Category: News

    Quintas Wealth Management to join Xeinadin Group along with Quintas Accountacy

    Posted on by QWM_Marketing

    Irish accountancy and wealth management firms Quintas and Quintas Wealth Management have announced they are joining Xeinadin Group, one of the leading professional services groups in the UK and Ireland. This strategic move will facilitate the companies’ growth ambitions.

    Speaking about the announcement, Anne O’Doherty, Head of Life & Pensions with Quintas Wealth Management, commented, “This is an extremely exciting development for our business and will benefit our clients greatly by giving access to broader resources and technologies while retaining the ethos and client-focused wealth management solutions that the Quintas Wealth Management team have built. It will be business as usual and there will be no change in how we work with our clients.”

    As Quintas Wealth Management operate in a regulated sector, Xeinadin must obtain all necessary regulatory approvals from The Central Bank of Ireland. The integration process will only commence on receipt of all regulatory approvals which could take up to 12 months to complete in full.

    We will keep our clients updated on a regular basis throughout this process to ensure a smooth transition.  In the meantime, should you have any questions please just get in touch.

    The coming of age for PRSA’s

    Posted on by QWM_Marketing

    PRSA’s are growing in popularity having had a very low uptake when they were initially introduced. Our Head of Life & Pensions, Anne O’Doherty looks at this current trend, the drivers behind it and why there is a coming of age for PRSAs.

    What is a PRSA?

    For many years a Personal Pension was the main option for retirement savings for those who were self-employed or not in a company pension plan. This changed in 2003 with the introduction of Personal Retirement Savings Accounts (PRSAs). In essence, a Personal Pension and a PRSA are designed to do the same thing. That is to provide a way of saving for retirement. They benefit from the same tax treatment and access funds in the same way. But a PRSA was designed to be more flexible and transferable.

    What are the benefits of a PRSA?

    The main benefits of a PRSA are linked to its flexibility and transferability. These include being available regardless of your job or employment status, being able to increase, decrease or stop contributions at any stage without penalty and being able to transfer to another provider. In addition, a PRSA give you more options at retirement. For example, you can continue making contributions after you retire, while also receiving a pension income.

    Can an Employer contribute to a PRSA?

    Yes, an Employer may contribute to employees’ PRSAs but are not obliged to do so. Their obligation lies in providing access to the PRSA. Where an employer doesn’t have a pension scheme they need to provide employees with access to at least one standard PRSA. They must allow the PRSA provider or intermediary reasonable access to the employees at their workplace and facilitate payroll deduction of contributions.

    Is BIK charged on PRSA contributions?

    One of the biggest changes to PRSAs and a driving factor in their growing popularity was the removal of the Benefit-in-kind (BIK) charge on Employer contributions. Where contributions were previously treated as a BIK for the purposes of employee income tax, these contributions will now not attract a tax charge for an employee. Since the 1st of January 2023, Employees can pay unlimited BIK free contributions to a PRSA for an employee including company directors. These contributions will not be limited by salary and service, existing scheme funding or retained benefits.

    When is a PRSA a good option?

    The flexibility and transferability of PRSAs always made them a good option for certain people. A combination of factors has now thrown this net much wider and makes them attractive in several other circumstances. These include the option as an alternative to a group pension scheme, especially for smaller companies. BIK has been removed and this is a valuable benefit for employees. PRSA’s can be a flexible alternative to a Master Trust in place of an Executive Pension scheme.

    Next steps

    The flexibility that PRSA’s offer and the breadth of fund choices, now coupled with the additional funding options, make them a very attractive option for those wishing to start saving for their retirement. Several of the product providers have recently launched new PRSA product ranges. This is to ensure that they meet clients’ needs in as easy a way as possible. If you’d like to find out what the best options are for your own circumstances just get in touch with us at Quintas Wealth Management. We’re happy to talk you through your choices.

    ARFs and Annuities – what happens after you retire?

    Posted on by QWM_Marketing

    We talk a lot about saving for your retirement and starting a pension plan. But what actually happens when you retire? You have built up a pension fund so what do you do next?

    There are two main options available for you to choose from at this stage, an Approved Retirement Fund (ARF) or an Annuity.

    An ARF is a post-retirement investment fund typically used to invest any retirement funds remaining after taking a tax-free cash. The funds transferred to an ARF can be drawn down in a flexible way during retirement. 

    An Annuity is an investment option for your pension fund. It guarantees to pay you a particular amount every month throughout your life in retirement.

    These two options, while both are for when you retire, provide very different solutions. How to use your pension fund to provide for their retirement is one of the most important decisions you have to make. Which option is the right one for you depends on various factors including value of your fund, level of income required and your state of health.

    This recent article in Irish Broker Magazine gives a very good comparison of the two options. We are happy to help guide you through these differences in relation to your own circumstances to help you make the decision that best suits you. Just get in touch today for an initial chat because we know what counts.

    Planning your financial future – what to know about asset transfer

    Posted on by QWM_Marketing

    The old cliché comes to mind when discussing succession planning. You know the one, death and taxes…. You’ve worked hard all your life to own your home, pay off debts, secured large deposits/investments, purchase a second property… the list goes on. Now you’re faced with the scenario where your beneficiaries have to sell a portion of these assets in order to satisfy the tax man. They will only benefit from as little as 66% of the value of said property. But by understanding the scenarios and asset transfer they can avoid this.

    What are the scenarios?

    Broadly speaking there are three scenarios that can be come about:

    1. Transfer ownership while you’re living. Thus discharging all responsibility to your beneficiaries before you die
    2. Make provisions for your wishes upon death
    3. Untimely death without provisions being made

    Did you know you have the option to mitigate the potential tax bill for your beneficiaries with two of these scenarios? Even where you believe you won’t incur a tax bill for the transfer, it is worth considering the future. Remember current Revenue CAT thresholds and tax rates are only that, current! It would be remiss to take them as guaranteed.

    A closer look at Scenario 2

    Scenario 2 is the most frequently seen case that our clients present. Yes they have a Will. And some level of discussion has been had with adult children, extended family and beneficiaries. Yes too there will be a big tax liability. There’s not much can be done about that. At least that is the perception without exploring all the options. 

    What our clients don’t always know is that provisions can be made to protect your loved ones from this tax bill. One such provision is what’s known here in Ireland as a Section 72 policy. It is a life assurance policy. But unlike a typical life policy, it does not create an additional tax bill in the hands of your estate.

    Example: Section 72 Policy

    The below example gives a very crude example of the difference.

              Let’s assume you have one beneficiary (a child) who has already availed of their full Category one CAT threshold of €335,000 when you transferred your second property to them 5 years ago     

    Scenario 1 incurs a Revenue bill of €264,000 for the beneficiary. That is 88% of your cash and investments go straight to Revenue. Scenario 2 incurs a bill of €660 with the family home. 100% of cash and investments to into the hand of your elected beneficiary.

    Another, less known about option, is a Section 73 savings policy. The regular investment policy is set up at the outset with this option included. Premiums are paid for a minimum of 8 years, the person(s) giving the gift/inheritance takes out the policy; they are also the owner(s) of the policy. Once you have met the criteria for the Section 73 relief, after 8 years the policy can be encashed and proceeds used to pay the gift tax liability.

    Next Steps

    Financial Advisors the length and breath of the country talk about risk daily. Market risk, volatility factors, capital at risk, the list goes on. What greater risk is there to those you care about most than your untimely death without a Will or with a significant change that was put on the long finger.

    If you’d like to take a closer look at planning your financial future, asset transfer options and what kind of plan is right for your circumstances, just get in touch with us at Quintas Wealth Management, because we know what counts.

    5 Top Questions about – Income Protection

    Posted on by QWM_Marketing

    We believe Income Protection cover should form an important part of any financial planning conversation. After all it is your income that provides the funds to pay for almost everything else. So what would you do if you couldn’t work to earn that income? In this piece, Anne O’Doherty, Head of Life & Pensions, looks at the key questions we are asked when we discuss income protection.

    What is income protection?

    In the very simplest terms Income Protection is a type of protection policy designed to protect your income. It provides an alternative income if you are unable to work due to injury or illness. This can give you financial security and peace of mind while you recover. We all have mortgage protection, car insurance, home insurance and travel insurance, to name but a few. But what pays for all these things? Your income. So why would you not consider protecting it.

    How is income protection different to serious illness cover?

    The main difference is that Income Protection pays a regular income whereas Serious Illness cover pays a once off lump sum when you claim. In addition, Income Protection is occupation dependent and covers any illness, injury or disability that prevents you from working. Serious Illness cover is available regardless of your occupation but only the illnesses specified on your plan are covered. The other big difference is in the tax treatment of each plan. Tax relief is available on your Income Protection premiums but the benefit is taxed. However, with Serious Illness tax relief is not available on your premiums but the benefit payment is tax-free.

    How much cover can I take?

    You can insure up to 75% of your income minus any State Illness benefit you are entitled to. Currently this is €220 per week (or €11,440 per year). So if you earn €80,000 you can insure a total of €60,000 less €11,440 or up to €48,560 per year. This means that you would receive a taxable income of €4,046 per month until you get back to work or your policy ends.

    If you are self-employed, then you are not entitled to any State Illness benefit. This means you can ensure up to the full 75% of your income.

    The important thing is to work out how much income protection cover you may need. Think about your income and your outgoings, how much income do you need to cover your living expenses?

    How long will I be covered for?

    If you can’t work because of illness or injury, your income protection plan gives you a replacement income until you either return to work or if you’re not fit to return before then, the ceasing age you selected when taking out the policy. You can also decide at outset when you would like to be able to access the plan, should you need to. This is called the deferred period and is usually anything from 13 to 52 weeks.

    That sounds really appealing but is it expensive?

    At the end of the day, it depends on the value you put on having an income should the worst happen. The cost varies depending on a range of factors including your occupation, your health and age as well as how much income you wish to insure. We believe that some level of Income Protection should form part of a robust financial plan and it really is down to how much you think you will need as a replacement income. There are lots of different factors that affect the cost. It can be reduced by insuring a smaller portion of your income or selecting a different deferred period. Remember to that you can claim tax relief on your premiums.

    If you’d like to take a closer look at Income Protection and what kind of plan is right for your circumstances, just get in touch with us at Quintas Wealth Management, because we know what counts.

    Is now a good time to cash in my investment?

    Posted on by QWM_Marketing
    Please note although originally published in February 2023, this article was updated in March 2023 in light of market events.

    Anne O’Doherty, Head of Life & Pensions, shares her thoughts on investing in 2023, when a good time to cash in an investment is and how clients can rest assured during periods of volatility.

    We all expected a slightly bumpy year for investments in 2022 as markets recovered from the impact of Covid-19. What we didn’t anticipate was the invasion of Ukraine by Russia and the resulting impact on energy markets, the rapid increase in inflation, and the marked effect on the global economy. These factors all resulted in both equities and bonds ending the year in a negative fashion. A question we were asked many times during last year was whether an investment should be cashed in to minimise losses. There was a negative end to the year for equities and bonds in particular. So this concern has been raised again over the past few weeks.

    How has the year started?

    The first point to note is that there has been a positive start to 2023. Markets certainly seem to be on the rebound. Energy prices, inflation and other pressures seem to have started to stabilise. The threat of recession is still with us. But, should this happen, all pointers indicate this would be mild and short-lived.

    However, the past 2 weeks have shown some significant events in the market which will once again impact conditions in the short-term. The initial reaction to the banking crisis in the US and in Switzerland saw financial conditions tighten. This did appear to make recessionary conditions more likely. However, the swift response by regulators to the emerging crisis conditions has diminished the negative impact. Interest rate expectations did drop back but as I write equities are rebounding.

    This situation brings me to my second point. This situation very much demonstrates why investing is a long-term commitment. By their nature markets have ups and downs but over the course of an investment, these tend to level out. There are many factors that can affect the markets. Volatility is usually caused by political and economic factors, industry or sector changes, or even individual company news. It can be difficult to witness any declines in your portfolio. But it is important to apply logic and not act out of emotion.

    The impact of volatility

    History has shown that those who have stayed invested during previous periods of market volatility have achieved their original investment objectives. Investing in a diversified equity portfolio has been shown to provide the best return on investment over a long period. The greatest risk to investment return on equities for an investor was not from being in the market during the negative times. It was from being out of it during the more frequent positive ones.

    This brings us back to a key point we make to our clients. Once you have chosen a strategy that suits your needs and risk profile, returns may depend on time in the market rather than timing the markets. It is important to not act of haste. While we cannot predict exactly what markets will do, we can certainly draw on past experience. In answer to the question, it is down to what the objective of the investment is and how long the term is. These factors will dictate what action, if any needs to be taken.

    The importance of a well-balanced portfolio

    A well-balanced, diversified portfolio would be built to take into account the ups and downs of the market in achieving its objective. Volatility is a typical part of investing. But it’s not unusual to be concerned by periods of it, especially when this is sustained for a considerable period. If you are asking “Should I cash in my investment”? or have any questions in relation to it please don’t hesitate to get in touch with us at Quintas Wealth Management.

    My First Year: 5 Things I’ve Learnt

    Posted on by QWM_Marketing

    Welcome folks, it’s Tracey here. Although most of you probably know me, I will start with a bit about myself. At this point I have over 6 years’ experience in different forms of financial services, namely within Fund services and the alternative investments space. I completed the Professional Diploma in Financial Advice designation (QFA) in July 2021, you could call it a lockdown project. January 2023 marks the start of my second full year in a brokerage. With that top of mind, I decided what better time to record my practical learnings in my first year with an independent financial advisory. Here’s 5 things I’ve learnt that might benefit you.

    A Little Today for a Better Tomorrow

    Save for your pension. As an early thirty something with (hopefully) decades of work still ahead it can be hard to prioritise saving for retirement. I’ve seen it on so many occasions this year. But when it comes to the other side, it is a huge sense of relief to have a decent pension pot in place. Yes you can argue you don’t know what life will look like in 2060, but nobody will convince me that early thirty somethings in 1990 knew how the world would look in 2022.

    ‘Hopefully’

    Back to that inconspicuous hopefully I included in the first point. Protecting your salary should be one of the first things a graduate invests in. One of Ireland’s largest providers, Zurich have a line ‘we don’t protect against, we protect for’, and it’s true. You are protecting your financial future by investing in this. On the face of it, paying these premiums doesn’t appear as exciting as a crypto vault on an app on your smart phone, but when it comes to being physically out of work for a sustained period I know which one I would prefer to have.

    Review, Review, Review

    A term used with investing, ‘invest and forget’, meaning don’t unduly concern yourself with the market fluctuations until such time as you need the funds. However, in Quintas Wealth Management the review process is as important as the initial set up. Personal circumstances change, and what is even more common is changes to regulatory guidelines, from time-to-time life companies have offers, better terms, more suitable products. Ensure you review your plan, products and premiums at least annually.

    Time in the Markets

    It was a hectic year in markets, validating the phrase – ‘time in the markets rather than timing the markets’. My recommendation is invest long term, invest at a volatility (risk) level you are comfortable with and at an affordable level for your circumstances. The best time to invest is always when you can afford it. There is a perception that investing is for people with hundreds of thousands in deposit accounts, regular investments can start from €100 a month.

    A New Normal

    By and large the days of one job/employer/career for life are a generation or two behind us. More typical nowadays is a mix-um gather-um of employment and employer types (employed, public, private sector, self employed, contract work, multi nationals, Irish SMEs etc.). All the more reason to consolidate your benefits. Do a stock take on what you know you have and think you may have. The very first part of the first step in Quintas Wealth Management’s financial advice process is finding out this information for you.

    All in all, an enjoyable first 16 months with Anne and the team. An awful lot learned in my first year about the financial advice business and I’ve no doubt an awful lot still to learn! But as the saying goes “every day is a schoolday”!

    Should you wish to review your existing protection, savings and pension policies give us a call today.

    Why start retirement planning early

    Posted on by QWM_Marketing

    There has been a big focus on pensions over the course of 2022. From concern around the impact of market volatility to the Government proposals on auto-enrolment and the recent tax deadlines. But one thing remains clear it is never too late to start your retirement planning. And it is also never too early!

    It is clear that younger age groups have little interest in retirement planning. The chart below demonstrates that age is a significant motivational factor when it comes to retirement planning. Interest is low at a younger age and there is only a significant increase when an individual reaches their late forties and into their fifties. While it is not too late to start a pension at that stage, it does leave far less time to make a meaningful provision.

    The sooner you start to make a provision for your retirement, the easier it is financially for two main reasons:

    • The cost of the outlay is spread over a longer period and so the financial impact is reduced
    • Investing early and staying invested allows more time and potential for your savings to grow

    There are many reasons cited for not starting a pension earlier. These range from paying off student loans, saving to purchase a home to not considering you can afford to start or just simply not getting around to it. However, the fact is it’s never too early to start saving for retirement. Once you start working and can set aside even a small amount each month, you will be on your way to building a fund. Then as you earn more in your career, you can increase the amount you contribute.

    The key is to start. The sooner you can start to save money for the future, the more secure you’re going to feel about retirement. So, no matter what age you are or what stage of your career, it’s worth thinking about your pension. Just get in touch if you’d like to start the conversation.

    EIIS Fund Launch

    Posted on by QWM_Marketing

    We are delighted to announce the launch of The EIIS Innovation Fund. 

    The EIIS Innovation Fund will allow investors to invest in Irish companies with excellent management teams and future growth potential while availing of up to 40% income tax relief.  

    With experience in operating EIIS/BES investments since 2005, The EIIS Innovation Fund will be managed by Quintas Wealth Management Limited (QWM) and advised by Quintas Capital Limited and Quintas Partners. The fund will be led by Quintas Capital Director, Kevin Canning. 

    Speaking on the launch, Director of Quintas Capital, Kevin Canning said, “I am delighted to be given the chance to lead The EIIS Innovation Fund. I have sourced, fundraised and managed several EIIS investments in the past and look forward to providing this service in a more structured manner. The Irish economy needs a surging SME ecosystem and EIIS investment should be the backbone of supporting young Irish SMEs. Reach out to me if you are an investor or company looking to learn more” 

    What is EIIS? 

    The Employment and Investment Incentive Scheme (EIIS) is a tax relief incentive scheme, previously the Business Expansion Scheme (BES) which provides income tax relief of up to 40% to individual investors for investments in small and medium-sized companies throughout Ireland.  

    The scheme offers one of the few remaining income tax reliefs and provides total income tax relief including: 

    • Salaries 
    • Rental income 
    • Employee share options  

    Find out more: EIIS Investor FAQs 

    EIIS Fund 

    An EIIS Fund is a professionally managed suite of EIIS investments. Investors benefit from spreading the risk of their EIIS investment across a number of companies as opposed to a direct investment in one company while still availing of income tax relief. 

    If you are interested in learning more about The EIIS Innovation Fund: Key Features Document 

    EIIS Webinar 

    We believe there is a lack of awareness and understanding of the EIIS scheme within Ireland. We would like to see the scheme used to its full potential and we are on a mission to ensure that both investors and companies benefit. 

    If you are a financial broker, investor or company looking to learn more about EIIS and our fund, we are holding a 30 minute lunchtime Zoom webinar on Friday 4th November at 1pm.  

    Sign Up: Here 

    Speaking about the launch, Anne O’Doherty, Head of Life & Pensions, Quintas Wealth Management commented “We are delighted to be able to offer this unique opportunity. This is an exciting and innovative scheme for investors which should bring benefits to both them and the companies involved.”

    If you are interested in working with The EIIS Innovation Fund, please contact: Kevin.canning@quintas.ie or EIIS@QWM.ie  

    Investor FAQ Link

     

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