20k to invest- where though?

gudbuzz

Hi,

I don't see any recent threads on where to invest these days so am asking for your opinions as I have no experience with stocks, shares, bonds or savings.

I am receiving a lump sum in inheritance and out of it will have 20k to invest. I have a 6yr old child and would ideally like to have a good enough return on it in say 20 years.

Have no idea where to start. Any input appreciated. Cheers.

rayliza

Repo Boats
There are a lot of surprises when it comes to government auctions! Repo boats and seized boats are something which you can have a lot of debate over. The boats are bought through banks at subsidized rates. The auctioning of these boats are basically done when you fail to pay up on time. 

Buzzliteyear

QUOTE=gudbuzz;74351773

I don't see any recent threads on where to invest these days so am asking for your opinions as I have no experience with stocks, shares, bonds or savings.

I am receiving a lump sum in inheritance and out of it will have 20k to invest. I have a 6yr old child and would ideally like to have a good enough return on it in say 20 years.

Have no idea where to start. Any input appreciated. Cheers.[/QUOTE]

Maybe start educating yourself by looking at different funds. RaboDirect offer a good range at low entry fees. You could slowly feed the money in as you learn more. Now maybe quite an opportune time to be looking at good equity funds. Better to stay away from specific equities until you know a lot more. Even then it may never be necessary.[

HobbyMan

I find ShareLadder a good place to get investment ideas. They have a monthly newsletter with, mostly, good recommendation. They organise subscriber meetings too and are approachable unlike most sites.

( Not sure if I can name the site Mods, if I can't just remove post - thanks )

clint123

You could try Ireland State savings, if you are looking at a long term investment, that do a 10year saving plan, and if you put your 20k in there for 10yrs, you will get 48% tax free interest back on it, so your 20k would turn into 29,600.

radioactiveman

OP if you're not into investing (ie. buying shares) with a big lump sum like that why not save the money in the government thing for 48% (not bad at all) and in the mean time invest say 300 or 400 euros a month into shares.
This makes it easier to invest and you won't get walloped if the market drops. Then you'd have the best of both worlds. I wouldn't not invest in shares at the moment, especially this, or an ETF - you can get loads of info on that on the web.

The funny thing about compounding interest is that the initial lump sum is nowhere near as important as you'd think. Consider 20,000 invested and compounding for 20 years @ 6%, with nothing added = 64,000. Then compare to starting off with 0, but investing 300 euros a month for 20 years @ 6% = 140,000. The habit of investing is much more important.

trad

You could buy Bank Shares. They are absolutely worthless at the moment. BOI €0.10 AIB €0.05.

You could buy 200,000 BOI Shares or 400,000 AIB Shares.

In 20 years time they might actully be worth somothing.

maddragon

trad wrote: »

You could buy Bank Shares. They are absolutely worthless at the moment. BOI €0.10 AIB €0.05.

You could buy 200,000 BOI Shares or 400,000 AIB Shares.

In 20 years time they might actully be worth somothing.

I'ld be surprised if AIB is around in 3 years time TBH. They are a busted flush and even at 5cent they are overvalued by a factor of at least 5. BOI are a different matter. Still a big risk but they are now the only viable bank on the country. A punt on them is basically a punt (pardon the pun) on the whole country. The book value is something like 23 cent so they are undervalued at the moment.

I must declare I have shares in BOI purchased at 8cent last November.

If you put a gun to my head and forced me to invest every penny I had in 1 thing, I would put it into shares in McDonalds. They also pay a 3.1% dividend (about 2% after taxes).

bull_ring

maddragon wrote: »

I'ld be surprised if AIB is around in 3 years time TBH. They are a busted flush and even at 5cent they are overvalued by a factor of at least 5. BOI are a different matter. Still a big risk but they are now the only viable bank on the country. A punt on them is basically a punt (pardon the pun) on the whole country. The book value is something like 23 cent so they are undervalued at the moment.

I must declare I have shares in BOI purchased at 8cent last November.

If you put a gun to my head and forced me to invest every penny I had in 1 thing, I would put it into shares in McDonalds. They also pay a 3.1% dividend (about 2% after taxes).

mc donalds is slightly over valued at the moment but if you are buying to hold for the long term , it makes little difference , the slowdown in europe and china is bad news for them in the short to medium term

a better bet right now is someone like pfizer , johnson and johnson or proctor and gamble , people always need healthcare and basic products , all of the above pay dividends which are every bit as good as mc donalds

vodafone is another good buy with a dividend of over 5% , tesco is cheap at the moment and has a 6% div , its unlikely to see hugh growth in the short to medium term ( uk in rescession ) however but longterm is a soild bet

dexty

maddragon wrote: »

I'ld be surprised if AIB is around in 3 years time TBH. They are a busted flush and even at 5cent they are overvalued by a factor of at least 5. BOI are a different matter. Still a big risk but they are now the only viable bank on the country. A punt on them is basically a punt (pardon the pun) on the whole country. The book value is something like 23 cent so they are undervalued at the moment.

I must declare I have shares in BOI purchased at 8cent last November.

If you put a gun to my head and forced me to invest every penny I had in 1 thing, I would put it into shares in McDonalds. They also pay a 3.1% dividend (about 2% after taxes).

AM thinking of BOI myself. What's the chances of them or AIB being taken over in the next few years? U say AIB not being around in 3 years, what happens your shares then or do you mean they will be bought out? Considering both were high value shares a few years ago, is now not the time to buy when they are so low?
Cheers D

maddragon

dexty wrote: »

AM thinking of BOI myself. What's the chances of them or AIB being taken over in the next few years? U say AIB not being around in 3 years, what happens your shares then or do you mean they will be bought out? Considering both were high value shares a few years ago, is now not the time to buy when they are so low?
Cheers D

No, I mean AIB will either be wound up or fully nationalised and your shares will be worthless.

dexty

ok, what are the chance of same happening to BOI?

maddragon

dexty wrote: »

ok, what are the chance of same happening to BOI?

If BOI goes under then that means there is no viable Irish run bank in the whole country - this won't be allowed to happen IMO. If it does then we are truly screwed.

Of course that doesn't mean it won't happen.

kerryted

I like kerry group myself very steady some people think they are very boring but they are growing at about 10% every year , I know the share price is at its highest right now and turns a lot of people off, 20 years is a long time there will be a lot of companies coming and going but kerry group should still be there ,and hopefully put another 0 onto the 20,000 you have invested.

HowFinancial

Either stick it in a fixed term deposit account where it will earn reasonable interest for a year or so with low risk, or stick it into a well diversified fund. Maybe a good idea to take lower risk for the first while, as you say you know very little about investing, giving you some opportunity to get used to the type of fluctuations which can occur. No harm to ensure you have the option of switching to higher or lower risk (within the policy & for no charge) at the drop of a hat.

bookerboy

What about Apple ?
They have increased in value by at least 60% in the last twelve months

TheBikeGuy

radioactiveman wrote: »

OP if you're not into investing (ie. buying shares) with a big lump sum like that why not save the money in the government thing for 48% (not bad at all) and in the mean time invest say 300 or 400 euros a month into shares.
This makes it easier to invest and you won't get walloped if the market drops. Then you'd have the best of both worlds. I wouldn't not invest in shares at the moment, especially this, or an ETF - you can get loads of info on that on the web.

The funny thing about compounding interest is that the initial lump sum is nowhere near as important as you'd think. Consider 20,000 invested and compounding for 20 years @ 6%, with nothing added = 64,000. Then compare to starting off with 0, but investing 300 euros a month for 20 years @ 6% = 140,000. The habit of investing is much more important.

Some brave call signalling Berkshire stock as one to AVOID! Up 10% since your post which was just 4 months ago. Never doubt Buffet, there will never be a better investor

collie0708

bookerboy wrote: »

What about Apple ?
They have increased in value by at least 60% in the last twelve months

Hope you didnt put your money here...

bookerboy

No.Was never an investor,just dreaming.

DARCHA22

trad wrote: »

You could buy Bank Shares. They are absolutely worthless at the moment. BOI €0.10 AIB €0.05.

You could buy 200,000 BOI Shares or 400,000 AIB Shares.

In 20 years time they might actully be worth somothing.

Edit: blooper

alb

DARCHA22 wrote: »

400,000 AIB shares would have cost €20,000 and would be worth €2.4m today

Hindsight is a wonderful thing.....just saying

lol, this isn't true.

DARCHA22

alb wrote: »

lol, this isn't true.

Edit: Blooper

darragh0000

presume something related to this:
independent.ie/business/irish/how-much-is-a-cleanedup-aib-now-worth-34300924.html

Not surprisingly, as part of the process of cleaning up its balance sheet, AIB is also consolidating its shares, giving shareholders one new share for every 250 which they previously owned. This will reduce the number of AIB shares from a totally preposterous 678bn to 'only' 2.7bn.