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Where to invest monthly

  • 01-01-2019 12:02pm
    Registered Users Posts: 3,283 ✭✭✭ irishguy

    Hi, currently trying to figure out what makes the most sense to invest a monthly amount of €1500 in.

    I am already paying the max into my pension for my age, in addition, we have our mortgage down to 1 times our income (2.3% fixed) and making large overpayments (im not going to make higher overpayments for non-financial reasons)

    I also have enough on deposit for a rainy day. I was looking for some sort of index tracker, but all the ETF tax rules/accounting make it a bit complicated.

    Should I pay more into my pension (not getting an income tax credit allowance) and invest that way or outside a pension (I dont need the money in the short/medium term)?

    What would people suggest doing?


  • Registered Users Posts: 115 ✭✭ SnipSnop

    1. Rainy day. Enough for 6 months out of a job?. This should be liquid cash. (cash in bank or other types of savings or investments you can quickly liquidate)
    2. Save the €1500 up for the next 6-12 months then start averaging into the markets. Good spread, but invest longterm so you profits are not eaten up by fees by overtrading.

    Why 6-12 months you ask? I fully expect the markets to drop another 30-40% across the board. We have not seen anything yet. This is a BEAR market yet for some reason people are still going on like its not (We are well overdue one). Already down 15%, most corrections are between 30-50%. Personally I'm waiting with cash ready to start buying.

    Pretty much every chart looks like this.


  • Registered Users Posts: 3,283 ✭✭✭ irishguy

    Thanks point 1 covered already. So when you say invest into the markets via what means are you suggesting? Shares directly?

  • Registered Users Posts: 470 ✭✭ PHG

    Hi irishguy,

    Well done financially, you are in an amazing position (better than 99% probably). You have invested in you and your family and it is paying dividends with a low mortgage and cash in the bank.

    May I suggest hold off putting in real money yet as you don't know what to invest in. Your pension will cover some funds etc. I assume too.

    Best to look at some books (plenty of threads on here) and see what gets you interested. Not everybody likes stocks, some like fx, oil etc. and fees are the biggest killer.

    There is one book I would suggest (The Naked Trader). Steered me well to start off my journey investing. Only play with money you can afford to lose. Just putting money on stocks or anything is the same as gambling and you would be better off going to the bookies with your cash. Don't worry if investing very small or with a dummy account first, consistency is key and very few even have that as it can be an emotional rollercoaster.