Blog-McCarthy & Associates Financial Consultants-Galway Talks, 19/06/2014

galway-bayfmIssue:  If one of America’s top private investors has confidence in the Irish property market should we not also be of a similar mind?

Comment:  Wilbur Ross, one of America’s top investors, bought a large stake in Bank of Ireland some time ago and recently sold his Shareholding at a significant profit.  He is now moving into the commercial property market here, which it shows the confidence that overseas investors have in Irish property.  Unfortunately, some domestic commentators seem to constantly ‘talk down’ the market here, whereas the flood of money from overseas buyers, shows that they have greater confidence in our market that we seem to have.

Issue:  A surprising number of people have grossly insufficient Life Cover to provide for their family.

Comment:  Unfortunately many people find that they have difficulty in meeting their monthly outgoings and as a result, have cancelled important insurance polices like medical and house cover.

 There is a misconception amongst some, that once you have sufficient life cover to provide for your mortgage, that is all you require. 

If the main income earner in a household dies, then their family is left with the loss of these monies in the future.  Some employers provide death-in-service benefit which will help to offset this loss however it is generally insufficient. The only way to address this problem is to have extra life cover, apart from Mortgage Protection.

 If anybody is cynical about the need for having such extra cover, then one should only look at families, where a sudden death has occurred, and they will tell you in no uncertain terms how important it is.

Issue:  Major falls in Deposit Rates results in a change of attitude from savers.

Comment:  Due to the dramatic fall in interest rates over the last few years it is now apparent that savers are going to have to take on some risk in order to achieve reasonable returns in the future.  Interest rates are at such a level now, that leaving money on deposit is something one should only do for convenience rather than as an investment decision.

There are a variety of alternatives varying from low to high risk.  For somebody who has a low risk attitude, I would recommend looking at certain Soft Capital Protection Bonds which are available.  These investments provide some element of capital protection and also have greater potential for growth.