As we approach the end of the year, it’s crucial to take a comprehensive look at your financial landscape. This guide will help you navigate the key financial considerations specific to the Irish market, ensuring you’re well-positioned for the year ahead.
1. Review Your Tax Situation
Personal Tax Credits and Reliefs
- Check your tax credits on the Revenue Commissioners website
- Ensure you’ve claimed all eligible tax reliefs, including:
- Earned Income Tax Credit
- Home Carer Tax Credit
- Medical Expense Tax Relief
Tax-Efficient Savings
- Maximise your pension contributions before the year-end deadline
- Consider the benefits of Additional Voluntary Contributions (AVCs)
2. Savings and Investments
Irish Savings Landscape
- Review the performance of any existing investment policies.
- Consider investing accumulated savings especially if these funds are not required in the short-term.
- Talk to a financial adviser about the different types of investment products available – you can invest from as little as €100 per month.
Investment Portfolio Assessment
- Rebalance your investment portfolio
- Review the performance of your:
- Pension funds
- Personal Investment Accounts
- Consider the tax implications of any investment gains
3. Debt Management
Mortgage Review
- Assess your current mortgage rate
- Compare rates across Irish lenders
- Consider the potential benefits of switching or restructuring
- Check eligibility for any government mortgage support schemes
Personal Debt
- Consolidate high-interest debts
- Create a repayment strategy
- Explore debt management options with your financial institution
4. Insurance and Protection
Life and Health Insurance
- Review your existing coverage
- Ensure your policy meets your current life stage requirements
- Compare providers for potential cost savings
Income Protection and Critical Illness Cover
- Assess your current level of protection
- Consider the impact of recent life changes
- Explore options tailored to the Irish market
5. Emergency Fund and Budgeting
Financial Safety Net
- Aim to maintain 3-6 months of living expenses in an easily accessible account
- Review and adjust your emergency fund based on current circumstances
- Consider high-yield savings accounts for better returns
Budgeting Review
- Analyse your spending patterns over the past year
- Identify areas for potential cost-cutting
- Use Irish-specific budgeting apps and tools
6. Retirement Planning
Pension Health Check
- Review your pension contributions
- Assess the performance of your pension fund
- Consider additional voluntary contributions
- Understand the tax benefits of pension savings in Ireland
Long-Term Financial Goals
- Align your current savings with retirement objectives
- Consider consulting a financial advisor for personalized strategies
7. Property and Wealth Management
Property Investment
- Review the current Irish property market trends
- Assess your property portfolio
- Consider potential tax implications of property investments
Wealth Transfer and Estate Planning
- Review your will and inheritance plans
- Understand Capital Acquisition Tax (CAT) thresholds
- Consider potential inheritance tax strategies
Conclusion
A year-end financial checkup is more than just a review—it’s an opportunity to reset, realign, and reinforce your financial strategy. By taking a holistic approach and staying informed about the Irish financial landscape, you can make confident decisions that secure your financial future.
Disclaimer: This guide provides general advice. For personalised financial guidance, always consult with a qualified financial advisor like Shankill Financial Services who can provide recommendations tailored to your specific circumstances.