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I have a question for the smartest person on this forum

  • 25-01-2019 12:15am
    #1
    Registered Users Posts: 817 ✭✭✭ older by the day


    Ok, I assume your the smartest, I have 30k earning 20 euro a year, i dont need it for 10 years plus, I have no investment experience. So what would you do? Gamble 5k on blue chip shares for the fun and let the rest where it is? Invest with an assurance company, Irish life ect. But the market is high at the moment? Try and stick it in a pension fund . Don't get complicated and my appetite for risk is med to low, it was hard earned


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Comments

  • Registered Users Posts: 267 ✭✭ overkill602


    My share pick for 2019 Greatland gold prospecting (GGP) activies in Australia aim stock .025p


  • Registered Users Posts: 1,282 ✭✭✭ scheister


    Ok, I assume your the smartest, I have 30k earning 20 euro a year, i dont need it for 10 years plus, I have no investment experience. So what would you do? Gamble 5k on blue chip shares for the fun and let the rest where it is? Invest with an assurance company, Irish life ect. But the market is high at the moment? Try and stick it in a pension fund . Don't get complicated and my appetite for risk is med to low, it was hard earned

    Main question to ask is how would you feel if you lost it all or how much are you willing to loss. You mention pension but how far away from Pension are you, do you have a mortgage. Is paying that down and option

    I would spread it around.

    Put 20k into An Post 5 savings account
    Put 6k into Bluechip companies (Netflx, Microsoft etc)
    Put 3k into slightly risker developed companies (Ryanair, IRES BOI)
    Put 1k into a stock that could seem as gambling (penny stocks, AIM companies, young companies)

    This would be my 2 cents but others will disagree


  • Registered Users Posts: 5,122 ✭✭✭ TheIrishGrover


    Bitcoin! :D


  • Registered Users Posts: 3,646 ✭✭✭ realitykeeper


    I would buy physical gold and physical silver which you could keep in storage either in Ireland or abroad. The silver dollar presently is about 15$ per ounce so (when the time comes to cash them) they represent practical amounts if you need small everyday items like groceries or to buy a meal. Obviously for security reasons, it is best to pay the 1% of their value to keep them in vault. A one ounce gold coin is nearly 1300$ so they would be useful for big ticket items like solar panels, a greenhouse or drilling a well if you have land. (These self sufficiency investments are also a wise choice in my opinion).

    So why are gold/silver and investment in self sufficiency good investments? Because the next recession will be especially bad and it is certain to come at some point. I wrongly guessed it would be the end of 2017 but we are now into 2019. A lot of these stock market crashes happen around October.

    I would check out the following on youtube: Mike Maloney, Peter Schiff and Gerald Celente.


  • Registered Users Posts: 1,788 ✭✭✭ Cute Hoor


    Is that you conditioned games

    Here's one clip of Peter Schiff
    https://www.cnbc.com/video/2015/12/17/peter-schiff-gold-is-still-going-to-5000.html


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  • Registered Users Posts: 872 ✭✭✭ DubCount


    Ok, I assume your the smartest, I have 30k earning 20 euro a year, i dont need it for 10 years plus, I have no investment experience. So what would you do? Gamble 5k on blue chip shares for the fun and let the rest where it is? Invest with an assurance company, Irish life ect. But the market is high at the moment? Try and stick it in a pension fund . Don't get complicated and my appetite for risk is med to low, it was hard earned

    Go talk to an independent investment adviser. It will be the best money you ever spend. There are so many factors influencing what way to proceed, you need to talk to someone who can take account of your unique circumstances and direct you in a way that suits those circumstances.

    Investment decisions are not a one size fits all. Are you 5 years from retirement or 50, have you a great state pension or no pension, what is your attitude to risk, do you own your own home, or have a mortgage or are you renting, how secure is your job, have you any children or grand children and are your married, are you going to inherit a fortune when Great Aunt Mary pops her clogs ... The list goes on. All this will determine if you should be investing in State Savings Bonds, having a punt on the stock markets or using the money as a deposit for a house - or even leaving it on deposit with the bank earning 20 quid a year.


  • Registered Users Posts: 17,907 ✭✭✭✭ ELM327


    Put 51% on black and 49% on red and repeat


  • Registered Users Posts: 2,435 ixus


    What is the greatest thing you could do to increase your capacity to earn money? Education? Professional development course? Relocation?

    Do whatever that is.


  • Registered Users Posts: 175 ✭✭ Jambonjunior


    Netflix is a bluechip company now? Physical silver and gold?

    Get better advice OP.


  • Registered Users Posts: 817 ✭✭✭ older by the day


    I want to thank you for your answsers tho I'm still no wiser, just answer this, I'm 40, self employed, I earn 30k one year 50k next, 35 the year after (farming). No loans, I don't like gambling but it kills me to see inflation eating my savings. Question is, with all the incertanty is it a good time to buy shares in General


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  • Registered Users Posts: 2,435 ixus


    Personally, i wouldn't touch stock market with a volatile income like that. There's going to be a period you'll need cash.

    Have you any college behind you?
    Even if not, with extensive farming experience, you could do a Masters in Agricultural Innovation at Nui Galway. It's mostly online learning.

    http://aginnovate.org

    Here's the kicker, if you apply through Springboard you only pay 10% of the course fees. So that could be 800 euro for an 8 grand course for example.

    Springboard is govt supported so it's like getting a little tax back. I've done it myself.

    Say you put 5000 into stocks and it lost 50%, you're at 2500 less transaction costs.

    Say it made 100% in 3yrs you're up 5000 less transactions.

    800 euro into Springboard gets you an 8 grand course and some knowledge that can help you improve your earning potential.

    https://springboardcourses.ie

    Only one winner for me.


  • Registered Users Posts: 12,289 ✭✭✭✭ Mad_maxx


    Ok, I assume your the smartest, I have 30k earning 20 euro a year, i dont need it for 10 years plus, I have no investment experience. So what would you do? Gamble 5k on blue chip shares for the fun and let the rest where it is? Invest with an assurance company, Irish life ect. But the market is high at the moment? Try and stick it in a pension fund . Don't get complicated and my appetite for risk is med to low, it was hard earned


    The market is cheap right now, it was only ever expensive in America and the U. S market is still 12% below its all time high

    The only power the vast majority of investors have is patience, wild moves in the market will happen regularly

    Had to laugh at the suggestion that Ryanair and Bank of Ireland are higher risk than Netflix, I like Netflix but it's PE is 126 where as Ryanair is 9


  • Registered Users Posts: 1,298 ✭✭✭ RedRochey


    If you're planning on not needing this money for more than 10 years than it's always a good time to invest in the stock market.

    Best advice you could get would be to get proper professional advice from a financial adviser, not a bunch of people on boards trying to sell you penny stocks.


  • Registered Users Posts: 40 ✭✭✭ P2PBanking.com


    Drip feed 70% in a MSCI ETF with low TER (and no or very low broker cost). Don't put it in in one go. Rather contribute every 14 days or every month.
    Put 10-15% in p2p lending (e.g. Linkedfinance)
    Keep 15-20% in cash


  • Registered Users Posts: 3,462 ✭✭✭ Bob Harris


    Buy blue chip shares (not netflix) that pay a decent dividend. If you have 30k then 6 companies in 6 different sectors.
    There are plenty of these companies out there at the moment that are good value or undervalued paying 4-5% dividends and will continue to do so. It's reasonable to think that you will see some SP appreciation over those 10 years as well as your dividends.


  • Registered Users Posts: 2,207 ✭✭✭ p to the e


    Netflix is a bluechip company now? Physical silver and gold?

    Get better advice OP.

    Yeah I had a chuckle at the Netflix blue chip. If I were suggesting a decent blue chip at the moment I'd look at AT&T. Bit of a dip in share price which will return dividend yield around 7% but do your own research.

    I'd say if you're asking you've already thought about gambling with some penny stock etc. but as said previously you need to spread it around. The amount will depend on your personal circumstances.


  • Registered Users Posts: 4,422 ✭✭✭ valoren


    I think it's safe to say the below companies (each long term compounding machines) will likely be around in 10 years time and not currently over priced.

    Johnson & Johnson - 2.71% dividend. (250 subsidiary companies across the pharma, medical and consumer divisions. Think of JNJ as a healthcare mutual fund)
    3M - 2.72% (operates in 5 diverse segments, industrial, electronics/energy, safety/graphics, healthcare, consumer)
    Exxon Mobil - 4.48% (the largest publically traded oil and gas company)

    10k in each.

    Average yield 3.3%

    Annual dividend - $842 ($990 less dividend witholding tax).
    The annual dividend will also increase every year on year.

    Other blue chips could be included as well to diversify.

    If the above 3 companies increased their annual dividend by say 5% on average then the total payout from dividends alone will be $10,590.

    Year 1 842
    Year 2 884
    Year 3 928
    Year 4 974
    Year 5 1023
    Year 6 1074
    Year 7 1128
    Year 8 1184
    Year 9 1244
    Year 10 1306

    That's without re-investing that 10k. Reinvesting the dividend would be like adding rocket fuel to the annual payout.


  • Registered Users Posts: 235 ✭✭ patspost


    What would be a good broker to buy those shares, based in Ireland. Dont currently have an account.


  • Registered Users Posts: 226 ✭✭ Shai


    Why do you need an Irish broker? Just use Degiro .


  • Registered Users Posts: 33 sevenshades


    valoren wrote: »
    I think it's safe to say the below companies (each long term compounding machines) will likely be around in 10 years time and not currently over priced.

    Johnson & Johnson - 2.71% dividend. (250 subsidiary companies across the pharma, medical and consumer divisions. Think of JNJ as a healthcare mutual fund)
    3M - 2.72% (operates in 5 diverse segments, industrial, electronics/energy, safety/graphics, healthcare, consumer)
    Exxon Mobil - 4.48% (the largest publically traded oil and gas company)

    10k in each.

    Average yield 3.3%

    Annual dividend - $842 ($990 less dividend witholding tax).
    The annual dividend will also increase every year on year.

    Other blue chips could be included as well to diversify.

    If the above 3 companies increased their annual dividend by say 5% on average then the total payout from dividends alone will be $10,590.

    Year 1 842
    Year 2 884
    Year 3 928
    Year 4 974
    Year 5 1023
    Year 6 1074
    Year 7 1128
    Year 8 1184
    Year 9 1244
    Year 10 1306

    That's without re-investing that 10k. Reinvesting the dividend would be like adding rocket fuel to the annual payout.

    Doesn't the dividend (in Ireland anyway) get taxed at the marginal rate (with a credit for DWT)?


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  • Registered Users Posts: 241 ✭✭ 1st dalkey dalkey


    Doesn't the dividend (in Ireland anyway) get taxed at the marginal rate (with a credit for DWT)?


    Yes.
    But even accounting for that you still end up way ahead of an Irish bank deposit "earnings".
    Also the above dividend total does not include any stock price growth over the ten year period.
    These blue chip stocks will invariably grow in value over that kind of term.
    There are many in the category 'blue chip', but the dividend is also nice.
    Try googling 'dgi champions', for a list of good companies that have grown their dividends over long periods.


  • Registered Users Posts: 1,434 ✭✭✭ Austria!


    valoren wrote: »

    Johnson & Johnson - 2.71% dividend. (250 subsidiary companies across the pharma, medical and consumer divisions. Think of JNJ as a healthcare mutual fund)
    3M - 2.72% (operates in 5 diverse segments, industrial, electronics/energy, safety/graphics, healthcare, consumer)
    Exxon Mobil - 4.48% (the largest publically traded oil and gas company)
    .


    Swap Exxon for Berkshire. Global warming and renewables make it a risk.


  • Registered Users Posts: 4,422 ✭✭✭ valoren


    Austria! wrote: »
    Swap Exxon for Berkshire. Global warming and renewables make it a risk.

    BRK-B is a good call but it doesn't pay a dividend. It would be a compounding capital gain investment.

    The reasoning behind choosing Exxon would be that the world will still be running on oil for decades, let alone a decade per the OP, as renewables come on stream. Being an energy company, I guess it would remiss of the management to not see the writing on the wall either and have sufficient scale to adapt over the coming decades. Unlike a Berkshire, you get to collect increasing dividends along the way.


  • Registered Users Posts: 1,434 ✭✭✭ Austria!


    What's the appeal of dividends? That money just goes out of the share price and you get taxed on it.


  • Registered Users Posts: 241 ✭✭ 1st dalkey dalkey


    Austria! wrote: »
    What's the appeal of dividends? That money just goes out of the share price and you get taxed on it.

    True, to a degree at least.
    It really depends what it is you are investing for and at what stage of life you are at.
    Many companies pay no dividend and you are relying on capital gain, which once converted to cash is also taxed.
    What I look for is the total gain from the investment, dividend plus capital.
    I like dividends because I get them now and can use them to re-invest, sometimes in better paying companies.
    Also, later in life, dividends are a source of income. Living on capital gains is more difficult, as you will not have control over when you need to sell, and therefore may not get the best price or return.
    Horses for courses, really.


  • Registered Users Posts: 44 RockDaddy


    My share pick for 2019 Greatland gold prospecting (GGP) activies in Australia aim stock .025p

    Did you keep hold of this?..

    I took some at 1.8p last April, still holding.


  • Registered Users Posts: 850 ✭✭✭ bcklschaps


    Austria! wrote: »
    What's the appeal of dividends? That money just goes out of the share price and you get taxed on it.

    In theory that is true, but in practice its not what happens. I have a few single pay Dividend shares and the SP usually goes up a little before ex-dividend date and comes back down (to where it was) the day after, and with US Shares that pay Dividend quarterly there isn't even a ripple around dividend time.


  • Registered Users Posts: 850 ✭✭✭ bcklschaps


    goin back to the OP's question. Buy a 10yr Post Office savings Solidarity bond.

    16% Total Return
    1.5% AER
    Tax Free

    No Brainer. *There's even an early cash out option if you get into trouble


    *Read T&C's carefully about that


  • Registered Users Posts: 155 ✭✭ ODriscoll


    Ok, I assume your the smartest, I have 30k earning 20 euro a year, i dont need it for 10 years plus, I have no investment experience. So what would you do? Gamble 5k on blue chip shares for the fun and let the rest where it is? Invest with an assurance company, Irish life ect. But the market is high at the moment? Try and stick it in a pension fund . Don't get complicated and my appetite for risk is med to low, it was hard earned

    Put most of it in physical Gold, ideally with verified status, so you can sell it (easier and credibly) if and when needed.
    In this world, the current and foreseeable future of this political and economic world! Gold will continue to prove (as it has rather consistently for generations) one of the very few consistent credible investments, so that's where you should be putting your hard earned savings that's left over for risk after the essentials of food and shelter and health.


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  • Registered Users Posts: 1,298 ✭✭✭ RedRochey


    ODriscoll wrote: »
    Put most of it in physical Gold, ideally with verified status, so you can sell it (easier and credibly) if and when needed.
    In this world, the current and foreseeable future of this political and economic world! Gold will continue to prove (as it has rather consistently for generations) one of the very few consistent credible investments, so that's where you should be putting your hard earned savings that's left over for risk after the essentials of food and shelter and health.

    https://awealthofcommonsense.com/2015/07/a-history-of-gold-returns/

    Not sure how you can say gold has proven for generations to be a consistent investment, tell that to someone who started in the 80s.

    OP it all depends on your situation, I would pay down a mortgage, put it into my pension, or invest it in a low-medium risk multi-asset fund like Irish Life MAPs or Zurich Prisma, maybe invest a little yourself if you want to gain more investment experience


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