You need to be extremely carefully when you are planning to invest some of your child’s Domiciliary Care Allowance or Disability Allowance for the future. A common sense and low risk attitude is a must. I recommend that you go and speak to a range of investment advisers to see what is the best advice for your particular situation.

A number of issue that you need to be conscious of are

  1. The investment doesn’t interfere with any entitlement you are in receipt off ?
  2. What level of risk is involved with the investment?
  3. What is the real return of the investment after you deduct DIRT, management fee & charges?
  4. Would it make more financial sense to clear your personal loans or mortgage?
  5. How safe is your investment?

All Banks, Credit Unions and Brokers you seek advice from should be authorised by the Central Bank to handle your money. This authorisation protects you from unscrupulous traders. Under this regulation it provides you the customer with a number of safety nets.

The main one being the Deposit Guarantee Scheme.

This protects you if your bank, building society, or credit union has been declared insolvent or a liquidator declares that it cannot repay its deposits. Any loans you have with your institution may be deducted from the balance of your deposit and then you would put in a claim for the remaining balance. This scheme is funded by authorised institutions.

You will only get your money when it has been clearly established that the institution cannot give you back your pennies. The funds will come from the scheme. Check out the Deposit Guarantee Scheme for more information click here.

If you have a financial question that you would like an answer to then email allan@financialwellbeing.ie or call 021 234 8990.

Allan Matthew Cuthbert t/a Financial Wellbeing is regulated by the Central Bank of Ireland to advice on Mortgage,Savings, Life and Pension products