Tanner’s Tips comprises of a father and daughter team, an unstoppable duo fighting apathy in the world of finance.
Many banks offer a “regular saver” account. These are an excellent way to save for a goal in the short term. Your investment is secure, and you have a guaranteed (but small) return on your capital. However, if you are saving long term, perhaps you should consider a product that could potentially out-perform deposit rates.
Many people wish to partake in investments, however may not have a lump sum to invest. However, most investment products have a minimum investment of €10,000, for example. An alternative type of product would allow you to invest regularly, i.e. monthly/yearly, while participating in returns from the investment markets. This type of product is a regular saver, but with a life assurance company. If you want to put away a smaller sum every month with the desire of investing in the hopes of outperforming the all-time-low deposit rates, this is something to consider. This type of investment also reduced “timing risk”. When you invest a lump sum, there is a risk that you are investing at a high in the market. The result of this, if the markets were to drop in value, would be a drop in the value of your capital. However, if you are investing smaller amounts at regular intervals, the chances of this happening are reduced, because only a small sum would have been invested at the high point.
We offer this service through several life companies. Should you wish to find out more, please contact us, or drop in to our office to discuss your options.
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