In this week’s podcast, I unpack the growing issue of unregulated investments in Ireland — from headline-grabbing collapses to the hidden risks facing everyday investors. Discover why so many well-intentioned savers were caught out, what to watch for, and how to protect yourself from high-risk “opportunities” that promise too much.

Key points:

• The rise and fall of high-profile unregulated firms like Arena Capital, BlackBee, and Custom House Capital

• Why ordinary savers — not just speculators — were drawn into risky investments

• How commissions and incentives can cloud financial advice

• The lack of Central Bank protection and investor compensation for unregulated products

• Common fee structures and hidden costs investors often overlook

• Practical steps to verify if an investment is regulated

• Simple rules to stay safe and avoid losing hard-earned savings

Disclaimer

The content of this site including blogs and podcasts is for information purposes only. Everybody’s financial situation is different and the content we share on our site and through podcasts may not be applicable to you.

In this week’s podcast, we dive into why so many investors underperform the very funds they invest in. Drawing on Morningstar’s Mind the Gap 2025 research, we explore how “magpie behaviour” — chasing shiny new investments, panicking in downturns, or tinkering too much — quietly erodes long-term wealth.

The evidence is clear: bad behaviour can cost over 1% per year, compounding into massive losses over time. But the gap isn’t inevitable. This episode shares practical steps to help you capture more of the returns you deserve — and avoid being the magpie.

• Morningstar “Mind the Gap 2025” shows investors lose ~1.2% per year due to poor timing and bad behaviour.

• Chasing shiny investments (like tech, AI, or thematic funds) often backfires.

• ETFs and bond funds show wider performance gaps due to frequent trading.

• Behaviour matters more than markets or fees — discipline drives long-term returns.

• Five ways to close the gap:

  • Automate contributions, rebalancing, and withdrawals

  • Work with an advisor to stay disciplined

  • Focus on low-cost, globally diversified core holdings

  • Keep “fun money” small if dabbling in niche funds

  • Build a margin of safety into your financial plan

Disclaimer

• State Pension reliance: In Ireland, over half of workers without private pensions expect to rely mainly on the State Pension (€15,100 p.a. in 2025).
• Research insights: CCPC data shows 26% of adults are completely unprepared for retirement; many regret starting pensions too late or don’t understand how they work.
• Spending reality: Retirement spending often follows a U-shaped “smile”—high early, lower mid-life, higher again with health costs. But reductions are often enforced, not chosen.
• Global parallels: US data mirrors the same challenge—most middle-aged households have modest pension balances, and Social Security dominates retirement income.
• Cultural habits: Rising instant-spending patterns today may make cutting back tomorrow feel like deprivation.
• Solutions: Start saving early, define retirement goals, regularly review pension performance, seek professional advice, and prepare for Auto Enrolment (2026).
• The takeaway: Financial freedom in retirement won’t just happen—it must be planned for deliberately, and the time to act is now.