I have a question for the smartest person on this forum

older by the day · 25-01-2019 12:15am #1

Ok, I assume your the smartest, I have 30k earning 20 euro a year, i dont need it for 10 years plus, I have no investment experience. So what would you do? Gamble 5k on blue chip shares for the fun and let the rest where it is? Invest with an assurance company, Irish life ect. But the market is high at the moment? Try and stick it in a pension fund . Don't get complicated and my appetite for risk is med to low, it was hard earned

overkill602 · 25-01-2019 8:31am

My share pick for 2019 Greatland gold prospecting (GGP) activies in Australia aim stock .025p

scheister · 25-01-2019 9:59am

older by the day wrote: »

Ok, I assume your the smartest, I have 30k earning 20 euro a year, i dont need it for 10 years plus, I have no investment experience. So what would you do? Gamble 5k on blue chip shares for the fun and let the rest where it is? Invest with an assurance company, Irish life ect. But the market is high at the moment? Try and stick it in a pension fund . Don't get complicated and my appetite for risk is med to low, it was hard earned

Main question to ask is how would you feel if you lost it all or how much are you willing to loss. You mention pension but how far away from Pension are you, do you have a mortgage. Is paying that down and option

I would spread it around.

Put 20k into An Post 5 savings account
Put 6k into Bluechip companies (Netflx, Microsoft etc)
Put 3k into slightly risker developed companies (Ryanair, IRES BOI)
Put 1k into a stock that could seem as gambling (penny stocks, AIM companies, young companies)

This would be my 2 cents but others will disagree

TheIrishGrover · 25-01-2019 10:39am

Bitcoin!

realitykeeper · 25-01-2019 11:12am

I would buy physical gold and physical silver which you could keep in storage either in Ireland or abroad. The silver dollar presently is about 15$ per ounce so (when the time comes to cash them) they represent practical amounts if you need small everyday items like groceries or to buy a meal. Obviously for security reasons, it is best to pay the 1% of their value to keep them in vault. A one ounce gold coin is nearly 1300$ so they would be useful for big ticket items like solar panels, a greenhouse or drilling a well if you have land. (These self sufficiency investments are also a wise choice in my opinion).

So why are gold/silver and investment in self sufficiency good investments? Because the next recession will be especially bad and it is certain to come at some point. I wrongly guessed it would be the end of 2017 but we are now into 2019. A lot of these stock market crashes happen around October.

I would check out the following on youtube: Mike Maloney, Peter Schiff and Gerald Celente.

Cute Hoor · 25-01-2019 12:03pm

Is that you conditioned games

Here's one clip of Peter Schiff
https://www.cnbc.com/video/2015/12/17/peter-schiff-gold-is-still-going-to-5000.html

DubCount · 25-01-2019 3:41pm

older by the day wrote: »

Ok, I assume your the smartest, I have 30k earning 20 euro a year, i dont need it for 10 years plus, I have no investment experience. So what would you do? Gamble 5k on blue chip shares for the fun and let the rest where it is? Invest with an assurance company, Irish life ect. But the market is high at the moment? Try and stick it in a pension fund . Don't get complicated and my appetite for risk is med to low, it was hard earned

Go talk to an independent investment adviser. It will be the best money you ever spend. There are so many factors influencing what way to proceed, you need to talk to someone who can take account of your unique circumstances and direct you in a way that suits those circumstances.

Investment decisions are not a one size fits all. Are you 5 years from retirement or 50, have you a great state pension or no pension, what is your attitude to risk, do you own your own home, or have a mortgage or are you renting, how secure is your job, have you any children or grand children and are your married, are you going to inherit a fortune when Great Aunt Mary pops her clogs ... The list goes on. All this will determine if you should be investing in State Savings Bonds, having a punt on the stock markets or using the money as a deposit for a house - or even leaving it on deposit with the bank earning 20 quid a year.

ELM327 · 25-01-2019 3:43pm

Put 51% on black and 49% on red and repeat

ixus · 25-01-2019 7:21pm

What is the greatest thing you could do to increase your capacity to earn money? Education? Professional development course? Relocation?

Do whatever that is.

Jambonjunior · 25-01-2019 8:04pm

Netflix is a bluechip company now? Physical silver and gold?

Get better advice OP.

older by the day · 26-01-2019 1:57am

I want to thank you for your answsers tho I'm still no wiser, just answer this, I'm 40, self employed, I earn 30k one year 50k next, 35 the year after (farming). No loans, I don't like gambling but it kills me to see inflation eating my savings. Question is, with all the incertanty is it a good time to buy shares in General

ixus · 26-01-2019 2:23am

Personally, i wouldn't touch stock market with a volatile income like that. There's going to be a period you'll need cash.

Have you any college behind you?
Even if not, with extensive farming experience, you could do a Masters in Agricultural Innovation at Nui Galway. It's mostly online learning.

http://aginnovate.org

Here's the kicker, if you apply through Springboard you only pay 10% of the course fees. So that could be 800 euro for an 8 grand course for example.

Springboard is govt supported so it's like getting a little tax back. I've done it myself.

Say you put 5000 into stocks and it lost 50%, you're at 2500 less transaction costs.

Say it made 100% in 3yrs you're up 5000 less transactions.

800 euro into Springboard gets you an 8 grand course and some knowledge that can help you improve your earning potential.

https://springboardcourses.ie

Only one winner for me.

Mad_maxx · 27-01-2019 2:13pm

older by the day wrote: »

Ok, I assume your the smartest, I have 30k earning 20 euro a year, i dont need it for 10 years plus, I have no investment experience. So what would you do? Gamble 5k on blue chip shares for the fun and let the rest where it is? Invest with an assurance company, Irish life ect. But the market is high at the moment? Try and stick it in a pension fund . Don't get complicated and my appetite for risk is med to low, it was hard earned

The market is cheap right now, it was only ever expensive in America and the U. S market is still 12% below its all time high

The only power the vast majority of investors have is patience, wild moves in the market will happen regularly

Had to laugh at the suggestion that Ryanair and Bank of Ireland are higher risk than Netflix, I like Netflix but it's PE is 126 where as Ryanair is 9

RedRochey · 30-01-2019 11:09am

If you're planning on not needing this money for more than 10 years than it's always a good time to invest in the stock market.

Best advice you could get would be to get proper professional advice from a financial adviser, not a bunch of people on boards trying to sell you penny stocks.

P2PBanking.com · 30-01-2019 11:18am

Drip feed 70% in a MSCI ETF with low TER (and no or very low broker cost). Don't put it in in one go. Rather contribute every 14 days or every month.
Put 10-15% in p2p lending (e.g. Linkedfinance)
Keep 15-20% in cash

Bob Harris · 01-02-2019 8:40am

Buy blue chip shares (not netflix) that pay a decent dividend. If you have 30k then 6 companies in 6 different sectors.
There are plenty of these companies out there at the moment that are good value or undervalued paying 4-5% dividends and will continue to do so. It's reasonable to think that you will see some SP appreciation over those 10 years as well as your dividends.

p to the e · 01-02-2019 12:01pm

Jambonjunior wrote: »

Netflix is a bluechip company now? Physical silver and gold?

Get better advice OP.

Yeah I had a chuckle at the Netflix blue chip. If I were suggesting a decent blue chip at the moment I'd look at AT&T. Bit of a dip in share price which will return dividend yield around 7% but do your own research.

I'd say if you're asking you've already thought about gambling with some penny stock etc. but as said previously you need to spread it around. The amount will depend on your personal circumstances.

valoren · 01-02-2019 3:07pm

I think it's safe to say the below companies (each long term compounding machines) will likely be around in 10 years time and not currently over priced.

Johnson & Johnson - 2.71% dividend. (250 subsidiary companies across the pharma, medical and consumer divisions. Think of JNJ as a healthcare mutual fund)
3M - 2.72% (operates in 5 diverse segments, industrial, electronics/energy, safety/graphics, healthcare, consumer)
Exxon Mobil - 4.48% (the largest publically traded oil and gas company)

10k in each.

Average yield 3.3%

Annual dividend - $842 ($990 less dividend witholding tax).
The annual dividend will also increase every year on year.

Other blue chips could be included as well to diversify.

If the above 3 companies increased their annual dividend by say 5% on average then the total payout from dividends alone will be $10,590.

Year 1 842
Year 2 884
Year 3 928
Year 4 974
Year 5 1023
Year 6 1074
Year 7 1128
Year 8 1184
Year 9 1244
Year 10 1306

That's without re-investing that 10k. Reinvesting the dividend would be like adding rocket fuel to the annual payout.

patspost · 01-02-2019 11:30pm

What would be a good broker to buy those shares, based in Ireland. Dont currently have an account.

Shai · 02-02-2019 3:10pm

Why do you need an Irish broker? Just use Degiro .

sevenshades · 02-02-2019 10:04pm

valoren wrote: »

I think it's safe to say the below companies (each long term compounding machines) will likely be around in 10 years time and not currently over priced.

Johnson & Johnson - 2.71% dividend. (250 subsidiary companies across the pharma, medical and consumer divisions. Think of JNJ as a healthcare mutual fund)
3M - 2.72% (operates in 5 diverse segments, industrial, electronics/energy, safety/graphics, healthcare, consumer)
Exxon Mobil - 4.48% (the largest publically traded oil and gas company)

10k in each.

Average yield 3.3%

Annual dividend - $842 ($990 less dividend witholding tax).
The annual dividend will also increase every year on year.

Other blue chips could be included as well to diversify.

If the above 3 companies increased their annual dividend by say 5% on average then the total payout from dividends alone will be $10,590.

Year 1 842
Year 2 884
Year 3 928
Year 4 974
Year 5 1023
Year 6 1074
Year 7 1128
Year 8 1184
Year 9 1244
Year 10 1306

That's without re-investing that 10k. Reinvesting the dividend would be like adding rocket fuel to the annual payout.

Doesn't the dividend (in Ireland anyway) get taxed at the marginal rate (with a credit for DWT)?

1st dalkey dalkey · 02-02-2019 11:56pm

sevenshades wrote: »

Doesn't the dividend (in Ireland anyway) get taxed at the marginal rate (with a credit for DWT)?

Yes.
But even accounting for that you still end up way ahead of an Irish bank deposit "earnings".
Also the above dividend total does not include any stock price growth over the ten year period.
These blue chip stocks will invariably grow in value over that kind of term.
There are many in the category 'blue chip', but the dividend is also nice.
Try googling 'dgi champions', for a list of good companies that have grown their dividends over long periods.

Austria! · 03-02-2019 12:27am

valoren wrote: »

Johnson & Johnson - 2.71% dividend. (250 subsidiary companies across the pharma, medical and consumer divisions. Think of JNJ as a healthcare mutual fund)
3M - 2.72% (operates in 5 diverse segments, industrial, electronics/energy, safety/graphics, healthcare, consumer)
Exxon Mobil - 4.48% (the largest publically traded oil and gas company)
.

Swap Exxon for Berkshire. Global warming and renewables make it a risk.

valoren · 05-02-2019 2:07pm

Austria! wrote: »

Swap Exxon for Berkshire. Global warming and renewables make it a risk.

BRK-B is a good call but it doesn't pay a dividend. It would be a compounding capital gain investment.

The reasoning behind choosing Exxon would be that the world will still be running on oil for decades, let alone a decade per the OP, as renewables come on stream. Being an energy company, I guess it would remiss of the management to not see the writing on the wall either and have sufficient scale to adapt over the coming decades. Unlike a Berkshire, you get to collect increasing dividends along the way.

Austria! · 05-02-2019 4:49pm

What's the appeal of dividends? That money just goes out of the share price and you get taxed on it.

1st dalkey dalkey · 05-02-2019 7:04pm

Austria! wrote: »

What's the appeal of dividends? That money just goes out of the share price and you get taxed on it.

True, to a degree at least.
It really depends what it is you are investing for and at what stage of life you are at.
Many companies pay no dividend and you are relying on capital gain, which once converted to cash is also taxed.
What I look for is the total gain from the investment, dividend plus capital.
I like dividends because I get them now and can use them to re-invest, sometimes in better paying companies.
Also, later in life, dividends are a source of income. Living on capital gains is more difficult, as you will not have control over when you need to sell, and therefore may not get the best price or return.
Horses for courses, really.

RockDaddy · 10-02-2020 2:55pm

overkill602 wrote: »

My share pick for 2019 Greatland gold prospecting (GGP) activies in Australia aim stock .025p

Did you keep hold of this?..

I took some at 1.8p last April, still holding.

bcklschaps · 19-02-2020 3:58pm

Austria! wrote: »

What's the appeal of dividends? That money just goes out of the share price and you get taxed on it.

In theory that is true, but in practice its not what happens. I have a few single pay Dividend shares and the SP usually goes up a little before ex-dividend date and comes back down (to where it was) the day after, and with US Shares that pay Dividend quarterly there isn't even a ripple around dividend time.

bcklschaps · 19-02-2020 4:01pm

goin back to the OP's question. Buy a 10yr Post Office savings Solidarity bond.

16% Total Return
1.5% AER
Tax Free

No Brainer. *There's even an early cash out option if you get into trouble

*Read T&C's carefully about that

ODriscoll · 24-02-2020 2:05am

older by the day wrote: »

Ok, I assume your the smartest, I have 30k earning 20 euro a year, i dont need it for 10 years plus, I have no investment experience. So what would you do? Gamble 5k on blue chip shares for the fun and let the rest where it is? Invest with an assurance company, Irish life ect. But the market is high at the moment? Try and stick it in a pension fund . Don't get complicated and my appetite for risk is med to low, it was hard earned

Put most of it in physical Gold, ideally with verified status, so you can sell it (easier and credibly) if and when needed.
In this world, the current and foreseeable future of this political and economic world! Gold will continue to prove (as it has rather consistently for generations) one of the very few consistent credible investments, so that's where you should be putting your hard earned savings that's left over for risk after the essentials of food and shelter and health.

RedRochey · 25-02-2020 9:44am

ODriscoll wrote: »

Put most of it in physical Gold, ideally with verified status, so you can sell it (easier and credibly) if and when needed.
In this world, the current and foreseeable future of this political and economic world! Gold will continue to prove (as it has rather consistently for generations) one of the very few consistent credible investments, so that's where you should be putting your hard earned savings that's left over for risk after the essentials of food and shelter and health.

https://awealthofcommonsense.com/2015/07/a-history-of-gold-returns/

Not sure how you can say gold has proven for generations to be a consistent investment, tell that to someone who started in the 80s.

OP it all depends on your situation, I would pay down a mortgage, put it into my pension, or invest it in a low-medium risk multi-asset fund like Irish Life MAPs or Zurich Prisma, maybe invest a little yourself if you want to gain more investment experience

I have a question for the smartest person on this forum

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