While there are very good reasons to keep some money in deposit accounts for a rainy day, investing is essential to beat inflation

26th September 2025, Dublin:

Many people want to manage their money better and grow their savings, especially as household wealth in Ireland hit a record €1.25 trillion in early 2025. Much of this (€855 billion) is in property, but a significant amount remains in low-interest deposit accounts—€167 billion as of July—earning less than inflation and losing real value over time.

Experts stress the importance of a balanced financial plan:

  • Start with an emergency fund (3–6 months of essential expenses).

  • Avoid letting too much money sit in low-yield accounts, as inflation erodes its value (e.g., €50,000 loses €11,000 over 10 years at 2% inflation).

  • Investments in equities generally beat inflation over time but carry risk and volatility. Diversification is key—don’t try to pick individual stocks.

  • Balanced investment portfolios typically include a mix of equities, bonds, commodities, and cash equivalents. However, this often excludes private market investments, which can offer greater diversification and potentially higher long-term returns.

In his recent article with The Irish Times, Alan Merriman, Co-Founder & CEO of Elkstone, suggests that even diversified public market portfolios are highly concentrated, especially due to the dominance of the “magnificent seven” big tech stocks.

  • 87% of global companies with revenues over $100 million are private, not public.

  • Investing in private companies can broaden diversification and improve long-term growth.

Private market investments include, private companies, credit funds (e.g. mortgage, auto loans, infrastructure lending and hedge funds with varied return strategies.

Although private markets can offer higher long-term returns, they come with downsides like reduced liquidity and higher entry thresholds.

The key takeaway:

Build a safety net, avoid letting savings stagnate in low-interest accounts, diversify your investments, and consider both public and private markets based on your financial goals and risk tolerance.

Alan Merriman says: "You need to be in both. They are not an alternative to public markets, it’s an additional investment and you are doing yourself a disservice if you are not investing in both of them.”

Read the full article from Elkstone's Co-Founder & CEO, Alan Merriman on The Irish Times