Blog-McCarthy & Associates Financial Consultants-Galway Talks, 26/06/2014

galway-bayfmQuestion:  I worked for a company for 20 years but took redundancy 6 years ago.  I did not move my pension and was wondering should I look at this and what options do I have?

Answer:  If you were not in a Defined Benefit Scheme then it is possible for you to move your monies into a Retirement Bond.  This means that you have no link with the previous scheme and also can make an independent decision on how your monies are invested.  It has been our experience that this gives the individual greater control over their pension benefits.

Issue:  ECB vows to keep record low interest rate for years.

Comment:  Depositors will not be happy to hear that the ECB have indicated that they are going to keep interest rates as low as possible for the next number of years.  This is in order to kick start the European economies and is a strong signal to depositors that they need to look for alternatives.

Question:  I am 57 years of age and was unemployed for a number of years and as a result of this cancelled my life cover.  I am now back to work again and I looked to take out a new life policy but was refused.  Can you tell me why this could ever occur?

Answer:   You would not have been refused life cover because of your age.  Generally Life cover is only refused if you had some very serious health issues.  It is important that you contact the life company, that you applied to and ask for an explanation. 

Question:  What is your opinion of Post Office Bonds?

Answer:   Post Office Bonds also reflect the general level of deposit rates.  Obviously the returns in these bonds are at historically low levels and I would recommend looking at different alternatives.

Question:  I recently received redundancy money and I am 65 years of age, where would you recommend I invest it?

Answer:   Firstly before you consider, where to invest these monies, it is important that you get your finances reviewed to see what flexibility you have to do so.  For example, you may have certain borrowings which you should clear or alternatively you may need a regular income.  I would not like to give you a general answer, as each person’s circumstances are different.  Please contact me if you with to discuss your situation further.