Contents Acknowledgements 12 Preface 13 Is This Book for You? 15 Getting the most out of this book 16 Money doctors website 16 Consumer protection 17 PART 1: How to Become Financially Fit in 2020 20 1 All it Takes is a Little Planning 21 Why you need a financial plan 21 Supposing you don''t plan? 22 Instant savings and more 23 What does a financial plan look like? 23 How long should a financial plan last for? 23 If you think you need help 24 2 Writing a Financial Plan 26 How do you decide what your financial objectives should be? 26 Prioritising your financial objectives 27 Ten universal needs 29 Setting realistic aims 29 How far have you got? 30 Your monthly income and outgoings 31 Your assets 32 Your liabilities 33 The importance of making assumptions 33 Where do you need to take action? 35 3 Money is a Family Affair 37 Problem? What problem? 37 Are you and your partner financially compatible? 38 Opening a dialogue 38 Anything to declare? 39 Building a joint approach to money 40 Sharing out the chores 40 The importance of involving and educating your children 41 4 Getting Help 44 How far should you go? 44 Where to get help 45 PART 2: Your Financial Rights 49 5 Your Right to Social Welfare 50 The difference between contributory and non-contributory payments 51 The different types of social welfare 52 So, what is means testing? 52 What are you entitled to? Social welfare payments in detail 53 6 Your Employment Rights 63 You may be more protected than you imagine 63 Minimum wage 63 Annual leave entitlement 63 Holiday pay 64 Your working week 64 On-call workers 64 Dismissal rights 64 Time off work 65 What to do if you are unhappy with your employer 65 Redundancy 65 7 Your Rights as a Financial Consumer 67 How to complain 67 If you have been turned down for a loan or credit card for no apparent reason 68 Part 3: Banking, Borrowing and Getting Out of Debt 71 8 Banking 72 Understanding the banking system 72 What banks do best 73 Basic banking services explained 74 What price banking? 76 Cutting the cost of your current account 76 Other types of bank account 78 State savings: accounts from the National Treasury Management Agency (NTMA) 79 The credit union option 79 Banking on holiday 79 9 Getting Out of Debt 81 You may not even realise you have a problem 81 Sizing up the problem 82 Debt comes in many disguises 82 Beware the minimum payment trap 84 Debt threatens your future freedom 84 Seven excellent reasons to become debt-free 85 The first step to getting out of debt 86 Taking stock of your situation 87 The art of debt elimination 89 10 Borrowing 93 So, what is ''sensible borrowing''? 94 Never borrow for longer than you have to 94 Build up a good financial/credit rating history 94 Why rates differ so widely 95 The first rule of cheaper borrowing 95 Choosing the best loan for your needs 96 The Money Doctors best loan guide 96 Part 4: A Complete Guide to Insurance 100 11 Protecting Yourself and Your Family 101 You know you should . 101 Spend time, not money 102 Income protection cover 103 Critical or serious illness insurance 104 Life cover 105 Private medical insurance 106 Which types of cover should you choose? 107 How much life cover do you need? 108 Life cover tax tip 109 Keeping the cost down 109 12 Protecting Your Possessions 110 The importance of proper cover 110 The different types of ''general'' insurance 111 Don''t just rely on brokers 111 Home insurance 111 Motor insurance 113 Insider tips on buying other general insurance 113 Part 5: A Complete Guide to Property Purchase 115 13 Mortgages 116 Taking advantage of the mortgage revolution 116 Interest: All the difference in the world 117 Two mortgage options: Repayment versus interest-only 118 Fixed or variable rate? 120 Why you should try to make mortgage overpayments 121 How the right professional adviser will save you money 122 14 Property Questions 124 Should I buy or rent? 124 How much can I borrow? 125 What is APR? 125 Is it worth switching my mortgage to get a lower rate? 126 Help! I''m self-employed 126 What will it cost for me to buy my home? 126 The Finance Act 2012 127 Does it make sense to buy a second property as an investment? 128 What other state housing grants might be available to me? 128 Is it worth repaying my mortgage early? 129 What home insurance will I need? 129 If I have trouble making my mortgage repayments, what should I do? 129 Part 6: Savings and Investment Success 131 15 Saving for a Rainy Day 132 Good, old-fashioned savings 132 Saving made simple 132 How much is enough? 133 Your savings strategy 133 Emergency fund: Three basic requirements 133 Savings and tax 135 16 Investment Strategies You Can Count On 136 Basic investment planning 136 Pooled investments 140 Specialised stock market strategies 143 Alternative investments 143 Property 148 Tax-efficient investment options 149 Part 7: Planning for a Richer Retirement 151 17 Retirement Basics 152 Why you should make pension planning your number one priority 152 It is never too early or too late to begin 153 Start by taking stock 153 Where do you go for the answers to these questions? 154 How much will you need when you retire? 154 The good news 155 What to do if you work in the private sector 156 What to do if you work for yourself 157 18 Pensions Made Easy 158 A quick guide to pension schemes 158 Categories of pension schemes 158 Big tax relief - the Revenue Commissioners are on your side 162 What happens to your pension contributions? 163 What is it going to cost? 164 What benefits should you be looking for? 165 What happens when you retire? 166 Part 8: Why Pay More Tax Than You Have To? 168 19 Tax Basics 169 Keeping it legal 170 Get to know your tax liabilities, and the Revenue Commissioners in the process 170 Do you have to fill in a tax return? 171 20 Income Tax Basics 173 What sort of income do you have? 173 A quick explanation of income tax rates 174 Personal credits and tax allowances 176 PRSI - Another form of income tax 177 21 All About Income Tax Credits 178 How tax credits work in practice 178 Check your tax credits every year 179 A complete guide to personal tax credits and allowances for 2019 179 22 PAYE 185 the ins and outs of PAYE 185 Emergency tax 186 Getting your tax back! PAYE refunds 186 Making sure your expenses are tax-free 188 23 Income Tax for the Self-employed 189 How to reduce your income tax bill if you work for yourself 189 Self-assessment system 190 Preliminary tax 190 The mystery factor! 191 Make your payments on time . or else 191 Do you need to register for VAT? 193 And another thing 194 Working out your profits 195 Expenses 195 A word about capital expenditure 196 Other tax-saving possibilities 196 24 Tax and Property 197 The tax advantages of property investment 197 A word of warning 197 Tax incentives 198 ''Generous'' expenses 198 25 Tax, Benefit in Kind and the Company Car 200 Benefit in kind (BiK) 200 Motor and travelling expenses 202 Other tax-free and tax-efficient perks 203 Has your employer offered you an opportunity to buy shares? 206 Revenue Online Service (ROS) 207 How to slash the cost of your benefit in kind 208 Should you have a company car at all? 208 100% tax-free motoring! 209 26 Capital Gains Tax 211 How the tax works 211 Basic capital gains tax planning 211 One more useful way to reduce your bill 213 27 Capital Acquisition Tax 214 Take full advantage of the tax-free thresholds 214 Five completely tax-free categories 215 Two useful ways to avoid capital acquisition tax 216 Farms 216 Businesses 216 28 Love, Marriage and Lower Taxes 218 Marriage brings greater flexibility 218 Other tax concessions made to married couples 219 Even better news if you''re married and self-employed 219 29 Tax for the Ex-pat 221 It''s all about residency and domicile 221 What happens when you move abroad? 222 A money-back offer: tax rebates 222 What is your tax status? 222 Your personal tax credits and reliefs 223 Get professional help! 224 30 Special Tax Advice for Farmers 225 Income tax 225 Capital Acquisitions Tax 226 Capital Gains Tax 226 VAT 227 Stock relief 227 Compulsory disposal of livestock 227 Capital allowances 227 Stamp duty 228 Farm consolidation relief 228 Leasing of farm land 228 Part 9: When the Last Thing You Want To Think About is Money 229 31 Redundancy 230 Background briefing on ''redundancy'' 230 How much are you entitled to? 231 What happens if the employer doesn''t pay up? 231 What''s the tax situation? 231 Claiming tax relief on a redundancy payment 232 32 Separation 233 The im.