INVESTMENT ADVICE FOR SENIOR CITIZENS
ACCA Ireland (Association of Chartered Certified Accountants) is offering five golden rules for senior citizens with a modest amount of life savings.
Leaving all of your savings on deposit in a local bank, post office, credit union or building society is the safest option for people over seventy; but shop around for interest rates, they do vary.
Do not be persuaded to tie up more than 20% of your money for more than five years.
Consider spreading risk by putting your savings in a combination of Irish and non-Irish banking institutions, ensuring deposits are government guaranteed.
A guarantee is only as good as the solvency of the financial institution or Government giving the guarantee and check the amount of the guarantee.
If you do not understand what the advisor is saying it is their fault not yours, walk away and put your money in a local bank on deposit
Aidan Clifford, ACCA’s Advisory Services Manager, said “Senior citizens have a greater need to protect their savings. What savings they have when they retire may have to last them for the rest of their lives. It is important that these savings are not put at risk. Senior citizens need to spread the risk by using a variety of financial institutions but predominantly they should be invested in government guaranteed deposit accounts in banks, building societies and credit unions.”
Senior citizens who are independently wealthy often secure professional advice and therefore have a diversified portfolio of investments which will be designed to both protect the wealth and pass it on tax efficiently to their children. People with modest savings do not necessarily have the same access to independent advisers.
Mr Clifford added “Investment advice may be sought from sources that are not independent or have a vested interest in selling a particularly high commission product. Advice is often also taken from ill-informed friends and family. Senior citizens need to be wary of free advice, often it is neither free nor advice. While there is redress available for those who identify that they received poor advice, some may not appreciate that they were poorly advised and may never have the opportunity to recoup their losses.”
Further information
Aidan Clifford, Advisory Services Manager, ACCA Ireland - 087 2470205
Barbara Elliott, Touchstone Communications. 087-2933580
Barbara@tstone.ie
Notes to editor
1. ACCA is the global body for professional accountants. We aim to offer business-relevant, first-choice qualifications to people of application, ability and ambition around the world who seek a rewarding career in accountancy, finance and management. We have 544,000 students and members in 170 countries worldwide. ACCA Ireland has 8,000 Approved Employers and over 20,000 students and members.
2. ACCA has worked with governments, national organisations and development agencies in emerging economies- for over 20 years- promoting the accounting profession, to create value for the communities, businesses and individuals it serves.
3. ACCA believes that globalisation of business means that one set of reporting standards is essential. We favour the principles-based IFRS.
4. ACCA understands the real issues facing small businesses as 63,000 of our members work in SMEs or small partnerships worldwide