In the latest edition of CIF Construction Magazine, Darragh Hogan explains. When considering your financial future, it’s worth taking a moment to think about your salary and what portion of it you could put aside with focused and disciplined saving. Now, imagine saving that amount consistently over five years. You could achieve a lot with that money. But what if you could do even more? Exploring investment options for long-term financial growth can help you maximise your savings and achieve greater returns over time.
Most individuals place their savings in a deposit account. While this offers a predictable and safe option, the returns are typically modest, limited to a low rate of interest. This approach ensures your money grows slowly over time, providing a little extra on top of your original amount.
However, for those looking to achieve greater growth, investing in funds can be a more effective strategy. Funds aim to grow your savings faster than the interest rates offered by standard savings accounts. With investments, the potential for returns can be significantly higher, though this comes with the added consideration of risk.
Understanding Your Investment Options
When you choose to invest, you have the opportunity to select funds tailored to your goals and risk tolerance. Some funds are designed for steady, consistent growth, while others aim for higher long-term gains but involve greater levels of risk. Ultimately, the choice is yours: do you prioritise stability, or are you prepared to take on more risk in pursuit of potentially higher returns?
Unlike deposit accounts, investments offer you control over how your money works. Through careful management and by building a diversified portfolio, you can align your investments with your personal financial objectives. A trusted financial advisor can help guide you through this process, ensuring you understand the risks and rewards associated with each decision.
Regular Savings vs. Lump Sum Investments
Saving regularly is a tried-and-tested way to build up funds over time, helping you meet financial goals such as buying a car, funding a holiday, or creating an emergency savings buffer. But if you already have a lump sum saved, investing that amount could be a smart move to generate higher returns over the medium to long term.
Your decision to invest should align with your financial objectives and time horizon. For short-term goals, such as saving for an upcoming holiday or a small purchase, a deposit account might remain the best option. On the other hand, for long-term goals—such as funding education costs or building retirement wealth—investing in funds can provide inflation-beating returns and greater growth potential.
Balancing Risk and Reward
It’s important to understand that investments carry a degree of risk. Typically, the higher the return you aim to achieve, the greater the level of risk involved. Before investing, you should assess your risk tolerance and consider how much fluctuation in value you are comfortable with.
Investors can choose from a range of funds and asset classes, each with different levels of risk and potential return. A financial advisor can help you navigate these options, ensuring that your investments align with your comfort level and financial goals.
The Role of Professional Advice
Choosing the right funds and building a diversified portfolio can seem daunting, especially if you’re new to investing. That’s where the expertise of a financial advisor comes in. By working with a qualified professional, you can gain clarity on your financial options and make informed decisions without being overwhelmed by industry jargon.
At Milestone Advisory, we specialise in guiding professionals in the construction sector and related industries towards financial security. Our team of qualified financial services consultants will work with you to review your finances, explore your investment options, and create a plan tailored to your needs. We pride ourselves on delivering advice in plain English—no jargon, just clear and actionable insights.
Take the First Step Towards Greater Financial Growth
Whether you’re just starting out with regular saving or have a lump sum ready to invest, there’s always a path towards growing your wealth. The key is to take that first step and seek professional advice to make your money work harder for you. Let us help you achieve more with your savings and investments.
Here to help you navigate your way to financial security.
The Milestone Advisory team are qualified financial services consultants. We specialise in helping professionals in the construction sector and related industries. Our team will work with you to review your finances, explaining your options in clear English.
No jargon – just the facts.
For more information, contact Darragh Hogan (darragh@milestoneadvisory.ie).
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