Gorey firm helps The Red Door raise €7,000 for autistic children

Horizon Financial donated €1,000 and sponsored Pub Quiz prizes

Gorey firm Horizon Financial has helped raise €7,000 for The Red Door School for Autistic Children. The company, founded by Hughie Doyle and Michael McGovern, donated €1,000 to the charity, as well as sponsoring two raffle prizes which dramatically drove ticket sales for a charitable pub quiz that raised over €6,000 for The Red Door.

The Red Door school for autistic children is a registered charity (CHY 14457) and is run by the Learning Centre for Autistic Children Ltd. The Red Door is the Learning Centre’s first project, and it started in 2001 with four children. It now operates out of Sandyford, where 12 children attend on a full-time basis.

Teaching is on a one-to-one basis under an Individual Educational Programme (IEP) and centres around the science of Applied Behavioural Analysis (ABA) where children learn by intensive behavioural reinforcement. The IEP also includes Speech and Language therapy, ocupational therapy and communications systems.

“This approach, while very effective, is not cheap and Department of Education funding only covers approx 60% of the schools costs. Fund raising is vital to the survival of the school and particularly corporate patronage like that offered by Horizon, central to ensuring that the kids receive the kind of support they need to give them any hope of progressing into mainstream settings and living any kind of independent life,” said Nicholas Baird, from The Red Door.

For more information on the School, ABA and Autism please see www.thereddoorschool.com 

Horizon Financial was initially approached to sponsor The Red Door’s annual golf outing in 2006 and has continued to support the charity ever since.

“We feel it is more important to offer our support to The Red Door in the current economic climate than it has ever been, we always sponsored The Red Door’s annual golf outing but this year we decided to get more involved and give a more generous donation to this worthwhile cause,” says Hughie, from Horizon Financial.

“The committee of The Red Door has worked very hard to make this school such a success. At Horizon we look forward to helping The Red Door for many years to come.”

New figures from Irish Life show 74% of Irish adults are worried about protecting their income but only 23% currently have Income Protection cover in place.  The survey was undertaken for Irish Life in April of this year by iReach amongst a representative sample of 1,000 adults.

With the weakening economy income protection is growing significantly in popularity because when times are tough, people want to make sure that they are protected if things go wrong.  Income Protection provides the financial security which allows people to concentrate solely on their recovery and not on making sure the bills are paid.

What is Income Protection?

Income Protection is an insurance policy which will provide a regular replacement income for claimants who are unable to work due to accident or illness.  It does not cover redundancy.  The level of benefit which a policy will pay out as is linked to your salary when you take the cover out.  Irish Life will cover up to 75% of the first €80,000 earned and 50% of any remuneration earned above €80,000 (minus the state benefit of €204 per week).  Benefit will continue to be paid until you either return to work, die or reach the expiry age (typically age 60), whichever happens first. 

Irish Life have recently launched a new Income Protection product which is typically 5%-15% cheaper than its competitors and includes a number of enhancements such as a facility to top up benefits by up to 20% every three years without any requirement for medical underwriting and access to a free 24/7 Nurse Assist phone line.

Income Protection Claim Details

Irish Life is the largest provider of Income Protection in the country with over 275,000 people covered.  The company currently pays out over €52 million a year in replacement incomes to over 3,000 different claimants.  It says that 90% of all claims made are paid.  The top 5 illnesses recorded for claims in payment in 2008 were Mental Illness, Back Pain, Cancer, Heart Related Conditions and Diseases of the Central Nervous System.  The top 5 occupational categories with claims in payment during 2008 were Manufacturing, Secretarial, Banking, Transportation/Logistics and Tradesman.

• The average annual payment in 2008 was €18,982.  The average claimant receives income replacement for 5 years and 8 months before returning to work equating to an average payout of over €105,000 over the period of a claim.
• In 2008 the largest individual payment was €150,000 to a 50 year old man who couldn’t work as a result of epilepsy. 
• The youngest recipient in 2008 was just 24 and received €19,000 in income replacement following a road traffic accident. 
• 20% of claims are being paid to people under 35 years of age and the average age for a claim to begin is 45.  
• The proportion of claims accounted for by men and women is broadly even, however the average male benefit of €22,774 was higher than that for women (€15,003).

Irish Life also facilitates and pays for rehab programmes for claimants.  Over 250 claimants have completed these programmes at a cost of approximately €3,000 per claimant [paid for by Irish Life].  In 2008, 41% of those who completed a programme successfully returned to work.

Ok, but how much will this Cost?

Cost wise, the amount you pay will depend the level of cover you want and factors such as your age, sex, health and occupation (certain manual occupations will not get cover).   Importantly, tax relief is available on the cost of income protection – you can claim back the cost against tax at your marginal rate (20% or 41%) up to a maximum of 10% of salary which reduces the net outlay substantially.

Example of cost:

*The maximum amount of payment customers can claim tax relief on is limited to 10% of total Income for the year of tax assessment. The example above is for a 35 year old non-smoking male

(occupation class 1) intending to retire at age 60. It’s based on a 13 week deferred period during which the incapacity benefit is not paid and is for a reviewable Income Protection plan.

Question You Need to Ask

Can you and your family afford not to have your income protected. Hughie Doyle from Horizon Financial, welcomes any questions which you may have. Phone 0539484868 or hughie@horizonfinancial.ie

On the mortgage front, there is a perception out there that the banks are closed for business. Not true. Yes they have tightened their criteria, but they are still keen for new business. And there are some very good deals out there to be got.

I have been turned down for a mortgage with my own Bank what do I do next?

Many people believe that they will not get an approval for a mortgage because their own bank (i.e. where they hold their current account) has given them the red light. This is very untrue. Indeed, a lot of the high street banks are by far the most difficult to obtain mortgages from. We are finding that a lot of our applicants are still getting approved with the likes of KBC Home Loans and Haven who have no High Street presence and deal solely with brokers.

What advice would you give to someone looking to purchase their first home?

Firstly, we would recommend that you contact a reputable broker and arrange a meeting. If they cannot get you approved straight away, they will construct a detailed plan of the steps you need to take to reach the stage where you will obtain approval for your first mortgage. This might be something as simple as setting up a savings plan for three months, or clearing off an existing short term loan.

Is now really a good time to purchase my first home?

We believe now is an excellent time to purchase your first home. During the height of the property boom developers were able to ask ridiculous prices for houses and still sell them. However, the purchaser is now in the driving seat and can make an offer less than the asking price. Currently, there are very few people who are selling a property that will not consider genuine offers. Also, some developers have come up with creative schemes whereby if you buy a house from them and the value falls, they will compensate you the difference within a specified timeframe.

Mortgage Rates & Monthly Repayments

From a mortgage point of view the ECB base rate is now at 2% (matching its lowest ever rate). A standard variable rate mortgage can now be got for as low as 3.63%. In real money terms, this means that for a mortgage of €200,000 over 25 years, the monthly repayments for the first time buyer will be € 1,016 gross (or € 862 after taking their tax relief into account). Even in the worsening economic situation, this has to be manageable for the vast majority of buyers.

The Big Question…………….

Do you want to continue to throw away ‘dead money’ on rent each month, or start paying off your mortgage at a cost which is likely to be very similar to what you’re paying out for rent. And you could have your own home!!

We welcome any comments or questions which you may have.

Hughie Doyle is a Financial Advisor with Horizon Financial based in Gorey. He would welcome any of your comments or queries. His contact details are 053 9484868 and hughie@horizonfinancial.ie

O’Connor Nurseries Unveil 2.5 Acres of New Glasshouses

O’Connor Nurseries, one of the leading growers and providers of wholesale bedding plants in the South East, has unveiled an impressive 2 acres of new Glasshousing at its Gorey premises.  The new Glasshouses, when added to the existing 1.5 acres, deliver a stunning 3.5 acres of state of the art glasshouses allowing O’Connors to provide plants across the region and compete head to head with foreign imports

Jim O’Connor and his wife Helen run the family business since they returned from America 14 years ago.  Jim, who holds a diploma in horticulture, has grown the business year on year, adding new plants, opening new markets and always driving for better, more efficient methods of plant growth.  The business employs six people on a full time basis and a further 10 or so during the busy growing season from March to June.

Investing in the new Glasshouses has been the most significant project the O’Connors have embarked upon and one which was almost dashed by the credit crunch. 

Glass has a finite life span of approximately twenty years and the existing glass houses had only eight year’s left.  As Jim explains:  “We had been successful in growing our business and we decided that now was the time to put in the new glass – while we could maximise our growth and expansion plans. 

“The new glass has many benefits outside sheer scale and increased room for plants,” explains Jim.  “We have installed a green energy based bio fuel heating system as well as a plant management system.  This allows us to automate planting, irrigation and even transport of the plants around the glasshouses.”

With the use of green energies and automated plant management, the O’Connors hope to be able to scale their business quickly while maintaining static labour costs.  “Through the new systems, we shall be able to compete directly with overseas imports,” says Jim.  “But even more importantly, we can offer Irish grown and nurtured plants of the highest quality.  Sometimes imports have to survive up to 48 hours in boxes without light which means the plants end up poisoning themselves.   Our product is grown in Irish soil and is of the highest quality.  Moreover, our customers can reach us at the end of a phone or even come by and visit us.  This gives them great peace of mind.”

Prior to the erection of the new glasshouses, the O’Connors had to rent glass as far away as Meath to keep up with demand.  Having the space on site has reduced extra travel time and fuel costs in visiting and maintaining the external sites.

But as Jim explains, the new development was almost stopped by the credit crunch and only intervention by Gorey finance experts Horizon Financial saved the day.

“We were looking to raise significant funds and had secured in the region of a quarter of the overall capital investment through grants from the Department of Agriculture and SEI.   However, while we initially had got a verbal ‘yes’ from the bank, come November, that turned into a ‘no’ and would not be moved.  We were at our wits end since we had already spent a considerable sum on the preparation of the ground and the ordering of the specialist glass.  It was looking like we had a white elephant and were going to go out of business.”

Help in the form of Horizon’s directors Hughie Doyle and Mick McGovern came just in the nick of time.  Hughie led the recovery project and sat down with Jim to build a business plan.  Once polished, Hughie then set up meetings with a select number of banks.  The O’Connors were putting up their house as collateral as it had been previously mortgage free.  The business plan addressed collateral, cash flow and repayment schedules.  But it was still not plain sailing as Hughie explains.

“Typically, with the size of this investment, banks can look to cut down risk based on the appreciation of the asset being purchased.  If the O’Connors were building a factory or outlet, the physical asset would increase overtime.  However, in the case of the glasshouses, the minute they are erected, they begin to depreciate until they are essentially worthless in twenty year’s time,” explains Hughie.

“There are probably only a handful of similar glasshouses in the country and so financial institutions are not really familiar or comfortable with lending on such an asset,” he says.

In the end ACC bank came up trumps and took over the project.  Within three months, the glasshouses were erected and planting began in time for the new season.  “We could not have done this without Hughie and Horizon Financials,” says Jim.  “Every way had been blocked.  It was through their professionalism and commitment that the project was financed.  Hughie even went so far as to sit down with us on a regular basis and work on our cash flows to make sure we stay on track.  The level of detail and the extra mile they went to was phenomenal.”

Today, O’Connor Nurseries is one of the leading providers of Irish plants across the country.  Both Jim and Helen have many challenges ahead of them, not least the requirement to increase sales by twenty percent in a recessional market.  But with 700,000 plants leaving their glasshouses every year, they are both very optimistic.  And if they need more money, they know who they’re going to call…Horizon Financial!

Why start planning for our Retirement now?

Well, at this time you are starting to plan a life together and finances are part of this, e.g. opening a Joint Bank Account. A critical part of any financial planning involves saving for your retirement. However, we would recommend that you would plan for your retirement as part of a coherent financial plan. Employ the services of a reputable financial advisor.

Are there any incentives to encourage us to save for our Retirement?

Yes, there are excellent tax breaks for investing money into your pension plan. You are given relief at your marginal tax rate, which means that if you are on the top rate of tax and invest €100 per month into your pension you will reduce your PAYE by €41 per month. Effectively, you are investing €100 but it is only costing you €59.

Pensions seem to be confusing, with many different products. True?

Yes, that is the case. There are Personal Pensions, Company Pension Schemes, PRSAs, etc, etc. Which product is most suitable to you is dependant on a number of things, e.g. are you self employed or an employee. This is where the advice of your Financial Advisor is critical. But remember one thing……. All of these products are aimed at saving for your retirement. The earlier you start the better.

Are investing in pensions very risky?

It is true to say that many people have lost substantial amounts of money in their pension funds over the past 18 months. It all depends on what funds the pension money was invested in and the individual and their attitude to risk. What we are seeing at the moment is that most people don’t want to take any risk. Therefore, they are investing in “cash”. Essentially the money in your pension is on deposit.

To sum up……..

Pension planning should not be done in isolation but as part of an overall financial plan. Start your pension plan as soon as possible. Avail of the excellent tax relief. Use the expertise of a reputable financial advisor. Review your circumstances annually.

Hughie Doyle is a Financial Advisor specialising in the Mortgage and Life & Pensions fields. He can be contacted at hughie@horizonfinancial.ie or by phone at 053 9484868.

We believe now is an excellent time to purchase your first home, during the height of the property boom developers could ask ridiculous prices for houses, however now the purchaser is in the driving seat and can make an offer substantially less than the asking price, on the property which they are looking to purchase. There is not many people selling a property who wont take time out and listen to a genuine offer in this current climate.  

From a mortgage point of view the ECB base rate is now at 2%, this matched its lowest ever rate. A standard variable rate mortgage can now be as low as 3.63%.

As a first time buyer what is my payment per month likely to be on a mortgage of €200,000 over 25 years. ???

The Gross cost per month would be €1,016 but the net cost after getting tax relief would be €862.00

Credit rating agencies rate the ability of companies and countries to meet their financial obligations and their reports are watched by those who lend money in capital markets.

Fitch said net debt was just 29% of economic output (GDP), well below other countries with AAA rankings, such as the UK.

‘Ireland continues to enjoy many of the benefits which brought it economic success in the past. These include a high income per head, a flexible and skilled labour force assisted by strong immigration and rising female participation, a business friendly and open economy including an advantageous corporate taxation regime, and a tradition of encouraging foreign investment,’ Fitch said.

This news is very welcoming, considering all the negative news out there at present, Ireland has still got a positive outlook from this rating company.

Some analysts had forecast that the ECB would not cut rates this month. This .5% cut comes as a huge boost to existing mortgage holders and people who are thinking of getting on to the property ladder.

We feel with property prices been slashed and interest rates at an all time low this represents a huge opportunity for first time buyers. Why not contact us today and see what an average mortgage will cost you.

Most economists expect the ECB rate to fall even further in the short term.

It is estimatd that this move if passed on in full to mortgage holders, would knock €128 off the montly repayment on a €300k mortgage over 30 years.

Elswhere the Bank of England has slashed its interest rate to 2%. This represents a 1% decrease from the old base rate.

The basic cover that the bank will require is known as a decreasing term assurance policy, quiet simply this is life cover that decreases in line with your mortgage, it is designed solely to clear your mortgage in the event of death.

Other Options

Level Term Life Cover:

A person may opt for level term life cover, basically this stays at the same level even if your mortgage is decreasing, this can be very attractive for younger people, as it is generally quiet cheap and if there is a conversion option on this it can be used again, if you need to assign this again to a lender in the future or quiet simply as stand alone life cover on you and your family. Indexation is an option that can be choosen on a level term policy, indeaxtion allolws the policy benefits (i.e the level of life cover) to increase at a set amount each year, the premium will also increase each year.

Serious Illness Cover

Serious Illness Cover can be choose on a decreasing term assurance policy or on a level term policy. We would recommend that all our customers should have at least some serious illness cover in place on any policy they take out in connection with there mortgage. Click below to visit our serious illness website and see if you need to be covered incase of a serious illness.