How do you invest your money?

nesf

How do you do it?

And why?

If I've missed any particular type of investment just tell me and i'll edit the poll. Am a little distracted atm and might have missed something...

nesf

Ok I'll start the ball rolling

Deposit Savings Account: I keep a float of of a couple of grand in a deposit account for emergencies.

Savings Schemes: I participated in the SSIA scheme for the maximum amount, it will be maturing for over 20K for me next year. I will be re-investing it all.

Savings Bonds: I've a tidy amount of money lying around in An Post bonds and certificates. Most of them were started in my youth (I loved to save as a kid).

Managed Funds: My uncle is a sucessful fund manager, and he keeps a fund for the family going. I've over 10K in here, returns are around 10% annually for the past 5 years (best year was 35% return, the worst was a 5% loss).

Stocks/Shares: I maintain a few positions in stocks. I don't have alot invested in here just a couple of odd grand that was lying uselessly in a bank account

Business: I hold a share of the family business. I have two minor projects running at the moment on the side. This is where the majority of my actual paper assets are. On paper I've quite a bit of money, but the business ties it up.


I'm unusual for my age in just how much I have saved in investments. It comes from being born into a quite poor family and having quite a sparse life as a kid. You don't forget that when you get older. I've been saving since I got my First Communion money and put it in an An Post Savings Cert That and my mom is big on savings and has been putting aside money for us since we were born, account opened on the day of my birth kinda thing.

The reason why I am so investment orientated, is that I don't drive or have any loans. Credit is bad when you are paying interest m'kay. I also live quite cheaply, ie I live on well less than the minimum wage, my tastes aren't extravagant. A few pints on a friday night with the lads and a broadband connection and I'm happy

That and I find investing fascinating

mayordenis

well im about to invest in property.
think its something that will really stand to you, being 18 it can only be good.

uberwolf

Me I've an SSIA - worth 12k in 18 months and shares - of varying value bout 3k though typically.

Nothing massively substantial. My most signifcant investment to date has been in my education - if that counts?!? I may never be able to measure the roi, but the fees this year were 10k so I'm hoping it'll have been worthwhile!!

nesf

uberwolf wrote:

Nothing massively substantial. My most signifcant investment to date has been in my education - if that counts?!? I may never be able to measure the roi, but the fees this year were 10k so I'm hoping it'll have been worthwhile!!

Education is definitely a form of investment, although generally it's a form of investment on behalf of your parents and the government for your benifit (I'm not saying it's this way for everyone, it's just that in my experience, people who put themselves through college with no financial support from home are not in the majority).

The government "invests" in you by paying your college fees in your first degree/whatever. The return of this investment is an educated workforce that attracts alot of business to the country and results in a more stable society.

One can argue that with the increase in education of the masses, there has been a tangible increase in standard of living. Education and life go hand in hand in my opinion. Education for all (ie free education) is one of the best aspects of our society. Yes not everyone can afford to go to college but we have a much higher percentage of college graduates per head of population than say the US where the government doesn't subsidise third level education.

bonzai bob

I own a substantial amount of shares in the company i work for, at the moment they're not worth much but they usually are up and around the $130 mark. That's about it, i have a small bit of money in the credit union but i'm still trying to pay off the loan i got:D

I find it very hard to save, there's always something i want.

fintan

At the moment my largest investments are my education (currently doing a masters part-time) and the two companies I have set up.

comet

mayordenis wrote:

well im about to invest in property.
think its something that will really stand to you, being 18 it can only be good.

Is that meant to be a joke? 18 and investing in property?

ionapaul

I have a SSAI maturing in less than 2 years, will be worth about €20k. I have a current account with a few grand in it, have a decent amount in a Northern Rock Demand Deposit online account and the rest of my assets consist of a range of different stocks. I choose all of them myself, some value and some growth. I would not invest less than €5k in each 'bundle' of stock, as commission is a killer. I am also into saving and investing, and haven't had a loan in more than 10 years (since entering college). Always pay my credit card balance at the end of the month. That said, although I do have a small car I don't own any property or have a pension plan (foolish to invest in a pension plan before buying property, so the experts say), so although I seem 'cash-rich' to my peers, many would be more wealthy as they bought houses while I was off working in the States.

jay567

Property, stocks and bonds. Only really got interested in investing about 2 yrs ago. Its amazing, but so much information available that it can become a bit much.
Following the usa stock market at the moment.

Blackjack

A bit of everything, really. The only thing from the above I don't have is a direct investment in a business, but maybe some day!.
I do also consider my pension to be an investment, particularly from the Tax perspective. It's something that I'll be glad I put that little bit extra in at some stage.

RainyDay

mayordenis wrote:

well im about to invest in property.
think its something that will really stand to you, being 18 it can only be good.

Not true. Like all forms of investment, it can also go bad.

crazymonkey

if anyone is thinking of investing in property, longford is the place to go, houses are still relevatly cheap there but are climbing faster than rest of country with exception of dub, I bought my hse there and it has rasin 45% in value in 2yrs, only done some minor improvements to it,
Peace

daveg

nesf wrote:

Managed Funds: My uncle is a sucessful fund manager, and he keeps a fund for the family going. I've over 10K in here, returns are around 10% annually for the past 5 years (best year was 35% return, the worst was a 5% loss).

That pissed me off (no offence nesf). We opened a PIP savings account 5 years ago for my son for collage. Last statement says we have less than what we put in. As I'm no financial whiz are we being screwed?

nesf

daveg wrote:

That pissed me off (no offence nesf). We opened a PIP savings account 5 years ago for my son for collage. Last statement says we have less than what we put in. As I'm no financial whiz are we being screwed?

No offence taken.

Like I said the worst was a 5% loss. Investing the the markets is risky. It does not guarantee a return. I would never advise anyone to put money into such an investment scheme if they could not afford to lose it.

Did you invest through one of the major banks or one of the major investment firms?

daveg

nesf wrote:

Did you invest through one of the major banks or one of the major investment firms?

We have a performance investment plan (PIP medium risk) with ark life (through a broker in Galway). I asked whether this was the best plan for us (saving over approx 15 + years E75 per month with a view to providing funds to send my son - now 6 - to collage). The advisor said in hindsight this may not be the best plan for our situation but that there were very few options at the moment to change. However she said once the SSIA's are paid out there will be a lot more (savings) choice offered from banks.

When it comes to savings I'm cluless. If anyone has any comments or suggestions on our situation please post back.

Thanks.

RainyDay

daveg wrote:

We have a performance investment plan (PIP medium risk) with ark life (through a broker in Galway). I asked whether this was the best plan for us (saving over approx 15 + years E75 per month with a view to providing funds to send my son - now 6 - to collage). The advisor said in hindsight this may not be the best plan for our situation but that there were very few options at the moment to change. However she said once the SSIA's are paid out there will be a lot more (savings) choice offered from banks.

When it comes to savings I'm cluless. If anyone has any comments or suggestions on our situation please post back.

Thanks.

What charges/fees are you paying on your plan? Your broker is probably sending HIS kid to college on the back of the commission he is earning out of the fees you are paying. Look for bid/offer spread, administration fees, allocation units, management fees etc in the documentation to see what you are paying, and compare this to the 1% fees available from Quinn Life or 1.5% fees available from EBS.

hamster

daveg wrote:

We have a performance investment plan (PIP medium risk) with ark life (through a broker in Galway). I asked whether this was the best plan for us (saving over approx 15 + years E75 per month with a view to providing funds to send my son - now 6 - to collage). The advisor said in hindsight this may not be the best plan for our situation but that there were very few options at the moment to change. However she said once the SSIA's are paid out there will be a lot more (savings) choice offered from banks.

When it comes to savings I'm cluless. If anyone has any comments or suggestions on our situation please post back.

Thanks.

Just to add a few lines with Rainyday there...

I opened a PEP with Ark Life back in 1999 a year after I started working. I was putting in 200IR/month which was increased by 5% per for 5 years. After that length of time it barely grew at all. Charges had a lot to do with it. Bet yours had a 5% bid/spread owned by bank on each monthly contribution you put in and a 1.5% on the entire fund yearly charged on monthly basis. That and a shaky market ensured it didn't do too well. I cashed it in this year and put it into Quinn Life (50% US and 50% Irish - already in the Eurozone ). I like Quinn Life because they have no bid/spreads and a low 1% annual charge.
Another option is ETFs which you can buy a share that acts basically like you owning a basket of shares.

Better keep to the thread.

* My first investment was the PEP. 20K. invested over 5 years. stopped.
* Next I bought an Irish share (AIB, CRH...) maybe twice a year. Usually about 4000 Euro each time. I try to stick with Blue Chip High Dividend payers. I have about 8 shares in the ISEQ. I plan to hold these long term.
* I had a Northern Rock account since October 2000. I hold any spare cash here for emergencies.. unemployment, illness, investment etc. 3.05% now thanks to RaboBank's threat. Try to hold 5-10K in here at all times.
* Started a Pension with Eagle star for 3 years. Now with a company pension. Combined now 35K. I do this for tax reasons. I have little fate since much interference can could from the government. ie, the relief and charges. My company also chips in 5%.
* EBS SSIA... 20K. Plan to reinvest
* Recently bought a 150K house (2.99% Mortgage rate). I'm not one for property but I needed to balance things. Anyway it's on a mature .75 acres and not a terrace house. 80K outstanding. Will accelerate once rates start to rise - no point yet until the NRock rate is exceeded.
* 24K in Quinn Life split 3 ways (Euro/US/Irish)
* 6K in Company ESPP.

- Working 7 years and save 70% of earnings a month. On the "Public sector Industrial Average Wage" - but not a public sector worker.

- Pay rent of 310 E per month (dublin) and spend another 300 (living) total. I'm aggressive with cutting costs like any company would be. I keep track of all spending.

Take the bus to work. No car. Computers/Tech is my spending area and has got ridiculously cheaper compared to 10 years ago anyway. Sweets are my "beer".

karltimber

I work for a company that gives us both options and allows us to buy their stcok at a cheaper rate - which are fantastic savings opertunities.

But I also put money into US stocks. Have been doing so for about 5 years.

I just cannot sit by and let my money sit in a bank and get a 2.5% (approx) over a year.
And don't worry - I can lose some and not be worried as I am up on my initial investment.

I also have "cash savings" for a rainy day.
Don't like European/Irish stocks as info and live trading (<3 sec) is either non-existant or expensive (I could be wrong - US trades $10).

Just my two pennies worth -- no sorry - 3 pennies --ha ha

hamster

karltimber wrote:

I work for a company that gives us both options and allows us to buy their stcok at a cheaper rate - which are fantastic savings opertunities.

Yep, I'm in the same boat here in a ESPP. I get a 15% discount on share price every 6 months. The share price offered is based on the price at the start or at the end of the 6 month period and then a 15% discount of which is taxed at 42%

The weakening Euro is having a quite nice effect at the moment. Quinn Life US funds are up. EBS Global Fund is having a cracker of a run (up 8% YTD)... Eddie Hobbs must be happy. And EBS sent out those apology letters the other day for it's poor run. No need at this point in time. Even Elan is benefiting (assuming they don't freak out with the volatility). Eagle Star's Dynamic fund has risen nicely as well. Spending Euros against dollars is the only downer for now.

nesf

hamster wrote:

The weakening Euro is having a quite nice effect at the moment. Quinn Life US funds are up. EBS Global Fund is having a cracker of a run (up 8% YTD)... Eddie Hobbs must be happy. And EBS sent out those apology letters the other day for it's poor run. No need at this point in time. Even Elan is benefiting (assuming they don't freak out with the volatility). Eagle Star's Dynamic fund has risen nicely as well. Spending Euros against dollars is the only downer for now.

We've had a ludicriously good thing going with buying from the US for quite a while now.

It wasn't going to last forever (unfortunately), so I guess it's to be expected.

Although, it's not that bad a shift, I mean it's not like the Euro is trading at less than the value of a dollar or anything.

hamster

nesf wrote:

Although, it's not that bad a shift, I mean it's not like the Euro is trading at less than the value of a dollar or anything.

Oh yea... 1.22 is a big difference compared to Mid 2001 when the Euro was a measly 84 cent to the dollar at one point!

Selik

My investments consist of:

SSIA max amount
Portfolio of stocks (11 in total FTSE(2) & ISEQ(9)
Northern Rock Demand Online Account

I'm always on the lookout for new investments and good deals etc. My stock portfolio is up but only by about 3-4% since about Sep 03 when I started. Having said that I have bought and sold quite a bit and I made a mistake when I sold Tesco at about 2.60 after buying them at 2.40 sterling. Granted I made a nice profit but they went up to about 3.00 shortly afterwards and I think they're still in and around that mark. Bought a few Elan shares as well recently just after they crashed. I'm planning on holding onto them for as long as possible and ride out the current volatility. If they hit 12euro or more I'm selling as I'll have made a 100% profit on them. Of course it could go the other way but it was a calculated gamble so I can't complain.

Rubens

Eh wake up folks - u only live ONCE yes ONCE... AND IT COULD END ANY MINUTE!!

Live your life , buy a car , go out every night if u feel like it. Its so sad to see so many people obsessed with their little savings and investments..Its no good to you when your rotting in a coffin .. Jesus!

Investments make buggar-all difference if u do NOT OWN your house since your petty investments will be still increasing in value less than house prices. What ya gonna do - live with mammy all your life counting your savings?

Cop On

RJ

nesf

Rubens banned for a week for original trolling and lackluster attempts at comebacks.


To make myself clear on this one. Posts like the above will result in me banning the user. Although, originally I just insulted him, which was wrong and I apologise for that. I've cleaned up the thread by deleting said posts.


This board, in it's short life, has been very polite and friendly and people have been helping each other a lot and taking time to answer questions. I wish to keep it this way. I won't tolerate people trolling on here.

If you want to tell people not to invest, start a new thread and post up a valid argument. Otherwise, don't post at all.

Selik

Rubens wrote:

Eh wake up folks - u only live ONCE yes ONCE... AND IT COULD END ANY MINUTE!!

Live your life , buy a car , go out every night if u feel like it. Its so sad to see so many people obsessed with their little savings and investments..Its no good to you when your rotting in a coffin .. Jesus!

Investments make buggar-all difference if u do NOT OWN your house since your petty investments will be still increasing in value less than house prices. What ya gonna do - live with mammy all your life counting your savings?

Cop On

RJ

I own my house, mate. Oh wait I see you're banned what a shame, how about investing in a brain...

Fredser

Hmmmm do I detect that whoever Rubens is has hit a nerve here. :rolleyes:

Tut tut folks banning the lad for giving an opinion.

Fredser

nesf

Fredser wrote:

Hmmmm do I detect that whoever Rubens is has hit a nerve here. :rolleyes:

Tut tut folks banning the lad for giving an opinion.

Fredser

No, if he stated his opinion in a polite and respectful fashion I'd have let him be. I have no issues with someone coming on here and diagreeing with me or other posters. I like to argue. But he didn't do that.

His post was an attack on everyone else in this thread.

That's a banning. Those are the rules. This is a serious forum imho and I'll moderate it as such. If you disagree with this, then feel free to start a thread about it on here or in Feedback.

ionapaul

We can refut Ruben's rantings if needed. His comment about house prices increasing faster than the value of other investments is misguided at best and illustrates this country's current obsession with property (just as many were obsessed with high tech stocks from 1995-2001). Historically, equities have increased in value worldwide at a faster / higher rate than property prices have increased. Many well-informed commentators (and those without a vested interested in the property boom) would tell you that Irish property prices will not match equities as an investment vehicle in the medium term. The fact that even the vested interests (banks, etc) now calmly refer to the 'bubble' in the housing market should terrify those who have borrowed heavily to invest in the past 12 months - bubbles burst.

As for the living your life, buy a new car, yadda yadda yadda crap he spouted, surely that is each individual's decision? Yes, some of us could sell our investments and buy a penile-replacement sports car if we wanted, but that's not my idea of 'LIVNG MY L1FE 2 THE MAXXXX!XX!'

nesf

ionapaul wrote:

As for the living your life, buy a new car, yadda yadda yadda crap he spouted, surely that is each individual's decision? Yes, some of us could sell our investments and buy a penile-replacement sports car if we wanted, but that's not my idea of 'LIVNG MY L1FE 2 THE MAXXXX!XX!'

Personally, I prefer to have both

Although my tastes run more towards useful things, like a nice TV, and such.

His assumption that anyone who cared about investments was a miser, was only the first in a long list of reasons why I considered the post trolling rather than a valid attempt at giving a sincere opinion.


Plus, houses are a cash drain... Sure they "increase in price" but um, you need to spend quite a lot of money on them to keep them in good nick in the medium to long term.

Land is a much easier investment if you're obsessed with owning physical stuff.

karltimber

Rubens,

All poeple are different. Some like saving -some don't.
I don't like banks -I prefer US stocks.

The reason I invest in US stocks ,is so in years to come I can pay off my house and have no cash worries. Whatever happens in Ireland/Europe in the next 10 years, will not effect me the same as joe-blogs with his e250k morgage.

Folks live from day to day/week to week and spend what they earn and thats fine - but I want work to be my choice - not beacuse of my mortgage/loans.

q - how do people feel about getting 3%-5%-8% on a fund over the space of a year when investing compared to a possible 50%++ or -- when investing directly. Do most of you do both - funds & direct stocks.


thx

nesf

Eh, I wouldn't feel comfortable with all my money in "risky" investments.

I like to keep it spread out etc.

Although, if another SSIA comes up I'll defo be taking it on. Was a fantastic way to save imo.

karltimber

I still have a certain amount of cash but just don't use banks for "saving".

I would not consider investing in stocks risky - if the right tools are used.
Usual rules though - don't invest more than you can lose.

My job has plenty of other savings/stock schemes.
Options/share purchasing and bonus to share programs !!

So I am fairly spread out alright but nothing associated with Irish stocks - I'd be the last one to find out anything !!!!!!

Would I be right in saying that Irish people in general are afraid or reluctant to invest - possibly after Eircom !!

RainyDay

karltimber wrote:

The reason I invest in US stocks ,is so in years to come I can pay off my house and have no cash worries. Whatever happens in Ireland/Europe in the next 10 years, will not effect me the same as joe-blogs with his e250k morgage.

Why do you assume that the US economy will beat the European economy?

boa-constrictor

Pips and Peps are a complete waste of money. They are very agressively marketed by the banks and I've never met a person yet you was happy with them. You dont stand a chance with the bank gleaning off all the contribution fees and management fees. It would need to be invested in all the top performing shares for you to have even a small chance of gaining after all the bank will siphon off. Several friends of mine have signed up to them only to get out at a loss a couple of years later, and the guy in the bank will always tell you to wait it out (so he can make another 3 or 5 years commission out of you). There are mis-sold too. A friend of my younger brother, went in to start a saving scheme when he was around 20. He hadnt even a house and obviously that would have been his first aim so a 3 - 5 year savings product would have been appropriate but they gave him a 20 year PIP!

karltimber

I suppose I made that assumption because I trade/invest in emerging companies and there will always be those around - in an up or down market !!

I really don't have a huge knowledge on economy's etc to disagree with you !!

I'm sure there are trading accounts for European stocks with the same level of info but I have settled with US stocks !! and there are probably just as many folks who trade Euro stocks and won't touch US ones.

I'm just happy with US stocks -- appologies if I made a blunt statement out of context or without merit !!

karl

ionapaul

The stamp duty associated with Irish (and to a lesser extent British stocks) really put me off. I currently don't hold any Irish equities, only British and US. That said, purchasing non-Euro based equities (such as British or US) using Euros means that currency flucuations will effect your bottom line. For example, the dollar has strengthened so much since purchasing Company X stock six months ago, even if the stock price remains the same as on the day of purchase, I will make a good 10% if I choose to sell now.

RainyDay

I queried your US-focussed policy because you didn't mention anything about currency risk. Any investment outside the Eurozone carries this risk. Ionapaul is lucky in having made a significant gain on the dollar movement in recent months, but it could just as easily have been a significant loss.

I'm not suggesting that you never invest outside the Eurozone, but I would suggest that you aim to get some balance into your portfolio and not leave yourself completely exposed to FX movements.