40k to invest

mickeypat

serious question,i have 40k in savings in the bank at the minute and was looking to maybe invest it rather than just leave it sitting there,i was going to use it as a deposit to purchase a house but i think ill wait another year or two,its taken me quiet some time and a lot of hard twork to gather up this cash and people tell me to invest it but im a little nervous about it,are there any safe investments out there?thx

The Pontiac

I'd continue renting for at least 18 months. The latest Central Bank statics, released only a few days ago, are quite shocking...

UNDER A SCENARIO being considered by the Central Bank stress tests, house prices could fall by almost 30 per cent in the next two years. The tests suppose that prices could fall by 13.4 per cent in 2011 and a further 14.4 per cent in 2012 before beginning to recover in 2013. Link

I also wouldn't advice entering the stock market, at least in the short-term. It's very volatile with Japan and Libya at the moment, as well as the European debt issues. Some might see it as a buying opportunity, but it might frighten the life out of a new investor.

Someone else may have a suggestion for you.

mickeypat

seen that about the houses i wouldnt buy for a year or two anyway id say

Quiet you

Sorry to hijack the post but I'm in the very same situation, our savings are even the same.

Seeing as things are so dodgey would gold be a decent direction to go?

mickeypat

Quiet you wrote: »

Sorry to hijack the post but I'm in the very same situation, our savings are even the same.

Seeing as things are so dodgey would gold be a decent direction to go?

was thinking that myself it seems to be the only thing that goes up

tonedef

mickeypat wrote: »

was thinking that myself it seems to be the only thing that goes up

It's just another bubble waiting to burst.
I looked at it a while back and decided against it. Having avoiding getting sucked into the property bubble here there was no way I was going to put my money into a different bubble.

Just my 2 cents

mickeypat

dillon1 wrote: »

It's just another bubble waiting to burst.
I looked at it a while back and decided against it. Having avoiding getting sucked into the property bubble here there was no way I was going to put my money into a different bubble.

Just my 2 cents

thats all im lookin for

Quiet you

dillon1 wrote: »

It's just another bubble waiting to burst.
I looked at it a while back and decided against it. Having avoiding getting sucked into the property bubble here there was no way I was going to put my money into a different bubble.

Just my 2 cents

That's kind of what I was thinking. I'm slow to invest simply because I don't feel I know enough about how things work to make an educated enough decision.

My thoughts on gold or other precious metals is that even if they do drop there doesn't seem to be the same risk associated, i.e. the price won't go too low and will inevitably rise again. That said, I still don't know.

Prizebonds are where it is now. Not very exciting but it seems secure enough at the moment.

mickeypat

Quiet you wrote: »

That's kind of what I was thinking. I'm slow to invest simply because I don't feel I know enough about how things work to make an educated enough decision.

My thoughts on gold or other precious metals is that even if they do drop there doesn't seem to be the same risk associated, i.e. the price won't go too low and will inevitably rise again. That said, I still don't know.

Prizebonds are where it is now. Not very exciting but it seems secure enough at the moment.

much of a return on them?what about currency is there anything out there worth buying shorterm?

Twiki

Quiet you wrote: »

My thoughts on gold or other precious metals is that even if they do drop there doesn't seem to be the same risk associated, i.e. the price won't go too low and will inevitably rise again. That said, I still don't know.

The price of gold in January 1980 was 850 dollars an ounce. Two months later it had declined to 480 dollars an ounce. If you're comfortable with that kind of potential loss on your investment then fire away. Having invested in gold in the past, I wouldn't be happy with more than 20% of my funds there.

Given that you have a specific purpose for your 40K, ie a house deposit, I'd park it in the best available fixed-term savings product or, if you can do without for three years, then An Post's 10% tax-free return on their savings bonds is pretty good.

mickeypat

what if an post are sold off by enda and co?

irishh_bob

mickeypat wrote: »

was thinking that myself it seems to be the only thing that goes up

gold dropped by 9 % from early december untill mid febuary and is still not back to where it was last november , it often goes down

jank

Silver is meant to keep going up even though it went up the guts of 80% last year. Maybe some ETF's might be an option. The DOW just keeps on surging over the last few years. I reckon it will be another year before it breaks the 14,000 mark.

Just throwing ideas out there, research before you invest but it seems you are risk adverse so a term deposit is probably the best bet even though the returns are kinda crap.

mickeypat

mickeypat wrote: »

much of a return on them?

Potentially sfa

Quiet you

mickeypat wrote: »

much of a return on them?what about currency is there anything out there worth buying shorterm?

I haven't a clue about currency trading or trading in general for that matter so I can't help you there other then to say that anyone I've ever heard talking about buying currency said the little guy never makes anything on it. I dunno how true it is, its just what i remember hearing.

As for a return on prizebonds. I've gotten maybe six grand over the ten years I've been saving. Bare in mind I started at nothing and saved by buying the bonds monthly. The only reason I chose prizebonds was because it's slightly more hassle to cash them in then to withdraw your money from a savings account. That and I live in hope of hitting the jackpot.

Quiet you

mickeypat wrote: »

what if an post are sold off by enda and co?

That's what had started me thinking about gold but from the responses here I'm having serious second thoughts.

I may well go down Twiki's route and put it into the three year, tax free deal in the post office but that still leaves me with the post office being raided fear.

Three years is a nice length though. With the way things have gone I had decided to keep saving and start looking properly again in a few years. With the fear and bad taste left by the property crash I think prices will still be quite low then.

Quiet you

jank wrote: »

Just throwing ideas out there, research before you invest but it seems you are risk adverse so a term deposit is probably the best bet even though the returns are kinda crap.

I wouldn't be risk adverse really but in this situation I suppose I am. The intention was to save slightly more then ten per cent for a deposit and keep that safe so when it comes to that money I'm pretty paranoid alright.

I had planned on investing rather then saving after i got the deposit together seeing as it wouldn't be the end of the world if I lost money then but times have changed and I don't have spare cash anymore.

Jim2007

mickeypat wrote: »

serious question,i have 40k in savings in the bank at the minute and was looking to maybe invest it rather than just leave it sitting there,i was going to use it as a deposit to purchase a house but i think ill wait another year or two,its taken me quiet some time and a lot of hard twork to gather up this cash and people tell me to invest it but im a little nervous about it,are there any safe investments out there?thx

If you time frame is shorter than about 5 years, then investing is not an option. Look for some kind of deposit option instead.

Jim.

arrowloopboy

You could learn how to trade Forex,you should have enough in your 40k never to have to work again;).

NoseyMike2010

So how much have house prices fallen since the peak in 2007. Sorry my question is a little off topic.

Rhys Essien

I am in the same position as the OP.I have savings sitting in my current account, gaining no interest, and dont know what is the safest option.
Was thinking of the 15 month online fixed account with Bank of Ireland at 4.5% return.
All this talk lately of if Ireland default and have to leave the euro that we may be fcuked if we have to revert to the punt.(i.e lose a lot of savings)
Ooh what to do?

NoseyMike2010

How about investing in currency. The euro is strong against the pound.

irishh_bob

NoseyMike2010 wrote: »

How about investing in currency. The euro is strong against the pound.

due to the fact that many were predicting the euro would not see the end of 2011 , i bought 50 k in dollars at the end of november , this was around the time of the looming bailout of ireland , i done well for about a week but as soon as ireland got its bailout , the euro went on a four month rally against the dollar which is still going , i got in when the dollar was 1. 28 to the euro and got out when the dollar was 1. 34 to the euro , today the dollar is 1. 41 to the european single currency , i lost a lot and am tempted to try and win back my losses by buying into the likes of the canadian dollar while the euro is strong , logic would suggest that the euro has to weaken , what with the impending irish and portugeese debt issues , then again , i thought that last back end and look where it got me

currency trading is only for those who know what thier doing

arrowloopboy

irishh_bob wrote: »

due to the fact that many were predicting the euro would not see the end of 2011 , i bought 50 k in dollars at the end of november , this was around the time of the looming bailout of ireland , i done well for about a week but as soon as ireland got its bailout , the euro went on a four month rally against the dollar which is still going , i got in when the dollar was 1. 28 to the euro and got out when the dollar was 1. 34 to the euro , today the dollar is 1. 41 to the european single currency , i lost a lot and am tempted to try and win back my losses by buying into the likes of the canadian dollar while the euro is strong , logic would suggest that the euro has to weaken , what with the impending irish and portugeese debt issues , then again , i thought that last back end and look where it got me

currency trading is only for those who know what thier doing

If /when the u.s dollar hits 1.50 fill yer boots.Thats if your not in a hurry to switch it back,you won't loose.

irishh_bob

arrowloopboy wrote: »

If /when the u.s dollar hits 1.50 fill yer boots.Thats if your not in a hurry to switch it back,you won't loose.

would i not be better buy canadian dollars now instead , the american dollar is incredibly volatile of late , i only lost 4 k , while i could gain 14 k on the U.S dollar , i could just as easily loose another ten