Invest for the Future

Holding your money in cash or on deposit may make sense for people who are particularly risk averse and/or have short-term goals. However, over the last number of years holding too much of your savings in cash has been costly. Generally, people are rewarded for taking some risk with their investment and assets such as equities and bonds have the potential to earn you higher returns than cash.

The main reasons why investing your savings is a good idea:

1. Potential for Higher Returns - Investing in a mix of equities, bonds, and other securities, offers the potential for higher returns compared to traditional savings accounts.
2. Flexibility - you can choose from a variety of funds based on their risk tolerance and investment goals. Options range from conservative funds focused on bonds to more aggressive funds with a higher allocation to equities.
3. Tax Efficiency - Growth within the fund is not subject to tax until either benefits are paid out or the investment term goes over 8 years, allowing investments to compound more effectively over time.
4. Professional Management - Funds are managed by professional fund managers, providing expertise and active management to maximize returns.
5. Regular Contributions – investing on a monthly basis makes it easier for individuals to build their investment over time. This approach can help in disciplined savings and investment planning. Regular savings policies are a great way to save for future expense e.g. investing your Children’s Allowance each month is a great way to cover the future cost of education for your child.
6. Liquidity - While it is generally advised that you invest for period of 5 years or more most investment products can be set up on what is called an ‘Easy Access’ basis, allowing investors to withdraw or switch funds, when they wish.
7. Diversification - Investing in a unit linked fund provides instant diversification since the funds are spread across a wide range of assets. This helps mitigate risk by not relying on the performance of a single investment.
8. Transparency – Unit linked funds are priced daily. Investment providers now provide online portals where the performance of your policy can be viewed in real time whenever you choose. As a client of Shankill Financial Services, we will also provide you with regular updates on the performance of your funds.
9. Estate Planning – Investment products can be an effective tool for estate planning. The proceeds from the policy, if set up correctly, can be used to cover estate taxes or provide an inheritance for beneficiaries, ensuring that wealth is efficiently transferred to the next generation.