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Advise for a noob

  • 26-10-2016 12:43pm
    #1
    adammiller
    Registered Users, Registered Users 2 Posts: 4 ✭


    Hey guys,

    I was wondering if i could get some advice on investing. I currently save 500e a month and want to invest this money as the interest on my savings account is very poor. I will also be hoping to use this to purchase a house in 4/5 years time (when new houses have been built and prices normalize). I understand there is risk with investments and i have been listening to investment audio books, reading Investopedia and keeping up with business news.

    I am thinking of purchasing 1000e in BoI shares. Currently they have shares at ~18c, they have started making a profit again and, despite having a decent foothold in the UK (which is around 25% of their business i think?), i dont think brexit will be crippling to them, reading their annual reports and i am willing to bet that stock prices here will stay the same or, if they start paying a dividend, rise.

    For the rest i am thinking of splitting the the money, using Degiro, between the following ETFs: IAGG, IUSB, ITOT and IXUS

    In a few other threads i saw some questions being asked;

    * What % of your overall wealth is this money is your life savings
    This will be my savings bar a small 3 month rainy day fund.

    * Have you any high interest debts like car loan/credit card etc
    I have no loans/debts/repayments

    * Have you an SVR mortgage
    No

    * Have you a rainy day fund of 3-6 months salary
    Yes

    * Have you a pension
    No

    * Have you kids
    No

    * Are you married
    No

    * Have you any investment property
    No

    * What exactly constitutes success for this investment portfolio
    I would be delighted with 10% annual growth including dividend payments.
    I would consider it a success with 7-8% or more annual growth including dividends
    I would be happy with 5% year on year growth.

    * How long are you happy to be without this money
    5 Years

    * What would you do if value dropped 30% overnight
    Nothing

    Thanks for the input on this :)


Comments

  • #2
    Francie Barrett
    Registered Users, Registered Users 2 Posts: 16,927 ✭✭✭✭Francie Barrett


    It sounds like you have your head screwed on and you've set realistic expectations. Your strategy seems good to me, the only thing I would say is to make sure you don't time the market. Very often on this forum, you hear people saying something like this.

    "The stock market is down 30%, so I have sold my stocks and will wait for the markets to stabilize before I get back in".

    Please make sure you are not this person :) Selling your stocks for cheap and buying them back at a more expensive price is going to lose you money.


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