Irish adults have over €90 billion on deposit in Irish banks and with interest rates reducing to almost zero with 2 in every 3 adults are not happy with the returns they’re getting. Our research shows that a lot of people want to invest their money but they also need more information about the right investment option for them. 

GET COMFORTABLE INVESTING

Some things in life can make you feel uncomfortable. However investing your hard-earned money shouldn’t be one of them. That’s why we want to help you get comfortable investing - starting with 3 easy steps.

Step 1-Get your investor profile
Find out what type of investor you are by doing an investor profile test. Don’t let the word “test” put you off. It’s just some straight-forward multiple choice questions. These help us to assess things like your attitude to investing and the types of investments you’re more comfortable with. By doing this quick test, you’ll know what type of investor you are or if investing just isn’t for you.

Step 2-Match to the fund that suits
This step matches your investor profile to the specific fund or funds that could suit you best. Each fund has been developed to suit the needs of different types of investor profiles.

Step 3-See the expected range of returns
Steps 1 and 2 show you what type of investor you are and what fund could best meet your needs. Now we can show you the expected range of returns for that fund over different time periods. So you can see that investments can fall as well as rise but you also know what range of returns you could expect from your fund.

Start your investment journey today!

Talk to Alasdair today to assist you to plan your  future financial goals. Can you afford to leave your investment strategy to chance? Please complete the attached enquiry form or contact Alasdair directly on 01-8101912 or via info@agsfinancial.ie.

Research courtesy of Irish Life.

What do you see when you dream about your retirement years? A house with a sea view? Lazy days on the golf course? Your adorable grandchildren underfoot as you trim the rosebushes?

Unfortunately recent statistics from the Pensions Autority show that many Irish will not be able to make these dreams come true because their retirement savings will leave them very short of cash. But the good news is that the very simple calculation, below, that you can use while saving to work out whether you will be able to maintain your lifestyle in your golden years.

The calculation:
* after working for 5 years, you will need to have saved 1 x your annual salary
* after 10 years, 2 x annual salary
* after 15 years, 3 x annual salary
* after 20 years, 4 x annual salary
* after 25 years, 6 x annual salary
* after 30 years, 7 x annual salary
* after 35 years, 10 x annual salary
* after 40 years, 12 x annual salary

The beauty of the calculation is that it can be applied with very little sophistocated math or financial knowledge.

All you need is an updated retirement savings lump sum and your annual salary figure, the calculation couldn't be simpler. Ideally individuals will use the calculation throughout their working lives, starting from their very first year of employment. But for those who have started saving later, it is still a useful tool and will give a clear indication if they are falling short - they can then try to make a plan to increase the savings as a priority.

Please be cognisant that the calculation is based on what is saved through traditional retirement vehicles and does not include other investments such as property etc.

A few noteworthy tips to consider:-

Working for 0 to 5 years
How you start is a good idicator of how you'll end up. So start saving for retirement from your very 1st salary. Saving easily becomes a habit as we all know, it's harder to replace bad habits than good ones. If you are wondering where to start, it is always good to consult a trusted financial advisor. And be sure to take your work pension very seriously.

At 5 years
After 5 years of retirement saving, your interest starts compunding, definfed by Investopedia as "the ability of an asset to generate earnings, which are then reinvested in order to generate their own earnings. In other words, compounding refers to generating earnings from previous earning". Albert Einstein called compounding the 8th wonder of the world!

At 20 years
You have reached the halfway mark of your formal working years and it is well worth taking a very deep look at both your retirement savings and your full financial picture to ensure you are on track for a prosperous happy retirement.

At 30 to 35 years
Now is the time to review how your retirement savings are invested and to start thinking about what type of retirement options you would like to purchase at retirement i.e. purchase an Annuity or follow the Approved Retirement Fund (ARF) route.

At 40 years
Most of us will be thinking of retirement around about now. Your next very important financial decision is how and where to reinvest your retirement savings so that you are able to maintain your lifestyle. Whatever you decide you need to consults a trusted financial advisor who will guide you through the best option which meets your needs and requirements.

You must engage your advisor early and don't be afraid to challenge them and ensure they have really shopped around for the product which suits you best. After all, your days exploring The Wild Atlantic Way or lunching in the clubhouse after your round of golf depend on it!

Talk to Alasdair today to assist you to plan your retirement nest egg and future financial goals. Can you afford to leave your investment strategy to chance? Please complete the attached enquiry form or contact Alasdair directly on 01-8101912 or via info@agsfinancial.ie.

To build and sustain wealth, individuals should:

Focus on time in the market rather than timing the market 
It is important to continue investing through all market conditions, and particularly during market lows when share prices are undervalued and a lot cheaper, so that you gain more during market highs.

Understand time horizons and risk
Time horizons are a major influence on an investment approach. The longer your perspective and the longer you are prepared to invest, the more options you will have with greater returns without increasing your investment risk.

Diversify portfolios
When deciding where to invest, it is always better to cast your net widely. Do not have all your eggs in one basket. Also do not focus on the returns from the individual components of a diversified investment portfolio. Rather look at the performance of your portfolio as a whole.

Keep investing over the long term
Compounding returns are the most powerful force in investments. This happens when you get growth on your growth. This only occurs when you have been invested for a long period of time. Trying to make up for lost time will require a lot more allocated to your savings and can be dangerous if you chase unrealistic returns.

Ensure investment strategies are customised for specific needs
Each person is unique and their financial needs will depend on where they are and their personal future plans. A good investment strategy should take this into account. What might be good for one person is not necessarily good for the next.

There is a lack of understanding about the difference between income and wealth, and that most high earners have no idea how much they should be saving in order to sustain their lifestyles into the future.

In order to increase wealth, it is essential to be realistic about future returns. Not only do you need to start investing at an earlier age but you need to keep in mind that your investments need to continue to grow beyond retirement. The purchasing power of your wealth needs to remain intact and at the very least be able to match but preferably to beat inflation.

Many wealthy individuals did not draw a distinction between business, lifestyle, investment and surplus assets. Understanding the characteristics of each of these asset types is critical to ensuring your financial security.

Business assets could be shares in a company which generate income and for non-shareholders, the income they derive from work.

Investment assets are the assets required to replace the cash flow generated by business assets, especially on retirement. It is essential to grow these continually over time.

Lifestyle assets include a primary residence, holiday homes, cars and other items bought to enhance lifestyles. Often debt is incurred to acquire more of these kinds of assets, which further erodes the funds left for investing.

Surplus assets relate to the amount of money not required to fund lifestyle needs. These funds can be risked to increase investment assets, to invest for future generations or to give back through charities or philanthropic foundations.

Getting the balance right with the spread of these asset types will ensure the success or failure of an investment strategy.

Talk to Alasdair about what kind of plan you need at this stage in your life or what you wish to achieve for the future when retirement looms. Can you afford to leave your investment strategy to chance? Please complete the attached enquiry form or contact Alasdair directly on 01-8101912 or via info@agsfinancial.ie.

With the pace of life growing ever more frenetic, planning has become an essential survival tool for today’s upwardly mobile generation. Yet while many of us tend to plan our lives well in advance, diarising key dates and social occasions with military precision, we tend to overlook one key priority, financial planning.
 
For the vast majority of us, saving and budgeting remains a perennial backburner item, something to deal with at some unspecified point in the future. However, the New Year, for most of us, starts with an excitement that is combined with goals to achieve, and planning for your retirement should be one of them. Making disciplined contributions is the key to success – and may be the most significant factor for the health of your retirement account. 
 
Here are some key tips to consider when planning your retirement in 2015:
 
Start saving for retirement as early as is possible:

Ideally, plans for retirement should be implemented as soon as you start working.  The longer you wait to start planning, the larger the amount you will need to save each month, and the harder it will be for you to save the required amount. The power of compound interest should not be underestimated – even modest returns can generate real wealth given enough time and dedication.
 
Accept risk to achieve investment objectives:

There is a trade off between risk and return. Higher risk is associated with greater probability of higher returns. Avoiding risk altogether can, in itself, be a danger. Making money through investments requires you to consider the various kinds of risk, and to find a balance to manage that risk.

Be disciplined:

Save enough for your retirement while still working, and avoid enjoying too much of your current income in an affluent lifestyle.  Control spending so that your lifestyle lags behind your income – this will create capital for your retirement investment, and will translate to a more comfortable retirement.
 
Put together a retirement plan: 

Retirement will be more enjoyable if your income is structured to fit your retirement. A Financial Broker will be able to assist with your planning, and will be able to offer expertise and insight that you may not have. A Financial Broker has the time, knowledge and research skills, and will evaluate your investments on a regular basis to determine if they are still appropriate for meeting your goals.
 
Make use of tax free investments as part of your financial plan:

There are increased benefits for people retiring from a pension fund or retirement annuities. If you are not aware the most tax free cash that you can take from all sources in retirement is €200,000, anything over this figure is subject to tax. Consider building your fund to maximise your tax free cash as a priority in the New Year.

The discipline lies with each and every individual to be serious about their retirement planning. A good financial plan, active management of your assets, combined with annual reviews with your financial advisor will result in carefree retirement.

Can you afford to leave your future to chance? Please complete the attached enquiry form or contact Alasdair directly on 01-8101912 or via info@agsfinancial.ie and he will happily create a retirement plan for you or review your existing retirement road map.