bank of ireland life investment

cena

Is it a good idea to invest 20,000 into this??

368100

Into what?

cena

368100 wrote: »

Into what?

Not sure yet. Have a meeting later today.

368100

cena wrote: »

Not sure yet. Have a meeting later today.

Sure how can anyone tell you if it's a good idea to invest into something when you don't know what it is?

cena

368100 wrote: »

Sure how can anyone tell you if it's a good idea to invest into something when you don't know what it is?

I am asking if it is a good idea to use bank of ireland for investing

368100

cena wrote: »

I am asking if it is a good idea to use bank of ireland for investing

It completely depends on the features of the product, what risk profile it has, what funds its invested in and your own personal needs....

Thats a bit like saying is it a good idea to buy a red car.

cena

368100 wrote: »

It completely depends on the features of the product, what risk profile it has, what funds its invested in and your own personal needs....

Thats a bit like saying is it a good idea to buy a red car.

I would be looking at low risk

368100

cena wrote: »

I would be looking at low risk

And without knowing the full ins and outs of the product nobody is going to be able to give you their opinion on it

Chancer3001

There's about 25 different funds to look at

I advise you to look at their fund manager centre first

cena

Chancer3001 wrote: »

There's about 25 different funds to look at

I advise you to look at their fund manager centre first

That on there site

Cute Hoor

368100 wrote: »

Thats a bit like saying is it a good idea to buy a red car.

cena wrote: »

I would be looking at low risk

Maybe a muted shade of red might be best so!

Chancer3001

cena wrote: »

That on there site

Yeah you've to Google it

Cute Hoor

Check the charges, could be under a selection of headings, 'Annual Management Fee', 'Ongoing charges', 'Standard Charges', 'Fund Management Charges', these could seriously impact your fund over time and you will have to pay them irrespective of how well/poorly your fund is doing

Atlantic Dawn

They invest in funds, each has a risk rating, low risk in general is low return. The seller is on commission for you buying in to the fund so it's in their interest for you to invest. Charges are usually 5% or so to invest which is huge compared to the other non old style banks, Rabo Bank was .75% when they offered investments.

Sabre Man

If you want to save on fees and are prepared to do some homework I would suggest looking into DeGiro and ETFs.

topper_harley2

Jesus wept. OP, please cancel your meeting and put your money in a normal savings account. You are going to a meeting about investing 20K without even bothering to look at the BOI website to see what they are offering?!
If you want "low risk", then investing is pretty much pointless. There is no good return with low risk.
I dont mean to sound harsh, but you are setting yourself up for a fall by going into BOI like this. And no, I dont think investing with BOI is a good idea. Looking at their fund "fact sheets", it has the following glorious statement "Performance is quoted gross of taxation and gross of fund management charges". God forbid BOI would put in the "fact sheet" what said fund management charges, oh Lord no, because they are definitely about 1.5% per annum. Run Dougal, run quite fast.

topper_harley2

Atlantic Dawn wrote: »

Charges are usually 5% or so to invest

HAHAHA I just read this after I posted. 5% :eek:.

weed_killer

chances are what bank of ireland have in mind is not one jot better than a global etf equity fund , only difference being bank of ireland will probably charge at least 2% per annum while an etf with a broker will cost no more than 0.5%

thomasm

Use Banks for Current Accounts and Mortgages Only

cena

These are the two I was given to choice from.

http://fundcentre.bankofireland.com/#factsheet/f-1146-null/


http://fundcentre.bankofireland.com/#factsheet/f-763-null/

wordofwarning

cena wrote: »

These are the two I was given to choice from.

http://fundcentre.bankofireland.com/#factsheet/f-1146-null/


http://fundcentre.bankofireland.com/#factsheet/f-763-null/

What is your investment horizon timeline? 1 year? 10 years?

What is their fees for this?

cena

wordofwarning wrote: »

What is your investment horizon timeline? 1 year? 10 years?

What is their fees for this?

I would be taking it year by year.

I don't know what the fees are but I well be asking when I go to see the guy this evening

wordofwarning

cena wrote: »

I would be taking it year by year.

I don't know what the fees are but I well be asking when I go to see the guy this evening

If it is year by year, you are probably off with a savings account. If it is long term, ETFs would be the best.

You are likely going to pay an entry and exit fee. So if you only have money in this for 3 years, with the fees you will earn nothing. If it is less than 3 years, you will likely lose money

There is nothing stopping you going onto Degiro and replacing a lot of these funds with stocks and ETFs paying a few euros to buy the ETF. Plus the management fee is 0.15% with Vanguard.

Like the second fund, you could replicate with 31% of 20k in S&P500 ETFs, a DAX ETF, FTSE100 ETF etc.

You can buy corporate and Government bond ETFs on Degiro. I don't see the allure of them with the FED/ECB likely to increase rates in the next few years. Unless you buy T-Bills.

You need to ask if this product is hedged ie they are eliminating currency risk

I don't see the benefit of this product in 2017. You could do a lot of this on Degiro

Chancer3001

There's no point encouraging the .an to do something hes not going to do.

Both of those funds seem ideal.

Theyre low to medium risk.

Theyll probabaly get you a better return than inflation based on past performance.

One thing you might want to consider is to buy in every month rather than a lump sum....

wordofwarning

Chancer3001 wrote: »

There's no point encouraging the .an to do something hes not going to do.

Both of those funds seem ideal.

Theyre low to medium risk.

Theyll probabaly get you a better return than inflation based on past performance.

One thing you might want to consider is to buy in every month rather than a lump sum....

What is ideal about them? Convenience?

I can put €1000 per month into a KBC regular saver earning 2% with zero risk. It will beat inflation. I don't have to pay a salesperson in the bank commission for that privilege

cena

wordofwarning wrote: »

What is your investment horizon timeline? 1 year? 10 years?

What is their fees for this?

I didn't cost me anything to with the two above.

the charge is 1.6% per year and 1.7%.

Tax to exit if I make anything is 41%. Zero if I don't make anything. I can leave/ pull out at anytime I like.

cena

wordofwarning wrote: »

If it is year by year, you are probably off with a savings account. If it is long term, ETFs would be the best.

You are likely going to pay an entry and exit fee. So if you only have money in this for 3 years, with the fees you will earn nothing. If it is less than 3 years, you will likely lose money

There is nothing stopping you going onto Degiro and replacing a lot of these funds with stocks and ETFs paying a few euros to buy the ETF. Plus the management fee is 0.15% with Vanguard.

Like the second fund, you could replicate with 31% of 20k in S&P500 ETFs, a DAX ETF, FTSE100 ETF etc.

You can buy corporate and Government bond ETFs on Degiro. I don't see the allure of them with the FED/ECB likely to increase rates in the next few years. Unless you buy T-Bills.

You need to ask if this product is hedged ie they are eliminating currency risk

I don't see the benefit of this product in 2017. You could do a lot of this on Degiro

I can leave it for 21 years if I like. No cap on how many year I have to stay

Chancer3001

wordofwarning wrote: »

What is ideal about them? Convenience?

I can put €1000 per month into a KBC regular saver earning 2% with zero risk. It will beat inflation. I don't have to pay a salesperson in the bank commission for that privilege

Suppose the medium to low risk funds will aim to beat that 2% ...including all charges.

topper_harley2

Chancer3001 wrote: »

Suppose the medium to low risk funds will aim to beat that 2% ...including all charges.

They can "aim" all they want, at 1.6% AMC they are screwing you so hard its not even funny, plus the 41% exit tax. You'll be lucky to break even after 5 years

topper_harley2

cena wrote: »

I didn't cost me anything to with the two above.

the charge is 1.6% per year and 1.7%.

Tax to exit if I make anything is 41%. Zero if I don't make anything. I can leave/ pull out at anytime I like.

Do you understand the nett result of 1.6% or 1.7% charge? It is astronomical :eek:

Take an example: If you invest E1000 per month, for a number of years. Assuming it grows by 7% a year, then the below shows your profit after 5 10 and 20 years, with 0% AMC and 1.7% AMC

0% AMC
5 years - E71, 598
10 years - E172, 018
20 years - E510, 406

1.7% AMC

5 years - E68, 428
10 years - E156, 569
20 years - E416, 383

So after 20 years, you have lost amount one hundred thousand on fees alone.

However, as we know, an investment will never grow at 7% each year you are invested. Sometimes its up, sometimes its down. But one constant will remain, BOI will take their fees. These funds are terrible.

* Investment numbers are using calculator at http://www.thisismoney.co.uk/money/diyinvesting/article-1633426/Isa-fund-charges-calculator-How-fees-affect-returns.html

You have not given any information as to why you are interested in BOI funds. It sounds like they rang you up and convinced you it was a good idea. Before investing anything you should be able to answer all of following:

-What is attracting you to investing?
-What existing savings have you
-Do you want to save or invest, and do you know the difference
-Have you any high interest credit card
-Have you a rainy day fund of 3-6 months salary
-Have you a pension
-Have you any investment property
-What exactly constitutes success for any investment portfolio
-How long are you happy to be without this money
-What would you do if value dropped 30% overnight
-What is your tax rate
-Are you taxed in Ireland
-Have you any existing CGT losses
-Do you understand UCIT ETF and their tax issues
-Do you understand deemed disposal of unit linked funds that BOI are selling you
-Do you have a mortgage? If so, what rate, tracker, SVR etc?

cena

topper_harley2 wrote: »

Do you understand the nett result of 1.6% or 1.7% charge? It is astronomical :eek:

Take an example: If you invest E1000 per month, for a number of years. Assuming it grows by 7% a year, then the below shows your profit after 5 10 and 20 years, with 0% AMC and 1.7% AMC

0% AMC
5 years - E71, 598
10 years - E172, 018
20 years - E510, 406

1.7% AMC

5 years - E68, 428
10 years - E156, 569
20 years - E416, 383

So after 20 years, you have lost amount one hundred thousand on fees alone.

However, as we know, an investment will never grow at 7% each year you are invested. Sometimes its up, sometimes its down. But one constant will remain, BOI will take their fees. These funds are terrible.

* Investment numbers are using calculator at http://www.thisismoney.co.uk/money/diyinvesting/article-1633426/Isa-fund-charges-calculator-How-fees-affect-returns.html

You have not given any as to why you are interested in BOI funds. It sounds like they rang you up and convinced you it was a good idea. Before investing anything you should be able to answer all of following:

-What is attracting you to investing?
-What existing savings have you
-Do you want to save or invest, and do you know the difference
-Have you any high interest credit card
-Have you a rainy day fund of 3-6 months salary
-Have you a pension
-Have you any investment property
-What exactly constitutes success for any investment portfolio
-How long are you happy to be without this money
-What would you do if value dropped 30% overnight
-What is your tax rate
-Are you taxed in
-Have you any existing CGT losses
-Do you understand UCIT ETF and their tax issues
-Do you understand deemed disposal of unit linked funds that BOI are selling you
-Do you have a mortgage? If so, what rate, tracker, SVR etc?

I have been investing with the bank for the last 7 year. Cash is from an injury which I have not needed over the 7 years. Money well just be staying in Ireland
Suggest to me who I could speak to in galway westmeath or dublin

topper_harley2

Ross Curran in Galway, independent, fee based advisor.

cena

topper_harley2 wrote: »

Ross Curran in Galway, independent, fee based advisor.

Anyone else say athlone

cena

cena wrote: »

Anyone else say athlone

I was in contact with Ross just never met the the guy