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I have €10,000 saved - what options fo I have?

  • 14-07-2020 10:14am
    #1
    Registered Users Posts: 277 ✭✭ kapisko1PL


    Hi Guys,

    Just looking for some non legal advice.

    I have €10,000 saved in my bank and I am not entirely sure if letting it sit there for ever is the best course of action.

    I could invest some of it in stocks which I think would be a terrible idea now considering how unbalanced and volotile the market is. I sold all my shares before and made small profit.

    I am currently getting 0.5% on my other savings account where I have €3,000 saved (this is pretty much nothing, less than the inflation).

    I was thinking to put that down as a deposit for a car and get around €7,000 in loan to pay the remainder but car is such a depreciating asset I do not think it is worth it. I do drive an old 04 golf which has 140,000 miles on the clock.

    What options do I have? Would I be better off investing in some sort of hedge fund or an index fun such as the Vanguard?

    I am looking to buy my own flat in around 5 years when I am 30 so maybe save this for a mortgage deposit?

    Best interest rate on any savings account comes from KBC I believe, a whole 0.75% :rolleyes:

    Maybe prize bonds?

    Any advice would be appreciated!


Comments

  • Registered Users Posts: 3,571 ✭✭✭ One More Toy


    kapisko1PL wrote: »
    Hi Guys,

    Just looking for some non legal advice.

    I have €10,000 saved in my bank and I am not entirely sure if letting it sit there for ever is the best course of action.

    I could invest some of it in stocks which I think would be a terrible idea now considering how unbalanced and volotile the market is. I sold all my shares before and made small profit.

    I am currently getting 0.5% on my other savings account where I have €3,000 saved (this is pretty much nothing, less than the inflation).

    I was thinking to put that down as a deposit for a car and get around €7,000 in loan to pay the remainder but car is such a depreciating asset I do not think it is worth it. I do drive an old 04 golf which has 140,000 miles on the clock.

    What options do I have? Would I be better off investing in some sort of hedge fund or an index fun such as the Vanguard?

    I am looking to buy my own flat in around 5 years when I am 30 so maybe save this for a mortgage deposit?

    Best interest rate on any savings account comes from KBC I believe, a whole 0.75% :rolleyes:

    Maybe prize bonds?

    Any advice would be appreciated!

    If it's for 5 years leave it on deposit, or prize bonds if you want the element of fun associated with checking your numbers every Friday

    Hedge funds are for the big boys, index funds if you really want to invest it though you should read up about it more


  • Registered Users Posts: 277 ✭✭ kapisko1PL


    I think prize bonds would be the best course of action I guess. Chance of actually winning something rather than just sitting there in the bank account.


  • Registered Users Posts: 137 ✭✭ burkey2k0


    You have a few options, assuming you have an emergency fund behind you that could cover you for 3-6 months of expenses, and are maxing out your pension contributions first:

    - Savings accounts/ Bonds - Not much options out there for a lump sum deposit that will improve on your situation. Check out Bonkers.ie which is a great site for weighing up options. Will also show you options for investing in Bonds I believe. However I don't think you will improve much on your current situation. A regular savings account will get you 1% or 1.25% from KBC (look up the Extra current account coupled with the Extra regular savings account. Will give you a bonus rate on the savings) or EBS I think. then also minus DIRT it's pretty crap.

    - Prize bonds - Bad choice, rate of return of 0.5% averaged out over a very long period and not guaranteed. Not worth it.

    - Investment Funds (you said hedge fund, but I am assuming you meant mutual funds and their equivalent. I don't think you will be able to access a hedge fund) - After being very wary of these I ended up investing a good proportion of savings into a Zurich account that invests it in funds suitable to your personal comfort level of risk. If you have a basic understanding of what is involved you don't need much else. Just like starting up a regular savings account (either lump sum or regular saver). Call them up and they talk you through it. Very simple. With a 5 year outlook I think you should keep your 6 months emergency fund in the crappy savings account, and start investing here. I'm disappointed I didn't do this sooner as I was exactly like you, and I have no return to show for the sums I've built up.

    - Index funds - I have a proportion of my savings in ETFs tracking the S&P500. Do it if you're happy with the return and tax requirements.


    Also, I would pay for a car in full. Getting loans and/or PCPs is the best way of starting a life of depending on debt. You'll hear a lot of people say the opposite. A lot of people here on Boards see themselves as financial gurus who talk about being able to 'leverage debt' and not taking the ten minutes it takes to work out the maths. The more powerful tool to seek out is financial independence. It's your call to choose what's more important.

    I've probably left something out, I'm writing this as a distraction in a very boring meeting. In summary all of the above shouldn't be taken as gospel. I'm a stranger on the internet. Don't trust anything I say! Do some googling to make yourself more comfortable and do what you feel is best :).


  • Registered Users Posts: 2,070 ✭✭✭ ZeroThreat


    burkey2k0 wrote: »
    You have a few options, assuming you have an emergency fund behind you that could cover you for 3-6 months of expenses, and are maxing out your pension contributions first:

    - Savings accounts/ Bonds - Not much options out there for a lump sum deposit that will improve on your situation. Check out Bonkers.ie which is a great site for weighing up options. Will also show you options for investing in Bonds I believe. However I don't think you will improve much on your current situation. A regular savings account will get you 1% or 1.25% from KBC (look up the Extra current account coupled with the Extra regular savings account. Will give you a bonus rate on the savings) or EBS I think. then also minus DIRT it's pretty crap.

    - Prize bonds - Bad choice, rate of return of 0.5% averaged out over a very long period and not guaranteed. Not worth it.

    - Investment Funds (you said hedge fund, but I am assuming you meant mutual funds and their equivalent. I don't think you will be able to access a hedge fund) - After being very wary of these I ended up investing a good proportion of savings into a Zurich account that invests it in funds suitable to your personal comfort level of risk. If you have a basic understanding of what is involved you don't need much else. Just like starting up a regular savings account (either lump sum or regular saver). Call them up and they talk you through it. Very simple. With a 5 year outlook I think you should keep your 6 months emergency fund in the crappy savings account, and start investing here. I'm disappointed I didn't do this sooner as I was exactly like you, and I have no return to show for the sums I've built up.

    - Index funds - I have a proportion of my savings in ETFs tracking the S&P500. Do it if you're happy with the return and tax requirements.


    Also, I would pay for a car in full. Getting loans and/or PCPs is the best way of starting a life of depending on debt. You'll hear a lot of people say the opposite. A lot of people here on Boards see themselves as financial gurus who talk about being able to 'leverage debt' and not taking the ten minutes it takes to work out the maths. The more powerful tool to seek out is financial independence. It's your call to choose what's more important.

    I've probably left something out, I'm writing this as a distraction in a very boring meeting. In summary all of the above shouldn't be taken as gospel. I'm a stranger on the internet. Don't trust anything I say! Do some googling to make yourself more comfortable and do what you feel is best :).

    Indeed you have, .... 50 X Crypto Moonshot, then LAMBO!! :D


  • Registered Users Posts: 2,070 ✭✭✭ ZeroThreat


    burkey2k0 wrote: »
    You have a few options, assuming you have an emergency fund behind you that could cover you for 3-6 months of expenses, and are maxing out your pension contributions first:

    - Savings accounts/ Bonds - Not much options out there for a lump sum deposit that will improve on your situation. Check out Bonkers.ie which is a great site for weighing up options. Will also show you options for investing in Bonds I believe. However I don't think you will improve much on your current situation. A regular savings account will get you 1% or 1.25% from KBC (look up the Extra current account coupled with the Extra regular savings account. Will give you a bonus rate on the savings) or EBS I think. then also minus DIRT it's pretty crap.

    - Prize bonds - Bad choice, rate of return of 0.5% averaged out over a very long period and not guaranteed. Not worth it.

    - Investment Funds (you said hedge fund, but I am assuming you meant mutual funds and their equivalent. I don't think you will be able to access a hedge fund) - After being very wary of these I ended up investing a good proportion of savings into a Zurich account that invests it in funds suitable to your personal comfort level of risk. If you have a basic understanding of what is involved you don't need much else. Just like starting up a regular savings account (either lump sum or regular saver). Call them up and they talk you through it. Very simple. With a 5 year outlook I think you should keep your 6 months emergency fund in the crappy savings account, and start investing here. I'm disappointed I didn't do this sooner as I was exactly like you, and I have no return to show for the sums I've built up.

    - Index funds - I have a proportion of my savings in ETFs tracking the S&P500. Do it if you're happy with the return and tax requirements.


    Also, I would pay for a car in full. Getting loans and/or PCPs is the best way of starting a life of depending on debt. You'll hear a lot of people say the opposite. A lot of people here on Boards see themselves as financial gurus who talk about being able to 'leverage debt' and not taking the ten minutes it takes to work out the maths. The more powerful tool to seek out is financial independence. It's your call to choose what's more important.

    I've probably left something out, I'm writing this as a distraction in a very boring meeting. In summary all of the above shouldn't be taken as gospel. I'm a stranger on the internet. Don't trust anything I say! Do some googling to make yourself more comfortable and do what you feel is best :).

    ok, my previous post was in jest, but just to update - if you'd put that into Bitcoin on the day of my post you'd have about €65000 now ;)


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  • Registered Users Posts: 318 ✭✭ pajosjunkbox


    ZeroThreat wrote:
    ok, my previous post was in jest, but just to update - if you'd put that into Bitcoin on the day of my post you'd have about €65000 now


    What the hell is bitcoin ?


  • Registered Users Posts: 4,477 ✭✭✭ Comhrá


    What the hell is bitcoin ?


    https://www.wikiwand.com/en/Bitcoin


  • Registered Users Posts: 11,386 ✭✭✭✭ Timmaay


    I know this is a 9month old thread, but jezz spending your 10k in savings plus another 7k loan on a car, yeh actually the crypto moonshot would of been as reasonable an option even without hindsight.


  • Registered Users Posts: 277 ✭✭ kapisko1PL


    If I had done this or had done that. I hate looking at it like this and realising the missed opportunities :(


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