Investments, Savings & Deposits

Investments & Savings  |  Deposits

Investments & Savings

Investment is the process whereby consumption is deferred and resources’ are set aside to build a store of future value and to earn a return. Individuals invariably have short, medium and long term financial commitments and goals. Every investor faces the same question how to balance risk with financial reward? Should you accept a lower level return in exchange for peace of mind or do you go for the less guaranteed risk but with greater growth potential?

If you're used to putting money away in the bank or building society, then you'll also be used to the low rates of return on offer. If your money is earning less than the rate of inflation, then you're actually losing spending power. So when you come to withdraw it, your savings could be worth less in real terms than when you put it away! For example if you put €10,000 for 15 years ago it will only buy you 64% of the goods and services as it would today. This is assuming an inflation rate of 3%. (note: inflation figure for April 2007 is 5.1%). If we assume a 5% rate, for inflation, the effect the rate has on your money is even more striking.  The projected purchasing power in the future of €1,000 of 2007 money would be €738 in 5 years, €614 in 10 years, and €481 in 15 years and €376 in 20 years. So real value of your money decreases very fast.

If you want to save wisely or invest a lump sum, then whether you're looking for security, high growth potential or something in-between, at Carey Corbett Financial Solutions we have products that can cater for your investment plan. Through our fact finding process we design the most suitable investment package for you based on your own financial situation, short and long term goals and attitude to risk.

There are important factors to take in to account when deciding on what type of investment to approach:

Length of Investment

Generally the longer an investment in property, fixed interest or equities is held the better it is as the volatility of the returns are reduced.

Optimising Investment Returns

The growth you can expect to get from your investment is generally related to the risk. The greater the risk the greater the potential for growth. We adopt a portfolio approach to minimise the risk in any one asset class. In addition we also adopt a diversification approach within that asset class. Through our fact finding process we will structure a combination of asset classes which will be tailored to your individual needs.

Asset Classes

There is a range of different types of investments, often referred as asset classes, which savers and investors can invest in either directly or through collective investment scheme funds. The main investment asset classes are:

• Cash or deposits?
• Fixed Interest Securities also known as bonds. Bonds issued by the Irish Government are usually referred to as Treasury Bonds.
• Equities
• Property i.e. usually commercial property such as offices, factories and shops

Security

In general the greater the return the greater the risk.

Access and Liquidity of Investment

Investments have varying degrees of accessibility or liquidity. An investment that allows you to get access to your money when you require is considered to be highly liquid. Cash in a deposit account or invested in shares on a recognised stock market are both described as liquid. Property and pensions are not.

At Carey Corbett Financial Solutions, we have a wide range of investments based on the above factors that can be tailored to your needs. Some of the products include:

• Guaranteed Funds
• Unit Linked Funds
• Pension Managed Funds
• Gilt Funds
• Property Funds
• Irish Equity Funds
• Geared Property Funds
• Smart Funds

Deposits

We also hold an agency with Investec. Investec is a leading international, specialist banking group that was founded in Johannesburg in 1974. Investec offers a one month notice deposit account to customers with an interest rate of 4.89% (AER 5.00%). These rates make this product the most competitive in the market. It also offers a once-off instant access to 20% of funds.