Beginning to Invest - All questions go here please

bopbuddy · 12-08-2010 9:07pm

Hi,
I have ¢10,000 to invest. Any suggestions anyone. I would like it to be low to medium risk but would be open to any suggestions. I have a small bit of money invested in shares and a small bit larger invested in physical gold.
Any suggestions would be appreciated.:o

Revolver76 · 14-08-2010 10:03am

Hi all,

First thread/post.......

Looking for advice on what to do with a lump sum of 40,000 euro.I was thinking of paying off some of my mortgage or else going in to one of the State Saving's schemes ie.saving bonds or saving certificates 3/5 plans.Good interest rates on these.

Anyone have any good alternatives on the above??

Metal Head Hunter · 14-08-2010 10:41pm

*Mods please don't merge this thread with the others as its not really the same....sort off!*

Hi everybody, I stumbled across this forum the other day and have had a look at some of the other topics (particularly the stickied ones) but I couldn't really find the answers to my questions so I thought i'd make this topic and see if anyone could really help me out.

OK so basically I'm going to be inheriting quite a large amount of money soon (not sure of the actual figure but its a good bit above €50000), and would be very interested in learning how to invest it properly. I have a very basic knowledge of finance having done a few modules of it in college, but I really never "got" it and it was consistently my worst subject every year so I'm not really in the best position to start learning about this, but I'm eager to learn and would really really appreciate it if some of you investment buffs could

Firstly how would I go about ACTUALLY investing? Can I do it through my bank account/sign up to some kind of online brokerage firm or something along those lines?

Secondly with stocks is it all really about the percentage increase in the stock? What I mean is if one stock grows from €10 to €12 is it the same level of attractiveness as a stock that goes from €1.00 to €1.20? Also can someone point me towards some good websites that have information for beginners who are interested in investing? I've found some but they don't seem that great, and theres lots of unfamiliar and unexplained jargon about!

Thirdly I'd like to take the money I haven't invested in the stock market and put it into something solid and dependable that will at the very least retain its value. Now I know that that would have been gold for the past few years but now that its at an all time high has it peaked? Is it still worth investing in, or is it likely to depreciate in value from here on out?

Thanks in advance for any help you guys can give, would really appreciate it!

Raskolnikov · 15-08-2010 12:10am

Metal Head Hunter wrote: »

Firstly how would I go about ACTUALLY investing? Can I do it through my bank account/sign up to some kind of online brokerage firm or something along those lines?

Woah there, cowboy.

Before you start investing, I suggest you learn something about it. I was in the exact same position as you a few years back and someone gave me the exact same advice that I'm giving you now. Foolishly, I decided I wasn't going to listen, and ended up losing money because I thought I knew everything, and that I could get 50% returns in a year.

Warren Buffett is probably the best investor that has ever lived. He has went from nothing, to becoming one of the richest men in the world. Through his biography, his annual shareholder letters, books, and media appearances; he has detailed how he did it, and how others can too.

First thing I would suggest you do is google every video on Warren Buffett (plus anything remoted related) that you can find. Watch them all, several times if you have to. If that interests you, then you need to start reading. I think there are three books that can give you quite in-depth knowledge of how Buffett works.

1. The Snowball - Alice Schroeder (the only official biograpy he has).
2. Buffett - The Making of an American Capitalist - Roger Lowenstein.
3. The Warren Buffet Way - Robert Hagstrom.

As far as I know, Warren Buffett is the only person who has ever detailed a get-rich scheme that actually works. The only problem, is that it's get-rich slowly scheme, and that's the kicker as most people are only interested in a quick buck.

If you want discuss this kind of approach, you can talk to me, or ask questions anytime.

Metal Head Hunter · 15-08-2010 1:32am

That seems really interesting Raskolnikov, thanks. Sorry if it seemed I was rushing ahead, I really am interested in doing this right, so will definitely go and check out some stuff on Warren Buffett (I have heard of him before, but not a huge amount). Also I won't actually be getting the money until late november/early december at the earliest, and it could be the opening months of next year before its all sorted, so I have plenty of time to look things over. Think I'll start now, will come back to this thread when I inevitably have questions/get confused! Anyone else who has any advice to give please don't be shy, it'd be much appreciated!!

Edit - Oh and on other thing, could you please tell me if what I thought about the overall percentages being the actual important bit of stock trading was right or wrong? Or have I just oversimplified it completely? Would like to find out that bit of info, thanks!

ixus · 15-08-2010 10:42am

A 20% return on an investment is a 20% return on investment. Simple as.

Should you come into this money, don't let it be something that burns a hole in your pocket. You don't have to do anything with it. Let it sit in a high interest deposit account for a while.

Your posts suggest you have no clue whatsoever so, don't dive in to anything.

Read something like the FT (Financial Times) Guide to Investing.

The most important thing you have to ask yourself is;

What is my goal in life?
What am I looking to achieve by investing?

Are you in college, starting or finished it?
If starting or in it, you'll certainly have to think of fees.
If you're coming out of it, you'll have to think of the possibility that you can't get a job. You may need that money to survive.

If you have a job; what are the odds of you losing that job?

Have you ever wanted to run your own business? Maybe this is a great opportunity to get the ball rolling!

In short, invest in yourself. And, the most important thing in investing is, nothing is a sure thing (i.e. don't buy bank shares).

Merged.

Metal Head Hunter · 15-08-2010 12:40pm

Awww....merged. Oh well! Thanks for the info Ixus, I picked up the FT guide to investing a while back but haven't gotten round to reading it at the min cause I've been busy. To answer your questions I'm just out of college, but I'm pursuing a masters in Trinity for the next year (which I've already budgeted for so thats fine) and after that I'll be looking for full time employment (and I have set aside a small amount of money to cover me during that period, although my actual living costs would be quite low anyways which makes it easier).

While I would love to start my own business someday, its not the right time as firstly I want to finish my education, secondly I want to get a good few years experience in a working environment and thirdly I just wouldn't know what my business would do! I mean I've had ideas but none of them would have really set the world on fire/been technically feasible, but I'm sure in the future that'll change!

Anyways basically what I want to get out of investing is just more money, and the excitement of trading in stocks/analysing companies and so on (I love that kind of stuff and am very methodical about these kinda things). I definitely won't jump in before I'm ready (which is why I'm trying to get all the info I can before I get any of the money), and I'm definitely only gonna start small and go from there.

You mentioned a high interest deposit account. Just what level of interest would we be talking here, are they secure places to hold money? Also are there certain requirements (i.e don't touch the money for a number of years or whatever) tied to this high interest rate? Thanks for the info!

Edit - Oh sorry its The Economists Guide to Investment Strategy I have....should I go out and pick out the FT one (I don't mind) or are they all the same really?

TheJokerIRL · 16-08-2010 1:38am

The government bond will be worth 20k in 10 years and with council grants and free fees that is plenty of savings for an irish college education.

delllat · 30-08-2010 11:54am

as the title says ,have access to 50k interest free ,
he needs it back in 12 months,if i have less than 50k after 12 months i have to pay back the remainder out of my own pocket

if theres any profit i get 50% of it

is there anything blindingly obvious that would suit this ? or at least beat the banks ?

Brando_ie · 30-08-2010 12:40pm

I wonder if this forum would be able to recommend me some likely places to seek information on the following.

In total my friend had about €150k to invest / save and is looking to break it down into

1 - Ca 100K long tern investment that is intended to be open with the 100K and it will remain there until it forms part of an inheritance to their kids (assuming all things are even it would be 30+ years, possibly 40 years). There would not be any intended requirement to withdraw anything over the life of the investment until it is split up amongst their children after their death. All interest accrued would be rolled into the capital

2 - Ca €50k also long term investment and also intended for the same inheritance as above but in case of some unforeseen drama down the line it would be preferred to be able to access any or all of these funds at relatively short notice without penalty. Similarly all interest accrued would roll into the capital.

Other issues to consider are:

The family of the person were actually victims of a failed (main fella took off to a non extradition country with all the cash type deal) investment scheme out of Northern Ireland during the 70's / 80's IIRC so having been burned once this person is only looking for a SAFE low risk saving / investment venture this time around (understandably this will equate to low return... but this is a slow and steady type deal as an inheritance only)

Any inheritance tax type mitigation that can been availed off to minimise the sting to their children when eventually the cash is divided up.

He has been informed that any fund paid into prior to the bank guarantee scheme lapsing will benefit from same for the duration of the policy (30+ years..) is this actually true?

Ideally I would like any advise that might seem relevant or possibly pointing me in the direction of any 'comparison' type sites that are recommended to review what is on offer.

As it stands they have just done the rounds of the banks (AIB / BOI / TSB & An Post) and rounded up a whole bunch of brochures of their long term savings type deals but frankly I would prefer some impartial advise, hence this thread.

Cheers

Xios · 30-08-2010 1:19pm

50k on 'She's the fastest' this sunday at ferryhouse.

delllat · 30-08-2010 7:24pm

Xios wrote: »

50k on 'She's the fastest' this sunday at ferryhouse.

price?......

irishtrader · 01-09-2010 2:19pm

There are many good stockbrokers out there that will invest in a balanced portfolio for you with your targets in mind, some of the above threads give some decent advice but they may not necessarily be the best course for you, how risk adverse are you? to trade succesfully on the markets you need to understand them and know your objectives. the best way to do this is to do some courses and start trading with an advisary account through a broker, it will give you a better return than a descretionary account and give you more control. at the end of the day the only person that really cares about your financial fund is you! so you should take control and dont take investing advise from boards

delllat · 01-09-2010 11:25pm

irishtrader wrote: »

There are many good stockbrokers out there that will invest in a balanced portfolio for you with your targets in mind, some of the above threads give some decent advice but they may not necessarily be the best course for you, how risk adverse are you? to trade succesfully on the markets you need to understand them and know your objectives. the best way to do this is to do some courses and start trading with an advisary account through a broker, it will give you a better return than a descretionary account and give you more control. at the end of the day the only person that really cares about your financial fund is you! so you should take control and dont take investing advise from boards

thanks for the advive ,very interesting stuff

would it be possible to find a broker whos willing to take a % of the profits in return for managing the investment for 12 months instead of a fixed salary ? so at least he is target driven/motivated to make a success out of it which would be beneficial to me and him

irishtrader · 03-09-2010 11:04am

yes all brokers are paid a commission depending on your level of investment you can be looking at approx €40 to trade with advise €15 for online trading which is very risky if you dont know what your doing, if your really going to invest €50k you really should be talking with a broker and invest in a balanced and diversed portfolio, and you should really do a course and learn how the stock market works as this will give you better control in your decision making and better returns (investing without the emotion will always give better results), also in my opinion independant brokers are best, i wouldn't invest through a broker that have ties with banks or insurance companies!! we know who they are!! as there interest is for there partners and your interest is 2nd to them. Also there are education companies out there that charge a €12K for a mixed bag (all the education and no back up), there are others that charge €2k for the worst software iv ever seen! with no education and they push you to spreadbet all your money!!Learnaboutshares "dont gamble get educated" its a tough education for there clients i can assure you ! (again spreadtrading should only be used as a hedge) and an experienced trader would only ever use 2%-5% of there total investment to spread,
there are good companies out there so look around you will spot the good from the bad very quickly.

delllat · 08-09-2010 1:03am

irishtrader wrote: »

yes all brokers are paid a commission depending on your level of investment you can be looking at approx €40 to trade with advise €15 for online trading which is very risky if you dont know what your doing, if your really going to invest €50k you really should be talking with a broker and invest in a balanced and diversed portfolio, and you should really do a course and learn how the stock market works as this will give you better control in your decision making and better returns (investing without the emotion will always give better results), also in my opinion independant brokers are best, i wouldn't invest through a broker that have ties with banks or insurance companies!! we know who they are!! as there interest is for there partners and your interest is 2nd to them. Also there are education companies out there that charge a €12K for a mixed bag (all the education and no back up), there are others that charge €2k for the worst software iv ever seen! with no education and they push you to spreadbet all your money!!Learnaboutshares "dont gamble get educated" its a tough education for there clients i can assure you ! (again spreadtrading should only be used as a hedge) and an experienced trader would only ever use 2%-5% of there total investment to spread,
there are good companies out there so look around you will spot the good from the bad very quickly.

thank you for your post on getting started with investing,some very interesting information in there that will be of great help to new people like myself who dont know the market and how it operates very well

i have spoken to a guy in XXXXXXXXXXXXXXXXXX who seems to think a return of between 10-20 % could be achieved safely over 12 months but i have my doubts whether this is a realistic fiqure

if you or anyone else could recommend someone who is knowledgeable in the investment market i would be very greatful to speak with them
(PM me if company names are not allowed to be posted )

regards

del

Beta Ray Bill · 20-09-2010 9:05pm

Hi All,

I have been saving money now for quite some time. (Deposit for a house)

I have about 20,000 put away, but based on current market trends I have decided to hold off for at least 12 month's (I think mortgage interest rates will rise again due to the Government bond value)

Anyway,

So I have 20,000 now sitting in a bank account make 3.5% of which I have to pay dirt on. (IE It's making sweet F.A.)

I would like to invest the money somewhere but I haven't a clue where?
I don't want a crappy savings account which will give me very little over 12 months, So I'm thinking more along the lines of shares. But they all see to be going down in value?

Any Suggestions?

G.

btard · 20-09-2010 9:18pm

Chelsea are currently priced at 4/5 to win the premiership with Paddy Power. A 20K investment will return 36k. You won't even have to wait untill May for the payout. This will be sown up shortly after Xmas and PP will be paying out early. You may see this as gambling, but it's safer than any other investment in the current climate and pays out much more.

You can thank me in May or whenever PP pays out.

aspasp1 · 20-09-2010 9:33pm

silver-paladium-gold in that order........but only if your horizon is more than 2-3 years .....

ixus · 20-09-2010 9:55pm

Graham, are you willing to risk losing any of that money? If not, deposit account is the only place for you.

Beta Ray Bill · 20-09-2010 11:16pm

ixus wrote: »

Graham, are you willing to risk losing any of that money? If not, deposit account is the only place for you.

In a nutshell yes.

I am prepared to lose some of it. Deposit accounts are rubbish, You make nothing on them unless you have like +150,000 euro to place in them in the first place.

I like the Idea of buying Precious metals. Gold is worth a lot at the moment.
However,
My understanding is that as recession hits Raw material value increases. And as we come out of recession it decreases?

irishtrader · 22-09-2010 12:03pm

man your going to lose a lot of money if you invest and dont know what your at, for a start in my strong opinion Gold is Over priced! your buying at the top!!! very very risky move. the stockmarket hit a lowpoint 2 years back and is recovering well!, get yourself set up with a stockbroker and do a course on trading there are plenty to chose from. i advise you not to invest unless you know what your at. if your prepared to take a loss then you will do well as a trader as we all take losses to realise profits, Nobody ever sells at the top! its like winning the lottery

), we can take our losses at the top or if you dont know what your doing you will surely take the loss at the bottom. my advise dont invest untill your ready and prepared.

mickman · 22-09-2010 12:17pm

everyone has their own opinion but in my opinion gold has much more upside to it

growler · 23-09-2010 12:39pm

" OPEN OFFER You have been credited with Sinclair Pharma entitlement shares at a rate of 0.20866102 entitlements for every 1 ordinary share held as at 25 August 2010. These will entitle you to purchase 1 new share
for every 1 entitlement held at an issue price of 28 pence per new share. If you would like to take up this offer
please notify us in writing ..."

Am I being thick or are they offering me the opportunity to buy shares at a price of 28p here... even though the stock is trading at below this price right now?

Why would I purchase shares on such an open offer entitlement at a price in excess of the current value?

Or am i very much missing something ?

thanks

iMax · 30-09-2010 2:21pm

OK, now that the guarantee has been extended & we're (most likely) nationalising AIB, should I whip out those funds & get them into the national solidarity bond pronto ?

Market Wizard · 15-10-2010 12:36am

credit union??????? my god

skyhighflyer · 30-10-2010 9:13pm

Honestly mate, if it were my money and for my daughter's eduction I wouldn't be putting it into the market at all.

Some of the suggestions here are utterly insane for what you want to do: commodities, trading, etc.

Even putting some of the money into 'solid' shares like Apple, BP, Vodafone, etc would be a bad idea as you don't have enough capital to diversify.

If you want safety (and you do) deposits are your only option. Switch it around every year or two into the best one or two year fixed interest account, adding a bit when you can.

If you really need to get into the markets, if it were me I'd consider putting €7k into the government solidarity bond and €6k into a low cost index fund tracking the S&P 500. That way, you've got the 'safety' of a bond and a tax-efficient investment, and you'll be exposed to equities on a diversified level in order to take advantage of any rise in the market, but you won't have to do any stock picking yourself, and you won't have your capital eaten into by trading commissions.

But that's just me

Iguana Bob · 09-11-2010 12:24pm

Ok I have a couple questions.
I'm considering investing in aib, I know I may loose a good bit of it if the government need to buy even more of the bank,
I'm wondering if they will ever get Bach to paying dividends over the next few years.
Was about to buy some a couple days ago but now the price has jumped 21% over 2 days
Any ideas?

Tyrant^ · 12-11-2010 11:00am

Iguana Bob wrote: »

Ok I have a couple questions.
I'm considering investing in aib, I know I may loose a good bit of it if the government need to buy even more of the bank,
I'm wondering if they will ever get Bach to paying dividends over the next few years.
Was about to buy some a couple days ago but now the price has jumped 21% over 2 days
Any ideas?

Im no expert. But I think its a bad idea. The reason behind the 21% jump is I think because it showed up on some day traders radars... But Im no sure

wylo · 24-11-2010 5:10pm

Hi, In the past few weeks I have seriously considering getting into trading, while I do feel its on a par with regular gambling , I get the feeling from my research so far that , with discipline , it is alot more technical and achieving results isnt just a complete pipeline dream.

Just wondering if people could answer these in VERY layman terms.

1: I think I understand what spreadbetting is. But I cant seem to find the difference between that and CFD trading? They seem very very similar.

2. Could someone please point an article that explains the VERY basics in layman terms what options and futures trading is and how different it is to the ones mentioned above?

3: How do I get away from this whole ,'win or lose big money with a small deposit', or 'you can lose more than your initial deposit'. Could I not just lodge 500 euro, bet 1 euro and hope that that 1 euro represents 1 tick, that way it would have to move 500 ticks in the wrong direction for me to go bust?

4. Just wondering could someone quickly explain the maths in this example, it may answer alot.

Im using the Paddy Power demo at the moment, I have £6,156.82 in my account. I click on Gold rolling daily in spreadbetting simulator, and want to buy at 1375.2, size = 1, stop=15, I would have though there that my exposure should be now £15, i.e. £1 for every tick. Yet when I finally click 'Buy' my trading resources drops by £100??

Why is this??

Thanks in advance for any help,itll be greatly appreciated.

Beginning to Invest - All questions go here please

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