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Need Advice to invest €85,000 cash

  • 26-03-2022 4:18pm
    #1
    Registered Users Posts: 5


    I have this money in a bank account right now and I need to do something urgently due to the inflation situation.

    I don't have previous investing experience but I am comfortable with a 3 to 5 (out of ten) risk level and looking to make

    an average of at least 5-7% on average per year. I have looked at Zurich funds but I have read online that they are highly expensive

    fee wise. As this money is the bulk of everything I have, I need to keep fees very tight. I have also read that an EFT that tracks the US

    S&P500 is a good option with less fees. As far as I am aware this is an "index fund". Can I invest without a broker?

    Please offer any advice as I am completely new to this and only recently started learning about investing.

    Also, I am fine with not being able to access the funds for 5+ years.


    Regards



Comments

  • Registered Users Posts: 4,307 ✭✭✭whomitconcerns


    You want 6% but low risk. Buy long term government bonds you'll be grand.



  • Registered Users Posts: 5 cflp60


    Thanks for your reply. Would you mind elaborating a small bit about potential options, how to go about it etc. I thought bonds yielded much less than 6% and were less worth it than pre 2021 with all the inflation. I would like to avoid paying a middleman hundreds of euro if at all possible too. I'd like something I could access after 5+ years



  • Registered Users Posts: 984 ✭✭✭Pinoy adventure


    An post 10 year gov bond is 10%



  • Registered Users Posts: 5 cflp60


    I would like to make 5% per annum at least. That yields nothing given the rising inflation unless I am missing something.



  • Registered Users Posts: 19,019 ✭✭✭✭Donald Trump


    I don't mean to be blunt, but if a person wants a risk free investment then expect the risk free rate or return. After that, the general rule of thumb is the bigger of a return you chase, the bigger the risk.


    General maxims:

    1) Diversification is your friend as it will help you eliminate idiosyncratic risk

    2) Make sure you keep enough liquidity. You mention that this is all your money? Consider some of it for shorter term liquid investments with no early redemption penalties.



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  • Registered Users Posts: 4,552 ✭✭✭Treppen


    Be aware of tax on investments too.

    At least with gvnmt bonds it's dirt free



  • Registered Users Posts: 5 cflp60


    A moderate level of risk is OK. 5 / 10 level risk. I am not planning to put the full €85k in one place. I can put a big chunk away for 5 years+ and keep a smaller percentage more liquid and more accessible. Can you recommend a "shorter term liquid investment"? I am definitely not looking for "risk free" because I know that's not how this works. I want to make 6-7% with the least amount of risk possible (i.e, efficiently). I understand this will bring a moderate level of risk over the long term and a higher short term risk due to volatility etc. I just need pointers on how to actually go about this and the mechanics of it and how to plan for taxes and charges. For example I do own some crypto separate to this and as that is highly volatile I cannot commit any more funds at that level of volatility so I am looking to stagger the risk level and spread out the funds. My objective is to preserve the money and not lose significantly to inflation.


    Can I do this online without the need for an "advisor". I know what I want in terms of risk tolerance, time-span, amounts and how to treat it psychologically. I am just concerned with getting a good deal (good entry into a good fund with positive expectancy and understanding taxes and fees



  • Registered Users Posts: 5 cflp60


    Don't you need to be making 5-6% to break even in real terms these days?



  • Registered Users Posts: 4,552 ✭✭✭Treppen


    Well ok then here's one.

    Buy 10,000 shares in Magnis resources on the ASX when they drop below .44 . Then sell at .49 in a few days.

    Rinse and repeat



  • Registered Users Posts: 3,140 ✭✭✭ocallagh


    You won't get 6% without some risk. If you don't need this cash for at least 10 years:

    1st max out your pension

    2nd I'd stick it in a mix of bonds, investment trusts (see here: https://www.boards.ie/discussion/2058183673/investment-trust-watch#latest) and some low risk stocks, BRK.B is a good one. You can do all this yourself with an online execution only account, Degiro, Davy etc

    Someone mentioned 10% return with An Post. That is 10% total over 10 years which is under 1% per year and you need to leave it for the full term. It's not a great investment.



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  • Registered Users Posts: 984 ✭✭✭Pinoy adventure


    Go too a casino and put half on red and half on black,your guaranteed a 50% return



  • Registered Users Posts: 433 ✭✭notsocutehoor


    This day 5 years ago BRK.B were at $165.21, today they are at $353.17 - no guarantees obviously and there will be ups and downs (for example on 1st June 2020 they were at $178.51) but over your timeframe it would be disappointing if they didn't deliver your target. Absolutely minimal cost to invest and no particular skillset either. That said I wouldn't be sticking €85k into it



  • Registered Users Posts: 11,394 ✭✭✭✭Timmaay


    The easy answer to someone like you in almost every other country is to lob it into an EFT. But due to Ireland's crazy tax laws around investing, stay the hell away from ETFs. Investment trust funds are much simpler from a tax point of view and you "only" pay the 33% cgt once you sell (so very same as normal shares). I say only because obviously 33% is a significant hit on what you make, but like unless your still on the low rate of income tax then getting hit with just 33% tax is about as good as it gets for the normal joe soap investor in Ireland.



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