"It is very important to engage with your financial adviser on at least a yearly basis because people's circumstances can change very quickly, financial outgoings may increase at short notice, the recent interest rate hikes on mortgage repayments being an example of this," he explains. "I believe if you want to achieve your desired financial goals and objectives you need to be checking in regularly with your adviser to make sure you are on track."

The role of a financial adviser is so much more than just selling policies, he says, they are highly educated and skilled professionals who can add value and provide expert advice to people, much like other professional service providers.

Update your thinking with changing times 

John also believes that the traditional 3 'M's of our financial lives — Marriage, Mortgage and Maternity — are out of date in 2023.

"Yes I think so. Traditionally people engaged with a financial adviser when they had one of life's transition events, such as getting married, having a baby or buying a house. It was almost like people felt they needed to then get a financial adviser as something major had changed in their circumstances. I think people now are far more interested in their finances and are more goal-oriented."

He has noted an increased demand for cash flow planning in recent years, as well as for preparing for potential future scenarios, and answering the '’what if?'’ questions.

"In recent years there has been more mainstream media coverage on personal finances, which has made people more aware of the need for pension provision. Nowadays people want to make their hard-earned money work better for them."

Another traditional concept of life — ‘the rainy day fund’ — has also adjusted to suit the demands of modern living, John believes.

"I don't believe the rainy day fund is an out of date concept — it's prudent for people to have accessible cash available if the '’God forbid'’ scenario arises and you need an emergency fund in place to meet such demands. However, what I do firmly believe is people that should have both a rainy day and a sunny day fund.

“It's important that we view our personal finances positively. It's good to have financial goals and objectives that centre on hobbies, pastimes, and events that bring us happiness, hence the term ‘sunny day’. I think this concept changes the psychology of money for people, and makes it more tangible when they achieve a goal like going on a trip of a lifetime or buying their dream car."

In dealing with a wide range of clients, both personal and commercial, Blueprint Financial Planning has witnessed first-hand the economic pressures forced upon many enterprises over the last year.

"Undoubtedly it is challenging at the moment for family businesses with rising energy costs, threat of VAT hikes in certain industries and staff looking for pay rises in the face of increased living costs.

“I myself come from a family business, John O'Driscoll Motor Factors in Skibbereen, and like all small businesses we have had to analyse our outgoings and shop around for insurance and utility providers to see if savings can be made. What I think most small businesses should do is engage with their accountant and financial adviser and see how best they can manage their money."

John agrees that family businesses more prone to stress in areas like shared ownership, leadership squabbles and legacy issues — but adding that all businesses have their challenges.

"What is vitally important for a family business is succession planning and this is an area where financial advisers can really add value. A proper succession and financial plan can ensure not only maximum wealth extraction and tax efficiency, but also a seamless passing of power to the new management.

“I often recommend to clients who have family businesses to engage with an independent HR consultant to ensure a clear chain of command going forward if the business is being taken over by a new generation of the family. This may help to iron out any potential issues around legacy and staff unrest, especially if incumbent staff were used to a certain management style for a number of years."

To the question that, given how family businesses employ more than multinationals in Ireland should they be better supported by Government, John has a succinct answer: "100%. Ireland has obviously benefited massively from foreign direct investment over the years with our low corporation tax rate, a skilled workforce and geographic location making us an ideal location for multinationals. However, there are so many family businesses in all corners of Ireland providing essential products and services that are the backbone of the economy."

People who work for multinationals are very well looked after from an employee benefits point of view — income protection, death in service, pension and often stock options.

If someone in a family business is out sick they have a very limited amount of sick pay, and they often have to rely on the old age pension after retirement if the affordability doesn't allow for private provision.

"We pay a lot of tax in this country, both direct and indirect, and I believe more provisions are needed for small family businesses and their staff, especially around sick pay and inability to work," he says.

While these are turbulent times both nationally and internationally, John takes a generally optimistic view of the years ahead.

"Opportunity-wise, I think the proposed pension auto-enrolment scheme due in 2024 will have a big impact and should go a long way to addressing the oft-mentioned pensions time bomb that we as a country are facing. Also there is a reported €150 billion on deposit in Irish banks at present earning no interest; I believe there should be more attractive options for people to invest.

“The proposed change by Finance Minister Michael McGrath to reduce exit tax on life insurance investment funds would be very welcome. The current system of charging someone 41% on any gain made on their investment, on monies they have already paid income tax, and on USC and PRSI is very unfair in my view. Challenges I would envisage going forward would be around whether or not Ireland can maintain its current corporation tax rate long term, and what view potential new governments might take on taxation policy."

John concludes by highlighting one of the biggest challenges facing Ireland at present: "Housing is obviously a huge issue and we don't seem to be building anywhere near enough if the reports are to be believed."