Most people have a mix of short, medium and long term goals when it comes to saving. Before you decide the best way to invest for what you want, you need to think about the level of risk you are willing to take. We provide advice on investments in Kildare, Dublin and nationwide.
There are three main types of risk to consider when investing or saving:
- Inflation risk
- Return risk
- Capital risk
Inflation risk is the risk that your money will lose value over time, you need to earn more than the inflation rate to get a real return of your money.
Return risk is the risk that your money will not grow as much as you expected.
Capital risk is the risk that you could lose some of your original investment.
When deciding how to invest, you need to balance your need for higher returns with your need to keep your money safe. These needs can change over your lifetime and may depend on your different goals.
Some of the main options CJK Financial will consider for you based on your circumstances are:
Short term deposit accounts
Medium to long term investment plans
Short Term Savings and Deposit Accounts
These are generally suitable ways to save for your short term goals. They give you capital security (protecting your original deposit), and you have access to your money reasonably quickly. The rate of return, or growth, is usually low.
Medium to Long Term Investment Plan
You may want to provide for your longer term needs such as education costs, retirement and future financial security. For these needs you will want to get a better return on your money than you could with a deposit account. That usually means investing in assets such as shares and property. However depending on the investment you may be committing your money for five years or more.
Warning: The value of your Investment may go down as well as up.