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Wealth Management Dublin: 10 Rules for Wealth Creation

Hiring a wealth management Dublin firm to manage your finances so that you’re comfortable in the years ahead is easily one of the most important things you will ever do. Because you don’t want your quality of life to drop as you get older, you need to ensure that your property, investments, business finances and personal spending are all perfectly balanced.

As such, a good wealth management advisor won’t just provide you with an array of optional products to help your finances grow. Their main goal will be to outline a detailed plan on how to measure the potential you have to make money in the future without having to sacrifice much today.

Our team have years of experience guiding clients in all matters financial, so to help get your finances ready for what’s ahead, we’ve put together our list of the 10 most important rules for wealth creation. When you read them you’ll have a good idea of how we work, but if you prefer to get right down to business and find out exactly what our wealth management Dublin team can do for you, we’ll be able to sort out your plan just as soon as you pick up the phone and give us a call: (01) 969 5786

Wealth Management Dublin: The 10 Most Important Rules for Wealth Creation

  1. The stock market is best described as a place where impatient people give their money to patient people. In other words, the stock market rewards the patient and really punishes all other investors. A good financial planner will make sure you’re on this right side of this line.
  2. Create a well-diversified portfolio that has access to all the main asset classes. We know from experience that funds rarely perform the same every year.  This year’s star performer is unlikely to be best in class next year. We have the evidence over the last 50 years which demonstrates clearly that picking a fund purely based on its recent performance is not a great idea.
  3. All savings and investing needs to be deducted automatically on a regular basis, either monthly or annually. This is really the only way of accumulating wealth unless you are lucky enough to win the lotto, inherit monies or sell your business at the top of the market.
  4. Understand the benefits of compound interest. By way of example, if you invested a once off lump sum of €10,000 into a fund 30 years ago and achieved a growth rate of 9% p.a. (which has been achieved by the S&P 500), the value today would be €132,676. This is a growth rate equivalent to 1226% over the term. These numbers clearly demonstrate the power of investing over the long term, through thick and thin, in good times and bad, in a disciplined manner.
  5. Pay particular attention to fees and charges. If you are paying an annual management charge of 2% over a 30 year period, you will only retain 54.55% of your fund after costs. In other words, 45.45% of your fund will be taken in charges by the provider. The layman would probably consider a 2% annual management charge as very good value and inexpensive. He couldn’t be further from the truth.
  6. Understand inflation. Rising prices can be a great friend or your worst enemy e.g. if you are unlucky enough to be stuck on a fixed income, the purchasing power of your income will be seriously eroded over time. However, if you are asset rich (you own a “buy to let” or shares in good companies) it is reasonable to assume that your income will be increasing with the passage of time.
  7. Proceed in a structured and disciplined manner in order to generate wealth. You must stick with the plan and not try and time the markets. Remain invested in good times and bad and don’t be tempted to exit the market due to some negative events. “Time in the market” not “Timing the market” is a key to wealth generation. It’s all about remaining invested over the long term without making too many changes.
  8. Understand how tax affects your investments. Tax is one of your biggest expenses in life. It is very important to maximise any tax incentives/reliefs that are available to you as a business owner or individual. You might not always be aware of what options are available, which is why it’s important to consult an expert.
  9. Ensure that your financial planner rebalances your portfolio on a regular basis in order to ensure no drift and reduced risk. This process also consolidates any gains made.
  10. Have a detailed financial plan prepared by a Certified Financial Planner. It is very important that the plan is reviewed on a regular basis to ensure that it remains meaningful and relevant. After all, your life is always changing and your financial plan should change to suit.

Mason Wealth Management Dublin

As you can see from our set of rules, it’s important not to follow flash in the pan trends or empty promises of becoming rich in the short term. There are often sudden changes in your life and in the financial world, but in the end it’s level-headed thinking that will see you through it.

Our business ethic is all about patience, planning and smart decision making. In the years to come we will be able to help you create a comfortable life for yourself and your family while allowing you to enjoy the benefits of your finances today.

Contact our wealth management Dublin team to tell us a little about yourself and we can arrange a meeting to make a professionally tailored financial plan to suit your needs: (01) 969 5786