Day one Income Protection cover for the 1st time for Surveyors

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1 Invest your Pension with Stock Market Protection Day one Income Protection cover for the 1st time for Surveyors

2 Stock Market Falls: Disaster or Opportunity? John O Connor Managing Director Omega Financial Management 2009 showed much improved performance statistics for pension funds and stock markets around the world. However we must view this in the context that due to falls in previous years they were starting from a very low base. While most stock markets showed good signs of recovery last year, the majority have not returned to the levels they were at beforehand. If you think investment performance is all about numbers then think again. The graph below shows how the performance of stock markets affects our investment psychology during rises and falls of market cycles. Market Emotions Cycle Wow, I feel great about this investment Point of maximum financial risk Temporary setback. I m a long-term investor. Excitement Thrill Euphoria Anxiety Denial Fear Optimism Desperation Optimism Maybe the markets just aren t for me. Panic Capitulation Despondency Hope Depression Relief Point of maximum financial opportunity As they ride a bull run investors feel excitement, thrill, and euphoria - what Alan Greenspan referred to as irrational exuberance. These feelings fuel the greed that causes prices to rise. The more investors buy, the more prices rise. But the rise is not limitless and eventually the bull run exhausts itself. When the market begins to slip investors reassure themselves that they have made the right investments - denial. As the slip becomes a downturn and there are no short-term gains to be made, investors reassure themselves of their long-term investment credentials. As the downturn becomes a fall, however, investors feel desperate to limit their losses and begin to offload shares. This drives prices down further and panics other investors who also sell. The more investors sell, the more prices drop. As the point of panic passes, investors become resigned to their losses and the market begins to bottom out and the stage is set for market recovery.

3 Investing with protection Daragh Turley Omega Financial Management Protect your Pension by investing in a fund with 85% security. Now is the time to get your pension fund working harder for you Despite the negative media reports of the last two years, a pension plan remains the most efficient and effective way of saving for your retirement. Not only will you enjoy very generous tax relief on the money you contribute to and earn with your pension plan but because a pension is designed to invest over the medium to long term, your money gets to ride out the market lows while taking full advantage of opportunities for growth. As we can see from the Market Emotions Cycle, a period of market depression is the best time for investors to take advantage of such growth opportunities. Fortunately, modern pension plans allow you considerable say in where and how your money is invested and one of these options is outlined below. A complete list is available from Omega Financial. Performance and security can go together If you re looking to take advantage of the recovery in the equity markets, yet protect yourself from too much risk, then the Protected Equity +2 Fund* could be the answer. The Protected Equity +2 Fund gives you access to the equity markets but limits the risk to your money by restricting any losses to 15% (from the funds highest value). To do this the fund invests in both international equities and cash, with equities providing growth and cash providing security. At Omega Financial Management we believe that the Protected Equity +2 Fund gives medium-term pension investors the perfect opportunity to take advantage of current investment market conditions. Fund Split Split International Equities Cash Current 75% 25% Maximum 75% 25% As at 31st December 2009 For more information about your pension options contact John O Connor or Daragh Turley at Omega Financial today. Key Features of Protected Equity+ 2 Fund: Medium to low risk fund Floor on potential losses No limit to potential growth Access to diversified International Equity Fund The Protected Equity + 2 Fund is open to: Personal Pensions Company Pensions Executive Pensions *NOTE: The Protected Equity + 2 Fund is provided by Friends First Life Assurance Company Ltd. Friends First Life Assurance Company Ltd. is regulated by the Financial Regulator. Warning: Past performance is not a reliable guide to future performance. Warning: The value of your investment may go down as well as up. Warning: Funds may be affected by changes in currency exchange rates.

4 Income Protection - Looking After Your Assets Protect the lifestyle you have worked so hard to achieve! At Omega we are delighted to offer you Income Protection which will pay you a replacement income if you are unable to work through illness injury or disability. Day One Cover The are two main types of cover, one where you get paid from the first day you get sick and can t work. Tax relief is not available on this type of cover Tax relief The second is where you have a waiting or deferred period whereby you can claim once you have been out for 13 weeks. You can receive tax relief on this type of cover at your marginal rate. Surveyors can cover up to 66% of their annual Income up to a maximum of 175,000 per annum. Past Claims Analysis D.G. Mutual Source: D.G. Mutual 42% Infections 4% 42% Infections 4% Psychiatric Disorders 28% 6% 28% Musculoskeletal Disorders Accidents 6% Musculoskeletal 4% Disorders Accidents 16% Cancer Others 4% 16% Female claims It is quite staggering to see that 60% of female claimants are 45 years of age or under. From Psychiatric Disorders separate analysis it is shown that the majority of the claims would Cancer not be covered by a serious illness plan. Some 23% of female claims Otherswere for musculoskeletal disorders, 36% and were for infections. In fact, only 3% of claims were related to cancers. Income Protection Cover - Case Studies I am a 33 year old (employed) Chartered Surveyor (Class 1 occupation) earning 60,000 per annum, what cover should I have? I am a male non smoker. You need to cover yourself for per week or 34,808 per annum escalating in line with inflation. Guaranteed Income Protection to age 65, with a deferred period of 26 weeks, indexing at 3% on benefit and 3.5% on premium per annum, with claim payments increasing at 3% per annum in payment, will cost you a premium of per month gross which falls to per month after tax relief at 41%, assuming that you are accepted on standard terms. Male claims Similar to their female counterparts, the higher claims statistics were for infections (44%), musculoskeletal disorders (29%) and accidents (6%). It is interesting to note that 37% of male claimants were over 45 and half under. For more information about protecting your income contact John or Daragh at Omega Financial today.

5 A New Year - A New Start Use the next year as an opportunity to start getting you financial situation in order. With all the different changes which we have undergone over the last few months now is the time to look towards a brighter financial future over the months and years to come. Managing your money is an essential life skill that will help you plan for your future and avoid the problems that can arise from too much debt. By taking part in a free confidential Financial Health Check covering areas such as Pensions, Life Cover, Income Protection, Mortgages and Savings & Investment Opportunities we can help you manage your money more efficiently into Here is something to get you started. Financial Health Check Family Protection Dealing with a major illness Dealing with redundancy Needs Attention Satisfactory Healthy P P P Health Insurance Income Protection Mortgages & Loans Income Protection Savings & Investments Retirement Will Replacing income if you die Replacing income if your partner dies Personal Home Investment Properties Replacing income if you can t work due to illness or injury Rainy Day Fund College Fund Other Investments Pensions Other Income What age do you want to retire You can this page ahead of your financial healthcheck to Omega Financial info@omegafinancial.ie Call us on for more information

6 For more information contact John or Daragh today. Omega Financial Management 112 Rock Road Booterstown Co. Dublin / OFM Financial Ltd. t/a Omega Financial Management is regulated by the Financial Regulator.