Saving and investing for your future is something we all know and have been told we should do. The reality is though, it not always easy to make changes

One of the most interesting parts of my job is asking older customers what they would do differently and what financial & investment advice would they give a younger self.

Frequently, the answers I get are very funny and probably not for this blog. However, over whelming the two favourite answers are;

1. save more for emergencies and a rainy day

2. save more and start earlier for my retirement.

The interesting part about this for me is that this is basic stuff. It always makes me think that financial planners, financial advisors, banks and financial press maybe make the whole idea of saving and investing more complicated than it should be.

So what have we done to assist customers here at Nelson Life to help them better understand saving and investing?

Number 1: how can i invest for my future?

Savings can be for a specific purpose, like paying for your children’s education or paying off your mortgage early. You may just want to build up a “rainy day fund” that can help you deal with unexpected costs or finance some home improvements.

Currently, deposit rates aren’t as attractive as they once were, but there are options available to you that can get your money working hard for you. It might be time to look into a longer-term plan for your savings.

Number 2: what are the main types of savings and investment products available?

Demand deposit – allow you to access you money at anytime.

Fixed deposits – for a set period, rates of interest generally are higher than demand. however, you cannot access during the investment term.

Investment funds – vary according to the particular fund they invest into. For example, they could be tech companies, large multi nationals, fixed securities from governments (bonds), property or a combination of different asset classes.

Note: investment funds are subject to risk. Their value at anytime could be less than the amount you have invested.

Tracker and loan note type investments: these products generally offer some portion of capital protection. I don’t use the word guarantee because these investments will be exposed to the counter-party risk of the company providing the capital protection.

Longer term savings plans: these plans are available from life assurance providers. These contracts allow you to invest monthly and accumulate  capital sum over a period of time. Life assurance providers typically recommended term for these plans is typically 5 years, we recommend 7 years.

Number 3: what type of return can I expect?

The longer the term, the more impact even a small extra return will make on your investment due to the return multiplying over time.

Take for example EUR 20,000 invested for 5, 10, and 20 years and say your options are 1% per year on low risk; 3%
per year on a mid-risk fund and 5% per year on a higher-risk fund (after taxes an charges).

Let’s look at your potential return:

Warning: These figures are estimates only. They are not a reliable guideto the future performance of your investment.

EUR 20,000 for 5 years

Low risk – EUR 21,020

Medium risk – EUR 23,186

High risk – EUR 25,527

EUR 20,000 for 10 years

Low risk – EUR 22,092

Medium risk – EUR 26,878

High risk – EUR 32,578

EUR 20,000 for 20 years

Low risk – EUR 24,404

Medium risk – EUR 36,122

High risk – EUR 53,066

Number 4: what risk should I take?

This depends on your risk preference, your capacity to withstand risk and your financial objectives. This is an area we can give you key advice.

What are you hoping to achieve and goal setting is a big part of what we do. Is there an expected level of return that you need? For much longer term investment would using a tax efficient pension structure make more sense?

Number 5: factors to consider.

Your minimum investment term

Will you need access to money

Is there capital security needed

What are the key risks associated with the investment recommended

How are the returns taxed

What is the impact of charges on your investment

Our job is to help you choose a product and structure that will help you meet your goals.


Nelson Life is regulated by the Central Bank of Ireland.

We are Trusted Financial Advisors and now have access to 20 products providers (we are NOT tied to one provider).

WARNING: Past performance is not a reliable guide to future performance.WARNING: The value of your investment may go down as well as up.WARNING: You may lose some or all of the money you invest.WARNING: These funds may be affected by changes in currency exchange rates.WARNING: If you invest into this product you will not have access until you retire.WARNING: The above content does not constitute investment advice, as it does not take into account the investment objectives, knowledge and experience of financial situation of any particular person. Prospective investors are advised to make their own assessment of the information contained herein and to obtain professional advice suitable to their own individual circumstances.WARNING: The information contained in this document is based on our understanding of current tax legislation and the current Revenue Commissioners interpretation thereof and is subject to change including retrospectively without notice. This is intended as a general guide only and is not a substitute for professional tax, legal and investment advice. 

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