Ten things to ask yourself retirementabout
There’s more to getting the retirement you really want than squirreling money away for its own sake. Smart wealth planning means having the money you need to do the things you want, for as long as possible.
Ten things to ask yourself about retirement
What isn’t always so clear is what you’re supposed to do next.
Retirement is the very embodiment of that principle, so let’s look at the 10 questions you should be asking.
Once you’re past the initial hurdle of starting to think about it, then what? What are the questions you really need to ask yourself and, crucially, the answers you need to arrive at?
If you’ve already started thinking about retirement, then well done you.
After all, you can’t have missed the multitude of financial firms reminding you that “it’s never too early to start saving for It’sretirement”.absolutely true of course, and it’s a responsible message –it’s never too soon to start putting money away for your future (it’s never too late either, every penny counts).
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5. Can we buy a property abroad? 12
2. Will we have enough money along the way?
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8. How should we prepare for the worst? 18
6. Can we help the kids with a deposit? 14
3. How do we gather everything together in one place?
Ten things to ask yourself about retirement
9. How do we invest well? 20
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4. What if we both go into care homes? 10
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10. OK, so what’s the first step? 22 How can Metis Ireland help? 24
1. What should our retirement look like?
7. How do we pass on wealth without paying more tax than necessary? 16
Notice we’re not asking you what a ‘great’ retirement looks like, or how the ‘ideal’ retirement should play out. We’re asking about yours.
1. WHAT SHOULD OUR RETIREMENT LOOK LIKE?
This is perhaps the most important thing to get clear right at the Throughoutbeginning.your life the things you’ve worked for have been very real, concrete and relatable goals – putting the kids through university, paying off the mortgage, building your business. They relate to the future, but it’s a future that doesn’t feel so very far away.
When it comes to retirement there’s a tendency for the idea to become less well defined, more nebulous. It’s not always easy to project ourselves into retirement, because it’s often something we think of as happening to ‘other people’. Retirement can feel like a distant, alien entity made of golf, cruises, second homes in Marbella and gardening.
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“If golf is your thing, great, but if it isn’t then you should spend some serious time working out what is.”
But project yourself you must, because your retirement is every bit as concrete, every bit as deserved as all the other goals you’ve spent your life working towards. That’s why you need to know exactly what you want from it, to make sure you don’t drift into a kind of default retirement or one that you’re ill-prepared for. If golf is your thing, great, but if it isn’t, then you should spend some serious time working out what is. Your retirement is yours. It’s for you.
Once you have that vision, we can start to help you work on making it a reality.
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It’s your job to decide what you want, and it’s ours to set out how you’ll get it, how you’ll keep it and how you’ll protect your wealth now and in future.
While there’s an element of ‘reward’ to retirement, your pay-off for a life well lived, there’s much more to it than that. It’s about how you’ll continue living the best life possible with the money you have, for as long as you can.
You need to know what your retirement will cost, but ‘price tags’ are things that apply to a one-off purchase – the hot tub you splash out on will have a price tag, but we’re not just dealing with one-off purchases here.
It’s important to remember that retirement isn’t an ending – it’s a phase of your life that could last many years. The average lifespan in Ireland today is 80 for men and 84 for women –that’s just the average of course, so you could be retired for 20 years, or 25 years, or maybe longer.
2. WILL WE HAVE ENOUGH MONEY ALONG THE WAY?
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Yes, and no.
Once you know what you’re aiming for, you can start figuring out the price tag, right?
He climbed Everest several times in his career and when asked what he’d learned, he said something very interesting:
Eric Arnold was a man who knew about perspective.
A little morbid? Maybe, but if it is, then it’s only to underline a key point. You only get one life, and whether you spend it scaling Everest or staying at sea level, it’s precious. You want to be happy on the day you retire, but you’ll still want to be happy and fulfilled a few years down the line.
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“The hot tub you splash out on will have a price tag, but we’re not just dealing with one-off purchases here.”
“Two-thirds of the accidents happen on the way down. If you get euphoric and think ‘I’ve reached my goal,’ the most dangerous part is still ahead of you.”
We frequently remind clients to #StickWithThePlan and it’s just as true of retirement as it is for the years that come before it. As your financial planners, we’ll make sure your plan continues to evolve with you, keeps step with your risk profile and stays aligned to your goals.
3. HOW DO WE GATHER EVERYTHING TOGETHER IN ONE PLACE?
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Having clarity – a single, holistic and reliable picture of exactly where you stand financially – is essential. If you’re already decades into your working life then it’s likely that your total net worth is spread across many assets. You probably have some of it tied up in property, maybe more than one. There may be unknown quantities (and unknown login details) for pension schemes with current or past employers, and perhaps you have money dotted around investment products and savings accounts.
Sometimes getting your finances into any sort of sensible order can feel like a never-ending game of whack-amole, only you can’t find the mallet.
If you’re self-employed you’ll have money tied up in your business too, and the more
It’s surprising how a sense of order can get away from you – it starts with filing bank statements on the stairs (to deal with later) and it ends with a financial picture that looks like a jigsaw that’s yet to be assembled.
It’s not uncommon for people to be put off getting their finances in shape for fear of opening a kind of Pandora’s moneybox.
But that’s a bit like hoping that by avoiding your bank statements you’ll stop any payments going out. You won’t, any more than you’ll make your cheesecake healthier by not reading the box.
fragmented this picture becomes, the harder it can be to get a good look at what you have available.
If you know there’s a skeleton or two in the cupboard, then now’s the time to lay them to rest, and we’ll help you to do it. With your Metis LifePlan we can help you shepherd sense back into your financial outlook, once and for all.
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“In the same sense that retirement planning is an opportunity to get your thoughts in order, so too is it your chance to bring clarity to your financial picture.”
There’s nothing wrong with presenting a journey of financial decisions that’s seen a few offshoots, false starts and detours along the way, it’s to be expected. But in the same sense that retirement planning is an opportunity to get your thoughts in order, so too is it your big chance to bring clarity to your financial picture.
of the emotional stress, long-term care is very expensive. According to Independent.ie, the average weekly cost per resident in a nursing home is now €1,615 and could be even higher. Needless to say, that can quickly burn through your retirement savings, that’s why many of our clients ask us to model these scenarios for them when we work on their Metis LifePlan.
Your retirement is hard won and well deserved.
4. WHAT IF WE BOTH GO INTO CARE HOMES?
Your retirement could last many years and while some of the questions look at how you might get the best deal, others are about what you might have to deal with.
But coming as it does in the later years of life it’s also prudent to think about how you’d cope with different eventualities. You may stay in good health for many years, but equally, one or both of you may need to go into full-time care at some point in the Onfuture.top
Ten things to ask yourself about retirement
Whether it makes sense to pass on money to the kids now, for example, or whether the best time to take that oncein-a-lifetime holiday is sooner rather than later. But there are deeper benefits that deal with peace of mind and reassurance. Some people steer a wide berth around questions of health and wellbeing for fear of tempting fate, but our answer to that is don’t leave things to fate – plan.
Once it’s planned, it’s done and dusted. You know what you can afford, what your next steps are, and you can live the life you want without the worry of overspending in active retirement.
It’s not as enjoyable as thinking about holidays, but it’s really important. Smart financial planning is about facing up to all the questions you may need to deal with, the good and the bad, to understand how you’d respond to those situations and to know you have a plan in place.
“Some people steer a wide berth around questions of health and wellbeing for fear of tempting fate, but our answer to that is don’t leave things to fate – plan.”
There are theconsiderationspracticaltocarequestion.
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It may be possible to buy a property abroad, but you’ll need to move beyond idly searching through holiday home listings. Whether it’s feasible with what you have today, or whether it might be later, with some revisions to the way you work in the years ahead, these are questions we can help you to deal with and start nailing down the answers.The crucial step is asking them in the first place.
Who hasn’t dreamed of buying somewhere that offers better weather, a more comfortable pace of life and a view of the sea? But like many of the questions on this list, it’s something to think about now.
5. CAN WE BUY A PROPERTY ABROAD?
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Many a retirement wish begins with “One day I’d love to have…” and sadly stops there.
It’s as common a question as you might expect it to be.
The earlier you begin to map out what you’d like to do in retirement, the more time you’ll have to work with to make that dream come true. We can model a holiday home purchase
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now or at any point in the future and if it’s not quite achievable with things as they stand, we can look at your options. We’ll help you to rethink your plans and find a way to do it, whether that means saving more, liquidating assets elsewhere or working for a little longer.
If it’s something you seriously want, then don’t leave it as a pipe dream. Retirement planning is about taking the guesswork out and replacing it with the insight and infrastructure you really need to get where you’re going.
Somewhere along the line you need to turn those maybes into definitive goals.
Your Metis LifePlan will give you the most clear-cut picture of your financial resources you’ll ever have and our expert team will help you to augment that plan with different future scenarios, to help you arrive at the one you really want.
“The earlier you begin to map out what you’d like to do in retirement, the more time you’ll have to work with to make that dream come true.”
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We live in the era of the ‘Bank of Mum and Dad’.
kids, then helping them out is likely to be a high priority for you, but it needs to be done in the right way. Quite apart from the tax implications (we’ll cover that in the next question) your money needs to be gifted in a way that’s sustainable for you too, and doesn’t come at the expense of your own retirement. There are things you’d like to do in retirement that you might feel you’re ready to compromise on, but there also things you might end up having to pay for whether you like it or not, like long-term care.
6. CAN WE HELP THE KIDS WITH A DEPOSIT?
It’s not surprising, because buying your first property is hard work – it takes discipline, savvy saving and more often than not it requires a sizable shot in the arm from the previous Ifgeneration.youhave
Research carried out last year by Bank of Ireland found that over half of the young people they surveyed expected to receive help from their parents to get them onto the property ladder.
We’ll work with you to make sure your wealth is protected and that it keeps working long into the future. The key is to be able to help them get that foothold without destabilising your own financial picture in the years ahead.
As ever, we’ll tackle the question with you and we’ll give you honest answers about your situation. Where your kids are concerned emotion will follow in hot pursuit, but the temptation to make grand gestures is of no use at all if it hamstrings your own future.
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We’ll go through the figures with you and if helping with a deposit is something that’s feasible for you.
That’s what the lifetime cash flow modelling of the Metis LifePlan is all about: it gives you comfort and peace of mind that any major decisions you take today are done in the context of a sustainable future.
“Your money needs to be passed on in a way that’s sustainable and doesn’t come at the expense of your own retirement.”
Ten
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The wealth you’ve worked so hard for could change the lives of the next generation for the better, but you need to be sure it doesn’t change your own for the worse.
If we’re talking about ‘small’ gifts, up to €3,000 per year, then that’s generally easy to deal with – there’s no Capital Acquisitions Tax to worry about. Once we get up to the big numbers though, more than €335,000, then Capital Acquisitions Tax applies and your family members could be staring down the barrel of 33%.
If your Metis LifePlan shows that you’ll have wealth remaining after you’ve lived the life you want, then estate planning is really important, because the last thing you want is for your family to shell out over and above what they should be paying.
But the other side of this question is to keep in mind how the idea of leaving money behind works with your plan and the lifestyle you want to achieve.
7. HOW DO WE PASS ON WEALTH WITHOUT PAYING MORE TAX THAN NECESSARY?
You can’t take it with you. True enough, but you can leave it behind.
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Your Metis LifePlan gives you a structure for all of your estate planning needs and, when the time comes, we’ll work with your solicitors and tax advisers to make sure your family is provided for. We’ll help you to understand the best way to pass on your wealth, whether that’s in instalments or by putting the money into a trust. If you’re in the financial position of needing to plan for a multi-generational legacy, then we’ll be able to help you find the right structure to protect what you’ve achieved long into the future.
There’s no point in scything off chunks of wealth with no regard for how it’ll affect you in the years ahead.
Lifetime cash flow modelling will help you to understand what you could realistically leave behind, once you’ve enjoyed the retirement and lifestyle that you’ve worked so hard to enjoy.
“Estate planning is essential if you don’t want to hand over a third of your wealth to the taxman when you die.”
The big one – it’s the question nobody ever wants to ask, and yet the one certainty we all need to face up to.
One day we’ll no longer be around, so what then?
At Metis Ireland we’ve built a reputation on never shying away from the difficult questions. We’d be a poor wealth management team indeed if we only celebrated your victories with you and skirted around the more searching questions. A personal trainer wouldn’t avoid telling you what you need to do more of, or consume less of, and neither will we.
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We’ve always been completely honest with our clients, and candid where we have to be. We think about the ‘what ifs’ and we address the unexpected head on. Just as we’d build you an investment portfolio that’s diversified and well-equipped to roll with the punches, able to cope with whatever fortune throws at it, so we’ll make sure your retirement plan builds in contingency. Whatever retirement asks of you, you’ll have the right answers.
8. HOW SHOULD WE PREPARE FOR THE WORST?
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As you get older, you’ll ask more questions of life, but life will have questions for you too.
We’ll help you to make sure you have the answers ready. Then it’s up to you, lock them in a drawer and never look at them again if you don’t want to. But do it with peace of mind and enjoy your retirement to the very fullest, knowing you won’t be blindsided and the people you love are protected.
“At Metis Ireland we’ve built a reputation on never shying away from the difficult questions.”
How much you’d need to carry on living your life if your partner were to pass away, whether they’d be secure if you died first, knowing that the mechanics of your pension plan would work in such a way as to benefit the people closest to you when you’re no longer around. Those are the questions to ask, and answer, now.
And for that reason, trying to beat the market may as well be astrology. We’ve been in this business a long time and it continues to reinforce what we’ve always believed. Smart investment begins with a tailored plan that’s matched to your goals, your financial situation, the level of risk you’re comfortable with and the time
9. HOW DO WE INVEST WELL?
For centuries, mankind looked to the movements of the stars, charted their course, interpreted their meanings and applied those observations to their actions down here on earth. And they made some pretty terrible decisions.
The thing is, prediction and prognostication don’t sit at all well with mathematics and evidence, which are the forces that govern smart investing.
Yes, sometimes people can ‘beat the market’, but in the same way as a run of lucky picks in heads or tails, it doesn’t last. It can’t last.
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horizon you’re working to. It ends many years later when, after investing for the long-term, you reap the rewards of persistence, discipline and keeping a cool head.
Warren Buffett knows it too. As he put it, “Forecasts may tell you a great deal about the forecaster; they tell you nothing about the future.” The legendary Jack Bogle, founder of Vanguard and creator of the world’s first index mutual fund, put it even more succinctly:
“Forecasts may tell you a great deal about the forecaster; they tell you nothing about the future.”–Warren Buffett
Your Metis LifePlan won’t give you the ‘hot picks’, ‘top tips’ or any of the ‘secrets the professionals don’t want you to know’. What it will give you is structure and a clear way forward that’s based on the things you want to achieve.
It’ll give you a way to turn ideas into eventualities, a framework within which to cope and adapt with whatever the years ahead should bring. Most of all it’ll give you a constant reminder that whatever you’re aiming for, whenever you need it, Metis Ireland will be right beside you, keeping you on track and making sure you #StickWithThePlan. “The math will never let you down”.
By downloading and reading this guide you’ve moved “Thinking about retirement” from the list of things to get around to to the list of things in progress.
Funnily enough it’s the most popular day to start a diet too. The good news is you’ve already taken the first step.
We can help you from here and it’s not as foreboding as you might think. Sure there’ll be questions, a bit of soul searching maybe, but we’ll be right with you throughout the whole thing.
We’ll start by getting to know you – who you are, what you want from life and what really matters to you. Then we’ll work together to understand your ambitions and how you’ll go about achieving them.
Ten things to ask yourself about retirement
Easy, it’s ‘tomorrow’.
Statistically, what’s the most popular day for starting your retirement plan?
10. OK, SO WHAT’S THE FIRST STEP?
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Even if you feel like you’re coming to this late in the day, it’s important to know that working with Metis Ireland means expertise in your corner, for as long as you need it. We’ll make sure you understand your plan and we’ll take you through your options, explaining each route and how it could work for you.
“Sure there’ll be questions, a bit of soul searching maybe, but we’ll be right with you throughout the whole thing.”
When you’re happy to go ahead, we’ll take care of the paperwork and administration and we’ll meet with you each year to review your Metis LifePlan. Lives evolve and circumstances change, so we’ll keep checking in to make sure you’re still on course.
We’ll put together your Metis LifePlan, bringing structure, reassurance and objective expertise to the table. Thinking about the future will always involve emotions; we can’t take them away, but we can help you to keep them in check, so they don’t get in the way of reaching your goals.
Your plan is the beginning of a partnership.
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TALK TO US
Whether you’re just beginning to think about retirement, your plan is already under way or it’s finally time to stop putting it off, we’d love to help.
Call us for an introductory chat and we’ll see where you’re up to. If you like what you hear, we can meet and go through your vision for retirement as you see it.
IT’S FREE AND YOU DON’T NEED TO COME WITH A PLAN – THAT’S WHAT WE’RE HERE FOR.
In so doing, we strive to provide you with a better return on life, not just a better return on your investments.
Knowledge
A life-centred approach
Our purpose is to help you achieve the best life possible with the money you have. We’ll work in partnership with you, putting your life at the centre of our conversations. We’ll take time to understand you, your background, philosophy, needs and objectives so we can help you put your money to good use.
We’ll work with you to anticipate your life transitions. We’ll make sure you’re financially prepared for them by regularly assessing what’s coming and creating your action plan to address and manage these transitions ahead of time.
We’ll provide insight to help you avoid emotionally driven decisions in important money matters. We’re available to consult with you at key moments of decision making, doing the research to ensure you have all the necessary information.
We’ll help you get your financial house in order and keep it that way. We’ll help you provide for your lifetime income and expenditure needs as well as your tax planning, investments, protection and estate planning.
Inspiration
We’ll help you follow through on your commitments by working with you to prioritise your goals. We’ll show you the steps you can take and regularly review your progress towards achieving them.
Organisation
25 Ten things to ask yourself about retirement
HOW HELP?METISCANIRELAND
Accountability
Our goal is to inspire our clients to help them live the lives that they want. Our Metis LifePlan enables our clients to make the right decisions at the right time throughout their lives. We encourage our clients to take a long-term view, allowing us to make better decisions over time.
We’ll explore the specific knowledge needed for you to succeed by thoroughly understanding your situation, then providing the resources to help with your decision making. We’ll explain the options and explore the risks associated with each choice.
Objectivity
Proactivity
Life Centered Planners, a movement dedicated to constantly challenging the status quo in the world of financial services, sets out some key principles. These principles fit with our own approach and so we’ve adapted them to set out our own values.
Ten things to ask
yourself retirementabout Metis Ireland Financial Planning Ltd t/a Metis Ireland is regulated by the Central Bank of Ireland. Disclaimer: The materials in this document do not constitute financial or other professional advice. You should consult a professional advisor if you require financial advice. Please also consider the following: Warning: The value of an investment, and the income you receive from it, can go down as well as up and you may lose some or all of the money you invest. Warning: Past performance is not a reliable guide to future performance. you can find us limerickexperiencedorinfo@metisireland.ieatspeaktooneofourplanners.(headoffice)061 518 365 dublin 01 908 www.metisireland.ie1500
