Entering the World of Investments

Whether you are a new investor or have an established portfolio, investing in any area can be scary and confusing. There are many different ways to invest your money, but how and where you do depends on many factors. The one term that encompasses all these factors is risk tolerance. When investing, you always need to ask yourself “what’s my risk tolerance?”

There are 4 key factors when analyzing your risk tolerance.

1: Your investment time frame

This may be the most broad factor, but it has rung true for most investors. the main logic behind this is the more time you have to invest, the more amount of risk you can afford. Say an investment goes south while you are still relatively young. You have a greater amount of time to make up for this loss compared to a person a little older. However, like I said before, this is a very broad rule and further considerations are needed to decide which investment is right for you.

2: Your Risk Capital

The amount of money you actually have to …

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Pension top-ups failing seniors, women

The most recent governmental review of pension top-ups has left many retired people with far less than they had anticipated. Only 15% of around 11,500 cases reviewed within the last period will be receiving top-ups, leaving 10,000 people who applied for a top-up without any other option than to survive off of their same plan, despite rising prices.

This denial of pension top-ups extends beyond this small percentage of retirees. Tens of thousands of people were affected by this bad review, causing the public to go into a frenzy. Understandably so, given that everyone who has a pension is retired and between the ages of 60 and 70. Most of these people have already worked for over 40 years and have planned and saved so that they no longer have to work in the elderly stage of their lives.

Usually, people begin saving for pensions at the age of 25, paying small amounts to their retirement fund that are sometimes matched to a degree by either their current employer or the government. These plans also usually have higher …

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Regular wages and purchasing homes

In the current market, there is an increasing want and need for housing in Ireland, especially in populated cities such as Dublin. With this increasing demand, prices of homes and rent are rising each year. One problem that many soon-to-be or want-to-be home owners face now is the inability to effectively save for a home when they are paying high rent fees month after month.

The Central Statistics Office of Ireland notes that the average full time worker made around €45,611, while an average part time worker made around €16,600. Using surveys on these two numbers, we can say that the average worker in Dublin makes around €37,000 per year.

These numbers seem to allow a single person to be able to obtain a mortgage and afford a home, but if you were to add into the equation any additional expenses, such as children, rent or transportation, there would be a significant amount of money deducted from those average numbers.

The national average rent in Ireland is €1,122 per month. If you are interesting in living in Dublin, …

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Child saving options

When it comes to opening a savings account, earlier is always better. Especially in Ireland, it can be extremely beneficial to start accounts for children at a young age. Personally, I believe that opening a savings account was a very influential step in the shaping of my financial views.

My first savings account was opened after my first communion, and I’m sure that many other irishmen have had this same experience. For me, this was a huge deal. The money I had gotten from such a special time in my life was now being used to finance my future.

As a child, it is easy to get lost in the concept of money, when you have cash or coins in your hand, it is far more valuable than any amount on a written check. Because of this child-like wonder, the actuality of the value of money is highly skewed.

By teaching your children early the power of independent saving and investing, they will be given the tools that enable them to continue down a more financially stable path …

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Newstalk: Another crash is coming, accept it

We spoke to Ciara Kelly about the current property market and where we believe we are in the cycle. She was surprised to hear us say that we believed a crash was virtually an inevitability. There are myriad reason for property cycles and the routes to resolving them are politically unacceptable, for that reason we are confident we won’t avoid experiencing another one.

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Making sense of ‘help to buy’

Yesterday Revenue announced the details of the new ‘help to buy’ scheme. It is designed to make buying a home more realistic for first time buyers and to increase the supply of new homes. Whether it’s a good or bad idea is beside the point, what most people want to know is how it works so here’s the breakdown.

It’s a scheme to allow first time buyers buying a new home to get a rebate of up to 5% of the purchase price or contract price (whichever is the lower) from income tax and DIRT tax paid in the past four tax years to a maximum of €20,000. The property must cost less than €500,000 or 600k for retrospective applications, the size of the loan versus the value of the property must also be 70% or more.

So, for every €100,000 of value you must be borrowing at least €70,000 the idea being that very cash rich buyers don’t need this help. It started on the 19th of July 2016 and goes until the 31 Dec 2019.

Now that it’s …

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Pat Kenny Show on Newstalk 106, featuring Irish Mortgage Brokers

Pat Kenny had Lorcan Sirr from DIT and Karl Deeter from our company on to talk about the property market in particular in light of the changes announced by the Central Bank.

The conversation covered many topics in the market and outlined where so many issues in housing are arising.

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