Making the most of your money
Published 19/04/2016 | 09:47
Having money on deposit can be a good route to achieving a short-term financial goal, such as having enough money for a holiday or a rainy day. However, for longer-term financial goals – you may want to consider other options, such as investing.
With an investment fund, the amount you invest has the potential to grow at a rate faster than inflation – so, your money is working a lot harder than when it is sitting on deposit. Your investment has the opportunity to achieve significant growth and generate a higher return for you over time.
There are many different investment opportunities out there; for most people, it would be impossible to examine the detail of each and every one – but the good news is you don’t have to.
This is because, with funds, such as multi-asset funds – for example Irish Life MAPS (multi-asset portfolio funds on Irish Life’s investment plans) – professional investment managers have already done most of the hard work. It is these fund managers’ job to put your money to work with the aim of investing it in the right mix of assets, such as shares, bonds, cash and property.
Today, multi-asset funds are some of the biggest and most popular forms of investment. Irish Life MAPS is Ireland’s biggest retail multi-asset fund with €1.5 billion of investments and over 30,000 investors.
You can start investing with a relatively small amount of money; you can also invest using a lump sum or with regular amounts, the choice is yours.
Irish experience with investing
According to recent Irish Life research, only half of Irish people with money on deposit have ever invested – despite the fact that, among those who have invested, the experience is likely to be positive:
- Just under half of us have invested money
- Of those who have invested, two out of three have said their previous investment has made money, i.e. their investment rose in value
- Among those who have invested, ‘wanting my money to grow’ is cited as the main motivation for investing (78 per cent)
Traits of deposit holders
The research found that many of us have money on deposit that could be working harder. Just under half of us (47 per cent) have a deposit account – with an average amount of €32,000. Also, a lucky one in four (24 per cent) of us claim to have a ‘hidden’ nest egg that no one else knows about!
Did you know, amongst deposit account holders, 46 per cent of us feel that our money is not working as hard as it could be – and over half of us are not happy with our returns?
Investing - why not?
Despite the amount of money on deposit, less than half of Irish adults claim to have invested money previously. There are several reasons people may be slow to invest. For example, of those who haven’t invested, fear of losing money is the biggest barrier (67 per cent), which is understandable. 35 per cent of us are unsure about what type of investment would suit best, but this is really just about educating yourself. Irish Life’s ‘three steps’ to getting comfortable with investing (see below) could certainly help.
Among those who have already invested, people cite ‘wanting my money to grow’ as the main motivation for investing (78%). While the value of investments can of course fall as well as rise, it’s important to note that of those who have invested, two thirds claim to have made money as a result, i.e. their investment rose in value.
Get comfortable investing in 3 steps
1. Get your investor profile – Visit irishlife.ie and click ‘What kind of investor am I?’ to answer some quick questions and build your investor profile.
2. Match to the fund that suits – Whether you are a careful or adventurous investor, or somewhere in between, you will discover the Irish Life MAPS (multi-asset portfolios) fund for you.
3. See the expected range of returns – Find out what range of returns you could expect from your Irish Life MAPS fund.
Start your investment journey today, visit www.irishlife.ie or talk to your Financial Broker or Adviser
Information correct as of April 2016.