Spirit Financial Ltd

22/01/2026

Compliant Advice vs. Good Financial Advice?

When most people look to invest for retirement or invest personal monies, they are typically offered a suite of funds from life offices, each assigned an ESMA (European Securities and Markets Authority) risk rating on a scale from 1 to 7.

On paper, that sounds helpful, In practice, it often creates too much choice and too little clarity. Most mainstream Life offices such as Aviva, Zurich, New Ireland, and Irish Life tend to operate meaningfully within ESMA risk levels 1 through 6 so In truth, ESMA 7 rarely exists in practice with major life offices.

ESMA 1, 2, and 3 are extremely low-risk portfolios which realistically leaves ESMA 4, 5, and 6 for most long-term investors.

A simpler way to think about this is:
ESMA 4 → Lower-medium risk
ESMA 5 → Medium risk
ESMA 6 → Higher risk

The uncomfortable truth about low-risk funds, ESMA 1, 2, and 3 funds can absolutely have a place particularly where the time horizon is very short, or
a client explicitly states they want little or no risk however, over the long term, these funds typically deliver very modest returns. Once inflation and ongoing management charges are factored in, real growth can be minimal and in some cases, negative in real terms.

This creates a genuine dilemma for advisers.
It can be compliant to recommend a very low-risk fund but that does not always mean it is good financial advice.

Time horizon matters more than most people realise and when it comes to investing, time is your greatest ally.
As a broad rule of thumb:

5–10 years+ → ESMA 4
10–20 years+ → ESMA 5
20–30 years+ → ESMA 6

The longer the time horizon, the more volatility can be absorbed and the greater the potential impact of compounding returns over time.

Statistically, many clients will score a 3 or 4 following a standard risk-profiling questionnaire. An adviser could be wholly compliant in recommending a fund that mirrors that score exactly but the real question here is that the right outcome for you over the long term?

If you’d like an expert opinion on an existing pension plan, or guidance on setting one up properly from the start, feel free to get in touch.

19/04/2025

95% Success rate

06/04/2025

Exciting Announcement!

Spirit Financial is thrilled to share our new partnership with Nua Money Limited.

At Spirit Financial, we believe in building strong, meaningful partnerships that truly benefit our clients. That’s why we’re excited to team up with Nua Money Limited to expand our range of mortgage options and offer even more choices to those we serve.

A huge thanks to Fergal O'Leary and the entire team at Nua Money Limited. We’re excited to work together and deliver the competitive solutions that Nua Money Limited has to offer.

Why Nua?

Nua Money Limited offers streamlined, digital home financing with features like rapid loan decisioning, reduced documentation, and a focus on "mortgage ready" individuals, meaning they don't require a consistent savings or rental payment track record.

Digital and Streamlined Process: Nua Money Limited emphasises a digital and efficient mortgage process, from application to offer, aiming to complete the process in days rather than weeks. Nua Money Limited targets individuals who are "mortgage ready," meaning they don't necessarily need a long history of consistent savings or rental payments.

Reduced Documentation: Nua Money Limited simplifies the documentation requirements, making the application process easier and faster.

Fast Loan Decisioning: Nua Money Limited aims for rapid loan decisioning, from application to offer, in days, not weeks.

Fast Drawdown: Nua Money Limited offers a fast drawdown process, allowing for quicker access to funds.

Tailored Products: Nua Money Limited offers a range of mortgage products tailored to various needs and lifestyles.

Focus on Innovation: Nua Money Limited is at the forefront of introducing innovative mortgage products in Ireland.

This partnership strengthens our dedication to offering diverse, competitive, and client-focused mortgage solutions. At Spirit Financial, Our focus goes beyond business, we’re committed to creating meaningful value and collaborating with partners who genuinely care about putting clients first.

Ready to take the next step with your mortgage?

Get in touch with us today at www.spiritfinancial.ie

Established in 2008, Spirit Financial provides professional financial planning consultancy services, including pensions, investments and wealth management advice, mortgages, and life insurance consultancy.

06/04/2025

The True Effects of Tariffs and the Importance of Long-Term Investing.

Investing is about time in the market, not timing the market. If you had invested in major indices like the Dow Jones, S&P 500, or Nasdaq this time last year, you'd still be in a profitable position! Despite market volatility, long-term investment strategies have proven time and again to yield positive results. Below are 7 essential lessons that highlight the undeniable benefits of adopting a long-term investment approach:

1. Investing Creates Wealth Over the Long-Term
Wealth isn't built overnight. Consistent, long-term investing allows the power of compound returns to accumulate over time, significantly increasing your capital. While short-term fluctuations can be unsettling, the longer you remain invested, the more time your money has to grow.

2. Market Declines Are a Normal Part of Investing
Markets experience ups and downs, and downturns are a natural part of the cycle. Whether it's a correction, bear market, or momentary turbulence, it’s important to remember that these drops often precede periods of recovery. Emotional reactions to market drops often lead to missed opportunities for profit when markets bounce back.

3. Trying to Time the Market Can Be Costly
Many investors attempt to time the market, trying to predict the best moments to buy or sell. However, this approach is often fraught with risk and can be expensive. The reality is that timing the market is extremely difficult, and mistakes in this regard can result in significant missed opportunities and unnecessary losses.

4. Markets Often Recover Before the News Gets Better
Markets are forward-looking, and they often begin recovering long before the positive news hits the headlines. The recovery process typically begins once investors anticipate improvements, meaning waiting for "confirmation" through the media could cause you to miss the best part of the recovery.

5. The Odds Are Stacked in Your Favor
Historical data shows that, over time, the markets generally trend upward. Despite the short-term volatility, the probability of a positive return increases the longer you remain invested. Statistically, investors who hold their positions for a decade or more tend to see substantial returns.

6. The Power of Compounding – The Sooner You Start, The Better
One of the most powerful forces in investing is compounding. By reinvesting your returns, your wealth grows exponentially over time. The earlier you start investing, the more time your investments have to compound and grow. Small contributions today can lead to significant wealth in the future.

7. Understanding Market Risk – To Make Profit, You Need to Take Risk
Investing always involves some level of risk. However, risk should not be feared—it should be understood and managed. To achieve profit, one must take on calculated risks. This doesn’t mean investing recklessly, but rather embracing the reality that with higher risk comes higher potential reward.

The Bottom Line
What we’re witnessing now is a typical knee-jerk reaction to short-term market volatility. However, as certain as night follows day, the markets will eventually stabilize and recover. Remember, markets tend to be favorable for investors 7-8 years out of every 10-year cycle, so it’s essential to stay invested during challenging times.

Long-term investing is a strategy that has proven to create wealth for those who remain patient and committed. So, avoid trying to time the market, stay calm during short-term downturns, and allow the power of time and compounding to work in your favor.

Written by Robert Kelly Flynn, Financial Adviser

28/05/2024

Additional €50,000 for as little as €249 per month! Assumes a term of 25 years.

14/10/2023

Call us on 01 2944 280 for further details or visit our website 👍🏻

14/10/2023

***MORTGAGES***
€350,000 for Just €1,478 per Month!
www.spiritfinancial.ie
Assumes a GREEN HVM Rate of 3.65% over 35 years

20/09/2023

https://amp.theguardian.com/business/2023/sep/20/fed-interest-rate-inflation

Federal funds rate will remain at the the same level as the central bank announced in July, when it last raised rates

05/09/2023

***ATTENTION***
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Fixed Deposit Account Giving 20.25%!!!
Term 5 Years
Open to Cash Investments & Pensions
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24/08/2023

https://m.independent.ie/business/personal-finance/savers-losing-5bn-a-year-from-low-rates-paid-by-the-banks/a1883667889.html

Savers are losing out on billions of euro annually due to low interest rates being paid by banks.