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How best to diversify deposit safely

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  • 27-05-2012 1:28pm
    #1
    nino1
    Registered Users Posts: 826 ✭✭✭


    I have €25,000 savings and although it's not a lot I am worried about having it in an Irish bank in case the Greek situation escalates.
    I have no knowledge of investments so I am looking for any advise I can get!
    I'm thinking of spreading it three ways, €8,000 into a sterling account that I already have set up.
    €8,000 into a eft/mutual fund not reliant on european markets, perhaps an emerging market eft
    and the last €9000 I open to advise! (well actually all options are open to advise!!)

    If Greece leave euro and contagion sets in or the euro collapses will a stock market crash result and will that affect eft's and mutual funds no mater what market they are invested in?

    Which is safer eft's or mutual funds?

    What do you think of my plan and what do you think are the best ways to diversify?

    I'm not worried about roi just interested in safety.

    Any help would be much appreciated.


Comments

  • Options
    #2
    OfflerCrocGod
    Registered Users Posts: 6,306 ✭✭✭OfflerCrocGod


    If you are worried about safety then a savings account is best.


  • Options
    #3
    consultan
    Site Banned Posts: 12 ✭consultan


    In times of currency devaluations and debt defaulted banks or countries, the best way to save is not to have any cash at all, but to have an asset that keeps the value of the purchasing power. it has to be physical asset, gold or silver bars. gold is the real money, in the 1930's one ounce of gold price was 34$, today it is 1600$ and hit 1900$ recently, the faster monetary troubles escalate, the higher assets value goes up. I have an allocated physical gold account in Switzerland through one of the biggest partners of world gold council. to open account is free click here
    http://www.bullionvault.com/#securevault

    it is important to give yourself a bit of money education.
    see this:     http://www.youtube.com/watch?v=_vlP7BaoERw&feature=related

    good luck
    consultant


  • Options
    #4
    nino1
    Registered Users Posts: 826 ✭✭✭nino1


    OfflerCrocGod wrote: »
    If you are worried about safety then a savings account is best.

    the reason i am investigating these options is because i don't believe my savings would be saft in a savings account


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    #5
    consultan
    Site Banned Posts: 12 ✭consultan


    Avoid banks or shares at the moments, central banks will ultimately print more money (devaluation of paper money), it doesnt matter whether they use this new money for bail outs or to push markets up or countries default...it will all boil down to paper money destruction. that means your 1 Euro today could buy 1kg of bread, tomorrow after they print more money you will need 2, 3 or 4 Euros to buy the same 1kg of bread. if you open gold account, despite the ups and downs in price, the trend is ultimately going up unless the fundamentals change. I listen often to Robert Kiyosaki, learned a lot from this guy and tripled my money.


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    #6
    euroboom13
    Registered Users Posts: 650 ✭✭✭euroboom13


    when the printing starts .....banks will benefit first......i think gold is over valued and capital will move into riskier stock...gold will devalue(already has)........euro is stronger then greek crisis bull(thats what uk/usa are more worried about)


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    #7
    OfflerCrocGod
    Registered Users Posts: 6,306 ✭✭✭OfflerCrocGod


    nino1 wrote: »
    the reason i am investigating these options is because i don't believe my savings would be saft in a savings account
    The Deposit Protection Scheme protects you up to €100,000. Making panicky decisions about your money is rarely a good move.


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    #8
    nino1
    Registered Users Posts: 826 ✭✭✭nino1


    are there etf's that would not be affeacted by a euro collapse?

    Can someone give me an example of a safe diversified portfolio, say over 3 areas?
    I know nothing is completely safe but one that would reduce my risk of losing my money in a worst case scenario.


  • Options
    #9
    roro2
    Registered Users Posts: 412 ✭✭roro2


    By “safety” I presume you mean preserving your capital. Placing €8k in Sterling immediately exposes a third of your portfolio to significant FX risk. Another third would be exposed to significant market risk (especially if exposed to emerging market equities). While both of these investments could conceivably perform better than Irish Euro deposits in certain disaster circumstances, they would of course be severely affected too, in unpredictable ways (but it’s safe to say equity markets would also take a bit of a hammering). By pursuing what you are suggesting, you are immediately increasing the risk of your portfolio, and need to be able to live with the real possibility of losing some of your capital – from your post, it doesn’t sound like you are. It is also worth remembering that someone based in the Eurozone will still need euro to spend, and if the euro falls in value, this is not necessarily a bad thing with limited direct impact.


  • Options
    #10
    kermit_the_dog
    Banned (with Prison Access) Posts: 159 ✭✭kermit_the_dog


    nino1 wrote: »
    I have €25,000 savings and although it's not a lot I am worried about having it in an Irish bank in case the Greek situation escalates.
    I have no knowledge of investments so I am looking for any advise I can get!
    I'm thinking of spreading it three ways, €8,000 into a sterling account that I already have set up.
    €8,000 into a eft/mutual fund not reliant on european markets, perhaps an emerging market eft
    and the last €9000 I open to advise! (well actually all options are open to advise!!)

    If Greece leave euro and contagion sets in or the euro collapses will a stock market crash result and will that affect eft's and mutual funds no mater what market they are invested in?

    Which is safer eft's or mutual funds?

    What do you think of my plan and what do you think are the best ways to diversify?

    I'm not worried about roi just interested in safety.

    Any help would be much appreciated.


    in the extremley unlikely event of a euro breakup , the safest place to be is in the american dollar , the dollar is the ultimate safe haven bar none


  • Options
    #11
    kermit_the_dog
    Banned (with Prison Access) Posts: 159 ✭✭kermit_the_dog


    consultan wrote: »
    In times of currency devaluations and debt defaulted banks or countries, the best way to save is not to have any cash at all, but to have an asset that keeps the value of the purchasing power. it has to be physical asset, gold or silver bars. gold is the real money, in the 1930's one ounce of gold price was 34$, today it is 1600$ and hit 1900$ recently, the faster monetary troubles escalate, the higher assets value goes up. I have an allocated physical gold account in Switzerland through one of the biggest partners of world gold council. to open account is free click here
    http://www.bullionvault.com/#securevault

    it is important to give yourself a bit of money education.
    see this: http://www.youtube.com/watch?v=_vlP7BaoERw&feature=related

    good luck
    consultant

    gold will plummet in the event of a euro break up due to a huge rally in the dollar , the only thing that will drive gold up is inflation in general an devaluation of the dollar , the dollar is strengthening all the time during this crisis


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    #12
    kermit_the_dog
    Banned (with Prison Access) Posts: 159 ✭✭kermit_the_dog


    consultan wrote: »
    Avoid banks or shares at the moments, central banks will ultimately print more money (devaluation of paper money), it doesnt matter whether they use this new money for bail outs or to push markets up or countries default...it will all boil down to paper money destruction. that means your 1 Euro today could buy 1kg of bread, tomorrow after they print more money you will need 2, 3 or 4 Euros to buy the same 1kg of bread. if you open gold account, despite the ups and downs in price, the trend is ultimately going up unless the fundamentals change. I listen often to Robert Kiyosaki, learned a lot from this guy and tripled my money.

    printing money leads to an increase in the stock market , leads to an increase in gold price aswell


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    #13
    kermit_the_dog
    Banned (with Prison Access) Posts: 159 ✭✭kermit_the_dog


    nino1 wrote: »
    are there etf's that would not be affeacted by a euro collapse?

    Can someone give me an example of a safe diversified portfolio, say over 3 areas?
    I know nothing is completely safe but one that would reduce my risk of losing my money in a worst case scenario.

    people always need telephone services , the likes of ( T) AT+T is a pretty safe american stock , it also pays a dividend of close to 6% , vodafone is another pretty safe stock


  • Options
    #14
    Low Energy Eng
    Registered Users Posts: 297 ✭✭Low Energy Eng


    kermit_the_dog wrote: »
    gold will plummet in the event of a euro break up due to a huge rally in the dollar , the only thing that will drive gold up is inflation in general an devaluation of the dollar , the dollar is strengthening all the time during this crisis

    The dollar isn't strengthening??? Both the euro and dollar are shagged, only the markets are wakening up one country at a time, ireland, greece, now spain, next italy, its unraveling quicker and quicker, and the US banks are just as exposed. Investors will realise the US is in just as bad shape as europe, when that happens the fertiliser will hit the ventilator

    A recent comment from a fed president;
    http://www.economicpolicyjournal.com/2012/05/fed-to-money-market-funds-get-your.html

    Gold & silver is where you wanna be in my opinion!


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    #15
    kermit_the_dog
    Banned (with Prison Access) Posts: 159 ✭✭kermit_the_dog


    Low Energy Eng wrote: »
    The dollar isn't strengthening??? Both the euro and dollar are shagged, only the markets are wakening up one country at a time, ireland, greece, now spain, next italy, its unraveling quicker and quicker, and the US banks are just as exposed. Investors will realise the US is in just as bad shape as europe, when that happens the fertiliser will hit the ventilator

    A recent comment from a fed president;
    http://www.economicpolicyjournal.com/2012/05/fed-to-money-market-funds-get-your.html

    Gold & silver is where you wanna be in my opinion!

    metals are prone to market manipulation , ive 10% of my assetts in metals but im dropping to 5% in the near future


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    #16
    delux
    Registered Users Posts: 153 ✭✭delux


    printing money leads to an increase in the stock market , leads to an increase in gold price aswell
    I think it's more likely people would take money from their gold position to put in the stock market and vice versa. For example the big jump in gold now seems to be from the money flowing out of stocks.


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    #17
    noodler
    Registered Users Posts: 26,252 ✭✭✭✭noodler


    I have to admit I am having a similar fear about my own deposits if there is a Euro breakup.

    Toying with the idea of moving to sterling so that I can trade back if the worst happens and a new Irish currency is established.

    I suppose I could use cash to help pay family debts though.


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    #18
    telly_lover
    Site Banned Posts: 105 ✭✭telly_lover


    noodler wrote: »
    I have to admit I am having a similar fear about my own deposits if there is a Euro breakup.

    Toying with the idea of moving to sterling so that I can trade back if the worst happens and a new Irish currency is established.

    I suppose I could use cash to help pay family debts though.

    if the euro crumbles , the pound will suffer aswell due to the fact that a euro breakup would result in a financial earthquake , no country is more reliant on financials than the uk , the american dollar is the ultimate safe haven in times like this , gold has done nothing this past six months , it too will fall big time in the event of a euro break up though not as much as stocks , of course putting your money in dollars doesnt deal with the issue of bank security , goverment bonds might be the best bet , germany charges you for their bonds , british gilts are an option as long as you dont think the uk is going to default , american trasuries are very expensive right now


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