There are many things to consider before investing your money, such as how quickly you might need access to your money and how much risk you want to take. We’ll work with you to find the best investment strategy and advise on the benefits and risks of all the investment options open to you.
Only when we fully understand your personal circumstances and goals, will we advise on the best investment strategy. Before making an investment recommendation there are four areas that must be discussed.
Once these are discussed we will then advise on the advantages and disadvantages of various assets into which you may invest:
We normally advise our investors to spread their investment to minimise risk. Diversification or spreading your investments across asset classes is the key to building a successful portfolio. For example, the higher the Share or Equity content of an investment, then the higher the potential for return, but the potential volatility, or risk, is also greater.
As investment advisors, one of our jobs is to help you get the right balance in your portfolio through careful selection of investment products, based upon your objectives..
Also known as Tracker Bonds these products are a very useful means of gaining exposure to certain assets such as equities/bonds/commodities while also preserving your capital.
Most of your money is placed in a long term fixed rate deposit account. This will accumulate interest to grow back to your total investment amount, thereby providing the capital protection.
The balance is the then used to pay for fees and to purchase the option on the underlying strategy.
Capital Secure products are best suited to individuals who want to preserve capital but also want the opportunity of achieving returns in excess of bank deposits.
In MBC Financial we assess the products available to us under a number of headings to ensure the investor is getting the most suitable investment.
These headings are:
If an investor takes a view that the stock markets are going to grow over the next 5 years it is possible to capture some of this growth while also providing a capital guarantee. It must be noted however that the potential returns are reduced when you have a capital guarantee.
At 33%, Capital Acquisition Tax can make a big dent in any inheritance you leave to family members or loved ones. Fortunately, certain exemptions apply for family members.
Group Lifetime Threshold:
Balance taxed at 33%
The Group Thresholds are correct for the 2017 calendar year and may increase/decrease in the future subject to changes in the Consumer Price Index.
For a more detailed explanation of Estate Planning and its tax implications, go to our Estate Planning section by clicking here.
Financial Planning Standards Board
Professional Insurance Brokers Association
Certified Financial Planner