Never before has it been so important to actively manage your finances and ensure that you are protecting and maximising their value. By following these seven steps there is no reason why you should not be able to buck the trend and ride out the current downturn in financial style.

Talk to the experts.

When nearing retirement, review your finances with an independent adviser and adopt the right financial strategy to meet your requirements. “Choose a fee-based based adviser who is not motivated to ‘sell’ to you. It’s advice you should be paying for not financial products,” said John Lambert, associate director at Aria Wealth and Investment. Whether you are approaching or have already reached retirement, it is essential that you seek advice on your pension, taxes, assets and investments.

Devise a pension strategy.

“Conventional wisdom says the best time to review your pension fund is about 10 years before retirement,” said Liam Ferguson, managing director of Ferguson & Associates. “Look at how and where the fund is invested and pick a suitable time to switch out of high risk investments into safer ones such as cash and bonds. This means the fund will not be exposed to market volatility. If however, you are close to retirement and have suffered substantial losses already, you might be better off maintaining your investment in equities in the hope that the market will recover and provide you with some much needed positive returns.”

Home is where the euro is.

For many people, their home is their greatest asset. As you grow older and your children fly the nest, trading down may seem like an attractive option. There is no doubt that the current property market is ailing with property prices down, on average, 30 per cent over the last 12 months. However, according to Ferguson anyone who needs access to capital should consider this option as it is tax efficient. “As long as the property is your primary residence you can sell it without incurring capital gains tax. Just remember that there is no knowing when the market will reach its bottom so you may see a dent in your potential profit.”

Investing for the future.

As you get older, the level of risk you can afford to take drops. However, according to Lambert this does not mean you should leave your money sitting in a deposit account. “A guaranteed fund is a good option because your capital is not at risk. The worst-case scenario is that you get back what you initially put in,” he said. Such security comes at a price, however. Investors pay for the capital guarantee by forfeiting a certain percentage of the growth in the market. For example, a person who invests €10,000 in a guaranteed fund and has his returns capped at 60 per cent will get no more than 60 per cent of the growth of that bond. Aviva Investors runs a series of guaranteed funds. Its latest offering invests in high yield equities, property development companies and bonds.

Socially aware.

By claiming all of your social welfare benefits you will benefit from an additional 13 per cent of your pension income according to the Department of Social Affairs. Make sure you avail of any seniors’ discounts such as those offered on motor and home insurance by Caoga, pet insurance from petinsure.ie, or glasses from Specsavers.

Life is for living.

While raising a young family, ample life insurance is an absolute necessity. However, once you reach your mid 50s, it is time to consider scaling the policy back. “Many people over the age of 50 have managed to accumulate a reasonable amount of savings and they no longer have dependents. Anyone in this situation should question whether they need to pay life insurance premiums at all,” said Ferguson. “The only people who really need this type of insurance are those who have reach retirement age and have not raised sufficient savings. In this case, a small life insurance policy is appropriate.”

Inherit the earth.

Succession planning is always an important procedure and careful planning makes it possible to distribute assets fairly while also minimising the tax burden on children and other relatives. This is particularly the case for family and friends of business owners. “It is vital that you seek professional advice on the best way to extract yourself from the business and how it should be handled after your death. Many family businesses fold after the first generation because of family rows. Most of the big accountancy and law firms, offer succession planning advice.”