Wealth Management

Whether it's for a child's education, early retirement or a rainy day fund. MBC Financial will help you set realistic goals and put the right plans in place to achieve them.

Wealth Management Cork

When it comes to wealth management, finding an advisor you can trust is key. Alan and MBC Financial have built a reputation as one of the leading wealth management businesses in Ireland, with a commitment to providing impartial advice and personalised service to their clients.

One of the things that sets Alan and MBC Financial apart is their focus on the bigger picture. They understand that financial planning is not just about short-term gains, but about creating a secure future for their clients. Whether it’s planning for retirement or considering an early retirement, Alan and his team are there to provide guidance and support every step of the way.

Wealth Management is about fully utilising the wealth that you have accumulated by putting that money into investments and utilising tax benefits as much as possible. Wealth Management is a part of Financial Planning but is for those that are already confident in their financial structures and want their money and investments to generate a better return than leaving it on deposit.

I have been dealing with MBC financial and Alan Mc Carthy in particular for the last 10 years as my financial advisor. I find the company very professional and fully transparent with their financial advice & services. They keep regular contact with me and arrange an annual review of my portfolio. They never put pressure on me to expand my portfolio and make it clear only to invest what I am comfortable with. I have my pension and savings plans with MBC Financial and I am very happy with their service.

Testimonial from Ryan H.

Wealth Preservation

Wealth management generates a better return for you than leaving money in the bank. The value of your wealth decreases over time even if you don’t touch it due to service fees and inflation. Look at the low interest rate for a deposit account compared to the inflation rate and then look at the taxes on any interest generated. In effect you are losing money the longer you leave it on deposit.

Adapting your wealth management plan

A Wealth Manager will understand that while your goal is building up capital, there will be times when you’ll need to decrease your contributions or stop them and that will need to be factored into your wealth management structure.
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.

We made a video to explain Wealth Management

What to Consider Before Investing Your Money

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.

  • Access:This is all about how quickly you might need access to your money – a crucial factor in determining your investment choice. The majority of investments are a 5-7 year timeframe.
  • Security:  The higher the level of risk = higher the potential returns. Lower level of risk = lower potential losses.
  • Growth: This is linked to both access and security. Investment growth will depend greatly on how secure you want your initial investment and how long you want to tie your money up for.
  • Time and Timing.  If you invest all your money at one time you are taking the view that the asset you are investing in will appreciate from that point.  However, if you spread your investment over a period of time (monthly) you can minimise short term volatility in the markets. This is called Euro Cost Averaging.

Once these are discussed  we will then advise on the advantages and disadvantages of various assets into which you may invest:

  • Shares
  • Property
  • Bonds
  • Cash
  • Commodities

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.

Capital Protected Bonds / Tracker Bonds

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.

How do these work?

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.

Factors affecting the Participation in the Underlying Strategy

  1. The longer the term the less money is needed to be placed on deposit and so more is available for the option. This will increase your participation in the underlying strategy and so increase the potential interest earned.
  2. The lower the volatility of the underlying strategy the lower the price of the option. This will result in better participation in the growth of the underlying index or fund.

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:

  • Level of Capital Protection: This is normally 100% or 90%
  • Term: This is usually between 3 and 5 years
  • Maximum Return: Some products will cap the amount of growth achievable.
  • Underlying Investment: This can be equities, commodities, bonds, or a combination.

Example:

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.

Unit Linked Funds

These are open ended funds that can be invested in a wide range of shares, bonds, cash and/or property. These can be used to build a very comprehensive investment portfolio.

Before putting together your portfolio, your financial planner at MBC Financial will take the time to find out how much risk you want to take in order to achieve a greater return on investment and make sure you completely understand the implications of your investment. There are 4 main categories of investor:

  • Cautious
  • Medium
  • Aggressive
  • Speculative

We offer a range of options from a low risk portfolio through to aggressive and speculative investments, with more risk attached. Once your portfolio is in place, we will review it annually to make sure you have the best performing portfolio for your needs.

You can even set up an arrangement to drip-feed cash into your portfolio over a period of time either from a lump sum deposit or as part of regular savings plan – an excellent option if you investing for a specific purpose, such as third level education for a child.

Want to make sure you’re making the most of your money? Let us help
you create a customised financial plan. Schedule a meeting with us –
the first one is at our expense. See why our clients trust us by
reading our client testimonials.

MBC Financial is regulated by the Central Bank of Ireland.

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