Blog-McCarthy & Associates-Galway Talks, 17/07/2014

galway-bayfmIssue:  Recent research shows that Insolvent Pension Schemes will force many to move to Retirement Bonds.

Comment:  Unfortunately quite a number of Defined Benefit Schemes have been wound, up due to the fact that the employers are unable to fund the benefits due to retirees or staff who will retire in the future. When this occurs it means that the benefits for current employees will need to be moved into a Retirement Bond, which still have the same retirement conditions attached, but will separate them from the original scheme and will have control over how the monies are invested.

The winding up of a Defined Benefit Scheme is never beneficial for its members and moving into a retirement bond is an important step that requires advice and caution with regard to how to invest these funds.

Question: I have Vodafone/ Standard Life Shares and I never received a Share Certificate. Can you please help to explain why? 

Answer:  A number of companies provide 2 options whereby you either receive a Share Certificate or your shares are held electronically.  It is obvious in your case, because you did not receive a Share Certificate,that you have what is known as a Share Account.  It means that if you wanted to sell those shares you have to go back through the registrar for that company which would have been outlined in the documentation you received.

Issue:  Property prices forecast to rise by 10% nationally in 2014.

Comment:  Despite the negativity from some commentators, it is apparent that some economists believe property prices will rise by 10% nationally in 2014.  This rise could be in the region of 20% in Dublin.

It is good news for property owners to see that there is buoyancy coming back into the market and certainly Galway is a location that will benefit from this.