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Money in the CU - time to move it

  • 10-06-2021 7:46pm
    #1
    Registered Users Posts: 49 batista


    Greetings,

    Some very interesting threads on here. I've always just left my money in the CU but i think its time to move it out as the return is safe but terrible. I have about 20k to play with, i am willing to take some risk with it, but obviously not willing to lose it all. I would want to ensure that i dont lose it all. So far ive only ever bought a few prize bonds which have very rarely paid out 75 euro to me. Any advice? I really dont have a clue about shares, id be better at picking a horse in the bookies. I'm thinking a mix of Prize bonds and fund from Irish Life. The money is a rainy day fund, that i may use in a few years to pay off some of my mortgage when my fixed term limit is up. I shouldnt need access to it over the next 4 years and thats the time frame im looking at to see if i can grow it a bit better than whats on offer in the CU.


Comments

  • Registered Users Posts: 3,054 ✭✭✭ Static M.e.


    Hi Batista

    Based on the above it might be worth looking at the State savings, which do a 3 and 4 year bond.

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

    National Solidarity Bond
    2% Total Return
    0.50% AER
    Tax Free

    If you want something with more risk \ reward, I would go for an EFT but as this is your rainy day fund, you might be better off just leaving in the CU...the idea is that if you never know when you will need it and your investment horizon is short. If you did have an emergency, you can't sell the bond without taking a loss.

    Personably, what I did was leave enough in the CU as a rainy day fund and then used what was left to start investing in an All-world EFT.


  • Registered Users Posts: 871 ✭✭✭ Neames


    Hi Batista

    Based on the above it might be worth looking at the State savings, which do a 3 and 4 year bond.

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

    National Solidarity Bond
    2% Total Return
    0.50% AER
    Tax Free

    If you want something with more risk \ reward, I would go for an EFT but as this is your rainy day fund, you might be better off just leaving in the CU...the idea is that if you never know when you will need it and your investment horizon is short. If you did have an emergency, you can't sell the bond without taking a loss.

    Personably, what I did was leave enough in the CU as a rainy day fund and then used what was left to start investing in an All-world EFT.

    What etf did you go for? How did you invest ...through DeGiro? Also interested in this topic.


  • Registered Users Posts: 2,240 ✭✭✭ garrettod


    Hello,

    If you are considering Exchange Traded Funds, then look at what Vanguard and iShare have to offer - both are big experienced providers, and are also very competitive when it comes to fees.

    Thanks,

    G.



  • Registered Users Posts: 598 ✭✭✭ pioneerpro


    batista wrote: »
    Greetings,

    Some very interesting threads on here. I've always just left my money in the CU but i think its time to move it out as the return is safe but terrible. I have about 20k to play with, i am willing to take some risk with it, but obviously not willing to lose it all. I would want to ensure that i dont lose it all. So far ive only ever bought a few prize bonds which have very rarely paid out 75 euro to me. Any advice? I really dont have a clue about shares, id be better at picking a horse in the bookies. I'm thinking a mix of Prize bonds and fund from Irish Life. The money is a rainy day fund, that i may use in a few years to pay off some of my mortgage when my fixed term limit is up. I shouldnt need access to it over the next 4 years and thats the time frame im looking at to see if i can grow it a bit better than whats on offer in the CU.

    Vanguard FTSE All-World UCITS ETF (USD) Accumulating
    ISIN IE00BK5BQT80, WKN A2PKXG

    https://www.justetf.com/en/etf-profile.html?isin=IE00BK5BQT80

    I'd need a fairly convincing argument against this as the most efficient risk/reward investing vehicle available without onerous tax reporting implications.

    Basically for a decent-sized fire and forget port like that with no interest in picking stocks, you want to go VWCE in some flavor unless you're particularly risk averse.

    This is a surprisingly concise and clear breakdown with a lot of options and clarifications from the last week

    https://www.reddit.com/r/EuropeFIRE/comments/nsu50y/european_etfs_for_longterm_investing/


  • Registered Users Posts: 105 ✭✭ HillCloudHop


    pioneerpro wrote: »
    Vanguard FTSE All-World UCITS ETF (USD) Accumulating
    ISIN IE00BK5BQT80, WKN A2PKXG

    https://www.justetf.com/en/etf-profile.html?isin=IE00BK5BQT80

    I'd need a fairly convincing argument against this as the most efficient risk/reward investing vehicle available without onerous tax reporting implications.



    https://www.reddit.com/r/EuropeFIRE/comments/nsu50y/european_etfs_for_longterm_investing/

    The only argument you need is 'Deemed Disposal.'


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  • Registered Users Posts: 598 ✭✭✭ pioneerpro


    The only argument you need is 'Deemed Disposal.'

    It's the safest and best return for a 2-3 year hold, which can be accessed at basically any time. ETFs are treated like a joke in this country, but for what the OP is proposing in terms of cost/benefit the small bit of effort in calculating gains - DIRT per annum is infinitely worth it compared to investing in a bloody 2% bond or whatever other product I can think of.


  • Registered Users Posts: 3,054 ✭✭✭ Static M.e.


    Neames wrote: »
    What etf did you go for? How did you invest ...through DeGiro? Also interested in this topic.

    Hey, sorry only getting back online today. I use the same as pioneerpro below through the XET exchange.

    Vanguard FTSE All-World UCITS ETF (USD) Accumulating - ISIN IE00BK5BQT80


  • Registered Users Posts: 4,014 ✭✭✭ Treppen


    If you're thinking ahead to retirement then don't discount the tax relief yould get from putting extra into pension. But there's charges and tax too so get advice.

    Or overpaying mortgage, maybe.

    Not saying either is better, but factor them into your decision.


  • Registered Users Posts: 598 ✭✭✭ pioneerpro


    Treppen wrote: »
    If you're thinking ahead to retirement then don't discount the tax relief yould get from putting extra into pension. But there's charges and tax too so get advice.

    Or overpaying mortgage, maybe.

    Not saying either is better, but factor them into your decision.

    See OP about four year timeframe.


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