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Thanks all.

8k to invest

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  • 12-10-2019 11:27am
    #1
    Still waters
    Registered Users Posts: 1,166 ✭✭✭


    Not a huge amount to invest but I've sold a plot of land that my grandfather left me years ago, after everything is paid and a few personal bills looked after i have the princely sum of 8000 euro left in my pocket.

    Now seeing as there's no point putting it in the bank with the way interest rates are what's the best thing i could do with it to make a few quid on it, not looking for anything overly risky or elaborate, something solid that will make a small return over time would do.


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    #2
    Jim2007
    Moderators, Business & Finance Moderators Posts: 9,988 Mod ✭✭✭✭Jim2007


    What kind of a return are you looking for any how much are you willing to risk loosing in order to do so?


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    #3
    krissovo
    Registered Users Posts: 2,645 ✭✭✭krissovo


    Do you have a pension? It would make a nice AVC.


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    #4
    RedRochey
    Registered Users Posts: 1,298 ✭✭✭RedRochey


    Figure out what you want to get out of the money, planning on buying a house in a few years, a new car, kids college, etc.?


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    #5
    Still waters
    Registered Users Posts: 1,166 ✭✭✭Still waters


    Jim2007 wrote: »
    What kind of a return are you looking for any how much are you willing to risk loosing in order to do so?

    I'd prefer not to risk any of it, there's very little leeway if i lose anything out of 8k, maybe I'm not understanding you correctly ?
    krissovo wrote: »
    Do you have a pension? It would make a nice AVC.

    Yes i have a pension but i don't think ill be investing it in it
    StockTwat29 wrote: »
    Figure out what you want to get out of the money, planning on buying a house in a few years, a new car, kids college, etc.?

    I don't want to risk any of it, a small return in a safe investment would be fine, i have a house with a small mortgage, no kids as of yet, the new car doesn't bother me, i live a frugal enough lifestyle so won't be splashing out on a new merc

    I would be interested in renovating in the next few years so if i could make it work towards that I'd be happy with whatever return i could get safely, thanks for the replies


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    #6
    RedRochey
    Registered Users Posts: 1,298 ✭✭✭RedRochey


    My bet would be some dividend paying stocks, you would get 4-5% a year in dividends, they should perform better than the general market if there is a recession, stocks like McDonalds, Coca-Cola, Pepsi, Unilever, Nestle, Roche, P&G


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    #7
    Still waters
    Registered Users Posts: 1,166 ✭✭✭Still waters


    StockTwat29 wrote: »
    My bet would be some dividend paying stocks, you would get 4-5% a year in dividends, they should perform better than the general market if there is a recession, stocks like McDonalds, Coca-Cola, Pepsi, Unilever, Nestle, Roche, P&G

    That sounds like what I'm looking for, what's the best way to do it, go to a financial advisor ?


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    #8
    RedRochey
    Registered Users Posts: 1,298 ✭✭✭RedRochey


    Just set up a Degiro account, really low commissions, not sure a financial advisor would talk to you for only 8k


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    #9
    Still waters
    Registered Users Posts: 1,166 ✭✭✭Still waters


    StockTwat29 wrote: »
    Just set up a Degiro account, really low commissions, not sure a financial advisor would talk to you for only 8k

    Ok, ill look into that, thanks


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    #10
    Static M.e.
    Registered Users Posts: 3,087 ✭✭✭Static M.e.


    Would you consider paying the 8K off the balance of your mortgage? Unless you have a tracker that would be a good investment and minimal work.

    Or perhaps consider the State savings scheme https://www.statesavings.ie/ - Small but safe returns over 5-10 years. That probably sounds like what you need if you don't want to risk losing any money.

    If you start investing in stocks, you need to be prepared that you could lose some of all of the money. It is a risk. For instance, if you purchased 8K of Coco-Cola and then you watch as that stock starts dropping 10, 20, 50% in value. Are you going to sell then straight away, to stop it losing more money or are you going to ride it out for a few years? You need to think about that because it matters and if you make a rash decision it could cost you a lot of money one way or another.

    If I had 8K, I would tackle things in this order. Pay off all loans (so no debt) then take a chunk out of my mortgage (reduce it cost over years), then either invest in your current pension (which is likely invested in stocks\bonds) or consider a second pension (PRSA AVC) if you could afford to put in €300 a month extra (You would need to get advice here) and use that second pension to target an accumulating EFT so that you could have to worry about it over time...Paying off all bills and reducing your current Mortgage would definitely come first.


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    #11
    BrokenArrows
    Registered Users Posts: 7,500 ✭✭✭BrokenArrows


    Since you don't want any risk at all then your options are.

    1. Pay off mortgage
    2. https://www.statesavings.ie

    Everything else has an element of risk.


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    #12
    Jim2007
    Moderators, Business & Finance Moderators Posts: 9,988 Mod ✭✭✭✭Jim2007


    Still waters wrote: »
    That sounds like what I'm looking for, what's the best way to do it, go to a financial advisor ?

    You just said you did not want to risk any of your principle.... so this is out of the question. Your limited to state savings or a bank account.


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    #13
    Supercell
    Registered Users Posts: 15,322 ✭✭✭✭Supercell


    Paying off some of your mortgage will give you best return in terms of interest saved unless you are near the end of it.
    https://www.loughlinstown.ie

    Have a weather station?, why not join the Ireland Weather Network - http://irelandweather.eu/



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    #14
    Heres Johnny
    Closed Accounts Posts: 2,738 ✭✭✭Heres Johnny


    If you put 8k into your pension you will get 3200 of it back as a tax refund from the lovely people in revenue. The 8k should grow substantially if you have a long time to retirement, based on historical returns of course, not some crystal ball I have.
    8k is not really enough to bother investing in anything low risk for a short period.
    If you have 8k and want to do something worthwhile with it and don't want to risk it and don't want to put it in your pension, pay a lump of your mortgage assuming you don't have a tracker, in which case it's probably not worth it.


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    #15
    Still waters
    Registered Users Posts: 1,166 ✭✭✭Still waters


    Ok so 8k is a ridiculously low sum of money to try to invest, i think the best thing would be to clear a smsll loan i have in the credit union and keep the remainder for a good holiday somewhere, thanks for all the replies


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    #16
    Static M.e.
    Registered Users Posts: 3,087 ✭✭✭Static M.e.


    Seems like a good plan. Enjoy the holiday.


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