As 2015 has begun with historically low interest rates, many people are now seeking alternatives to deposit accounts. However the levels of risk associated with alternative investment options and also the investors attitude and capability of taking on risk must be carefully assessed in considering suitable choices.
It All Begins With A Plan……
Before you begin to choose a suitable investment you will want to consider what are your investment objectives. Setting these objectives correctly based on your current situation and knowing your investment profile will form the basis for choosing the correct options.
Rating Funds
It is important to note that most managers of Investment and Pension Funds are now broadly in line with guidelines received by the European Securities and Markets Authority (ESMA) in the context of Risk Rating their Funds. The ratings are based on a scale of 1 to 7 meaning that you can now readily identify the level of “risk” pertaining with 1 being at the very lowest level and 7 the highest.
Investor Attitude to Risk
A very important piece of work that should be done as part of the decision making process is to take full account of an investors attitude to risk. There are many “Risk Attitude Questionnaires” that help to determine this and help to match the investors requirements with the huge range of investment fund options available in the market. Apart from recording the investors view it also takes account of really relevant matters such as:
- What is my knowledge of investments?
- When will I need access to my capital?
- Do I need to draw an income?
Capacity to Bear Risk
This is another very important factor to take into account when constructing your portfolio. It is one matter to say you can accept risk in order to achieve high returns but another key factor must be to match your profile with your capabilities.The real message in all of this is that while there is a myriad of options and choice it is vitally important to seek and have independent advice available to you. If you need any further information on this please don’t hesitate to contact us.
Call Aidan Wall at: 046 924 0961 or email: aidan@lifetimefinancial.ie
Understanding Investment Risk
/in How to invest a lump sum, Investment, Investment Fund, Lump Sum Investment /by Aidan WallIt All Begins With A Plan……
Before you begin to choose a suitable investment you will want to consider what are your investment objectives. Setting these objectives correctly based on your current situation and knowing your investment profile will form the basis for choosing the correct options.
Rating Funds
It is important to note that most managers of Investment and Pension Funds are now broadly in line with guidelines received by the European Securities and Markets Authority (ESMA) in the context of Risk Rating their Funds. The ratings are based on a scale of 1 to 7 meaning that you can now readily identify the level of “risk” pertaining with 1 being at the very lowest level and 7 the highest.
Investor Attitude to Risk
A very important piece of work that should be done as part of the decision making process is to take full account of an investors attitude to risk. There are many “Risk Attitude Questionnaires” that help to determine this and help to match the investors requirements with the huge range of investment fund options available in the market. Apart from recording the investors view it also takes account of really relevant matters such as:
Capacity to Bear Risk
This is another very important factor to take into account when constructing your portfolio. It is one matter to say you can accept risk in order to achieve high returns but another key factor must be to match your profile with your capabilities.The real message in all of this is that while there is a myriad of options and choice it is vitally important to seek and have independent advice available to you. If you need any further information on this please don’t hesitate to contact us.
Call Aidan Wall at: 046 924 0961 or email: aidan@lifetimefinancial.ie
Life Assurance – Looking After Your Loved Ones
/in Family Protection, Financial Plan, Financial Planning, Income Protection, Life Assurance, Life Insurance, Personal Finance /by Aidan WallStop, Think and Ask Yourself…
So…what are the next steps?
There are many reasons why people are slow and reluctant to put in place appropriate and sufficient Life Assurance cover.
The role of a good advisor in all of this is to help you through the process of:
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Everyone Needs a Financial Plan
/in Financial Planning, Pension, Personal Finance /by Aidan WallHow often have we heard the expression “I would not have achieved my goal without having a carefully thought out plan and sticking to it”. We hear it from high achieving people in the world of sport and business alike.
You will hear it from top class golfers like Rory McIlroy who will set his objectives, arrange his playing, coaching and work schedule for the year ahead and then go and execute that Plan. If he starts his year with no plan then he would say the focus simply isn’t there to be successful. This same principle is equally important in all other situations – the football/hurling team coach, the business manager or home-maker all need a plan. Doesn’t it make eminent sense, therefore, to seek assistance in achieving the objectives of your financial plan through each stage you face in your life?
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Pensions – No longer a luxury but an absolute necessity
/in Financial Planning, Pension, Personal Finance /by Aidan Wall2. Never panic though
3. Managing risk
4. Mix things up
5. A necessity, not a luxury
6. Keep tabs and get good advice
Source: Lifetime Financial Planning 2014