Blog – David McCarthy – Galway Talks, 08/05/2014

galway-bayfmQuestion:  I have money on deposit which I have had since the downturn started.  I was very cautious, as I was worried about the stability of banks but now I feel I should look at alternative options to deposit.  What do you suggest?

Answer:  Depending on your attitude to risk there are considerable options available.  As I have said many times before leaving money on deposit is not a wise decision and you need to look at the options that suit your circumstances.  Obviously advice is important before you make any decision.

Question:  I recently inherited some money and I am wondering how I should invest it?

Answer:  It is necessary to review your financial position before advising as to whether or not you should invest these monies.  This is due to the fact, that maybe you have borrowings which you need to reduce or you may be dependent on some of this money for an income.

It’s hard to give a general answer without knowing your circumstances but would advise that a Financial Review will show what course of action is available to you.

Question:  Do you recommend Educational Policies as I have 2 young children?

Answer: Generally I feel that these savings policies, which are sold by life companies, have a tendency not to provide good value.  Depending on the amount that you are saving, it might be advisable to build up a lump sum over a period of 2 or 3 years, then take these monies and move them into an investment bond over 3 to 5 years.  You can continue this process for the next 15 years or so, while you are saving, and thereby build up a portfolio of investments.