Blog – McCarthy & Associates – Galway Talks, 11/08/2016

Issue:  Investors who buy Investment Property could be bitterly disappointed if they do not do their homework.

Comment:  It never ceases to amaze me the love affair we have in this country with property.  Despite the grief that Investors have experienced over the last 8 years it seems that there are still many people who do not consider property as a risky investment.

A lot has changed since 2008 and any investor buying property needs to do their homework, as there have been increased costs, taxation etc causing net returns to fall considerably.

We should remember that investing in property is not for the faint hearted.

Issue:  High numbers of people do not claim Tax Relief for Medical Expenses.

Comment:  It surprises me the number of people who do not realize you can get tax relief on medical expenses.  It is a very simple procedure which involves completing a Med1 Form with your tax return each year and submitting details of the expenses incurred.

Question:  Is it better to leave money on deposit and get virtually no return rather than taking a risk with it?

Answer:  If you are completely risk adverse, looking for protection, well then unfortunately you will get no return on your money, because the only place to leave it is on deposit.  This is a situation which will not change for many years as rates will remain at these levels.

If you want to make your money work for you there is no other option but to take some level of risk with it.

You can get Capital Protection of 90%/95% with some bonds or you can opt for no protection at all and look at Life Assurance funds.

Taking some risk is always a better option than having 100% Capital Protection and receiving virtually no return on your money.