Investment planning

Savings rates are as low as they’ve ever been. Investing is an alternative way to save for your future that could potentially provide higher long-term growth than leaving your money in a savings account.

Unlike saving, when you invest, there’s always a risk that you could receive back less than you put in.

Before you start to think about investing it is always a good idea to clear off any outstanding debt and to make sure you have an emergency fund prepared for the unexpected.

Investing is for the long-term, so we recommend a buffer savings pot of at least three to six months of your usual living costs to ensure you won’t need to access your investments in the event of any short-term surprises.

Once you’re ready to get started you can invest a lump sum, a small amount each month or you can take a hybrid approach to your portfolio.

This depends on you, your goals and your disposable income, investing as little as €100 a month.

You can invest in almost anything, the most popular options include:

Shares: A share is simply a part ownership of a company. When a company is listed on the stock exchange the shares have a market value and can be bought and sold.

Bonds: Bonds are loans made to a government or company and paid back with interest. They can offer regular income streams and a potential financial cushion during economic downturns.

Funds: A fund is an investment that pools together money from lots of individuals. The fund manager then invests the money in a wide range of assets. Each investor is issued units, which represent a portion of the holdings of a fund.

Whatever your budget your aim should be to maximise gains and minimise losses. Diversifying your portfolio is a great way to do this. Spreading your investments across different products and areas makes you less dependent on the performance of any one element and helps to smooth out returns over the longer term.

There is a risk attached to all investments, and how much you’re comfortable taking depends entirely on you and what you are hoping to achieve. Your Fairstone adviser will work with you to help you determine the right level of risk for you now and will help you in reassessing your attitude, if and when your circumstances change in the future.

At Fairstone we believe that investments should form part of your long-term strategy, and you should aim to invest for at least five years. You may have more immediate savings goals so you may also need a shorter-term solution. Your Fairstone adviser can support you in finding the right balance for you and your financial goals.