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Where to invest 65k

  • 22-11-2020 8:33am
    #1
    Registered Users Posts: 723 ✭✭✭ hblock21


    I have 65k sitting in a deposit account with AIB currently earning 0.02%.

    I want to move it.

    I do not want risk.

    Where would you move it to?

    Thanks


«1

Comments

  • Moderators, Business & Finance Moderators Posts: 7,834 Mod ✭✭✭✭ Jim2007


    A higher return always means more risk... So if you don't want risk then you leave it where it is.


  • Registered Users Posts: 2,242 ✭✭✭ twowheelsonly


    If you invested in Bitcoin 12 months ago you'd now be worth roughly 150k.
    If you invested in Norwegian Cruise Lines 12 months ago you'd now be worth roughly 20k

    12 months ago Bitcoin was a dead duck while NCL would have been considered a steady investment.

    My point being, as Jim2007 said, that there is never any guarantees, there will always be risk.
    If anything, spread it out but again, Pharma and Tech seem to be the way to go right now, but again, the same rules apply - risk.


  • Registered Users Posts: 785 ✭✭✭ Zenify


    Prizebonds


  • Registered Users Posts: 3,031 ✭✭✭ Browney7


    hblock21 wrote: »
    I have 65k sitting in a deposit account with AIB currently earning 0.02%.

    I want to move it.

    I do not want risk.

    Where would you move it to?

    Thanks

    What does risk mean to you? I view every investment as being potentially high risk - if you stick to cash, there is a very high risk your money depreciates due to inflation with a very low risk of capital loss. If you plough into a basket of equities there is a high risk your investment will be worth less at some point during your investment with a much lower risk of your capital not keeping pace with inflation in the long run.


  • Registered Users Posts: 2,700 ✭✭✭ cronos


    A global index fund. It will have risk but it's well diversified. No one want's to lose their money but if it's an investment there will always be a level of risk.

    It's important to know how long you are willing to wait to get it back. If you need the money on hand then your choices are very different to someone who's willing to wait 5 years.


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  • Registered Users Posts: 313 ✭✭ john9876


    Surely you can get 1% fixed rate bonds for a year, not a lot but safe.


  • Registered Users Posts: 20,407 ✭✭✭✭ Stark


    john9876 wrote: »
    Surely you can get 1% fixed rate bonds for a year, not a lot but safe.

    Where do you get these? Any bonds I've looked at have had similar rates of return to deposit accounts.


  • Registered Users Posts: 313 ✭✭ john9876


    Stark wrote: »
    Where do you get these? Any bonds I've looked at have had similar rates of return to deposit accounts.

    https://www.money.co.uk/savings-accounts/fixed-rate-bonds.htm

    I'm in the UK so not sure if you can get these, the best was .85% , obviously rates have dropped recently.


  • Registered Users Posts: 1,649 ✭✭✭ littlevillage


    hblock21 wrote: »
    I have 65k sitting in a deposit account with AIB currently earning 0.02%.

    I want to move it.

    I do not want risk.

    Where would you move it to?

    Thanks

    Pay off any borrowings (Mortgage, credit card etc.).... If you still have a lump sum left... Maybe buy a State savings bond or leave it where it is.


    https://www.statesavings.ie/our-products


  • Registered Users Posts: 723 ✭✭✭ hblock21


    Pay off any borrowings (Mortgage, credit card etc.).... If you still have a lump sum left... Maybe buy a State savings bond or leave it where it is.


    https://www.statesavings.ie/our-products

    Thanks for all the comments.
    No mortgage or anything to pay off.
    I already lost a sizable amount about 8 years ago in stocks and another fortune a couple of years ago so lets just say I'd be protective of my money going forward!
    I have given notice to draw down the savings and will most likely dump them into statesavings or prize bonds until I decide on something else...


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  • Registered Users Posts: 93 ✭✭ tobeme2020


    I could have 50k by next week sitting in the bank as cash and have had similar thoughts on what to do with it other than leaving it in the bank account. I don't have large outgoings and by next year, the balance will be higher. Having cash in the bank is worrying for me in this climate and now I would be happy to invest. Bitcoin is to volitile for me but I'm still considering it. Maybe even short term using 5k for 5 years to see where it goes from there. Is gold still considered a good investment. I could afford to put 5kinto this. Even if I invested 20k this year how realistic would it be to have 100k in 10years with not to risky investments.


  • Registered Users Posts: 20,407 ✭✭✭✭ Stark


    Generally speaking stocks are a good idea as long as your portfolio is well diversified and you're not worried about needing immediate access to the money during a downturn.
    tobeme2020 wrote:
    Even if I invested 20k this year how realistic would it be to have 100k in 10years with not to risky investments.

    I'm not an expert but you'd be lucky to double your investment in 10 years without significant risk imo. Something like 27k would be a more realistic target I would imagine (3% growth per annum compounded).


  • Moderators, Business & Finance Moderators Posts: 7,834 Mod ✭✭✭✭ Jim2007


    tobeme2020 wrote: »
    I could have 50k by next week sitting in the bank as cash and have had similar thoughts on what to do with it other than leaving it in the bank account. I don't have large outgoings and by next year, the balance will be higher. Having cash in the bank is worrying for me in this climate and now I would be happy to invest. Bitcoin is to volitile for me but I'm still considering it. Maybe even short term using 5k for 5 years to see where it goes from there. Is gold still considered a good investment. I could afford to put 5kinto this.


    Leave your money where it is and spend about a year learning about investing... you post is a good indication that you need to learn a lot before risking money on your knowledge.

    Even if I invested 20k this year how realistic would it be to have 100k in 10years with not to risky investments.


    No, not even close. The general consensus is that gross annualized return for stocks over the long haul is about 7% -8%. A skilled value investor might achieve an annualized return of around 10% - 13% over the long haul, so such an investor might manage say around 70K in 10 years all going well.


  • Registered Users Posts: 93 ✭✭ tobeme2020


    Jim2007 wrote: »
    Leave your money where it is and spend about a year learning about investing... you post is a good indication that you need to learn a lot before risking money on your knowledge.





    No, not even close. The general consensus is that gross annualized return for stocks over the long haul is about 7% -8%. A skilled value investor might achieve an annualized return of around 10% - 13% over the long haul, so such an investor might manage say around 70K in 10 years all going well.


    Where is the best place to learn and read up on investing. Books, videos etc..


  • Registered Users Posts: 220 ✭✭ breadmonster


    Would something like picking 13 investments of 5k each work best spread over time, that way you avoid the panic of losing money as your getting the average price over a few years.


    Amount to invest = 65k
    5k total for each investment
    Invest $500 in each every 3 months
    Total invested every 3 months is 6500


    or you could pick 7 investments with more added


  • Registered Users Posts: 277 ✭✭ kapisko1PL


    As with every investment, there comes the risk. Bigger rewards usually mean more risk but neither of the two are guaranteed.

    If I was you and didn't know what to do, I would invest it into ETFs. Perhaps have a look at Vanguard SP 500 index fund. The SP500 index tracks the performance of the biggest 500 companies on the stock market and moves up and down accordingly. It will definitely yield better results in the long term than the mere 0.02% in your deposit account. And they also pay quarterly dividends of around 2.5%.

    This means that every year you are most likely to get an additional return of 2.5% on your investment from dividends alone. This translates into 1,650 euro per year or an extra passive income of 135 euro a month. If you reinvest your dividends, you're very likely to make a fortune in about 10 years.

    That's my two cents.


  • Registered Users Posts: 2,770 ✭✭✭ KaneToad


    tobeme2020 wrote: »
    Even if I invested 20k this year how realistic would it be to have 100k in 10years with not to risky investments.

    Very unrealistic, I would think.


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


    That's quite a chunk of change so I'd spend a bit of money and contact an independent financial adviser to discuss your options.


  • Registered Users Posts: 317 ✭✭ gooseygander


    If you don’t want risk and want to take money from bank the only option is state savings. 10 year = 16% tax free is best available if you can afford to tie it up. If you know nothing about stocks or investments speak to an advisor from Irish life or equivalent and they will determine some good options for you based on your appetite for risk. Whatever you do don’t leave it festering in bank earning nothing.


  • Registered Users Posts: 12 ✭✭✭ Void Ceremony


    Surely a pension fund or similar?


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  • Registered Users Posts: 127 ✭✭ phantasmagoria


    Any investments in the stock market at this moment in time - you are essentially buying at the top which seems, from a logical point of view, a bad place to get in.

    Now if you think that a share is undervalued and the fundamentals underpinning that thought process are sound, then provided you are not in a mad rush to get out, a sensible person would sell to take advantage of CGT allowance each year when possible, roping in wives/husbands buying options etc. to maximize returns by selling the amount that suits.

    Have you looked to recoup previous years losses as a write off if you have an asset to dispose of?

    If you have children, you can gift a child 3k a year and he/she will get the benefit of it without prohibitive tax when you eventually shuffle off this mortal coil.

    Have you money in a credit union and particularly one that pays off an amount if you die?

    Given your lack of desire for risk which is completely understandable, state savings are probably your best option.

    I mentioned the others benefitting options as some don't consider the same.

    As for reading books about investment, I think most of the authors if they were savvy and capable would not be writing books giving away easy money grabs! If anybody knows of any such book, I will seek it out and read it myself and follow it religiously.

    Remember Eddie Hobbs was the man at one stage in Ireland. Sean Quinn fell from grace. The guys who looked like they knew what they were doing were gambling.

    Investment is such that you should be taking something off the table, not getting greedy and following the data.

    Risk 5% in the mad schemes if you think there is a chance that it may pay off. Try and protect the 95%.

    Your investment options are only restricted by the limits of your imagination or what you can learn along the way.

    In summary 5 years savings certificates...
    The caveat being are the government going to raid personal savings to pay for current events? Will the state default and leave you up **** creek? On the bright side, everybody will be in the same position and then you will wish you had spent it on guns!


  • Registered Users Posts: 723 ✭✭✭ hblock21


    If one wanted to invest through Irish Life. Is it better to go directly with them or through the bank i.e. AIB
    https://aib.ie/content/dam/aib/personal/docs/our-products/investments/portfolio-invest/aib-portfolio-invest-guide.pdf


  • Registered Users Posts: 220 ✭✭ thefridge2006


    kapisko1PL wrote: »
    As with every investment, there comes the risk. Bigger rewards usually mean more risk but neither of the two are guaranteed.

    If I was you and didn't know what to do, I would invest it into ETFs. Perhaps have a look at Vanguard SP 500 index fund. The SP500 index tracks the performance of the biggest 500 companies on the stock market and moves up and down accordingly. It will definitely yield better results in the long term than the mere 0.02% in your deposit account. And they also pay quarterly dividends of around 2.5%.

    This means that every year you are most likely to get an additional return of 2.5% on your investment from dividends alone. This translates into 1,650 euro per year or an extra passive income of 135 euro a month. If you reinvest your dividends, you're very likely to make a fortune in about 10 years.

    That's my two cents.

    I thought we (as Europeans) couldn't buy the S&P500 anymore? has this changed?


  • Registered Users Posts: 17,034 ✭✭✭✭ namloc1980


    I thought we (as Europeans) couldn't buy the S&P500 anymore? has this changed?

    You can buy European based ETFs which track the S&P500 etc.


  • Registered Users Posts: 220 ✭✭ thefridge2006


    namloc1980 wrote: »
    You can buy European based ETFs which track the S&P500 etc.

    great thanks, whats the difference between them and the Vangaurd?

    DO you know the names of a few?


  • Registered Users Posts: 4,310 ✭✭✭ jon1981


    OP the first question and most important question is what's your horizon for accessing the money? That will dictate your investment strategy.

    The longer the horizon typically the less risk because you can ride out dips in the market. Also don't drop it all in at once.


  • Registered Users Posts: 17,034 ✭✭✭✭ namloc1980


    great thanks, whats the difference between them and the Vangaurd?

    DO you know the names of a few?

    Check out this website:
    https://www.justetf.com/en/find-etf.html

    Here's the Vanguard S&P 500 ETF:

    https://www.justetf.com/en/etf-profile.html?groupField=index&ic=Vanguard&from=search&isin=IE00B3XXRP09


  • Registered Users Posts: 277 ✭✭ kapisko1PL


    I thought we (as Europeans) couldn't buy the S&P500 anymore? has this changed?

    If you have a look at VUSD (Vanguard SP500) on a platform such as T212 or degeiro. I have few "shares" of it.


  • Registered Users Posts: 14 DanT88


    hblock21 wrote: »
    I have 65k sitting in a deposit account with AIB currently earning 0.02%.

    I want to move it.

    I do not want risk.

    Where would you move it to?

    Thanks

    It's best to start investing in the financial market ! The risk you will not avoid . Big money requires risk, it is 100%. Choose the exchange you want to trade on, study the instruments of earning, types of analysis and practice will help you. Errors will happen anyway.
    The main thing is not to waste time on crypto, it's cheating.


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  • Registered Users Posts: 723 ✭✭✭ hblock21


    DanT88 wrote: »
    It's best to start investing in the financial market ! The risk you will not avoid . Big money requires risk, it is 100%. Choose the exchange you want to trade on, study the instruments of earning, types of analysis and practice will help you. Errors will happen anyway.
    The main thing is not to waste time on crypto, it's cheating.

    Where do you invest? Websites?


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