This is marketing material.

As people approach retirement, securing their financial future becomes a primary concern. The challenge lies in finding investment strategies that offer better returns than traditional savings accounts without taking on too much risk. Susan, an operations manager from Cork, found herself facing this exact dilemma as she looked for ways to protect her hard-earned savings, while enhancing returns and ensuring they remain liquid.

Meet Susan

Susan, 52, is married with two children and works full-time as an operations manager at a Cork-based bioplant. Throughout her career, she has been a diligent saver, consistently putting away money for her future.

Like many others in her position, Susan is seeking a conservative investment approach. However, one of the significant challenges she faced was that traditional savings provided very low returns, especially in an environment of low interest rates. To make matters worse, inflation had started to erode the purchasing power of her savings, further adding to her concerns about securing a comfortable retirement.

Susan needed a solution that could generate better returns without exposing her to the volatility of the stock market or the potential for significant capital loss.

What Cantor Fitzgerald Proposed

After a thorough consultation with Cantor Fitzgerald, Susan was presented with several low-risk, cash-alternative solutions designed to suit her needs. The focus was on preserving capital while seeking slightly higher returns than what she would get from traditional savings products. Cantor Fitzgerald suggested diversifying her cash holdings into two main products: Government bonds and structured deposit products.

1. Irish Government Bonds

One of the first recommendations Cantor Fitzgerald made was to allocate a portion of Susan’s cash savings into an Irish Government Bond. Essentially Susan will be buying debt off the Irish Government. The only inherited risk being the government defaulting on their debt, but with Ireland currently holding an AA rating this investment is very low-risk.

All Government bonds mature at 100c or “Par”, using a bond priced at 92c as an example, for every 92c Susan invests, she will receive 100c at maturity, and with Susan being an Irish investor she is exempt from paying Capital Gains Tax on these returns.

A bond maturity refers to the specific future date on which the investment amount will be repaid. Generally, Irish Government bonds maturities range from 1 year to 30 years.

Some bonds pay an annual coupon which are liable to Income Tax, as to mitigate adding to Susan’s taxable income our recommendation was to invest in a zero coupon bond.

Irish Government bonds are also a liquid instrument meaning they are traded daily, providing daily liquidity. This provides Susan with more access to her funds than a standard savings account.

For Susan, Government bonds were an ideal solution as they offered better returns, less tax liabilities and greater accessibility than a standard savings account. In her case, these bonds provided a low-risk way to enhance her savings without exposing her to excessive market volatility.

2. Cantor Fitzgerald Prime Saver Monthly Rolling Bond

The second product recommended was the Cantor Fitzgerald Prime Saver Monthly Rolling Bond. This is a structured deposit product tied to the Euro Short Term Rate (ESTR), offering capital protection along with the potential for higher returns compared to traditional fixed deposits.

One of the key features of this product is that it is designed for conservative investors looking for safety first but with a little more upside potential. The Prime Saver Monthly Rolling Bond offers flexibility, allowing Susan to roll over her investment on a monthly basis while maintaining a conservative risk profile.

With this investment, capital preservation is prioritised, ensuring that Susan’s hard-earned money is protected from significant losses, while the floating ESTR rate provides the opportunity for a better return than traditional savings products.

The Benefits of Diversification

By diversifying her investments between Government bonds and the Cantor Fitzgerald Prime Saver Monthly Rolling Bond, Susan achieved a balanced approach that focused on capital preservation while generating better returns than savings accounts.

Diversification is an essential principle in low-risk investing. Even within the realm of conservative investments, it’s important not to put all your eggs in one basket. Spreading out her savings across these two products reduced her exposure to any single risk factor, providing her with more stability and peace of mind.

Conclusion: A Tailored Low-Risk Solution for a Secure Future

For individuals like Susan, who are approaching retirement and seeking ways to derisk their investments, cash alternatives such as Government bonds and structured deposit products provide a valuable middle-ground option. These products may offer better returns than traditional savings accounts while maintaining a conservative risk profile.

Cantor Fitzgerald’s personalised advice helped Susan enhance her returns without taking on excessive risk, ensuring her savings continue to grow while protecting her capital. For others in similar situations, exploring cash alternative solutions could be a smart move toward securing a financially stable and comfortable retirement.

If you’re looking for ways to protect your savings while still achieving growth, get in touch to explore our low-risk cash alternative solutions.