Navigating Financial Service Products with Your Local Financial Broker

Explore our FAQ section to find answers to the most commonly asked questions about financial products.

Learn how your local Financial Broker can assist you in understanding these products, tailoring solutions to your needs, and guiding you through the complexities of financial planning. From insurance and investments to retirement plans, we’re here to simplify your journey.

How can a Broker help in planning for charitable giving in my estate?

Brokers can integrate charitable giving into your financial plan, ensuring donations are tax-efficient and in line with your legacy wishes.

How can I ensure a smooth transfer of wealth to my heirs?

A Broker can help structure investments and savings to make inheritance straightforward, minimising tax and administrative hurdles.

Can I designate beneficiaries for my investments with a Broker’s help?

Yes, Brokers can assist in designating beneficiaries for policies and investments, helping you ensure your assets go to loved ones.

What is inheritance tax, and how can I plan for it?

Inheritance tax applies to inherited assets above a certain threshold. A Broker can suggest strategies like life insurance and tax-free transfers to reduce liabilities.

Can a Financial Broker help with estate planning or setting up a trust?

While not a substitute for legal advice, Brokers often work with solicitors to guide clients in planning wealth transfer, reducing inheritance tax, and structuring trusts.

How much life insurance do I need?

The amount depends on your financial obligations, such as your mortgage, debts, and the financial needs of your dependents. A Broker can calculate the appropriate coverage for your situation.

How does health insurance affect my other financial goals?

Health insurance offers security against medical costs, which can otherwise disrupt your financial goals. A Broker ensures coverage fits your budget without compromising other plans.

Are there insurance products tailored for people with pre-existing conditions?

Some insurers offer coverage options specifically for individuals with certain health conditions. A Broker can help find suitable policies.

Can a Broker help me bundle insurance products for a better rate?

Yes, Brokers often secure discounted rates by bundling life, health, and home insurance, giving you savings and streamlined coverage.

What’s the difference between critical illness cover and income protection?

Critical illness cover provides a lump sum if you’re diagnosed with a severe illness, while income protection offers ongoing payments if you can’t work due to illness or injury.

How do I know which type of life insurance is right for me?

A Broker can explain term vs. whole-of-life policies and recommend coverage based on your family’s needs, income, and financial obligations.

Can a Financial Broker assist with mortgage switching?

Yes, Brokers can compare rates and terms from multiple lenders, helping you decide if switching could lower your payments or improve terms.

What should I consider before taking out a mortgage top-up?

Consider interest rates, repayment terms, and your ability to repay the additional amount. A Broker can help assess if a top-up aligns with your goals.

How can a Broker help me prepare for the mortgage application process?

Brokers help review your finances, suggest improvements to your creditworthiness, and guide you through necessary documentation to strengthen your application.

Can a Broker help me calculate the total cost of a mortgage over its term?

Yes, Brokers provide a breakdown of total payments, including interest, over time, giving you a clear view of the true mortgage cost.

What should I do if I’m struggling to make my mortgage payments?

If you’re struggling, a Broker can help you explore options like restructuring your mortgage, extending the term, or switching to a more affordable rate.

Can a Financial Broker assist with buying a second property?

Yes, Brokers can help you navigate the complexities of buying a second property, including financing options, tax implications, and potential rental income considerations.

What is a mortgage top-up, and how does it work?

A mortgage top-up is an additional loan taken out on your existing mortgage, allowing you to borrow more money for purposes like home improvements. Brokers can help assess if this is a suitable option for you.

What is the difference between a fixed-rate and a variable-rate mortgage?

A fixed-rate mortgage has a set interest rate for a specific period, providing stability in repayments. A variable-rate mortgage’s interest rate can change, potentially lowering or increasing your repayments over time.

How does a Financial Broker assess mortgage affordability?

Brokers assess your income, outgoings, credit history, and existing debts to determine how much you can afford to borrow, ensuring the mortgage is sustainable for you.

Can a Financial Broker help with mortgage refinancing?

Yes, a Broker can review your current mortgage terms, compare options from different lenders, and help you refinance to get a better rate or change the terms of your loan.

What is Mortgage Protection, and do I need it?

Mortgage Protection is a life insurance policy that pays off your mortgage if you die during the term of the mortgage. It’s required by law for most mortgages in Ireland, although some exceptions apply.

How do Financial Brokers find the best mortgage rates?

Brokers have access to a wide range of lenders and can compare their rates and terms, ensuring you get the most competitive mortgage deal.

What are the different types of mortgages available in Ireland?

Mortgages include fixed-rate, variable-rate, tracker, and buy-to-let. Brokers help you understand the pros and cons of each and choose the best option for you.

How can a Financial Broker assist with getting a mortgage?

A Broker compares mortgage products from various lenders, advises on the best options based on your financial situation, and assists with the application process.

What are some common mistakes in DIY investing that Financial Brokers help avoid?

Common mistakes include insufficient diversification, high-risk decisions, and neglecting tax implications. A Financial Broker’s guidance helps avoid these pitfalls.

Can a Financial Broker advise me on tax-efficient investments?

Yes, Brokers know tax-saving investment schemes, like certain pension contributions and tax-relieved savings plans, helping you minimise tax obligations.

How does a Financial Broker determine my risk tolerance?

A Broker assesses your financial situation, investment goals, and attitude toward risk through questionnaires and discussions to determine your risk tolerance.

What is the benefit of reinvesting dividends, and can a Broker manage this?

Reinvesting dividends compounds growth over time. Brokers can help set this up, ensuring your investments grow without additional contributions.

How do Financial Brokers choose funds for clients with ethical investment preferences?

Brokers can identify funds focused on environmental, social, and governance (ESG) standards, tailoring choices to align with your ethical values.

Are there special considerations for investing in a volatile market?

Yes, during volatility, Brokers recommend focusing on long-term goals, diversifying, and staying within your risk tolerance to avoid impulsive decisions.

How can a Broker help me rebalance my portfolio?

Rebalancing adjusts your investments to maintain your target mix, reducing risk. A Broker monitors your portfolio, suggesting adjustments to align with market conditions and your goals.

How often should I review my investment portfolio with a Broker?

It’s advisable to review your portfolio at least annually or whenever there are significant changes in your financial situation or the market.

Can a Financial Broker help me invest in international markets?

Yes, Brokers can advise on international investments, providing access to global markets and helping diversify your portfolio.

What is the difference between stocks, bonds, and mutual funds?

Stocks represent ownership in a company, bonds are loans to a company or government, and mutual funds pool money from many investors to buy a diversified portfolio of stocks or bonds.

How can a Financial Broker help with socially responsible investing?

Brokers can identify investment opportunities that align with your values, focusing on companies or funds with strong environmental, social, and governance (ESG) practices.

What are the tax implications of investments in Ireland?

Investment gains are subject to Capital Gains Tax (CGT), and dividends may be subject to income tax. Brokers help you understand and plan for these taxes.

What is the difference between active and passive investing?

Active investing involves selecting specific stocks or assets to outperform the market, while passive investing tracks an index. Brokers can recommend the best approach for your goals.

Can a Financial Broker help me invest in property?

Yes, Brokers can advise on property investment, including purchasing buy-to-let properties, REITs, and managing property as part of your overall investment strategy.

What is a diversified portfolio, and why is it important?

A diversified portfolio spreads investments across different asset classes to reduce risk. Brokers create diversified portfolios to help protect against market volatility.

How can I ensure my retirement funds last throughout my life?

A Broker can create a diversified income plan, helping you balance withdrawals with investment growth to avoid depleting your funds too quickly.

What are the potential risks of drawing down a pension early?

Drawing early can reduce your retirement fund, and tax implications may apply. A Broker can help you weigh the risks and evaluate alternative options.

Can I continue working part-time and still access my pension?

Yes, certain pensions allow you to draw benefits while working part-time. A Broker can guide you on how this impacts tax and overall retirement income.

What options are available if I want to retire before the State Pension age?

Early retirement may be possible if you have personal or occupational pension. A Broker can help assess your savings and develop an income strategy to sustain you before State Pension eligibility.

How do Brokers assess my retirement readiness?

Brokers evaluate your savings, pension, projected income needs, and retirement goals. They help you create a plan to bridge any gaps between your savings and your retirement targets.

Can I use my personal pension fund to buy a property in retirement?

Yes, but options are limited. With certain pensions, like an Approved Retirement Fund (ARF), you may be able to invest in property, but this should be discussed with a Broker due to associated risks and tax implications.

How do I access my pension savings upon retirement?

A Broker can guide you on your options, including taking a tax-free lump sum, purchasing an annuity, or investing in an ARF, ensuring your retirement income meets your needs.

What are the tax implications of pensions in Ireland?

Pension contributions receive tax relief at your marginal rate, and investment growth is tax-free. However, withdrawals in retirement are subject to tax, which a Broker can help you manage.

How can a Financial Broker help with pension consolidation?

A Broker can review your existing pensions, recommend consolidation if beneficial, and help streamline your retirement savings into one manageable plan.

What are ARFs, and how do they work?

Approved Retirement Funds (ARFs) allow you to manage your retirement funds post-retirement. A Broker can guide you on how to invest in these funds based on your needs.

Can I transfer my pension from one provider to another?

Yes, a Financial Broker can assist with transferring your pension, ensuring you understand the implications and any potential fees involved.

What are the benefits of starting a pension early?

Starting early allows your investments to grow over time through compound interest, potentially leading to a larger retirement fund.

How much should I be saving for retirement?

The amount depends on your retirement goals, lifestyle expectations, and current financial situation. A Broker can help you calculate the necessary contributions to meet your goals.

What is a PRSA, and how does it work?

A Personal Retirement Savings Account (PRSA) is a flexible pension option in Ireland. Brokers help you choose the right PRSA, considering fees, investment options, and your retirement goals.

How can a Financial Broker help with retirement planning in Ireland?

A Broker assesses your retirement goals, advises on suitable pension products, and helps you understand the tax benefits and potential returns, ensuring you have enough for retirement.

What types of pensions can a Financial Broker advise on?

Brokers can advise on personal pensions, occupational pensions, PRSAs, ARFs, and State Pensions, helping you choose the right one for your needs.

What’s the difference between budgeting with a Broker and using budgeting software?

A Broker offers personalised advice and strategies based on your goals, while budgeting software provides general tracking. Brokers can also suggest financial products and investment options tailored to your needs.

Can a Financial Broker provide advice on savings accounts or cash management?

Yes, Brokers can advise on high-interest savings accounts, fixed-term deposits, or money market funds to help you safely grow your cash reserves.

How does inflation impact my financial goals, and how can a Broker help?

Inflation reduces purchasing power over time, meaning you may need to save or invest more. A Broker can suggest investments with growth potential to keep up with or outpace inflation.

What steps can a Broker suggest if I want to save for a child’s education?

A Broker can advise on setting up a dedicated savings plan or investment fund to grow over time, potentially offering tax-efficient options to maximise your contributions.

Can a Broker help me set up an emergency fund?

Absolutely. Brokers can guide you in determining a realistic amount for emergencies and recommend low-risk, accessible accounts to hold these funds.

What should I consider when setting financial goals with a Broker?

Consider your current income, future earning potential, lifestyle aspirations, and financial obligations. Clear goals, like saving for a home or retirement, help Brokers tailor their advice.

Can a Financial Broker help with managing debt?

Yes, Brokers can provide advice on consolidating debt, managing repayments, and creating strategies to reduce and eventually eliminate debt.

How do Financial Brokers assess my current financial situation?

Brokers assess your income, expenses, assets, liabilities, and financial goals to create a comprehensive picture of your financial health.

What tools do Financial Brokers use for financial planning?

Brokers use various financial planning software, risk assessment tools, and calculators to provide accurate, personalised advice.

How can a Financial Broker help me achieve financial independence?

Brokers provide guidance on saving, investing, and managing debt, helping you build wealth over time and achieve financial independence.

What steps are involved in setting financial goals with a Broker?

The process includes understanding your current financial situation, defining your goals, assessing your risk tolerance, and choosing appropriate financial products to achieve those goals.

How often should I review my financial plan with a Broker?

Can a Financial Broker help me plan for major life events, such as buying a home or starting a family?

Yes, Brokers provide tailored advice for major life events, helping you understand the financial implications and preparing a strategy to achieve your goals.

What is the difference between short-term and long-term financial planning?

Short-term planning typically covers goals within the next 1-5 years, like saving for a holiday, while long-term planning includes retirement savings and investment strategies.

How can a Financial Broker help me create a budget?

A Broker can help you track your income and expenses, set realistic financial goals, and create a budget that ensures you’re on track to meet those goals.

What is the role of a Financial Broker in financial planning?

A Financial Broker helps you create a comprehensive financial plan by assessing your current financial situation, setting goals, and recommending products that align with your needs.

How do I know if my Financial Broker is providing unbiased advice?

Financial Brokers are regulated by the Central Bank of Ireland, and must adhere to the Consumer Protection Code set down in regulation, so they must always act in the best interest of the client, so if they are advising on products, it will be on a fair market analysis basis.

Can a Financial Broker help me reduce fees associated with my investments?

Yes, Brokers can find lower-cost investment options and explain the fees you’re paying, ensuring you’re not overpaying and that the products match your risk and return expectations.

How does working with a Financial Broker benefit me if I already have investments?

A Broker can review your existing investments, offer insights on performance, diversification, and fees, and suggest adjustments to ensure your portfolio aligns with your financial goals.

How do Financial Brokers stay updated on the latest financial products?

Brokers are required to maintain continuous professional development and stay updated on market changes, regulations, and products through training and industry resources to offer current and effective advice.

Are there Financial Brokers who specialise in certain industries or professions?

Yes, Financial Brokers work with self-employed clients to help manage their income fluctuations, savings, pensions, and investments, ensuring they have a solid plan for both business and personal financial goals.

Can a Financial Broker help me if I am self-employed?

Can a Financial Broker help with both personal and business finances?

Yes, many Financial Brokers in Ireland offer services for both personal and business financial planning, including pensions, investments, and insurance.

Are Financial Brokers in Ireland regulated?

Yes, Financial Brokers in Ireland are regulated by the Central Bank of Ireland, ensuring they meet strict standards of professionalism and ethics.

How do Financial Brokers earn their fees?

Brokers earn fees either through commissions from the products they recommend or through direct fees charged to clients. They are required to disclose how they are paid.

What services can I expect from a Financial Broker?

Services include investment advice, pension planning, insurance selection, mortgage advice, and general financial planning tailored to your needs.

Why should I use a Financial Broker instead of dealing directly with financial institutions?

A Broker offers access to a wide range of products from multiple providers, ensuring you get the best deal tailored to your specific needs, rather than a one-size-fits-all product.

What qualifications should I look for in a Financial Broker?

Look for qualification like QFA (Qualified Financial Adviser) and ensure they are listed on the Central Bank of Ireland’s register.

What should I prepare before meeting a Financial Broker?

Prepare a clear picture of your financial situation, including income, expenses, assets, liabilities, and financial goals. Having recent bank statements and any existing financial product details will help.

How can I find a reputable Financial Broker in Ireland?

You can search the Central Bank of Ireland’s register or visit FinancialBroker.ie to find registered Brokers near you.

What is a Financial Broker, and what do they do?

A Financial Broker in Ireland is a qualified professional who provides advice on financial products such as investments, insurance, and pensions. They assess your financial situation, understand your goals, and recommend suitable products.