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Investment Strategy

  • 20-01-2015 2:56pm
    #1
    newinvestor
    Registered Users, Registered Users 2 Posts: 30 ✭


    Hi all looking for some advice guidance opinion on my investment.

    Current position
    200k Cash
    40k Saxo

    The 40k in Saxo is invested in ETF's and bonds.
    10k MSCI World
    10k S&P500
    10k MSCI Europe
    10k Government Bonds

    My Idea is to keep the same ratio as above and top up each fund every 2/3 months (dollar cost averaging). All the funds are accumulating ETF's so my understanding is there is an exit tax of 41% every 8 years. Losses from one fund cannot be offset against another fund as there is no CGT tax on ETF's.

    I had a pay rise in work that allows me to save a decent amount every year meaning I can top up the investments with about 7-8k every 2/3 months without touching the 200k in cash.
    At the moment the cash is doing very little , I looked at the state savings 10 year bond but the return on this is not great in my opinion.

    Where to now? Keep going as I am topping up the portfolio every 2/3 months? Invest the whole 200k in and save the cash each month? Am I diversified enough with that portfolio? I have a mortgage but it is a low rate tracker so while paying it off is an option i don't think its worth it when I can get more interest in a savings account than I am paying in interest.

    I have no set goal other than making my money work for me and beat inflation. I am 31 , I am prepared to sit on these investments for at least the 8 year term when I either have to dispose of them or pay deemed disposal tax.

    I am not risk averse but then again don't invest in shares directly as I feel they are more volatile than exchanged traded funds.

    Anyone in similar position? Any advice welcome I have contemplated a financial advisor but thought I'd ask the good folk of boards first.

    Thanks in advance


Comments

  • #2
    ixus
    Registered Users, Registered Users 2 Posts: 2,435 ✭✭✭ixus


    What about pension contributions for tax efficiency? Could you find a passive fund that invests in these?

    First suggestion would be to maximise what you can contribute before income tax and with AVC's.

    In current markets, the only diversification you really have there is fx. It's all on the QE train.


  • #3
    newinvestor
    Registered Users, Registered Users 2 Posts: 30 ✭newinvestor


    ixus wrote: »
    What about pension contributions for tax efficiency? Could you find a passive fund that invests in these?

    First suggestion would be to maximise what you can contribute before income tax and with AVC's.

    In current markets, the only diversification you really have there is fx. It's all on the QE train.

    Hi Ixus, thanks for your reply.

    When you say passive fund do you mean for pension investment? I was under the impression ETF's are passive funds?

    I have a decent pension already and I top this up with an AVC as it is.

    Can you recommed anything I Can do to improve this portfolio

    Thanks


  • #4
    ixus
    Registered Users, Registered Users 2 Posts: 2,435 ✭✭✭ixus


    World is short $
    S&P is long $
    European is long € and QE
    Govt Bonds I'm unsure fx but long QE

    A commodity one would be short $ and long global growth. Would have taken a spanking in last year but an 8 year horizon could work well.


  • #5
    newinvestor
    Registered Users, Registered Users 2 Posts: 30 ✭newinvestor


    ixus wrote: »
    World is short $
    S&P is long $
    European is long € and QE
    Govt Bonds I'm unsure fx but long QE

    A commodity one would be short $ and long global growth. Would have taken a spanking in last year but an 8 year horizon could work well.


    Thanks again Ixus , so a commodity ETF would be your recommendation ? Have you any in mind , having a look at ishares gold ETF . What allocation would you recommend giving this is my portfolio above ?


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