Following Cork's mega win in last weekend's unprecedented Lotto draw with a €16million win going to Cork couple Paul and Helen Cunningham and their family, Hibernian, part of the global investment and insurance company Aviva, has some simple advice for anyone investing for their future.
Following Cork's mega win in last weekend's unprecedented Lotto draw with a €16million win going to Cork couple Paul and Helen Cunningham and their family, Hibernian, part of the global investment and insurance company Aviva, has some simple advice for anyone investing for their future.
Yvonne Coveney, financial adviser at Hibernian's Cork branch advises the Cunningham's and all other investors to do three simple things before deciding on a final investment plan:
- Take stock of what they have, what they owe and what's left
- Decide on their financial objectives in the short, medium and long term
Work with a trusted advisor to identify the investments that will match their objectives.
Speaking today at Hibernian, Yvonne Coveney, QFA said: "The best advice for any investor is make sure that they do the right thing for their individual circumstances. In the case of the Cunningham's, and what people sometimes forget is, they now face the very difficult task of ‘choice'. While they have €16million they still need to set priorities and maintain their sense of value in a new environment. At Hibernian we advise people with both large and small amounts of capital to invest and the core principles remain the same - make sure you know what you have, make sure you know what your financial needs are and make sure that what you invest in satisfies your financial needs."
Cork couple Paul and Helen Cunningham have joined the ranks of multi-millionaires in Ireland as a result of their win. This brings them into the "Super League" of investment and should ensure their and their family's financial security. However, financial security does not require €16million and high earnings do not guarantee future financial well-being and security.
For anyone with an eye on the future, saving small amounts regularly is the best start. For instance, a young saver, willing to save €150 per month into the Hibernian Spectrum Saver Plus (minimum premium for this product is €150 per month), the returns after 10 years could be as much as €21,549.83 @6% growth pa (€23,858.21 @ 8% growth pa), the returns after 20 years could be as much as €54,119.66 @ 6% growth pa (€67,500.24 @ 8% growth pa), these figures are based on the premium remaining level, no indexation increases.
For the more astute young saver, investing or saving in a pension or PRSA (personal retirement savings plan) is the most tax efficient way to save, for example a young male aged 21 who wishes to start saving now for retirement at age 65 can also put away €150 per month, however, the net cost to him will only be €120 (this is less tax relief, based on standard tax rate payer), at age 65 this astute saver will have amassed a pension fund of €258,159.63 @ 6% growth pa and will be entitled to take 25% as tax free cash from this fund, the remainder can then be used to fund for pension income for life. Again these figures are based in the premium being paid in remaining level, no indexation increases.
Alternatively, an individual investing a lump sum of €100,000 today and leaving it for 10 years could see a return of €154,882.53 based on 6% growth p.a or €186,715.92 @ 8% growth pa. After 20 years there could be a return of €238,685.56 based on 6% growth or €346,883.75 @ 8% growth.
All the above figures are estimates only as unit prices can rise as well as fall.
In terms of the range of investment options, Ms Coveney suggests investing winnings in a diversified investment portfolio consisting of Cash, Bonds, Property, Commodities and Shares and warns "not to put all your eggs in one basket and spread the risk by investing in all five asset classes to ensure the best possible return."
-ends-
Media enquiries:
Alan Tyrrell
Group Media Relations Manager
01 898 8452
086 850 8673
alan.tyrrell@hibernian.ie
Notes to editors:
About Hibernian
- Hibernian group is Ireland's largest composite insurer, ranked first for general insurance and top three for life and pensions.
- Hibernian group is a subsidiary of Aviva plc, the world's fifth-largest insurance group and the UK's largest insurance services provider (based on gross worldwide premiums at 31 December 2005), and is one of the leading providers of life and pension products to Europe, with substantial positions in other markets around the world. Aviva employs 58,000 staff worldwide.
- Aviva's principal business activities are long-term savings, fund management and general insurance, with worldwide total sales of £41.5 billion and assets under management of £364 billion at 31 December 2006.