what to do with 45k? low risk

Mo Lester

29 yr old needs ideas for low risk investment, any ideas?

Dermighty

Mo Lester wrote: »

29 yr old needs ideas for low risk investment, any ideas?

Doesn't get much more low risk and boring than Warren Buffets investments

Mo Lester

cheers lad, il give him a shout

HowFinancial

Millions of ideas.
Hate it when someone answers a question with a question, but more info needed I'm afraid.

How long can you afford/ want to put money away for?
Would you like to retain any short term access to these monies?
Are you employed, & what is your income tax rate?
Do you own a house? If you have a mortgage what is rate of interest on mortgage?

Mo Lester

Mortgage is tracker at 2.25 % 30 years left. My gross income is 35k
Could leave it in an account for 5 yrs
Don't want to be messin wit stocks n shares every few weeks.

Amtmann

Speaking as someone who is completely ignorant of stocks and shares and investments, my query is as follows: why not put the 45k into his mortgage? Surely it would knock a fair whack off it?

I'm not suggesting that the OP do this, btw. I'm just putting it out there so that the more experienced posters can enlighten me a little

turbobaby

Because it is very likely he will be able to get an after tax return greater than 2.25% on his savings / investment.

Plus, the tax benefits on a mortgage also make the investment / savings direction more attractive.

wolfeye

3 year savings bonds bonds(AER 3.23%) 10 % tax free after 3 years.

5 1/2 year saving certs (AER 3.53%) 21% tax free after 5 1/2 years.


Low risk? State guaranteed. Do you trust the goverment?

http://www.statesavings.ie/Pages/default.aspx

moe_sizlak

Mo Lester wrote: »

29 yr old needs ideas for low risk investment, any ideas?

check out (t) AT+T . its an american telecom company which while having little growth prospects is akin to ESB over here only its fully private , they pay a dividend on close to 6% , no bank her pays that kind of rate of interest and a company like at + t is safer than money in the bank

another few high paying dividend stocks are france telecom (FTE) and (TEF) telefonica which is a spanish telecom company , they pay 9% and 10% respectivley , both are at five year low prices and while the european economy doesnt bode well for either in the short term , france telecom is unlikely to go under in a country as regulated as france , as for telefonica , only 40% of its busines is in spain , its a huge player in south america which is a thriving economic zone at the moment

if lower but reliable yielding stocks are your preference

thier are plenty of blue chips which are cheaply priced at the moment and with low price earnings


microsoft
mc donalds
coca cola
proctor and gamble
pfizer
intel

the first three are bomb proof regardless of whats going on the world

Kristopherus

Or the PTSB Interest First offer. Get your interest within a month and then re-invest it in whatever you wish. You will get back your 45k in 26 months.

Enda_Hall

Investment with any bank at the moment has to be seen as a serious risk, deposit guarantees are only as good as the DGS that stands behind them. I was in a similar situation in Sept. last year. I had a substantial amount of capital which I was looking to invest and put some serious time into assessing my options. I did not go with the banks for a few different reasons. I felt that the deposit guarantee scheme is completely devoid of any real worth in that if it was ever called upon there is no capital there to secure it. At the very best it would be time-locked (much like property funds in 2008 and ongoing) and the loss in value on the euro would be substantial. Also the service led alot to be desired and the rates were generally outperformed by inflation effectively depreciating my capital. I was relatively new to investment and sought advice from my father who suggested a long standing life company with a far superior financial rating. I met with a guy from there and invested in a series of mixed asset funds. Early days yet but the the charges were low and the value is up 15% already. Investment date was 22nd Sept. 2011. I get monthly updates sent to my email and have mobile access whenever I need it. I am learning as I go but it certainly has far exceeded my expectations thus far. I would say that I seem to have been lucky with the person I'm dealing with though as I have found him very easy to deal with and very professional. I too was looking to increase my portfolio with regards to asset allocation and have now opened my investment into emerging markets/Japanese/Chinese & Us equities while allowing approx 40% of my fund to remain in safer managed funds. Not sure if this is of any help to you but I have found that perhaps it is a safer way of gaining experience in turbulent markets.

HowFinancial

1, 3, 5 year deposit rates as per wolfeye might suit you.
An Post operates good national investment bonds over 3 & 5 years fixed. KBC & EBS have good fixed rate (& fixed term) deposits at the moment also.
I'd be comfortable with the state bank guarantee up to €100k.
Alternatives range from 12 months low-to-medium risk investments offering POTENTIAL return of say 15%, to 5 year term or more investments in the likes of unit linked funds @ whatever risk/reward levels you are comfortable with, such as the one outlined by Enda above.
Once you depart from deposits both risk & reward are thrown into the mix. For my money I'd only really be comfortable adding risk/reward if willing to keep at least a general lookout for market performances.

whysomoody

why not look at a 3.5/5 year capital protected equity based product? I seen one advertised recently that offered 150% of the upside of the Stock market over 5 year or your money back, whichever is higher.

The Irish Riddler

Wouldn't say microsoft is bomb proof. In fact I see their revenues falling year on year for the forseeable future due to vastly better competitors software advances and they can't really increase market share and people won't upgrade when money is tight all over.