Have you got money sitting in the bank? While a bank account is a great place to put money you may need quick access to, like an emergency fund or a short-term savings goal, your money could be working harder for you someplace else.
When you leave your money on deposit, it loses value each year due to inflation, but there are a wide range of products on the market that can help you beat inflation, from fixed deposits and multi-asset funds to equities, bonds and more. Some options offer a guaranteed return such as fixed deposits, with others like equities and bonds the value of your investment is variable, it can go down as well as up.
Deciding what to invest in isn’t just about the product you’re investing in, it’s also about the purpose of the investment, you might be saving for a home deposit or a car which would be over a shorter term, or you might be starting to save for your children’s college fund over a longer term and this will also affect what investment you choose. Over the shorter term it could be a better option to open a fixed deposit account, but over a longer term it could be more beneficial to put your money in investment funds, as it is advisable to keep your funds invested in a fund for seven years or more. Over the long term, investing has much higher growth potential than leaving cash in the bank.
It can be hard to decipher what will suit your individual needs best, that’s why we do a full review of your financial situation and tolerance to risk before you invest to help you choose the product that’s right for you.
If you would like more information, please contact us at info@ppsfinancial.ie