With Interest rates at an all-time low and some even negative, many are asking the question… Is now a good time to invest?
To know the answer, ask yourself these questions;
- Do I have a goal to grow what money I have to a target amount for say 3rd level education or retiring a bit earlier?
- Am I happy with my pot of money slowly eroding in value with negative interest rates & inflation?
- Do I have a short, medium or long term horizon?…if the answer is short, then leave it where it is as investing in the short term is speculative!…nobody can time investments
Once you answer these questions, the follow on consideration is the concept of risk. Markets and investments do not grow in linear format over say 7 years, they fluctuate. Time is your friend when it comes to investing.
Another important factor is your own attitude to risk when it comes to what you invest in, Bitcoin is not a steady investment for example, nor do we recommend it!
Risk should not be a scary term.
Every day we all encounter an element of risk, even getting into our car on the way to work. We balance the risks in our minds, knowing that going ahead can deliver its own rewards. Everyone’s attitude to risk is different. Some play it safe. Others throw caution to the wind. Most of us are somewhere in the middle. When investing, risk relates to the chance you might get back less than you invested or that there will be fluctuations in return.
Like most things in life, no investment is without risk. However, you’ll have your own ideas about the risk you’re comfortable taking. Any worthwhile financial advisor will have a process for this with you.
Depending on your circumstances, Lump sum investing is an option, but if you don’t have a chunk of cash that you can afford to tie up, it’s also possible to invest in smaller, affordable amounts on an ongoing basis. This suits many of our clients.
Regular investing can help reduce the impact of market movements on your money (more commonly known as euro-cost averaging). If you invest regularly, for example once a month, it means that you are buying fewer shares for example when prices are higher and more shares when prices are lower. Long-term that can help you ‘average down’ the price you pay compared to investing all your money at a time when prices are higher.
Talk to us today and let us help you choose what’s right for you!
Tel: 091 788000. E: firstname.lastname@example.org www.hcgroup.ie