Investing - for the first time!

gemma188

Hi Everyone, I've got 1000eur which Im looking to invest. Im new to all this and I've already read some of the other thread. Most seem to encourage people to start dummy accounts first. However I know where I want to invest. I've been looking at shares in one of the irish companies. So how do I invest the money in this company?

Helpneeded86

gemma188 wrote: »

Hi Everyone, I've got 1000eur which Im looking to invest. Im new to all this and I've already read some of the other thread. Most seem to encourage people to start dummy accounts first. However I know where I want to invest. I've been looking at shares in one of the irish companies. So how do I invest the money in this company?

Why not tell people on here the company they may be willing to give positive and negatives.

How long is the investment planned for?

I mean there is an easy option like a bank but it is the most expensive. €1000 is pretty small when it comes to an investment it can sometimes be hard to beat the fees.

I mean you could be looking at close to €100 to buy and sell them if you do it somewhere cheaper than the banks. Im really not an expert on that end.

If you do spend close to €100 you then need a 10% return to break even. The shares also need to beat Inflation if it is long term you are dealing with.

Lets say you invest for 5 years. The cost of investing is €100 and inflation is 4%.

You need the shares to rise by 21.6% in order to match inflation for the period.

Then take into account lets say the shares do rise by 50% you will be paying 33% of that €500 gain to the goverment which would be €175.

In saying that it probably is wiser than letting it sit in a bank account and you may receive dividends.

liamjames1

Helpneeded86 wrote: »

Why not tell people on here the company they may be willing to give positive and negatives.

How long is the investment planned for?

I mean there is an easy option like a bank but it is the most expensive. €1000 is pretty small when it comes to an investment it can sometimes be hard to beat the fees.

I mean you could be looking at close to €100 to buy and sell them if you do it somewhere cheaper than the banks. Im really not an expert on that end.

If you do spend close to €100 you then need a 10% return to break even. The shares also need to beat Inflation if it is long term you are dealing with.

Lets say you invest for 5 years. The cost of investing is €100 and inflation is 4%.

You need the shares to rise by 21.6% in order to match inflation for the period.

Then take into account lets say the shares do rise by 50% you will be paying 33% of that €500 gain to the goverment which would be €175.

In saying that it probably is wiser than letting it sit in a bank account and you may receive dividends.

Very sensible post, it cant do any harm to get others opinions on the company

Min

Helpneeded86 wrote: »

Why not tell people on here the company they may be willing to give positive and negatives.

How long is the investment planned for?

I mean there is an easy option like a bank but it is the most expensive. €1000 is pretty small when it comes to an investment it can sometimes be hard to beat the fees.

I mean you could be looking at close to €100 to buy and sell them if you do it somewhere cheaper than the banks. Im really not an expert on that end.

If you do spend close to €100 you then need a 10% return to break even. The shares also need to beat Inflation if it is long term you are dealing with.

Lets say you invest for 5 years. The cost of investing is €100 and inflation is 4%.

You need the shares to rise by 21.6% in order to match inflation for the period.

Then take into account lets say the shares do rise by 50% you will be paying 33% of that €500 gain to the goverment which would be €175.

In saying that it probably is wiser than letting it sit in a bank account and you may receive dividends.

The €1000 would need to make over €1270 to be liable for capital gains tax, given the €1270 allowance. So once over €2270, it would be entering CGT territory.

Helpneeded86

Min wrote: »

The €1000 would need to make over €1270 to be liable for capital gains tax, given the €1270 allowance. So once over €2270, it would be entering CGT territory.

Ya it's a good point i eluded to but anyone that fires in 1k to something like this expects to make that kind of profit i believe. The OP has not really came back to inform us of anything so we may just be talking to ourselves.

Min

Helpneeded86 wrote: »

Ya it's a good point i eluded to but anyone that fires in 1k to something like this expects to make that kind of profit i believe. The OP has not really came back to inform us of anything so we may just be talking to ourselves.

True, it would need to have been something like buying €1,000 worth of Glanbia shares two years ago for profits over the CGT allowance.

Helpneeded86

Min wrote: »

True, it would need to have been something like buying €1,000 worth of Glanbia shares two years ago for profits over the CGT allowance.

Or I guess a penny stock like some we have seen on here that have shot up....and down !!

freeze4real

Another option is looking at overseas brokers, there's a handful in Ireland a they charge loads.