Once you have provided for your short-to medium-term needs, you need to think about your longer-term needs such as retirement and financial security. For these needs, you will want to get a better return on your money than you could with a deposit account. That usually means investing in assets such as shares and property and committing your money for five years or more.
HC Financial Services can guide you through the available products on the market where your money is invested for you so you don’t have to make day-to-day decisions about buying stocks, shares, property or other assets. We study each individual case and match each plan to your needs and requirements. Our Qualified Financial Advisers are on hand to offer impartial and expert advice.

The most widely available personal investment products are:
• Structured Bonds; and
• unit-linked investment plans

Structured bonds
These are fixed-term investments that are linked to some combination of investment markets. The smallest lump sum you can usually invest is about €20,000. They usually provide some form of security for your investment though it generally only applies at the end of the term. This reduces the capital risk. As we have seen, when your capital is secure, your potential returns
are usually lower, and this has been true of most Structured bonds.

Unit-linked investment plans
With unit-linked investment plans your money is ‘pooled’ with money from other investors and used to buy units in an investment fund. The number of units depends on how much you invest and the price of the units at the time you buy. You can invest a lump sum or make regular savings. You will get a statement at least every year showing you the value of your investment. Investment managers manage the overall fund and decide how to invest it across a mix of assets, such as:
• cash, or high-interest deposits;
• bonds, which are issued by governments and companies and pay a fixed rate of interest for a set time;
• equities, or shares in Irish and international companies that are quoted on stock markets; and
• property, which is a mix of commercial properties such as offices and shops that produce an income from lease or rent.
• Alternatives, such as commodities, currencies, private equities, forestry etc.

Most unit-linked plans do not protect your capital. This means that the value of your investment may rise or
fall depending on the performance of the assets the fund invests in. Sometimes your investment can rise or fall quite dramatically in the short-term. You can choose from a range of different funds to suit your attitude to risk. These include low-risk deposit-type funds, medium-risk funds and higher-risk funds that invest almost completely in the stock market. The ‘safer’ the fund the lower the potential return. Higher-risk funds may offer better growth prospects but involve more risk to your capital.
Some unit-linked plans offer a ‘money-back’ promise on a particular date, or dates (for example on the 6th
anniversary). This means if you cash in your investment on that exact date, you will get back at least the amount you invested. This gives some protection if the fund has performed poorly. If you withdraw outside of the money-back promise date, you may lose some of your original investment. Plans that offer capital security generally have lower potential for growth than other unit-linked plans.

 For more information talk to one of our qualified financial advisors today!