€5k available to invest

gnolan

So I've got €5k to invest. Some details:

• I'm willing to risk the majority of the €5k
• I guess at worst I'd like to be left with at least €1,000 from the initial €5k
• I'd be willing to invest for a period of 3-5 years
• I know nothing about investments

Any advice would be appreciated.

[*]I'm willing to risk the majority of the €5k
Ideal frame of mind but one still wants to be sensible

[*]I guess at worst I'd like to be left with at least €1,000 from the initial €5k
One must always be willing to see a temporary loss but be hopeful/expectant that it won't be a permanent one

[*]I'd be willing to invest for a period of 3-5 years
Probably not long enough to be fair

[*]I know nothing about investments
Who does? :pac:

You don't specify a target
Risk free (more or less) investments An post National Solidarity Bond (4 Year)
2% tax free over 4 years, AER 0.50% ........... so throw your €5k in and in 4 years time you have €5100, fairly sh1t but lots better than the worst case scenario you describe of €1000

The fundamentals of investing advise diversification, it's tough to diversify a portfolio of €5k in shares etc due to transaction fees etc etc etc so that would point one to ETFs etc. ETFs domiciled in this part of the world are taxed as income and don't qualify for the CGT annual exemption etc etc etc .......

However if you did invest €5k in the stock market and saw average returns of 6%/annum over the next 5 years your €5k would be worth gross €6700 but after tax etc might just leave you with €850 profit depending on your other income etc...........

Considering you're after risking the it that doesn't compare fantastically with the An Post option in the context of €750 over 5 years won't be changing your life, you wouldn't tax and insure your car with it.

Even at 10% average annual returns (jackpot territory really) the €5k grosses to €8k ......... very meh really.

I'd post office it really, all considered.

bennyineire

Bank Of Ireland shares, very low at the moment, you could see big gains in 5 years but it's risky.
But you won't make big gains on "safe" investments

topper_harley2

Have a read of the ever growing identical threads asking, the same question:

http://www.boards.ie/vbulletin/showthread.php?t=2057765463
http://www.boards.ie/vbulletin/showthread.php?p=103938250
http://www.boards.ie/vbulletin/showthread.php?p=103267454
http://www.boards.ie/vbulletin/showthread.php?t=2057719381
http://www.boards.ie/vbulletin/showthread.php?p=95975176
http://www.boards.ie/vbulletin/showthread.php?p=90253688
http://www.boards.ie/vbulletin/showthread.php?p=98214738
http://www.boards.ie/vbulletin/showthread.php?p=102965097

None of the answers change, this questions is asked daily, if not more often.

Zenify

if you set up a "extra current account" with kbc and then an extra regular saver you will get 3%. it will take you five months to deposit the 5k (1k max per month). Works out better than an post.

jamesthepeach

If you have any loans or cc debt pay it off it. You will then be earning g at least the interest you would have paid.

EndaHonesty

Buy 1 Bitcoin.

An Post the rest.

Sit back and enjoy the rodeo that is crypto... :pac:

jamesthepeach

TBH i would invest it in a fcuk off holiday.
5k will mean nothing to you in 10 years.
Use it while it's worth using.

Jcarver

Sorry to hijack this thread but I'm in a very similar position to OP but have been reading up on a lot of other threads.


Just want to check whether my logic makes sense:


I want to invest 75% in Index Funds and 25% in Bonds.


My plan was to set up a Degiro account and put 3,750 into the 'SPY' ETF (S&P 500)


Then I want to somewhat hedge the currency risk with the remainder - does it make sense to buy either Pimco Global Bond USD-Hedged (PAIIX) or Vanguard Total International Bond (VTIBX) with the remaining 1,250?


Any improvements would be appreciated!

Jcarver

Jcarver wrote: »

.......................

My plan was to set up a Degiro account and put 3,750 into the 'SPY' ETF (S&P 500)...............

Accepting that one should never try and time the markets
- the S&P500 has never been higher
- it's risen more or less sharply since 2009
- it's 166% ish of what it was pre 2007 crash
- the 2007 level was what it was pre 2000 crash so the rise since 2009 has been unprecedented in duration and magnitude
- presumably your cash is in euro at the moment, the dollar is weakening against the euro

All considered, I wouldn't invest the bulk of my wad in a one time S&P500 dive at the moment

Zascar

EndaHonesty wrote: »

Buy 1 Bitcoin.

An Post the rest.

Sit back and enjoy the rodeo that is crypto... :pac:

I Agree.

Go to Coinbase, split it between Bitcoin and Ethereum - forget for 3-5 years. Could easily triple or more.