Imagine if your money could do more than sit in a savings account and could actually make more money for you. Investing is the key to giving your money the potential to grow and thrive over the longer-term.

Now, this isn’t a miracle solution. Investing comes with risk attached – you could lose some or all of your money – but the potential rewards may make it the right decision for you. Experienced investors understand that investing is a long game. As a rule of thumb, you should invest for a minimum of five years.

Even if you're new to investing or only have smaller amounts of money to invest, you can get started today. Let's explore why investing can be a smart choice, and how it can positively impact your financial wellbeing.

What are the benefits of investing?

Most of us work hard for our money but what if you could make your money work for you? Investing can offer numerous benefits, like helping your money to outpace inflation and the chance to build wealth. Just remember that the value of your investments can go down as well as up.

Investing can help you beat inflation

Inflation refers to the rising cost of living. It's a term used to describe a broad increase in the costs of goods and services over time. This can also reduce the purchasing power of money over time, causing the value of money to drop. In fact, €10,000 in 2013 has the same purchasing power as just €8,897 in 2023*.

This means that cash held in a bank account (or hidden under your mattress, if you’re that way inclined) is vulnerable to losing value. By investing, you give your money a chance to grow and maintain its purchasing power over a longer period of time.

So, if you’re planning to save money for the future, investing could provide a better return than simply keeping your money in the bank. Before you make any decisions, talk to one of our advisors about your financial situation and attitude to risk. They can recommend investment plans suited to your needs and goals.

When is the best time to invest?

When it comes to investing, the most important consideration should be that you are comfortable with the fact that you’re committing your money longer-term, because nothing will help your investment more than time. 

With any investment, the value of your investments could go down and you could lose some or all of your money, but making investments at regular intervals over a long period gives you a much higher probability of long-term success than attempting to invest at “the best time”.

There’s potential for higher returns

Investing comes with the risk of losing money, but it also presents an opportunity for your money to grow over time. Whether it's investing in stocks, bonds, real estate or other assets, investing can help your money grow more rapidly and generate potentially higher returns.

By working with an expert, you don’t have to guess which assets you should be investing in or how the market works. They'll make it simple.

You can book in with an Irish Life Financial Services financial advisor to talk about your investment options. First, you’ll have a chat about your finances in general and what you’d like to do, then they’ll then recommend a plan that’s right for you.

Diversification could protect your money from market downturns

The saying "don't put all your eggs in one basket" holds true for your money and investing. And indeed for your eggs.

Diversification simply means spreading your investments across different assets, sectors, or geographic regions. When your investment manager does this, they can potentially offset losses in one investment with gains in another. This strategy could help to safeguard your money from market downturns, reduce risk, and smoothen returns.

This is because while one part of your investment portfolio might decrease in value over any given period, another part may grow. Depending on how much you have invested in various areas and the movement of each market, you could see your total investment grow even if part of it decreases.

Investing can help you achieve your financial goals

Maybe you want to buy a house, start a business or help your children get on the property ladder.

By investing strategically and consistently, you're putting your money to work and giving it the opportunity to grow. Over time, your investments could accumulate and help you achieve your financial goals.

How to get financial advice on investing

Investing isn't just for finance bros or those with loads of money to spare. It's a powerful tool that anyone can use to make their money work harder. When it comes to how to invest, you have two options with Irish Life:

• You can use Smart Invest
• You can book an appointment to speak with a financial advisor and let them do the hard work for you

Whether you speak with a financial advisor or get started online, our experts choose the right investments for you to help get the results you want. 

At Irish Life, our experienced advisors can provide you with expert insights and personalised advice on the best way to invest your money. They can discuss different options depending on whether you’d like to invest regularly, have a large lump sum you’d like to make the most of, or you’re just getting started.

With an expert by your side, you can make informed decisions and experience the full benefits of investing. Book a free chat with one of our trusted advisors below.

 

*OfficialData.org Ireland CPI Inflation Calculator, 14 December 2023