Savings and Investments
 By leaving money on deposit that you don’t require in the short term you are eroding the purchasing power of your money. With inflation running in the region of 4% your money is losing value if you cannot match or exceed this rate of inflation.
The below table demonstrates the negative financial effect of inflation on €20,000 left "under the matress" over 10 years.
| Future Value of €20,000 |
|
Future
Value of €20,000 |
| Inflation
of 4% p.a. |
|
Inflation
of 5% p.a. |
| Value |
Year |
|
Value |
Year |
| €19,200 |
1 |
|
€19,000 |
1 |
| €18,432 |
2 |
|
€18,050 |
2 |
| €17,695 |
3 |
|
€17,126 |
3 |
| €16,987 |
4 |
|
€16,290 |
4 |
| €16,307 |
5 |
|
€15,476 |
5 |
| €15,655 |
6 |
|
€14,702 |
6 |
| €15,029 |
7 |
|
€13,967 |
7 |
| €14,428 |
8 |
|
€13,268 |
8 |
| €13,851 |
9 |
|
€12,605 |
9 |
| €13,297 |
10 |
|
€11,975 |
10 |
So at the end of year 6 your 20,000 is worth only €15, 655 at 4% per annum inflation or €14,702 at 5% per annum inflation. Your aim therefore is to achieve a rate of investment return in excess of deposit rates and inflation rates. When deciding what method of savings and investments to make there are several different factors that need to be examined and considered before putting a savings / investment vehicle in place.
We offer a planning, implementation and monitoring service. The planning and implementation service includes determining some of the following key factors:
- Time Frame of the investment
- Investment Goal of the Investor
- Investment Risk Profile of the Investor
When we have a clear idea of the above we make our recommendations accordingly. We then implement the investment plan on agreement with our client.
Once the investment plan is in force we will monitor the investment over time to ensure optimum performance of the portfolio of funds.
Our multi-agency status means we have access to a wide range of funds to suit all investor types. We have access to a full range of different funds as follows:
- Cautiously Managed Funds
- Medium Risk Managed Funds
- Aggressively Managed Funds
- Specialist Equity Funds
- Commercial Property Funds (Geared and non-Geared)
- Capital Secure Bonds
|
