Reasons to be careful
When comparing the current economic environment with notable past recessions there are key indicators that are often assessed, these include (not limited to) :
Availability of bank credit
Inflation
Valuation
Household debt to income ratio
The above table was produced by Robert Shiller, the Federal Reserve and Haver Analytics 6/30/17.
It appears to be a little more optimistic than other current pessimistic commentators suggest - quote " we find the classic tell-tale signs of excess are not evident".
This does not mean there may be an outlier event that could trigger a major sell off - see our earlier posts and next post on potential drawdowns. There is always potential for an ‘un-known’.
At Nelson Life encourage you to think carefully before you make any investment decision.
1. Assess your appetite for risk - using psychometric tools and understand your capacity for loss. This needs to be discussed.
2. Consider your short and medium needs for capital (children, retirement, changing job, redundancy, illness, death, starting new job or starting your own business)
3. Structure of the investment and how gains are taxed - Capital Gains Tax, Gross Roll Up, Pension Exempt or DIRT.
4. Most product providers recommend a minimum investment term of 5 years, we recommend 7 years minimum for any non capital secured investment. This will enhace the probability of a positive outcome.
5. We will discuss the options available, from the many providers we have access to, to ensure your investment is well diversified between key asset classes.
Want to know more? We are available to discuss your options, and we look forward to hearing from you.
Our job is to help you choose a product and structure that will help you meet your goals.
telephone | 091441188 and/or email | office@nelsonlife.ie
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Nelson Life Limited trading as Nelson Life is regulated by the Central Bank of Ireland.
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 have access until you retire (Pension Products). 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.