Savings vs Investments
Here at MadeSimple, we don’t believe in a one-size-fits-all approach. When it comes to saving, we know everyone has different goals and different capacities to save. Regular saving is a great way to build up money over time to meet your financial goals. If you have already built up a lump sum, then investing could be a good option for you. With interest rates still at record lows, you may stand to earn a greater return by investing in a fund rather than a cash deposit account. We have access to a range of different funds, each with different options and risk levels, so that you feel totally comfortable with the investment you’ve made. We also offer Environmental Social and Governance funds that are put together with responsible investing principles in mind. These funds allow your money to do good in the world, as well as having the opportunity to grow.
There are a number of things to think about before you invest.
What are your goals?
Making the decision to invest will be influenced by the kind of financial objectives you have. Do you want to save over a short period of time, or over a longer term? For short term goals, like putting aside money for a holiday, a bank deposit account may be your best option. For long term goals, like education costs, then investing could be a good option. Investing in a fund can give you the opportunity to earn an inflation beating return over the medium to long term.
What’s your attitude to risk?
When it comes to investing, it’s important to be aware that there is a level of risk involved. Usually, the greater the potential return you want from your savings and investments, the greater the risk you must take. It is also important to remember that risk decreases significantly if you are willing to leave your investment untouched for a longer period. We offer a variety of different options depending on the level of risk you are comfortable with.
Will you need to access your money within 5 years?
If you are investing, you should aim to leave your money alone for at least five years. Are you happy to invest your money for more than 5 years or do you think you might need it sooner? If you think you might need it within 5 years, you might want to consider savings accounts instead of investments.
However, if you can leave your money untouched for 5 years, we have a range of options available that will more than likely beat the return of a savings account in the longer term. Investing for the long term can be a very effective way to save for expenses such as building a child’s education fund or saving for retirement.
What type of Investor are you?
Are you a regular saver who wants to save a certain amount each month, or are you a lump sum investor who has a lump sum of cash that they want to invest?
Why choose MadeSimple?
As you can see there are a lot of things to consider before you decide to invest. It can be a quite complicated process. That’s why here at MadeSimple, we advise you on the most suitable investment structures based on your needs. We know that as life goes on your goals will change and your investment plan will have to change too. We will be here to help adapt and review your plan, so it suits your needs.
More on Saving and Investing
If you want to invest for your future but still can’t manage to get your finances in shape, then why not read our blog on budgeting?
Want to know more about Enviromental Social and Governance investing? Read our blog post on this topic to learn more.
What Does the Financial Planning Review Cover?
We review all your pensions and calculate what your retirement income will look like. Based on that analysis, we can recommend a course of action so you can maximise your benefits. Very few employees we talk to have entered full-time employment from day one and stayed with the same employer for their whole working life. Employees call us worried about old pensions, career breaks, job sharing, working abroad, etc. Things are never straightforward until we produce your free report. This is a fantastic no obligation review of your financial wellbeing.
Whether you need to protect you family’s future, mortgage or plan for inheritance taxes, it is key to have the right insurance policy for your needs. Furthermore, as part of the report, we will search the market for the best prices out there.
If you have more than 3-6 months pay in your bank account (your emergency fund), you are faced with questions how to use your money wisely. Should you increase your pension contributions, open a savings account for your children’s education, invest in bonds, etc.? The MadeSimple report makes these questions much easier to answer taking into account your tax position and financial objectives.
You – Complete a short online application form
We – Generate your personal report that outlines your current benefits.
Together – We schedule a review online (we use Zoom, or a platform you may suggest) or over the phone to discuss what options are available to you.
After we complete the review, many employees are delighted to have their options regarding pension planning, salary protection, life protection, savings and investments explained to them so clearly. Not only that, but we can also set up policies for you all online in a very fast and efficient manner.
Get your complimentary, personalised review today! You have nothing to lose!
Savings and Investments FAQs
This is one of the most common questions we get asked. The simple answer is as soon as possible. However, it is not that simple. There are several things to consider before you start investing such as time, rainy day funds and risks.
It all depends on your income. The 50/30/20 rule is often said to be the best way of splitting up your income, 50% on needs 30% on wants and 20% into savings and investing.
The easiest and safest way to start investing is by speaking to a financial advisor. They will help guide you through the process ensuring that you fully understand the risks and rewards of your choices.
It is extremely unlikely that you will lose all your money if you invest it in a fund over a medium to long term period.
You have a capital gains exemption of €1,270 each year however, there is a 41% exit tax on any growth made from multi-asset funds.
Investments can grow/decrease every day but it’s usually only the yearly compound that would be documented on the fund fact sheets.
You can set up your AVC in three ways:
Fill in our online financial report form. An advisor will generate a personal report for you. You can then schedule an online meeting with and advisor who can guide you through the process of setting up an AVC.
Send us an email. One of our financial advisors will get back to you ASAP. E-mail: firstname.lastname@example.org
On the phone. Our friendly finance advisors are ready to help. Call us on 061 469884