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My number one rule

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By Michael O’Connor, theislandinvestor.com

January tends to bring its fair share of resolutions. Under the blinding influence of Christmas blues, we vow this will be the year we lose weight, the year we drink less, the year we sort out our finances.

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So for those about to undertake a forensic examination of their finances in a bid to uncover the mystery of where your money has been disappearing to all these years, here is my number one rule.

Don't overcomplicate it.

In psychology there is a term known as 'complexity bias'. This refers to our tendency to levitate toward the more complex solution, ultimately over-complicating a simple problem.

Those with the most complex solutions get resounding recognition, while the obvious answers get discarded.

In investing, this is everywhere, millions of strategies, thousands of different investment options, each one more convoluted than the next.

And people eat it up, paying portfolio managers through the nose for the privilege of complexity.

My advice: if you're starting out, embrace simplicity.

Everyone wants the optimal portfolio. They want to know the name of the next stock that's going to 10x in value. They want maximum returns. This pursuit of the perfect trade often results in people investing in nothing at all.

We operate in extremes: everything or nothing. The absence of the illusive perfect investment means we do nothing with our money; sitting on our hands, waiting for a life-changing investment to come up and slap us in the face.

Now, I hate to be the bearer of bad news here, and this may be stating the obvious, but some people need to hear it. There is no perfect investment, but thankfully, there are plenty of good ones, and that's a start.

This is where you should focus your efforts. Start with the easy wins.

Simplifying the problem instead of chasing perfection allows you to take the necessary steps to get started. From there, you can build out your investments over time.

The general consensus suggests investing is too risky. I get it. A lot of trading activity can be speculative at best.

But the recent rise in interest rates means there are now higher interest rates, low-risk investments out there.

This is a game-changer. Now there are opportunities for even the most risk-averse investor to enter the market.

In 2022, we all felt first-hand the damage that inflation can do to our savings. Now more than ever, you need to be proactive to ensure you are putting your money to work.

Investment options that are backed by the full faith and credit of the US Government are now offering up to 5%.

This is the perfect place to start. Simple.

Yes, 5% a year won't make you a millionaire overnight, but that's not the game we are playing. At least not yet.

Start by improving your current situation, step by step. If you're accepting pennies from your deposit account, improve your returns by investing in short-term bonds.

Risk-free treasuries offer 4.8%, while the savings account rate for all financial institutions insured by the FDIC is 0.24%.

One simple change will almost 20x your return.

Take the easy wins, it doesn't all have to be as complicated as they make it out to be.

For anyone who is needs help, just reach out to me at mike@theislandinvestor.com or scan the QR code. Always happy to help.

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Credit Union launch a new collaboration with Gilroy’s Green Energy Ltd.

Building on recent success the Credit Unions of Kerry and West Limerick have launched a new collaboration with Gilroy’s Green Energy Ltd. Gilroy’s Green Energy Ltd specialise in Photovoltaic (PV) […]

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Building on recent success the Credit Unions of Kerry and West Limerick have launched a new collaboration with Gilroy’s Green Energy Ltd.

Gilroy’s Green Energy Ltd specialise in Photovoltaic (PV) Solar systems that generate electricity, battery storage, air to water heat-pumps and much more.
Gilroy’s work with customers to receive the SEAI once-off grant towards the purchase and installation of solar photovoltaic (PV) systems and heat pumps for your home.
Collaborating with Kerry and West Limerick Credit Union expands the finance options available to Gilroy’s Green Energy Ltd customers to help finance new PV Solar Panel installations. Loan rates will be directly linked to the property BER starting from 4.7%(4.89APR) for an “A” rated BER.
Martin Gilroy; CEO with Gilroy’s Green Energy Ltd said: “We are delighted to officially launch this collaboration with the Credit Unions of Kerry and West Limerick. Customers have already reaped the benefits on recent installation projects after contacting their local Credit Union. Having a direct link to local Credit Unions allows us to guide customers to affordable financing options based on the specific installation quotation we provide at very competitive rates.“
Speaking on behalf of the Kerry and West Limerick Credit Unions, Ashley Fitzgerald added: “We are delighted to have Gilroy’s Green Energy Ltd come on board as part of our Greener Homes Loan offering. Home Energy Upgrade have become a prominent concern and talking point among members in recent months, by Credit Unions having a direct link with Gilroy’s Green Energy Ltd allows both sides to make referrals and seek the best finance option for members. We are working hard building relationships with Green Energy Ltd providers as we want to ensure our members can avail of the best loan rates for all upgrade works.”
Credit Unions across Kerry and West Limerick. Abbeyfeale Credit Union, Cara Credit Union, Killarney Credit Union, Listowel Credit Union and Rathmore and District Credit Union can be reached via: www.creditunion.ie
Gilroy’s Green Energy Ltd can be contacted on 066-7115920, email info@gilroys.ie or for more information visit www.gilroys.ie.

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Racegoers Club to host Cheltenham Preview Night

Killarney Racegoers Club will host its annual Cheltenham Preview Night in Corkery’s Bar on March 7. Admission is free and this year’s chosen beneficiary is the Killarney Branch of St […]

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Killarney Racegoers Club will host its annual Cheltenham Preview Night in Corkery’s Bar on March 7.

Admission is free and this year’s chosen beneficiary is the Killarney Branch of St Vincent De Paul Society.
The expert panel includes professional punter Paddy Wilmott, leading jockey Conor McNamara, up-and-coming Kerry-based trainer Eoin McCarthy and local bookmaker Brendan Tyther with Vince Casey acting as the event’s compere.

“There is no admission fee but a raffle on the night for dual membership of Killarney Racegoers Club for the year, which includes 13 days racing and many reciprocal days to other race meetings,” said Mr Casey.

The Cheltenham Festival begins on March 12.

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