150k Investment

Wiggles88

Hi all,
A bit of backstory, I received an inheritance a few years back. Up until now I’ve had the lump sum in a national savings bond which is due to mature in a couple of months. The problem is the rate has dropped quite a bit since I first invested so I’m looking to see if I can find something more productive.

I have 150K to invest for hopefully around the 5 year mark (I have no plans to buy property in the immediate future as my job requires me to be fairly footloose but at the same time I don’t wish to be renting long term so I don’t want my money to be tied up for a considerable length of time).

Unfortunately I have very little knowledge on the subject or even where to begin so I was hoping someone may be able to point me in the right direction.

lucky john

with that kind of money and little knowledge it would be worth going to a fee based qualified financial adviser, imo.

Roonbox

Wiggles88 wrote: »

Hi all,
A bit of backstory, I received an inheritance a few years back. Up until now I’ve had the lump sum in a national savings bond which is due to mature in a couple of months. The problem is the rate has dropped quite a bit since I first invested so I’m looking to see if I can find something more productive.

I have 150K to invest for hopefully around the 5 year mark (I have no plans to buy property in the immediate future as my job requires me to be fairly footloose but at the same time I don’t wish to be renting long term so I don’t want my money to be tied up for a considerable length of time).

Unfortunately I have very little knowledge on the subject or even where to begin so I was hoping someone may be able to point me in the right direction.

I would buy two three 100k houses with a 50% deposit and 50% mortgage and tennant them.

euroboom13

Will new lending restriction not effect property prices negatively???

Is it not a bad time to buy property , when credit is cheap????

Rent off the 2 properties will barely cover mortgage after income tax, not to mention ,property tax+prtb+repairs.

So capitol appreciation is the only plus if any??

You would become another unpaid rent collector.

Wiggles88

Hey thanks for the replies. Regarding financial advisors is there any pros/cons for looking at one type of advisor vs another, eg one based at my bank vs an independent advisor?

Frynge

Stangley enough i'm looking for €300k investment that would ideally come from multiple people and you would be one of the ideal candidates.

Have a read up of the employment investment incentive on revenus website.

Basically if you have paid income tax in the last 6 years you can get it back if you invest in an approved company. Your €150k investment would get you a cheque from revenue in 4 months for 30% of your investment and another 11% in 3 years time. Your money would be locked in non prioprietery shares in a company until a buyback happened to give you the investment back.

The idea is you would get €61.5k back from revenue that would have zero capital gains tax and then what ever profit was made from the investment.

If you would be interested pm me as i have a full business plan just ready. You would need your own accountant to check over everything in great detail but i honestly thing i have a very good proposal.

euroboom13

Wiggles88 wrote: »

Hey thanks for the replies. Regarding financial advisors is there any pros/cons for looking at one type of advisor vs another, eg one based at my bank vs an independent advisor?

As plenty of people found out throughout the boom, in house(banks) financial advisors ,tend to recommend products on commission bases rather than return.

Take a keen interest in investing yourself .

Financial advisers shouldn`t need clients, if their personal investments were successful.

Good luck.

lucky john

euroboom13 wrote: »

As plenty of people found out throughout the boom, in house(banks) financial advisors ,tend to recommend products on commission bases rather than return.

Take a keen interesting yourself .

Financial advisers shouldn`t need clients, if their personal investments were successful.

Good luck.

Normally I would agree with you euroboom but 150k is too much for an inexperienced person to invest on their own. There are just so many ways to loose money and plenty of "helpful" people on forums and elsewhere willing to give questionable advice. In this case the op should go to an independent ( not a bank) fee charging financial adviser. If the op wants a bit of experience in investing there is always the option of keeping a few thousand seperate for playing with, if that was of interest.

ballyharpat

I would agree with you Euroboom, if one had some knowledge of the market. I think, yes, inside bank traders aren't worth a crap.

However, I would go to a financial advisor, not necessarily a trader......You can get financial advice and they will point you in the right direction. Some traders get paid by the trade and/or get commission, but these guys get paid for the meeting, from what I understand.

To trade yourself, I believe the best thing to do is start off small and make big mistakes with little money. I believe nearly all traders make mistakes, but learning from them is what matters. If you make a mistake with a small some of money, you can shrug it off and move on...if it happens with a large sum of money, it may scare you off forever, and you could easily lose 50% overnight, you may never make it back and/or it may scare you off trading forever....

As plenty of people found out throughout the boom, in house(banks) financial advisors ,tend to recommend products on commission bases rather than return.

Take a keen interest in investing yourself .

Financial advisers shouldn`t need clients, if their personal investments were successful.

Good luck.

Normally I would agree with you euroboom but 150k is too much for an inexperienced person to invest on their own. There are just so many ways to loose money and plenty of "helpful" people on forums and elsewhere willing to give questionable advice. In this case the op should go to an independent ( not a bank) fee charging financial adviser. If the op wants a bit of experience in investing there is always the option of keeping a few thousand seperate for playing with, if that was of interest.[/QUOTE]

world_weary

lucky john wrote: »

with that kind of money and little knowledge it would be worth going to a fee based qualified financial adviser, imo.

very hard to find a good one or even one who is an actual advisor , those nice people you meet in banks who call themselves " advisors "

those folks are sales persons

cute geoge

Stick 50k back in to saving bonds for 5 years
Stick 50k in to an etf
Stick 10k on b of I
10k on glanbia
10k on Ryanair
10k on Smurfit
10k on crh

hfallada

OP with deflation at the moment. Even if you stick your €150k in the bank. This time next year its real value will be around €151k. Deflation increases the value of money, so you dont have to worry about the value of your money being eroded. This is the main reason why people invest, as to limit the effects of inflation.

I think stocks are too difficult to invest correctly at the moment to be pouring money into. I would put your money into a savings account eg Nationwide UK Ireland at 2% for the moment until the market are more stabile.

robp

hfallada wrote: »

I think stocks are too difficult to invest correctly at the moment to be pouring money into. I would put your money into a savings account eg Nationwide UK Ireland at 2% for the moment until the market are more stabile.

It is true that stocks are not particularly undervalued right now. In the US valuations are very high but waiting for the moment to arise when the market is down is a very difficult strategy. Generally speaking it is when things look the most unstable that you get the best value. Thus personally I wouldn't trust myself to recognise that moment. Considering how many professionals get caught out I wonder can a beginner be expected to know...

world_weary

ballyharpat wrote: »

I would agree with you Euroboom, if one had some knowledge of the market. I think, yes, inside bank traders aren't worth a crap.

However, I would go to a financial advisor, not necessarily a trader......You can get financial advice and they will point you in the right direction. Some traders get paid by the trade and/or get commission, but these guys get paid for the meeting, from what I understand.

To trade yourself, I believe the best thing to do is start off small and make big mistakes with little money. I believe nearly all traders make mistakes, but learning from them is what matters. If you make a mistake with a small some of money, you can shrug it off and move on...if it happens with a large sum of money, it may scare you off forever, and you could easily lose 50% overnight, you may never make it back and/or it may scare you off trading forever....

As plenty of people found out throughout the boom, in house(banks) financial advisors ,tend to recommend products on commission bases rather than return.

Take a keen interest in investing yourself .

Financial advisers shouldn`t need clients, if their personal investments were successful.

Good luck.

Normally I would agree with you euroboom but 150k is too much for an inexperienced person to invest on their own. There are just so many ways to loose money and plenty of "helpful" people on forums and elsewhere willing to give questionable advice. In this case the op should go to an independent ( not a bank) fee charging financial adviser. If the op wants a bit of experience in investing there is always the option of keeping a few thousand seperate for playing with, if that was of interest.

[/QUOTE]



if you have ever gotten a call from a bank asking if you want to invest some money in a product , the person who calls out to your house is a sales person who has simply learned off some lines which sound like they have a clue about the financial markets , in nearly all cases they know no more than the average poster on this forum

its very hard to find a good financial advisor who isnt either out to maximise sales commsion or has some other similar agenda , thats why low cost index funds are the best bet for the majority of people who want to put money to work

world_weary

cute geoge wrote: »

Stick 50k back in to saving bonds for 5 years
Stick 50k in to an etf
Stick 10k on b of I
10k on glanbia
10k on Ryanair
10k on Smurfit
10k on crh

ryanair , glanbia

both great companies but very richly valued at the moment , glanbia is up three hundred percent since 2009

ryanair is up 100% in the last fifteen months

smurfit , its cheaper than the above two but is not in the same league IMO and thus is unlikely to ever reach the same PE

as for bank of ireland , id wait a while , its in a bit of a downtrend at the moment and unless draghi delivers big , its likely to slip back another 10% from where it now rests

id invest in the german DAX at the moment were it to stick money anywhere , id also dip into energy ETF,s , oil may go lower but that sector is cheap and pays very good dividends

hobie21

GDX Market Vectors Gold Miners ETF
GDXJ Market Vectors Junior Gold Miners ETF

Euro is falling.
EU policy makers are afraid of deflation and about to announce massive stimulus to prevent deflation.
World economies are slowing China, Europe, Emeging markets.
Greece is about to let the radical syriza take power resulting in a likely explusion of Greece from the EU. This will result in a further weakening of the EU and the euro

All of these factors are strong tailwinds for rising gold prices. Gold is a safe haven in a time of turbulence.

world_weary

hobie21 wrote: »

GDX Market Vectors Gold Miners ETF
GDXJ Market Vectors Junior Gold Miners ETF

Euro is falling.
EU policy makers are afraid of deflation and about to announce massive stimulus to prevent deflation.
World economies are slowing China, Europe, Emeging markets.
Greece is about to let the radical syriza take power resulting in a likely explusion of Greece from the EU. This will result in a further weakening of the EU and the euro

All of these factors are strong tailwinds for rising gold prices. Gold is a safe haven in a time of turbulence.

so is the american dollar ( a safe haven )

the ultimate safe haven

its very risky to place more than 5% of ones portfolio in gold

hobie21

The american dollar probably has it's own issues given the amount of quantitative easing (massive printing of money) that they undertook. But because other economies look so terrible it makes the US economy look pretty good in comparison. So to avoid all currency speculation, gold should be a good hedge against fluctuations.

world_weary

hobie21 wrote: »

The american dollar probably has it's own issues given the amount of quantitative easing (massive printing of money) that they undertook. But because other economies look so terrible it makes the US economy look pretty good in comparison. So to avoid all currency speculation, gold should be a good hedge against fluctuations.

gold is riskier than most investments , in fact its a speculative trade

5% is enough of a possition , its relatively cheap at the moment and a decent buy for those who live in euro land

Cute Hoor

If you are paying 40% tax on a reasonably significant amount of your income then there is a limited opportunity (timewise) to make a 16% approx return on part of your money within one year using Section 481, with no tax implications. This investment is not without risk (has to be a risk involved for Revenue to approve) but it is a very limited one - I am not aware of any Section 481 investors getting burned.Very limited opportunities left though as it closes for 2015 (and for good for individual investors) in mid February.

Would also agree with poster suggesting maximising your pension contributions.

RobertKK

Last October I got a call from the bank it was about my pension/life assurance/

I had moved my pension to a well known Irish broker as I wanted to manage it myself, as I didn't think the percentage gain from the bank was all that great..
I was told by the expert, that what I did was not a good decision, they had all the experts/implying I hadn't a clue what I was doing. He asked me if I could get a 15% return in a year, not that I had seen a 15% return in a year from the 'experts'.
Then I was told I would have nothing left after all the fees and commissions were paid and they were better value/implying I was too stupid to see what the charges were.
Anyway after the first three months from actively managing my pension, it was up over 42% after fees and expenses and I hadn't added any payments into the account.

Point is if you trust yourself and know what you are doing, then do that. Don't be fooled by someone who sees themselves as being cleverer than you.
If you don't have good knowledge then invest in something you understand, something safer.
If you get advice to invest in something you don't understand, then don't invest it.
Personally I think the stock market is the place to have your money, but it all depends on how much risk you are prepared to take and how much you understand it, like getting a good entry price into a stock, understanding the company and so on. Also important to know when to sell, you can't go wrong when taking a profit.

I think Euro stock markets should rally with the QE that is to be announced, that money usually ends up in the stock market.

Good luck with your money.

Pablo Escobar

world_weary wrote: »

ryanair , glanbia

both great companies but very richly valued at the moment , glanbia is up three hundred percent since 2009

After the initial hit of the Financial crisis from 08-09 the company has grown year-on-year with projections for continued growth. Also, I don't think the P/E ratio is OTT either. It's fairly valued IMO.

Wiggles88

Hey thanks for the comments.
I think since my knowledge is very limited on the matter, the best thing for me to do is to take a small portion, maybe 10k and use that to get my feet wet and once I'm a bit more comfortable think about expanding that further.

world_weary

Pablo Escobar wrote: »

After the initial hit of the Financial crisis from 08-09 the company has grown year-on-year with projections for continued growth. Also, I don't think the P/E ratio is OTT either. It's fairly valued IMO.

Glanbia has a PE near 30 , that's high

kerryjack

Kerry group are a solid performer over the years I have found them a very safe investment over the last 20 years and there share price have trebled in the last 3 years

world_weary

kerryjack wrote: »

Kerry group are a solid performer over the years I have found them a very safe investment over the last 20 years and there share price have trebled in the last 3 years

its performed incredibly but neither glanbia or kerry opperate in a sector with particulary high returns , their not facebook or google

world_weary

kerryjack wrote: »

Kerry group are a solid performer over the years I have found them a very safe investment over the last 20 years and there share price have trebled in the last 3 years

its performed incredibly but neither glanbia or kerry opperate in a sector with particulary high returns , their not facebook or google , they are richly valued right now

RobertKK

world_weary wrote: »

its performed incredibly but neither glanbia or kerry opperate in a sector with particulary high returns , their not facebook or google , they are richly valued right now

Glanbia are getting very high returns from their nutritional/sports products and are becoming a leader in this area.

http://seekingalpha.com/article/2499795-glanbias-growth-will-receive-more-fuel-with-the-latest-acquisition

cute geoge

RobertKK wrote: »

Glanbia are getting very high returns from their nutritional/sports products and are becoming a leader in this area.

http://seekingalpha.com/article/2499795-glanbias-growth-will-receive-more-fuel-with-the-latest-acquisition

Anymore shares in the iseq with good prospects?
Can you still buy tullow oil ,surely icg will benefit from the lower oil prices

kerryjack

world_weary wrote: »

its performed incredibly but neither glanbia or kerry opperate in a sector with particulary high returns , their not facebook or google , they are richly valued right now

The high share price is off putting for small inverters would like to see them splitting the shares I dont know about the value of them but I know that kerry farmers still owns a lot of them and they like to hold on to them I know plenty of farmers that are sitting on a million and living hand to mouth and would never sell a share its mad

world_weary

cute geoge wrote: »

Anymore shares in the iseq with good prospects?
Can you still buy tullow oil ,surely icg will benefit from the lower oil prices

if it was me , id buy the german DAX in a week or so ( its run up a little far off the back of QE euphoria )

the germany market is relatively cheap and should benefit hugely from a weak euro as the DAX 30 is choc full of exporting companies and has no oil major unlike the FTSE which has two

world_weary

cute geoge wrote: »

Anymore shares in the iseq with good prospects?
Can you still buy tullow oil ,surely icg will benefit from the lower oil prices

if it was me , id buy the german DAX in a week or so ( its run up a little far off the back of QE euphoria )

the germany market is relatively cheap and should benefit hugely from a weak euro as the DAX 30 is choc full of exporting companies and has no oil major unlike the FTSE which has two

can be bought as an ETF through LYXOR

cute geoge

Is it possible to walk into broker and purchase the iseq 20 etf or other euro etf tracking stoxx 50 like purchasing shares .I rang local goodbody office and I was left as dumb after talking to one lad there .

hobie21

Is all this gold repatriation in anticipation of anticipated turmoil in the Europe financial markets???? If so gold prices may be about to go on a tear.

In November 2014, The Netherlands has repatriated 122.5 tonnes or almost 4 million ounces with a market value of $5B of Dutch gold from the Federal Reserve Bank of New York (FRBNY) back to Dutch central bank (DNB) in Amsterdam.

Netherlands Increases Gold Holdings for First Time Since ’98

bloomberg.com/news/2015-01-27/netherlands-increases-gold-holdings-for-first-time-in-16-years.html?cmpid=yhoo


Bundesbank to Repatriate 674 Tons of Gold to Germany by 2020

bloomberg.com/news/2013-01-16/bundesbank-to-repatriate-674-tons-of-gold-to-germany-by-2020.html