It’s almost the end of 2019 – and the decade!  Here are Moneycube’s five to-dos to wrap up your 2019 investments and finances.

1. Review your capital gains tax position

If you purchase shares directly, this one’s for you.

Every taxpayer in Ireland has an annual capital gains allowance of €1,270.

After the year of investment growth we’ve seen, now could be a sensible time to sell some shares and reduce your capital gains tax liability.  You could crystallise a gain of up to €3,848 and eliminate the capital gains tax due by taking advantage of your annual allowance.

What’s more, if you are sitting on losses from previous years, you can offset the gains on your winners with any losses you have incurred.

After that, now might be a good time to talk to Moneycube about diversifying your portfolio by investing in funds…

2. Consider giving money to your children or grandchildren

In Ireland you can give up to €3,000 per year to anyone, tax-free for you and them.  It’s called the small gift exemption.

This can add up quite quickly.  For example, if you and your spouse each gave €3,000 to your son, his wife, and their two children, you could send €24,000 their way each year, with no capital gains tax or inheritance tax consequences.

3. Take stock of your tax reliefs

You can receive tax relief on medical expenses, education costs and more.  You may want to accelerate some of these payments into December.  That way you’ll get the benefit of the deduction in your 2019 taxes rather than waiting for another 12 months.

Revenue’s MyAccount service makes it fairly easy to claim tax credits and tax relief online.

4. Think about your 2019 pension contribution

Yes, you’ve got until the income tax deadline to do it – around October 2020.  But now is a great time to take a look at your 2019 earnings and cash position, and consider what you could do to top up your pension.  (We can help).

Remember if you make that contribution soon, and turn your tax return in early in 2019, you’ll receive the tax deduction sooner, and get your money to work in your pension quicker.

Remember: if you run your own company, it’s a little different.  Read on here.

5. Make your investing plans for 2020

2019 has produced winners and losers in the investment game.

If you have invested in diversified, actively managed funds with exposure to several asset classes, you will have been protected from the worst of the recent market movements.

If you’re excessively exposed to a handful of stocks, such as Irish bank AIB, you’ll have had a worse time.  Now might be a sensible time to rebalance your investments.

Talk to Moneycube about how we can help you diversify your investments and your investing plans for 2020.

 

By investing €400 a month you could save €27,900 in 5 years

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Note: This is an initial indication to help you picture your money. Remember that with investments it is not possible to know for certain what returns you will achieve. Please note the investment warnings at the bottom of the page. This is the approximate before-tax return on an investment which grew at 6% over 5 years.

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