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What to do with 20K now and 10k savings every year.

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  • 16-01-2021 12:43am
    #1
    Pcgamer
    Closed Accounts Posts: 139 ✭✭


    Anyone any advice. I have no interest in maxing out my pension.


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    #2
    TimeToShine
    Registered Users Posts: 4,881 ✭✭✭TimeToShine


    Give it to a fund manager.


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    #3
    turbot
    Registered Users Posts: 1,106 ✭✭✭turbot


    Pcgamer wrote: »
    Anyone any advice. I have no interest in maxing out my pension.

    Consider spending €2k on Bitcoin (10%) and another €1k (in total) on 5 promising cryptos ( aka €200 each ), especially those with fixed total supplies. Given the sheer amount of money being printed, its possible you will get a 2-10x + return overall in the next say 3 years. You may also lose money - but if you're only risking 15% of your capital, your exposure is low.


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    #4
    Chuckie_Egg
    Closed Accounts Posts: 204 ✭✭Chuckie_Egg


    turbot wrote: »
    Consider spending €2k on Bitcoin (10%) and another €1k (in total) on 5 promising cryptos ( aka €200 each ), especially those with fixed total supplies. Given the sheer amount of money being printed, its possible you will get a 2-10x + return overall in the next say 3 years. You may also lose money - but if you're only risking 15% of your capital, your exposure is low.

    Funny how everyone was buying Toilet roll last March are now Buying Bitcoin today:rolleyes:


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    #5
    Jimbobjoeyman
    Registered Users Posts: 807 ✭✭✭Jimbobjoeyman


    turbot wrote: »
    Consider spending €2k on Bitcoin (10%) and another €1k (in total) on 5 promising cryptos ( aka €200 each ), especially those with fixed total supplies. Given the sheer amount of money being printed, its possible you will get a 2-10x + return overall in the next say 3 years. You may also lose money - but if you're only risking 15% of your capital, your exposure is low.

    Cryptocurrency is a gamble.
    Sure it's gone the right way for people but realistically there's no way of knowing what its value is and if it is overpriced or underpriced.

    Not something I'd be looking at for savings.

    Also, what's a promising crypto? and how do you decide what's promising and what isn't?

    Cryptocurrency has no underlying intrinsic value in the same way that stocks would if your looking to buy them to hedge inflation from all of the QE taking place.
    What part of it is gaining value to hedge inflation?
    At least with a stock, you own a part of a business which can in theory provide that hedge as there's something tangible that can be bought and sold.

    Also, 15% of your assets in a highly volatile and highly questionable asset class is not considered low exposure at all.


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    #6
    massdebater
    Registered Users Posts: 2,251 ✭✭✭massdebater


    OP, when will you need to take this money out again or what's your investing goal here? That'll change the advice you're given. What would you do if your portfolio dropped by 50%? What would you do if it doubled?


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    #7
    Magno_DT
    Registered Users Posts: 17 ✭Magno_DT


    If it's going to be long term and you didn't want to constantly be researching stocks, I would put a lot into an S&P 500 fund like the Vanguard one. It over time it has consistently given approx 10% return per year.


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    #8
    JackieChang
    Registered Users Posts: 1,494 ✭✭✭JackieChang


    Magno_DT wrote: »
    If it's going to be long term and you didn't want to constantly be researching stocks, I would put a lot into an S&P 500 fund like the Vanguard one. It over time it has consistently given approx 10% return per year.

    I would stay away from ETFs. Utter nightmare with the 8 year deemed disposal bollox.

    Have a look at investment trusts instead. .


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    #9
    supersonic21
    Registered Users Posts: 54 ✭✭supersonic21


    Here's what I'd do with 20k.

    25% into the S&P500 if you get a good price.
    10% into Apple
    10% into Amazon
    The remainder allocated between StoneCo, Pinterest, AliBaba, CloudFlare, Twilio, Lemonade, Sea Limited, Square, Atlassian Corp.

    I'd love to be in your position!

    I am not actually invested in the S&P, Apple, or Amazon - but if I had a lump sum to invest and was looking for more stable investments, I would invest in them.


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    #10
    Jimbobjoeyman
    Registered Users Posts: 807 ✭✭✭Jimbobjoeyman


    supersonic21 wrote: »
    Here's what I'd do with 20k.

    25% into the S&P500 if you get a good price.
    10% into Apple
    10% into Amazon
    The remainder allocated between StoneCo, Pinterest, AliBaba, CloudFlare, Twilio, Lemonade, Sea Limited, Square, Atlassian Corp.

    I'd love to be in your position!

    I am not actually invested in the S&P, Apple, or Amazon - but if I had a lump sum to invest and was looking for more stable investments, I would invest in them.

    Thats very tech heavy.
    By buying s&p your holding way more of apple and amazon than your listing there.
    What happens if something happens to the tech industry like it did in the early 00's ?

    I'd recommend diversifying it more than that and is extactly why you should consult a professional rather than boards.ie

    When a good professional builds a portfolio its risks are assesed just as much as the potential upside and its analysed through a number of different lenses and efficient risks are taken. the above recomendation while it has the possibilty for returns it would make a small part of a greater portfolio.


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    #11
    Captcha
    Registered Users Posts: 336 ✭✭Captcha


    https://www.reddit.com/r/wallstreetbets/comments/l0vwmb/cohens_twelve_gme_squeeze/

    With audio! :)


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


    Jimbobjoeyman wrote: »
    Thats very tech heavy.
    By buying s&p your holding way more of apple and amazon than your listing there.
    What happens if something happens to the tech industry like it did in the early 00's ?

    I'd recommend diversifying it more than that and is extactly why you should consult a professional rather than boards.ie

    When a good professional builds a portfolio its risks are assesed just as much as the potential upside and its analysed through a number of different lenses and efficient risks are taken. the above recomendation while it has the possibilty for returns it would make a small part of a greater portfolio.


    Exactly, it is also over weighted in trendy stocks, which means they are likely to be over priced.


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    #13
    daheff
    Registered Users Posts: 5,833 ✭✭✭daheff


    OP- really hard to give you a proper answer. much more information need.

    whats your time horizon?
    whats your risk appetite?
    do you have a pension? why not max it out (if you are high rate tax payer you gain 40% straight away by maxing it out)?
    do you have debt, and if so whats the rate you are paying on it?
    do you have a rainy day fund incase you lose your income stream?


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    #14
    codrulz
    Registered Users Posts: 369 ✭✭codrulz


    turbot wrote: »
    Consider spending €2k on Bitcoin (10%) and another €1k (in total) on 5 promising cryptos ( aka €200 each ), especially those with fixed total supplies. Given the sheer amount of money being printed, its possible you will get a 2-10x + return overall in the next say 3 years. You may also lose money - but if you're only risking 15% of your capital, your exposure is low.

    I don't get the argument for fixed supply when it's infinitely divisible?


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    #15
    partyguinness
    Registered Users Posts: 8,207 ✭✭✭partyguinness


    With €20k now and €10k every year we are not exactly talking big money here. You have not mentioned any goals but presumably you wish to maximise returns. Do you have money set aside for emergency?

    You could take say €40k in a couple of years and pick up some property abroad. You can pick up rentals in some parts of England for £30-£40k and get back £4000-£5000 per annum in rental. I have a few buddies that have done that. Having said that you will not make back any major profit selling on but the yield may well be worth it for 5-10 years.


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    #16
    Jimbobjoeyman
    Registered Users Posts: 807 ✭✭✭Jimbobjoeyman


    partyguinness wrote: »
    With €20k now and €10k every year we are not exactly talking big money here. You have not mentioned any goals but presumably you wish to maximise returns. Do you have money set aside for emergency?

    You could take say €40k in a couple of years and pick up some property abroad. You can pick up rentals in some parts of England for £30-£40k and get back £4000-£5000 per annum in rental. I have a few buddies that have done that. Having said that you will not make back any major profit selling on but the yield may well be worth it for 5-10 years.

    What parts of the UK ?
    I was looking at doing something like that in Limerick for diversification as the valuations in certain parts are fairly attractive but it was too much hassle with tax and so forth.


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    #17
    Das Reich
    Registered Users Posts: 736 ✭✭✭Das Reich


    partyguinness wrote: »
    With €20k now and €10k every year we are not exactly talking big money here. You have not mentioned any goals but presumably you wish to maximise returns. Do you have money set aside for emergency?

    You could take say €40k in a couple of years and pick up some property abroad. You can pick up rentals in some parts of England for £30-£40k and get back £4000-£5000 per annum in rental. I have a few buddies that have done that. Having said that you will not make back any major profit selling on but the yield may well be worth it for 5-10 years.

    30k for a property in England that can make 333 per month is a bit unrealistic. And if you get a bad tenant he can destroy about 5 years of rental income very easy.


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    #18
    GreeBo
    Registered Users Posts: 27,031 ✭✭✭✭GreeBo


    codrulz wrote: »
    I don't get the argument for fixed supply when it's infinitely divisible?

    Highly divisible isn't infinitely divisible though...


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    #19
    partyguinness
    Registered Users Posts: 8,207 ✭✭✭partyguinness


    Das Reich wrote: »
    30k for a property in England that can make 333 per month is a bit unrealistic. And if you get a bad tenant he can destroy about 5 years of rental income very easy.


    It's not unrealistic. I have seen it with my own eyes and in fact I am looking at it at moment in front of me.

    You are taking north east. Places like Hartlepool and Bradford pop up a lot. Naturally enough there are reasons why these places are so cheap and you will have management costs, anti social aspects, tenants may not be the best calibre etc. Up front costs like stamp duty is at 3%.

    It is quite true that a bad tenant can trash the place etc but I guess that is the risk any landlord takes. There is also landlord insurance.


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    #20
    supersonic21
    Registered Users Posts: 54 ✭✭supersonic21


    Jimbobjoeyman wrote: »
    Thats very tech heavy.
    By buying s&p your holding way more of apple and amazon than your listing there.
    What happens if something happens to the tech industry like it did in the early 00's ?

    I'd recommend diversifying it more than that and is extactly why you should consult a professional rather than boards.ie

    When a good professional builds a portfolio its risks are assesed just as much as the potential upside and its analysed through a number of different lenses and efficient risks are taken. the above recomendation while it has the possibilty for returns it would make a small part of a greater portfolio.

    yeah, you're right - my tech bias came through :)
    would definitely suggest more diversification into other spaces in the interest of balancing risk.

    OP; might be worth sharing your appetite to risk for the good of discussion but ultimately consult a professional either way


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    #21
    Potatoeman
    Registered Users Posts: 4,212 ✭✭✭Potatoeman


    Crypto currency is going to be regulated so it’s price will tank at some point. Why do banks have to do anti money laundering and anti terrorism funding compliance when the competition crypto doesn’t? It’s a ticking time bomb and it just needs one major incident to get in regulators crosshairs.


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    #22
    partyguinness
    Registered Users Posts: 8,207 ✭✭✭partyguinness


    Can't help but feel that the crypto currency ship has sailed.


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