In this episode, Marc Westlake and John McNicholas discuss the practical considerations of managing financial risk, a continuation of their previous discussion on understanding financial risk in Ireland.

They emphasise the importance of understanding personal risk factors and the bespoke nature of risk management in wealth management and investment. They also highlight the dangers of relying on presumed ‘low-risk’ assets like cash, bank deposits, or property, which may not keep pace with inflation.

Instead, they advocate for a diversified investment strategy that is aligned with an individual's specific financial situation and goals. This discussion highlights the importance of consulting with a wealth management adviser to navigate these risks and make informed decisions that align with your personal circumstances.

Main Topics:

1. Financial Risk Management - distinguishing between low-risk assets like cash and annuities versus property, and the risks associated with inflation over the long term.
2. Investment Strategies for Retirement - the importance of managing risk leading up to and following retirement. The risk of stock market fluctuations is less significant for those who are still decades away from needing to access their savings.
3. Personal Rate of Inflation - how it varies depending on individual lifestyle choices, spending habits, and life stages, contrasting with the general EU inflation rates.
4. Individual Financial Circumstances - the importance of understanding personal financial risks, which vary greatly depending on factors such as pension types, anticipated inheritance, and personal health.
5. Role of Financial Advice - Financial Advisers help individuals understand and plan for their specific financial risks and avoid common pitfalls like treating investing as gambling.

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This podcast is intended for information and educational purposes only and does not represent a specific recommendation or advice for an individual to follow. Speak to your financial adviser, in the context of your own personal circumstances, prior to making any financial or investment decisions.

This podcast uses the following third-party services for analysis:

OP3 - https://op3.dev/privacy