Podcast – McCarthy & Associates – Galway Talks, 14/04/2016

Question:  I have a considerable amount of money in Prize Bonds.  I am a cautious investor and am wondering should I consider moving some of these monies elsewhere?

Answer:  It is amazing the number of people who have put substantial monies into Prize Bonds over the last 8 years.  The motivation seems to be that the monies are secure and that there is always the possibility of a win!!!

Prize Bonds should never be considered as an investment and are only suitable for small sums.

Question:  I am separated but not divorced and I am finding it difficult to get Life Assurance?

Answer:  Your marital status has no bearing on your ability to get Life Cover and I do not understand why you are having a problem.  Life Cover is determined by factors such as your age and health but not your marital status.

Question:  What would you recommend as a long term strategy to save for children’s education?

Answer:  I am not a fan of Life Assurance Savings Plans as in my experience they are both costly with poor investment returns. I would suggest saving the money in a regular savings Deposit Account and once you have built up a lump sum of circa €5,000 + then you could invest the monies in a 5 year Term Investment Bond.  Depending on the age of your child and how long you will be saving for, this strategy would allow you to build up a portfolio of investments for them.

Question:  What do you think of PCP’s (Personal Contract Plans)?

Answer:  Certainly a lot of cars have been sold on the back of PCP products.  Whilst these types of finance arrangements have their critics, I believe that they are suitable for a considerable number of people and are certainly worth investigating further.

Issue:  Compensation likely for those who were encouraged to give up their Tracker Rates.

Comment:  It appears that compensation is likely for mortgage holders who were encouraged to give up their Tracker Rates. The Banks however, are resisting the Central Bank’s moves to force them to compensate borrowers.

It remains to be seen what the outcome of this battle!! will be.