Welcome to our World

Our Team is Expanding

Over the past few months, we’ve had loads of new members of staff join our team in areas throughout the whole company.

And we’re excited to announce the addition of 2 new exceptionally talented members in the leadership role, Lucia O’Riordan LIB QIA as the Head of Operations & David Wyatt as the Head of Growth & Innovation.

These fresh faces are here to bolster our team and support our continued growth, whilst providing new & exciting prospects for the future.

The World

Investment Market Update

The major theme coming into the second quarter of the year was the economic recovery. The stock market had already recovered, continuing to hit all-time highs, the question now was could the real economy match the stock market’s expectations. For the most part, the answer to that question was yes.

In the US, the economy has continued to rebound stronger than anyone anticipated. Aided by a more stable political, the US led the way in with the vaccine roll-out, allowing a much faster re-opening of the economy, getting business and workers back to some level of normality. The consumer accounts for about 70% of US GDP so it was important to get the consumer back working and spending again. During the quarter, the economy is on course to add over 1.2 million jobs for the period, reducing the unemployment rate from 6.5% to 5.5%.

With the economy well and truly on the road to a full recovery, much faster than anyone had ever imagined, the big fly in the ointment could be inflation. After the record level stimulus that the US government pumped into the economy, it was always going to be a rational fear that inflation would rise higher. What is adding to the fears, which analysts didn’t foresee is the rapid surge in demand, which has caught the majority of producers off guard. During the height of the pandemic, the global supply chain essentially ground to a halt. Manufacturing capacity, raw materials and transportation were all reduced to a minimum which has left the supply of goods way short of meeting demand. This puts upward pressure on prices, adding fuel to the already hot inflation fire.

Inflation and how the Federal reserve handles it will be the big story for the remainder of the year. The FED have been stern in their view that the recent hot inflation readings, the highest in 30 years, is temporary and will normalise as supply catches up with demand. If this isn’t the case, the FED will have to act by rising interest rates sooner than currently expected and history would show the stock market doesn’t initially react well to shocks of that kind.

US Equity Benchmarks (as on 29th June 2021)

S&P 500 : +14.4% YTD

Dow Jones Industrial Average : +12.1%

Nasdaq Composite : – 12.51%

In Europe, it was much the same story. Europe initially lagged the US in terms of vaccine roll-out and thus re-opening but has made significant progress in the last few weeks. Europe has largely the same issues as the US, in that inflation is starting to run hot, fuelled by a lack of supply in lots of goods and services. The ECB have towed the same line as the FED in the US, declaring the recent high inflation figures as temporary and will normalise in the coming months.

Coupled with inflation, Europe has another potential barrier to recovery in terms of the so called Delta variant of COVID-19. This more infectious, but equally harmful variant, is set to become the dominant force in most European countries and is putting the foreign travel plans in jeopardy. Another summer of no foreign travel would impact the recovery in Europe.

European Equity Benchmarks(as on 29th June 2021)

Eurostoxx 600 : +14.4% YTD

Mortgage Market

Recently, two lenders in the Irish Mortgage market, Finance Ireland and Avant Mortgages have shaken things up with the announcement of 15-30 year fixed term Mortgages.

This is a significant move away from the usual 1-5 year fixed rates being offered by lenders in the more traditional sense and now offers the more conservative borrower some long term assurances about their Mortgage rate and repayments.

In looking at this, there are always pros and cons. The two main pros and cons are:

Pro – Assurance over Mortgage repayments offer better budgeting ability for the life of the Mortgage. A surety on the Mortgage repayments for the life of the loan would allow for better budgeting for the other big life commitments such as education/ childcare/ saving/ retirement planning etc

Con- Should you wish to move/upgrade, you may have to break the fixed rate. In the event that you outgrew your home, and want to move to a new one, Finance Ireland and Avant will allow you to bring your fixed-rate with you and would waive any fixed-rate breakage fees provided you draw down your new loan with them. However, if for some reason you were ineligible for your new Mortgage based on their criteria and had to take a new Mortgage with an alternative lender, the fixed-rate breakage penalties would be applicable, which could be extremely high.

However, in summary, in our view is that the introduction of long-term fixed rates is an excellent development that offers the risk-averse individual a greater assurance on the long-term repayments on their Mortgage. It certainly isn’t something that would be attractive to all, but will for sure be attractive for a great many.

Your World

Competition Time

HERE’S A CHANCE TO WIN €1000 ONE FOR ALL VOUCHER TO SPEND ON A STAYCATION.

We’re working on collecting experiences from our customers, and we would love to hear from you.

All you need to do is, record a short (4-5 mins) video sharing your experience. Starting from how you found us, why did you get in touch with us, highlight the significant transformation we brought in your life with our services & your overall experience working with us.

You can simply record your experience on your phone & send in your videos to info@pax.ie. The last date for entries is 25th July 2021.

Competition Time

HERE’S A CHANCE TO WIN €1000 ONE FOR ALL VOUCHER TO SPEND ON A STAYCATION.

We’re working on collecting experiences from our customers, and we would love to hear from you.

All you need to do is, record a short (4-5 mins) video sharing your experience. Starting from how you found us, why did you get in touch with us, highlight the significant transformation we brought in your life with our services & your overall experience working with us.

You can simply record your experience on your phone & send in your videos to info@pax.ie. The last date for entries is 25th July 2021.

Have you Considered Cash Flow Modelling

Cashflow Modelling is the process of assessing your current and forecasted wealth.

At Pax Financial Planning, we use the CashCalc software, which allows us to input all the expected inflows (income) and outflows (expenditure). It then helps us build a picture of your finances through your life which will allow you to reflect on your current financial position relative to your preferred position.

This will empower you to make provision or act accordingly to ensure you achieve your financial goals in the future. The cash flow model will give a detailed picture of your assets, investments, debts, income, and expenditure, projected forward, year by year, using assumed rates of income, inflation, and interest rates to show how your finances will look up to age 100.

As part of the financial advice process, we determine your attitude to risk and then we use this expected growth rate to ensure your expectations are realistic. The charts that CashCalc produces help to highlight any shortfalls in your existing financial plan which can then be addressed earlier.

Book in for a Review

With lockdown easing, our population getting vaccinated and life soon returning to an acceptable form of normality, it might be the perfect time to look at your finances and review your goals and plans for the next phase of your lives.

At Pax Financial Planning & askpaul, we want to help you prepare for the future. We want you to know that we are here to answer any questions you may have.

We encourage all our clients that have not availed of our regular reviews to book an appointment and get the policies that you hold with us reviewed. This is to understand if any of the criteria used to finalise those choices you made with us in the past have changed due to changes in your personal and financial circumstances like welcoming a new member in the family or a job change or simply if you would like to increase or reduce your pension contributions.

Click HERE to make an appointment.

Alternatively, you can drop us an email on info@pax.ie if you would like to update any of your personal information like a change in address.

Finance Ireland Credit Solutions Designated Activity Company, trading as Finance Ireland Residential Mortgages, Finance Ireland Commercial Mortgages, Finance Ireland Agri and Finance Ireland Leasing, is regulated by the Central Bank of Ireland. Company registration number 549222.

Avantcard DAC trading as Avant Money is regulated by the Central Bank of Ireland. Registered in the Republic of Ireland. Number 541980 Registered Office: Dublin Road, Carrick-on-Shannon, Co Leitrim.

We offer a financial planning service that is built around you.