Client Connect – The State Pension

The State Pension is a great benefit, the value of which is often overlooked. A State Pension payment of €12,912 (current maximum payment for a person aged 66 following Budget 2019). This would cost approximately €400,000 to buy in the open market. There have been some material changes in the State Pension recently which we explain below.

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Client Connect – Spending your way to Financial Independence

In this issue of our Client Connect we will discuss the topic of spending habits. It is a vitally important pillar for maintaining prudent long term financial planning. Consider the following…

There are currently restrictions on the water supply in Dublin and many other surrounding counties. The reservoirs in Dublin are currently 70 million litres lower than they should be. The water restrictions are not due to a lack of rainfall, they are due to millions of litres of water leaking away from an antiquated system. In a similar way, you may well have a good income but it could be leaking away in ways that you never anticipated. This can happen in a variety of ways – too much money being spent inappropriately, paying too much in tax, paying unnecessarily high interest rates on loans, and a lack of efficiency when it comes to your savings and investments. If you really want to be in control of your finances, you have to stop the leaks.

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PFP Financial Blog – Lessons for the next Crisis

The 10-year anniversary has just passed of when, in early October 2007, the stock market hit what was its highest point before losing more than half its value over the next 18 months during the global financial crisis.

Over the coming weeks and months, as other anniversaries of major crisis-related events pass (for example, 10 years since the bank run on Northern Rock and the collapse of Lehman Brothers), there will likely be a steady stream of retrospectives on what happened as well as opinions on how the environment today may be similar or different from the period leading up to the crisis. It is difficult to draw useful conclusions based on such observations; financial markets have a habit of behaving unpredictably in the short run. There are, however, important lessons that investors might be well-served to remember: Capital markets have rewarded investors over the long term, and having an investment approach you can stick with – especially during tough times – may better prepare you for the next crisis and its aftermath.

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Investment Principles – The Price of Panic

As a client of PFP Financial, you will be no stranger to hearing about our views of the power of equity markets to increase wealth over time. We are very unapologetic for this because it’s important and the vast majority of people never receive the investment returns they are entitled to for being in the markets. Whether it is poor and unsuitable financial products, high fees that are buried in these products or simply not understanding the need to have at least a portion of money invested in the best companies in the world, people are leaving money on the table. Another key reason is that people panic when equity markets suddenly and unexpectedly fall. They will run for cover and sell out of their investments / pensions at the worst possible time. The urge to do so is understandable.

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