4 reasons to invest

Both savings and investments have a place in your financial plan. Investing is more suitable to meet longer-term financial goals and can offer several benefits, such as helping your money outpace inflation and building wealth. In this short article, I'll give three key reasons why you should consider investing. 

1. Outperforming inflation

Inflation is a term used to describe a broad increase in the cost of goods and services over time. Inflation reduces the purchasing power of money, causing its value to drop. Investing gives your money a chance to grow and maintain its purchasing power over a longer period. If you plan to save money for the future, investing could provide a better return than just keeping your money in the bank. 

Learn more about inflation eroding money's real value on deposit <link to other article>.

2. Helps you meet long-term financial goals

Investing can help you reach big financial goals. Investing offers the potential of higher returns than cash savings over the long-term.  You can use the returns on your investments to help you achieve major financial goals, such as buying a home or putting your children through college.

3. Can help you save for retirement

Prioritising your pension as a key financial need will help you enjoy a comfortable retirement.  A pension offers immediate tax benefits. The earlier you start saving for retirement, the sooner you can begin capitalising on the effects of compounding returns.

4. Can help with tax planning

One of your financial goals may be to share your wealth to provide financial stability and support for future generations. A range of savings options allow you to do this: 

1. An Aviva Savings Plan endorsed under Section 73 of the Capital Acquisitions Tax Consolidation Act 2003 allows you to pay your beneficiaries' gift tax when you transfer assets while you're still alive. 

2. Our new Children's Savings Investment Trust allows you to take advantage of the annual small gift tax exemption. Here, you can gift up to €3,000 tax-free in any year (€6,000 per couple) to your child, grandchild, or anyone under 18. 

3. We also offer a simple third-party payer solution if you wish to gift up to €3,000 tax-free to a beneficiary over 18 in any year.

Of course, tax laws are subject to change, it’s important to check revenue.ie for the latest information.  You should seek professional tax and legal advice to satisfy yourself of your tax position.

How to invest

Investing isn’t just for the wealthy, it’s a powerful way for anyone who wants their money to work hard for them. With Aviva’s Savings Plan you can invest from €100 a month and if you have a lump sum you can invest in Aviva’s Investment Bond from €10,000.  A Financial Broker is the best place to start your investing journey.  They’ll help you choose the right investments to help you get the results you want. 

Watch our short video to learn more about Savings and Investments from Aviva

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Transcript  for video Learn more about Saving and Investing

00:00:00 Video Starts

00:00:06 - Question

Stephen Rice one minute pitch.

Savings and investments.

Your time starts now.

Deposit accounts or investment products?

00:00:15 Stephen Rice

Deposits for short-term need, such as your rainy day fund. Investments for longer term horizons, such as kids education, or indeed, your retirement.

00:00:23 - Question

Why choose an investment product to meet longer term needs.

00:00:26 Stephen Rice

Two main reasons, I suppose to beat deposit rates over the longer term, and secondly, to beat inflation.

00:00:31 - Question

Why invest with Aviva?

00:00:33 Stephen Rice

We offer a range of funds to meet different people’s risk profiles, and we also have ESG, or sustainability at the core of our ethos.

00:00:42 - Question

Do you need a lot of money to invest?

00:00:43 Stephen Rice

No, you can start saving with Aviva from €250 per month.

00:00:48 - Question

How do you invest?

00:00:49 Stephen Rice

Very simply talk to your financial broker who will match you with the right product for your needs at a point in time.

00:00:54 - Question

What are your top tips for investing?

00:00:55 Stephen Rice

It may sound simple but understand the time horizon you wish to save for and why you’re saving.

00:01:00 - Question

Finally, Stephen, what are you investing for at the moment?

00:01:03 Stephen Rice

Well as a father with a young family, for me it’s definitely education, and maybe the need to move to a bigger house or extend on our current house as the kids get a bit older.

00:01:14 - Question

Stephen, your time is up.

For more information on savings and investments, contact your financial broker.

00:01:34 Video Ends

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Warning: All figures are estimates only. They are not a reliable guide to the future performance of this investment.

Warning: Past performance is not a reliable guide to future performance.

Warning: The value of your investment may go down as well as up.

Warning: If you invest in these products you may lose some or all of the money you invest.

Warning: These products may be affected by changes in currency exchange rates.

The funds referred to in this document may be linked to an insurance-based investment product and the Key Information Document (KID) for this product is available at www.aviva.ie/KIDs. The Risk Ratings of the funds referred to in this document differ from the corresponding Summary Risk Indicators shown in the KID. An explanation of the differences between the Risk Rating and the Summary Risk Indicator is available at the  location above.

Aviva Life & Pensions Ireland Designated Activity Company, a private company limited by shares. Registered in Ireland No. 165970. Registered office at Building 12, Cherrywood Business Park, Loughlinstown, Co. Dublin, D18 W2P5. Aviva Life & Pensions Ireland Designated Activity Company, trading as Aviva Life & Pensions Ireland and Friends First, is regulated by the Central Bank of Ireland. Tel (01) 898 7950.