject to various regulations and compliance requirements, which can vary depending on your jurisdiction and the type of investments you choose. Ensuring compliance is essential to avoid legal issues and potential penalties.
The financial markets are dynamic, and your business’s needs may change over time. Regularly monitoring and reviewing your investment portfolio is crucial to ensure it remains aligned with your goals and market conditions.
A corporate investment account is a powerful tool for businesses looking to grow their wealth, diversify their assets, and achieve long-term financial goals. By understanding what corporate investment is and the benefits it offers, you can make informed decisions that drive your business’s success.
However, corporate investing is not without its complexities. From assessing risk tolerance to ensuring regulatory compliance, there are many factors to consider. This is why seeking professional advice is so important. At Fairstone, we provide expert investment planning and wealth management advice tailored to your business’s unique needs.
If you’re considering opening a corporate investment account or exploring corporate investment opportunities, contact us today to book a no-obligation wealth management consultation and take the first step toward securing your business’s financial future.
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Restricted Stock Units (RSUs) are a popular form of equity compensation offered by employers, particularly in high-paying industries such as technology, finance, and healthcare. For high-earning professionals, executives, and business owners in Ireland, understanding how RSUs work and their tax implications is crucial for effective financial planning. This guide provides a detailed explanation of what RSUs are, how they are taxed in Ireland, and why seeking expert financial advice can help you maximise their benefits.
RSUs are a grant or promise made by your employer to provide you with either shares in the company or the cash equivalent of those shares after a specified vesting period. Unlike traditional stock options, RSUs do not require you to purchase the shares. Instead, they are transferred to you once certain conditions are met.
For example, if your employer grants you 1,000 RSUs with a four-year vesting period, you might receive 250 shares each year over four years, provided you meet the vesting conditions.
The taxation of RSUs in Ireland depends on whether they are share-settled or cash-settled. Both types are subject to Income Tax, Universal Social Charge (USC), and Pay Related Social Insurance (PRSI).
When RSUs are settled in shares, you are taxed on the market value of the shares at the time of vesting. Your employer will deduct the applicable taxes through payroll and remit them to the Revenue Commissioners.
Example:
If you receive 600 shares with a market value of €70 per share at vesting, the total taxable amount is €42,000. Assuming a 40% Income Tax rate, 8% USC, and 4.1% PRSI, your total tax liability would be €21,882.**
*Fairstone Ireland does not provide tax, legal, or accounting advice. For more information, please consult a qualified tax professional.
*Source: Revenue.ie
If your RSUs are settled in cash, you are taxed on the cash amount received. Again, your employer will handle the tax deductions through payroll.
If you decide to sell your shares after they vest, you may be liable for Capital Gains Tax (CGT). CGT is calculated on the difference between the sale price and the market value of the shares at the time of vesting.
Understanding the difference between vesting and settlement is critical:
For example, if your RSUs vest on 1 January 2025 but are settled on 15 January 2025, the tax liability arises on 1 January 2025.
If you are not tax resident in Ireland at the time of vesting, you will not be liable for Irish tax on the RSUs. However, if you are tax resident in Ireland at the time of vesting, the entire value of the RSUs is subject to Irish tax, regardless of where the services were performed during the vesting period.
*Fairstone Ireland does not provide tax, legal, or accounting advice. For more information, please consult a qualified tax professional.
When RSUs vest, they are treated as taxable income and will appear on your payslip, similar to regular earnings. Additionally, if you are entitled to dividend equivalents, which are payments mirroring the dividends paid on company shares, these are considered taxable emoluments and are subject to standard payroll deductions (Income Tax, USC, and PRSI).
For directors receiving RSUs, the taxation rules depend on their residency status and the company structure. In some cases, directorship RSUs may be taxed differently, depending on double taxation agreements and relief provisions.
RSUs can be a valuable component of your financial portfolio, but they come with complex tax implications that require careful planning. Without expert guidance, you could miss opportunities to optimise your wealth. At Fairstone, we provide tailored financial advice to help you navigate the intricacies of RSUs, whether you’re a high-earning professional, a business owner, or a high-net-worth individual. Our team can assist you in integrating RSUs into a comprehensive financial plan ensuring alignment with your long-term goals, such as retirement planning, wealth preservation, or cross-border financial management.
If you have questions about RSUs or need assistance with financial planning, book a no-obligation financial planning consultation with Fairstone today. Our experts are here to provide the guidance you need to make informed decisions and maximise the benefits of your RSUs. Let us help you turn your equity compensation into a powerful tool for achieving financial success.
Source:
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Employee Share Schemes in Ireland: Why Financial Planning is Critical
Investment Options in Ireland: Choosing the Right Path for Your Portfolio
In today’s competitive business landscape, employee share schemes have become an increasingly important tool for attracting and retaining top talent. However, managing employee share options requires careful financial planning to maximise benefits and minimise risks for both employers and employees. The complexity of these schemes, combined with their significant potential impact on financial futures, makes proper planning not just beneficial, but essential.
Employee share option schemes in Ireland have evolved into a sophisticated mechanism for aligning company and employee interests. These schemes serve multiple purposes, including:
Several types of employee share schemes exist in Ireland, each with its unique features and benefits:
Restricted Share Schemes allow companies to award shares to employees with substantial tax benefits in return for agreeing to specific restrictions.
Key Features:
Tax Benefits:
Restricted shares provide significant tax savings, depending on how long the restrictions last:
If restrictions are lifted early, the tax benefits are recalculated. Employers are responsible for accounting for additional tax due when restrictions are shortened.
This scheme is ideal for companies looking to reward and retain employees while ensuring long-term commitment.
An APSS allows companies to award shares to employees in a tax-efficient way.
How It Works:
Tax Benefits:
Who Can Participate?
The scheme must be offered to all qualifying employees on similar terms. Companies benefit from tax deductions for the costs of establishing and contributing to the trust.
SAYE combines a savings plan with a share option scheme, making it an attractive choice for employees who want to own company shares without an upfront investment.
How It Works:
Tax Benefits:
This scheme is inclusive and must be available to all qualifying employees. It’s an excellent way to encourage share ownership while providing tax advantages.
Employee Share Ownership Trust (ESOT):
An ESOT holds shares for employees for up to 20 years. It’s commonly used by state or semi-state organisations and often works alongside an APSS.
Key Employee Engagement Programme (KEEP):
Designed for small and medium-sized enterprises, KEEP offers employees share options with exceptional tax benefits. Employees pay no income tax, USC, or PRSI on gains when exercising options, making it attractive for key talent retention.
Unapproved Share Option Schemes:
These schemes offer flexibility but fewer tax advantages. From January 2024, companies must deduct income tax, USC, and PRSI at the time employees exercise their options.
Effective financial planning is essential for managing employee share options due to the diverse tax implications of different schemes. Each option has unique rules regarding income tax, Capital Gains Tax (CGT), Universal Social Charge (USC), and PRSI:
For both employers and employees, careful tax planning ensures you can maximise the benefits while minimising financial risks.
Employee share option schemes, particularly in Ireland, are powerful tools for wealth creation but must be aligned with broader financial objectives, such as:
A strategic plan ensures these schemes complement long-term financial ambitions while building sustainable wealth.
Timing is critical when managing employee share options. A robust plan addresses:
For instance, Save As You Earn (SAYE) schemes reward patience, with tax-free gains after exercising options within their set timelines. Planning for these timing factors ensures you don’t miss key opportunities.
Owning employee shares comes with risks that financial planning can mitigate:
By diversifying investments and strategically exercising options, you reduce exposure to these risks while capitalising on growth opportunities.
The landscape of employee share schemes in Ireland continues to evolve, influenced by regulatory changes and market trends. Recent updates, such as the taxation shift in unapproved share options starting in 2024, highlight the need to stay informed.
For multinational companies, cross-border compliance and tax regulations add another layer of complexity. Consulting with professionals ensures schemes remain compliant and optimised for current laws and market conditions.
Employee share schemes can be transformative for wealth creation and business success, but their complexity requires professional guidance. Proper advice ensures that schemes are designed strategically for employers and optimised for employees’ financial goals.
At Fairstone, we offer tailored financial and investment planning advice to help you maximise the benefits of employee share schemes. Book your no-obligation investment consultation today to secure your financial future.
Sources:
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Investing in ETFs in Ireland in 2025
This article does not constitute tax, legal or financial advice and should not be relied upon as such. Although endeavours have been made to provide accurate and timely information of the various source materials, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. The tax treatment depends on the individual circumstances of each client and may be subject to change in the future. For guidance, seek professional, independent advice.
Investing in ETFs in Ireland has become a cornerstone of modern investment strategies in 2025, offering flexibility, diversification, and cost efficiency. Exchange-Traded Funds have gained significant popularity among Irish investors looking to secure and grow their wealth. This guide explores ETFs, their benefits, available options, and Ireland’s unique advantages as an ETF hub.
An ETF, or Exchange-Traded Fund, is an investment vehicle that combines the features of stocks and mutual funds. ETFs aim to track the performance of a specific market index, sector, commodity, or asset class. They can be traded on stock exchanges like individual shares, making them highly accessible.
For example, an S&P 500 ETF offers exposure to the 500 largest US companies in a single investment, providing instant diversification that would be challenging to achieve independently.
The wide variety of ETFs ensures options to suit diverse investment goals:
The S&P 500 ETF is a popular Exchange-Traded Fund that tracks the performance of the S&P 500 index, representing the 500 largest publicly traded companies in the United States. Managed by Standard and Poor’s (S&P), the index includes companies meeting criteria such as a minimum market capitalisation of $14.6 billion, high liquidity, and consistent profitability over the last four quarters.
Taxation is an important factor to consider when investing in ETFs in Ireland. Investors face the following:
Working with a financial advisor and a tax professional can help you navigate these complexities and ensure your ETF investments are tax-efficient.
When investing in ETFs, keep the following in mind:
While ETFs are an excellent choice, they may not suit every investor. Other options include:
A diversified portfolio that includes ETFs and alternative investments can help achieve a balanced approach to wealth management.
ETFs represent a flexible, cost-effective way to achieve diversified investments. By understanding their benefits, types, and tax implications, you can unlock their potential for financial growth. However, navigating the complexities of ETF investing in Ireland requires professional expertise.
At Fairstone Ireland, we’re committed to guiding you through every step of your investment journey. Book today a no obligation investment planning consultation to explore how our expert investment planning advice can help you achieve your financial goals.
Warning: The value of your investment may go down as well as up
Warning: If you invest in this product you may lose some or all of the money you invest
Warning: This product may be affected by changes in currency exchange rates
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In today’s evolving financial landscape, many Irish families are seeking effective ways to secure their children’s financial future. Bare trusts in Ireland have emerged as a popular and efficient solution, offering a structured approach to wealth transfer while maintaining tax efficiency. Whether you’re planning for education costs, a future house deposit, or general wealth building, understanding how bare trusts work in Ireland is essential for making informed decisions.
A bare trust, also known as a simple trust or naked trust, is a straightforward legal arrangement where a trustee holds and manages assets on behalf of a beneficiary. Think of it as a protected financial container where assets are held by a trusted guardian until the beneficiary is ready to take control.
Key elements of this structure are:
Establishing a bare trust requires careful planning and usually involves several key steps:
Understanding the tax implications is crucial for maximising the benefits of a bare trust in Ireland. The tax framework offers several advantages that make bare trusts particularly attractive for family wealth planning.
One of the most valuable features is the Small Gift Exemption, which allows:
The CAT system operates on a tiered structure based on relationships:
Any gifts exceeding these thresholds are taxed at 33% on the excess amount only.
* The Capital Acquisitions Tax (CAT) thresholds mentioned are not an exhaustive list and are subject to change. For the most up-to-date and comprehensive information we recommend visiting the Revenue Commissioners website: www.revenue.ie.
Bare trusts can serve multiple purposes in financial planning:
Before establishing a bare trust, consider these key points:
*Always consult a qualified professional for personalised tax advice.
While the structure of a bare trust is straightforward, successful implementation requires careful planning:
At Fairstone, we specialise in helping families navigate the complexities of bare trusts while maximising their benefits. Our expert wealth management advisors can help you design appropriate trust structures, implement effective investment strategies, ensure tax efficiency* and plan for long-term success.
Whether you’re looking to secure your children’s financial future, plan for education costs, or create a structured wealth transfer strategy, our team can guide you through the process of establishing and managing a bare trust that meets your family’s needs.
To learn how we can help you create a secure financial future for your loved ones through strategic bare trust planning book a no-obligation financial planning consultation today. Our comprehensive approach ensures that your family’s financial planning goals are met while maximising available tax benefits and maintaining full compliance with Irish regulations.
*Always consult a qualified professional for personalised tax advice.
Source:
Revenue.ie
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When it comes to investment options in Ireland there are numerous opportunities for both personal and corporate growth. Before exploring specific investment options, it’s crucial to understand that successful in
vesting requires careful consideration of your financial goals, risk tolerance, and investment timeline. The Irish investment landscape provides various routes for investors, each with distinct advantages and considerations. Choosing the right investment path depends on multiple factors, including your financial situation, investment experience, and long-term objectives.
One of the most common ways to invest in Ireland is through insurance companies like Irish Life, Aviva, New Ireland, Zurich, and Standard Life. These companies manage a substantial portion of Irish investments, managing approximately €164 billion as of investor’s funds as of 2022.
This option is popular because it’s easy to access and understand. The insurance companies handle tax administration on your behalf, and you can choose from many different investment funds. The setup process is straightforward , and many investors appreciate the stablished market presence of these providers. For those new to investing, these products can offer a comfortable entry point into the investment world.
However, there are some drawbacks to consider. You’ll pay a 1% Government Levy on your initial investment. Furthermore, early withdrawal penalties, typically around 5%, can restrict your financial flexibility in the first few years.
For more conservative investors, term deposits offer a lower-risk alternative with fixed returns. Current rates from various European banks range from 2.60% to 2.95% AER (Annual Equivalent Rate) for one-year terms. These investments provide a guaranteed return and are protected under deposit guarantee schemes, making them particularly attractive for those prioritising capital preservation over growth potential.
Direct investment in stocks and shares offers potential for higher returns, though with increased risk. This option suits investors with a longer-term perspective and higher risk tolerance. Investing directly in the stock market requires a good understanding of market dynamics and company valuations. Successful stock market investing often involves maintaining a diversified portfolio to spread risk across different sectors and regions. It’s also important to consider the time commitment required for research and monitoring your investments.
Peer-to-peer lending has emerged as an innovative investment option in Ireland, offering potential returns around 8%. This approach involves providing capital to Irish businesses and projects, creating opportunities for both financial returns and support of local economic growth. While the returns can be attractive, it’s important to understand that success depends heavily on borrower performance and economic conditions. This option might be particularly suitable for investors looking to diversify their portfolio while supporting local business development.
If you have a larger sum to invest (€200,000 or more), you might consider professional investment management. With this approach, experienced financial managers handle your investments for you. They make decisions about buying and selling investments on your behalf, using their expertise to manage your portfolio.
This service offers the advantage of having professionals manage your money, making it ideal if you prefer a hands-off approach. However, it’s important to understand that this service comes with higher fees. You’ll need to carefully consider whether the cost is worth the benefits for your situation.
Before pursuing any investment strategy, establishing an emergency fund is crucial. This should typically cover 3-6 months of expenses and be easily accessible through a demand deposit account. Having this safety net in place allows you to invest with greater confidence, knowing you have resources available for unexpected expenses without needing to liquidate your investments at potentially inopportune times.
Understanding your risk tolerance is fundamental to choosing appropriate investment options. This involves evaluating your financial goals, investment timeline, and comfort level with market fluctuations. A well-thought-out risk assessment helps ensure your investment strategy aligns with your personal circumstances and objectives. It’s also important to regularly review and adjust your risk management approach as your situation changes.
Navigating Ireland’s investment landscape requires careful consideration of your options and circumstances. Working with qualified financial advisors can provide valuable insights and help you develop a strategy aligned with your goals. Professional guidance is particularly valuable when navigating complex investment decisions or managing substantial portfolios.
At Fairstone, we understand that every investor’s situation is unique. Our expert Investment Planning team provides personalised advice tailored to your specific needs, goals, and circumstances. We take time to understand your financial objectives, risk tolerance, and timeline before recommending investment strategies that align with your personal situation and objectives.
Regular review of your investments is essential for long-term success. Markets change, and your financial situation and goals may evolve over time. By staying informed and periodically reassessing your investment strategy, you can make adjustments as needed to keep your portfolio aligned with your objectives.
Whether you’re new to investing or looking to optimise your existing portfolio, we invite you to book a no-obligation investment planning consultation today. During this consultation, we can discuss your financial goals and explore how our expertise can help you navigate Ireland’s investment landscape successfully.
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Preparation and strategy are the cornerstones of financial planning for small businesses, providing a clear roadmap to help businesses achieve their short- and long-term financial goals. From managing day-to-day cash flow to securing external funding, effective financial planning empowers businesses to make informed decisions and remain resilient amid changing market forces.
In this guide, we’ll discuss the key components of financial planning for small businesses, the benefits it delivers, and why expert financial advice is essential for success. If you are starting out, running an established small business, or navigating the challenges of being self-employed, this article will help you build a solid financial plan tailored to your goals and the realities of doing business in Ireland.
A financial plan outlines a business’s financial goals, current standing, and the steps required to reach those objectives. It includes key financial statements such as the income statement, balance sheet, and cash flow projection. Together, these elements provide a snapshot of the business’s finances, helping owners monitor progress, make data-driven decisions, and adjust strategies as needed.
Importantly, a financial plan is not static. Businesses must regularly revisit and update their financial plans to reflect real-world results, market changes, and new opportunities. This adaptability ensures that businesses remain on track to achieve both short-term milestones and long-term financial goals.
A well-crafted financial plan delivers numerous benefits to small businesses, including:
Financial planning aligns the entire organisation by providing clarity on goals, responsibilities, and timelines. When everyone understands what needs to be achieved and how success will be measured, businesses can operate more efficiently and collaboratively.
Cash flow is the lifeblood of any small business. By forecasting cash inflows and outflows, a financial plan helps businesses anticipate challenges and take proactive steps to maintain liquidity during slow periods.
Financial planning includes realistic budgets and projections based on sales forecasts and anticipated expenses. These insights allow businesses to allocate resources effectively and prepare for growth opportunities while safeguarding against financial volatility.
For small businesses seeking investors or loans, a financial plan serves as a critical tool for building trust. Lenders and investors want assurance that their money will be used wisely, and a well-prepared plan demonstrates financial discipline and sustainability.
Regularly comparing financial results to projections allows businesses to monitor performance, identify potential problems, and adjust their strategies as necessary. This ongoing evaluation ensures that businesses remain agile and adaptable.
Self-employed individuals in Ireland face unique financial challenges, particularly in today’s economic environment, where survival often takes precedence over personal wealth accumulation. While managing your business is the priority, neglecting your personal financial plan can have a lasting impact on both your business and personal life. Here are several steps self-employed individuals can take to enhance their financial stability:
For many self-employed individuals, pensions have been a neglected area due to distrust or financial pressures. In Ireland, pension funds often underperform due to high fees and a lack of diversification, particularly in domestic-focused investments like Irish property and shares. Take time to review your pension plan to:
Pension contributions remain a powerful tool for self-employed individuals, offering tax deductions at your marginal rate and the ability to build a tax-sheltered retirement fund. Remember, a pension also provides security from creditor claims in the event of bankruptcy.
Effective cash flow management is vital, especially when funding quarterly tax payments or managing seasonal income fluctuations. To avoid liquidity traps:
This disciplined approach ensures you have funds available for obligations without placing unnecessary strain on your business.
The temptation to cut insurance costs can be strong in challenging times, but cancelling policies can expose you to significant financial risks. Review your policies to determine their relevance and explore more cost-effective options, such as:
Estate planning is often overlooked by self-employed individuals, but a well-structured plan ensures your wealth and business can be transferred to your beneficiaries efficiently. Key considerations include:
If you are in a partnership, clarify what happens to each partner’s shareholding should one of you pass away.
Planning for retirement is critical for self-employed business owners. Ideally, your business should be structured and systemised so that it can operate independently of you, making it a saleable asset. Understanding tax concessions and exit strategies will help you maximise after-tax proceeds from a business sale when you decide to retire.
For some small business owners, switching from a sole trader to a company structure can bring significant advantages, including:
However, this structure is only beneficial if your business generates consistent surplus income. Review your structure annually to determine what’s most suitable for your financial position.
To create a comprehensive financial plan, small businesses must include the following key elements:
The income statement (or profit-and-loss statement) provides an overview of revenue, expenses, and net profit or loss over a specific period. Key components include:
A balance sheet highlights the business’s financial standing by detailing assets, liabilities, and shareholder equity:
Cash flow projections analyse how much cash is coming in, where it’s being spent, and how much will be available in the future. Understanding cash flow helps businesses maintain liquidity, plan for contingencies, and make smarter investment decisions.
A personnel plan outlines the workforce required to achieve business goals. It evaluates existing roles, identifies staffing needs, and projects costs for salaries, benefits, and future hires. This ensures that businesses have the right team in place to drive growth.
Key performance indicators (KPIs) and financial ratios offer valuable insights into specific aspects of a business’s performance. Examples include:
While financial planning for small businesses is essential, navigating the process can be complex and time-consuming. Seeking expert financial advice ensures that your plan is realistic, tailored to your unique needs, and aligned with your long-term goals.
At Fairstone, our team of experienced financial planners understands the challenges that small businesses and self-employed individuals face in Ireland. We offer comprehensive financial planning services to help you:
With our expertise in financial planning for small businesses in Ireland, we provide personalised advice and practical solutions to help your business thrive. Book a no-obligation financial planning consultation with one of Fairstone’s experts today and discover how we can support your success.
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