Then the program will narrow down your options from thousands of advisors to three registered investment advisors who suit your needs. Email: reception@orlamurray.com, Tel: +353 (0) 91 564 777  |  Fax: +353 (0) 91 564 054 and www.orlamurray.com All other rights belong to their respective owners. If you happen to have a good size of investment portfolio, then the majority of your money will be in this category, where only one tax benefit … But unfortunately, all of the research and counseling in the world can’t necessarily guarantee a high rate of return. However, rapid economic growth can lead to higher interest rates. “Star” fund managers get a lot of media attention, but their impact in reality on the returns of investors is actually relatively small. Social media uptake will obviously not initially drive a sales increase, but it is … For example, the … You can then read their profiles to learn more about them, interview them on the phone or in person and choose who to work with in the future. In some industries where the product being manufactured is a simple standardized one, innovation is difficult and management would be extremely cost conscious. Luckily, planning ahead can reduce the taxes you owe the government. The key is to have a structured plan for your investments, and to then stick to the plan. When rates rise, so do borrowing costs. Photo credit: ©iStock.com/petdcat, ©iStock.com/Alejandro Rivera, ©iStock.com/Mitja Derenda. Are you surprised by this one? Finally you will often hear us say that trying to guess the best time to either enter or exit markets is folly – none of us have a crystal ball. ©2014 Orla Murray Financial Services Galway Ireland It is expressed in absolute terms. After all, the greatest stock selector in the world will have little impact on your investment returns if only 10% of your money is in equities… Asset allocation is an important driver of investment returns, and is a factor that we spend a lot of time considering when building investment portfolios. An author, teacher & investing expert with nearly two decades experience as an investment portfolio manager and chief financial officer for a real estate holding company. Most investments such as CDs, brokerage accounts, and savings accounts only have one of these three tax benefits, and that is tax-free withdrawal of growth. There are a number of factors that create a drag on investment returns that must be managed carefully. Tá Seirbhísí Airgeadais Orla Murray rialaithe ag Banc Ceannais na hÉireann. Where C e = Cost of equity capital. The key is to have a clear investment strategy… and to then stick to it. Fax: +353 (0) 91 564 054 The factors that affect the computation of return on investment are: (1) Profit Margin, Net Income/Sales and (2) Turnover, Sales/Investment. How Much Do I Need to Save for Retirement? When you are looking to invest in a certain sector or company, it might be helpful to take a look at the relevant commodity prices and keep track of major changes in the markets. Market returns depend on several factors, such as corporate profits, interest rates, geopolitical events and natural disasters. World events like wars, natural disasters and elections can have both direct and indirect effects on the stock market and your savings. Cost of capital is also not away from this fundamental law. Time-Period Basis: An implication surrounding the use of time-series data in which the final statistical conclusion can change based on to the starting or ending dates of the sample data. A lack of jobs can lead to a drop in consumer spending. Economic factors almost always play a role, affecting your equity returns in the short and long term. We see this all the time… fear in falling markets and people selling as assets get cheaper, and greed in rising markets with investors then piling in and buying expensive assets. Orla Murray Financial Services is regulated by The Central Bank of Ireland. Because that reduces the total equity in favor of liabilities, ROE … And when consumers keep too much money in their pockets, the economy suffers. First you’ll answer a series of questions about your situation and goals. Social media uptake. The Business Cycle The value of an investment, and the return on that investment, can be influenced by factors beyond the control of the company involved. Also markets can be quite volatile over short periods of time, so investments held for longer periods tend to exhibit lower volatility than those held for shorter periods – another advantage of longer term investing. A simple investment, such as a $1,000 bank deposit guaranteed to pay 2% for a year plus the return of the $1,000 at the end of the year, has almost no risk. Orla Murray Financial Services When the economy enters a … The longer you then invest allows this compounding to really deliver over time. When you ask a professional investor, they will often jump to factors such as … Having the right mix of stocks and bonds in your portfolio and selling off low-performing investments can also work in your favor during tax season. This allows you to find a good fit while the program does much of the hard work for you. Investments can be great wealth building tools that you can use to multiply your savings. The return on investment can be increased by: (1) increasing sales, (2) reducing expenses, and, (3) reducing the investment … When the demand for capital increases, the cost of capital also increases and vice versa. It is the minimum return which investors wish to get on their equity stocks. World events like wars, natural disasters and elections can have both direct and … Factors affecting international equity return Macroeconomic factors Economic factors affect corporate profits, which influence stock prices and equity returns. On the other hand, it does pay to obsess about factors that affect investment decisions like portfolio diversification, investment quality, and the extent to which your portfolio suits your personal goals and temperament. Internal Rate of Return – Internal Rate of return is the rate at which an investment … Factors affecting your level of investment include your amount of surplus income, current economic conditions, your personal risk tolerance, your future needs and the expected return you want to … Whether you’re an expert or a novice, it’s important to keep in mind that there are certain uncontrollable factors that will always have an impact on your investments. When you ask a professional investor, they will often jump to factors such as the economy, sentiment and interest rates. Capital investment factors are elements of a project decision, such as cost of capital or the duration of investment, which must be weighed to determine whether an investment should be … Email: reception@orlamurray.com. In the credit crunch of 2008, many banks were short of liquidity so had to cut … Time impacts investments in a number of ways. Understanding taxation of your investments is crucial to maximizing returns. We will always look to bring your focus back to the plan – what you are trying to achieve, the investment strategy put in place to get you there and to keep you focused on that. We’ll also explore two new factors that most investors don’t know about (profitability and momentum). 11. or how much you should have in each of these asset classes. Availability of finance. The prices of lumber, oil, cotton, wheat, coffee and gold depend on supply and demand. 1 Forthill Street, Off Merchants Road, The … Portfolio diversification … Tax Liability: Your tax or any special tax circumstances are a few considerations that will help you … While there are many factors outside your control when it comes to investing, staying informed and knowing what’s happening in the markets can help you make better decisions that can maximize your returns. Bank of America® Travel Rewards Visa® Credit Card Review, Capital One® Quicksilver® Cash Rewards Credit Card Review, 7 Mistakes Everyone Makes When Hiring a Financial Advisor, 20 Questions to Tell If You're Ready to Retire, The Worst Way to Withdraw From Your Retirement Accounts. We are always happy to chat though the charges that apply to any investments, and also the different tax strategies that can potentially be deployed. Some companies use agricultural raw materials as inputs, while others are suppliers of such inputs. 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