Navigating Investment Strategies: Expert Insights on Diversification and Growth
Article Summary
Investment experts emphasize the critical importance of diversification and understanding personal risk tolerance when developing a long-term investment strategy. Historically, equities have outperformed other asset classes, with expected returns around 5% above inflation, making them a crucial component for investors seeking growth over time. The changing landscape of pension practices means that investors should no longer automatically shift to cash as they approach retirement, but instead maintain a balanced approach that considers ongoing growth potential. Cian Morrissey of Morrissey Wealth Management highlights the evolving nature of retirement investing, pointing out that with Approved Retirement Funds (ARFs), investors may actually be only halfway through their investment journey even near retirement age.
Cian Morrissey’s Key Quotes
- “The need to de-risk should be tempered with the need for ongoing and future growth.”
- “I will often advise clients to split their investment between two different life companies. This not only reduces asset manager risk but you can pick funds that are primarily invested in different sectors/locations etc, and with a different balance of assets.”
Managing Sudden Wealth: Expert Guidance on Inheritances and Windfalls
Article Summary
Financial windfalls, particularly inheritances, present both exciting opportunities and potential challenges for recipients. Experts emphasize the importance of careful planning, with the 2025 budget increasing personal Capital Acquisition Tax allowances and highlighting the growing trend of intergenerational wealth transfer. Professional financial advisors recommend a measured approach, including paying off short-term debt, creating an emergency fund, and developing a diversified investment strategy. While the temptation to spend wildly exists, strategic planning can transform a windfall into a long-term financial benefit.
Expert Quotes
Cian Morrissey, Morrisey Wealth Management
- “The first thing should be to assess your financial position before the windfall by asking questions like do you have any emergency savings or do you have expensive short-term debt?”
- “If it was unexpected, the most I would advise a client to do is to pay off expensive short-term debt, if they have any, and then park the funds in a deposit account for six to 12 months while they plan what to do with the money.”
Insurtech: The Technology Revolution in Insurance
Article Summary
The insurance industry is undergoing a significant transformation driven by technological advancements, particularly in artificial intelligence and big data. The global insurtech market is projected to grow from $8.6 billion to $32 billion by 2029, with a 30% annual growth rate. These technological innovations are streamlining processes like claims management, underwriting, and customer communication, offering more personalized and efficient insurance services. While current benefits are primarily internal for insurance providers, experts predict future innovations will directly improve consumer experiences, including more flexible and targeted insurance products.
Cian Morrissey’s Key Quotes
- “At one of the main life houses, the majority of cases submitted to an AI underwriter are approved. Some other life companies use a technology developed by underwriters to ask important questions which could lead to an approval. It is quite sophisticated, and even if there are underlying conditions, the technology is able to, in real time, ask clients for further information.”
- “Many clients get approved instantly without a human underwriter’s review. This frees up the human interaction for the more complicated cases.”
- “When it comes to financial planning in general, while technology is an excellent tool, clients still want the personal touch and generally a face-to-face meeting when making important decisions. For products like pensions and investments, the human touch is still very important.”