You don’t have to have a Crystal Ball

Like the weather we have had particularly in since May I felt it appropriate to talk about things that we cannot control.    As a Financial Advisor, we talk to clients about effecting plans to ensure that they can afford the things they want/need when they need them.  For example: –

  • Saving for Retirement so at 60 you don’t have to work
  • Saving for your kids to go to 3rd level education
  • Saving for a Mortgage.

There are a lot of things to save for, so start saving!  Easier said than done you might be thinking but imagine if you received €10,000 in 5 years what would you do with it?

This €10,000 could be used for any of the above and would only require you to save about €160 p.m.* (which is not much more than the children’s allowance for 1 child every month).

Whilst we all know it is a good idea to save a lot of us don’t (or certainly not enough) as we don’t see the benefits as they are intangible to us (if we spent the €160 on clothes, for example, we would physically see it).

Anyway, the purpose of this Blog is not to try to educate you in the habits of saving.  It is to give an indication that things are NOT as difficult as they may seem and also that don’t be fooled by the returns a lot of people have seen in investments and pensions (and property for that matter over the last period).

I often speak to clients who have Investments/Pension funds which are a lot riskier than their tolerance to risk.  However, the classic response is (but it has done really well).  I often remark that a savings plan/investment/pension fund that has risen by 15%-20% has the ability to fall by just as much if not more.

Whilst I am not trying to get everyone to start putting money under the mattress I am saying that there is NO FREE LUNCH out there.  Returns are correlated to Risk whether you realise it or not and our role as advisors is to marry the two.

If you want a second opinion on your arrangements or indeed specific guidance on what you should be saving for and the best plans available to do this feel free to contact us.

 *this is based on a 5% return and note the value of your savings can go up as well as down.


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