Beginning to Invest - All questions go here please

iMax · 23-06-2010 5:21pm #1

Guys,

Looking for a little bit of info from those more knowledgeable than me.

My five year old daughter has the above sum in her college fund. We've really skimped for it over the years (started before she was born).

Times are getting harder for us economically & it looks like we won't be able to contribute to it like we were (or at all) for the foreseeable future, but I want to keep it growing if at all possible.

It's currently in an AIB kids account where it ears a meager interest rate.

We were thinking of maybe the state solidarity thing or prizebonds (someone's gotta win, right???). IS there anything else we should look at ? No risk is much preferred (as much as anything can be no risk). I know you don't get as high a return, but it's my daughter's future I'm dealing with.

We don't mind it being locked away (probably a good idea in the long run). Also we'd like to be able to capitalise by being able to add to it if possible.

Looking forward to the replies

displaced dub · 23-06-2010 6:43pm

hi iMax

I currently have my kids money paid into Anglo at 3.75%, my 2.5year old is making nice money and the newborns is now being paid into this account also.

If you are thinking of buying shares with this, think long and hard about it.
You could buy some ETFs in various exchanges also.

Xios · 23-06-2010 7:28pm

My advice has no weight what so ever, but heres my two cents, i see saving money long term could yield a loss, because of inflation it'll lose value over time. I'd be more inclined into putting the money into something physical that will hold it's value over the long stretch of time. Perhaps land? Or maybe a piece of farmland for lumber, maybe a certain type of tree that'll take 16 years to be ready for harvest and by then it'd be making a profit. Of course that has it's risks over 16 years and i know nothing of it, it could would be worth the research.
Also what if the euro collapses in that time?

Take the other posters advice over mine, i'm only new to this idea of investments and i've never had any money of my own to spend really, my biggest investment was a motorbike which was 2700 euro.

T Corolla · 05-07-2010 6:37pm

iMax wrote: »

Guys,

Looking for a little bit of info from those more knowledgeable than me.

My five year old daughter has the above sum in her college fund. We've really skimped for it over the years (started before she was born).

Times are getting harder for us economically & it looks like we won't be able to contribute to it like we were (or at all) for the foreseeable future, but I want to keep it growing if at all possible.

It's currently in an AIB kids account where it ears a meager interest rate.

We were thinking of maybe the state solidarity thing or prizebonds (someone's gotta win, right???). IS there anything else we should look at ? No risk is much preferred (as much as anything can be no risk). I know you don't get as high a return, but it's my daughter's future I'm dealing with.

We don't mind it being locked away (probably a good idea in the long run). Also we'd like to be able to capitalise by being able to add to it if possible.

Looking forward to the replies

A credit union account will yield you good dividends. On that sum you could get up to 7-8% per annum. I would pay tribute to you for saving such as sum of money for your children as well as providing from them in every there are not many out there with that kind of money set aside well done

pocketdooz · 05-07-2010 10:35pm

iMax wrote: »

Guys,

Looking for a little bit of info from those more knowledgeable than me.

My five year old daughter has the above sum in her college fund. We've really skimped for it over the years (started before she was born).

Times are getting harder for us economically & it looks like we won't be able to contribute to it like we were (or at all) for the foreseeable future, but I want to keep it growing if at all possible.

It's currently in an AIB kids account where it ears a meager interest rate.

We were thinking of maybe the state solidarity thing or prizebonds (someone's gotta win, right???). IS there anything else we should look at ? No risk is much preferred (as much as anything can be no risk). I know you don't get as high a return, but it's my daughter's future I'm dealing with.

We don't mind it being locked away (probably a good idea in the long run). Also we'd like to be able to capitalise by being able to add to it if possible.

Looking forward to the replies

For your particular situation, I would recommend putting it into the government 10 year solidarity bond.

40% return after tax over 10 years would mean you would have nearly €20,000 when your daughter is 15 years old.

Can't think of a better simple solution right now.

.

pocketdooz · 05-07-2010 10:39pm

T Corolla wrote: »

A credit union account will yield you good dividends. On that sum you could get up to 7-8% per annum. I would pay tribute to you for saving such as sum of money for your children as well as providing from them in every there are not many out there with that kind of money set aside well done

Do you really get 7-8% in the credit union?

I dont think so.

.

who what when · 05-07-2010 10:42pm

+1 on the government solidarity bond.
Safe, secure and good rate of interest

pocketdooz · 05-07-2010 10:45pm

who what when wrote: »

+1 on the government solidarity bond.
Safe, secure and good rate of interest

One caveat is you must hold it for the full 10 years or it becomes a far less appealing investment as you dont get the full advertised rate and are penalised.

.

iMax · 05-07-2010 11:52pm

pocketdooz wrote: »

Do you really get 7-8% in the credit union?

I'll be ooking into this as that would be (at a conservative 7%) around €900 per annum !!! :eek:

pocketdooz · 06-07-2010 8:29am

iMax wrote: »

I'll be ooking into this as that would be (at a conservative 7%) around €900 per annum !!! :eek:

I think you'll find that's not true.

.

T Corolla · 06-07-2010 9:25am

You will not get that kind of return but the sum of money you have invested you will get good dividend return. When I was saving for my house i was getting up to 100 euro's per annum in dividends plus intrest. If you put your money in shares you will earn more but there is always a risk with shares

Cantoris · 06-07-2010 1:45pm

Well done to those families who are putting some money away now for their childrens' long term education. I hope they appreciate it in time.

Why don't you split the funds between the solidarity bond and something else. Pocket knows his stuff and if he's advising the bond, I'd start with that and then put it in something else too.....just in case you ever need to borrow (!!) the money in the future.

mickman · 06-07-2010 2:13pm

Xios wrote: »

My advice has no weight what so ever, but heres my two cents, i see saving money long term could yield a loss, because of inflation it'll lose value over time. I'd be more inclined into putting the money into something physical that will hold it's value over the long stretch of time. Perhaps land? Or maybe a piece of farmland for lumber, maybe a certain type of tree that'll take 16 years to be ready for harvest and by then it'd be making a profit. Of course that has it's risks over 16 years and i know nothing of it, it could would be worth the research.
Also what if the euro collapses in that time?

Take the other posters advice over mine, i'm only new to this idea of investments and i've never had any money of my own to spend really, my biggest investment was a motorbike which was 2700 euro.

ur not goign to get much land for 13k

iMax · 06-07-2010 2:16pm

Thanks for the advice so far guys.

Is it not worth looking at prizebonds ?

T Corolla · 06-07-2010 2:37pm

Xios wrote: »

My advice has no weight what so ever, but heres my two cents, i see saving money long term could yield a loss, because of inflation it'll lose value over time. I'd be more inclined into putting the money into something physical that will hold it's value over the long stretch of time. Perhaps land? Or maybe a piece of farmland for lumber, maybe a certain type of tree that'll take 16 years to be ready for harvest and by then it'd be making a profit. Of course that has it's risks over 16 years and i know nothing of it, it could would be worth the research.
Also what if the euro collapses in that time?

Take the other posters advice over mine, i'm only new to this idea of investments and i've never had any money of my own to spend really, my biggest investment was a motorbike which was 2700 euro.

Land and property have not been as good value as they are now but there is an abundance of it at the moment and if you were to go down the rental route you would be make a low return but you would still have the property that will rise in value You are correct in saying that money does loose value due to inflation. I think if you were to invest into. I myself would go for the national solidarty bond for the 10yr term or Intel shares. I bought some at $11 in Jan 2009 and there are at 19:20 today.

Xios · 06-07-2010 8:09pm

T Corolla wrote: »

Land and property have not been as good value as they are now but there is an abundance of it at the moment and if you were to go down the rental route you would be make a low return but you would still have the property that will rise in value You are correct in saying that money does loose value due to inflation. I think if you were to invest into. I myself would go for the national solidarty bond for the 10yr term or Intel shares. I bought some at $11 in Jan 2009 and there are at 19:20 today.

Thanks for the reply, still know very little on the subject, i'll continue to lurk around the forum.

poodles · 09-07-2010 3:32am

RRL

x5 by Christmas 2010 Guarnateed*

* not guaranteed

Speculator · 09-07-2010 7:33am

How about Coke Cola, its looking very attractive at the moment and should look even better in 10 years time. Plus Warren Buffet is a big fan, so in my opinion you cant go far wrong!

Take a look at this article:

http://www.independent.ie/business/stocks-markets/coca-cola-its-cheap-again-after-a-decade-of-ranging-2250386.html

redroar1942 · 09-07-2010 1:11pm

First thing I'd do in your situation is work out how much she'll need per annum for Uni in 13 years time. At the moment we have only partial fees under the guise of the registration fee which will be close to 2K in most of the Universities this year. On top of that you'll need approx 4-5K per year for rent/books/food/various. The amounts may vary depending on location etc. Worst case scenario you'll need 7K per annum for a minimum of 3 years. No inflation at the moment but hopefully in 3 years time we'll have 2% inflation every year untill she's 18. Roughly it'll be 21K compunded over 10 years would give you €25,998. Registration fee's will go up in the short term so I'd be aiming for the 30K mark myself.

If you stick it in the solidarity bond you should come out with €19,175. I'd go with that myself and try and save a €20 a week in an account with a minum rate of 2% till she's 18. Its more or less risk free and you'll get exactly what you need from it

Apologies if you've done all this already, and I'd say you have, but I did this with a friend recently who's kid wants to be a doctor. Its much worse when you work it out for 6+ years

Brendygg · 10-07-2010 7:43pm

Hi,

Iv been saving around 200e a week for the last year on aib online savings. Im thinking some of this money might be better invested.

The last few weeks iv been looking at stocks and trying to learn about investing.

I have an inital 5k to invest, im 23 with no ties, so not really worried about loss.

Im thinking of planning my portfolio like this

40% bluechip stocks
40% gold
20% other stocks and silver

What would be my best option regards buying theses?

Bluechip, good broker for these?
Gold, looking at bullion vault and goldmoney, would pert mint be better?
other stocks mostly uk and irish, so thinking of goodbodies or davies.

Also looking at the option of prizebonds too, are they worth it?

Any advice greatly appreciated.

Thanks

carveone · 12-07-2010 12:17am

This is all very difficult. In 2006 I would have said Gold! Along with Money Under the Mattress! Now, a long term investment for me is 2 weeks before terror sets in. You could slap your money down on AIB with a trailing stop (a stop is a point at which your broker's computers sell if the stock falls to that point) and then start praying

Two things I'd like to say. Prize Bonds are not an investment. They depreciate at the rate of inflation which over 10 years can be very appreciable (sorry). Worse, they don't appreciate in face value which doubles your loss if you see what I mean.

Eg:
Basic 10 year Irish TBill yield is 5%. Assume inflation of 2%/year and ignore last 10 years :rolleyes: After 10 years NPV yield 63% - 22% = 41% (hope I got that right)

(Still planning on "investing" in a pension where you pay 5% + 1.5% per annum to some blue suited dicks for their incompetence, on the dubious bet that future tax rates will be less than today's? Ahem. Sorry...)

A prize bond's yield after 10 years would be -22%.

National Solidarity Bond is a nice way of saying "we'll pay you less than we pay others on the open market". Aside from the name which brings to mind Samuel Johnson's quote about appeals to patriotism being the last refuge of the scoundrel, the yield is an unutterably appalling 1%, only becoming vaguely rational after a tax free bonus applying to a 10 year lock in. That's a long time.

For the average invester however, it's not a terrible idea. Fire and forget so to speak. However, bear in mind that there are already similar rates available with An Post – the 17th Issue Savings Certificates over 5.5 years is paying 3.53% net per annum (aer).

carveone · 12-07-2010 1:06am

While I'm making opinion and in no way disseminating financial advice that would possibly incur a mod's wrath I like to point out that:

- Gold is at an all time high. Not an opinion, more of an observation that these are points that don't necessarily make good investments.

- Equities are at an all time low. Finding a good stock that has been beat into crap has always been a good way of making money (Ask Mr. Buffett). Some things always have long term values regardless of what the market is doing.

Take Alcoa for instance (At $11. I only mention this stock as it's an example and because they are the first of the earning season on Monday. It's not a recommendation!). They make Aluminium since the 1880s. Don't see demand for Aluminium going away any time soon. Um. What else. Bank of America at $14 odd which includes Merrill Lynch for free (heh heh

)

- Pessimism always peaks before a rally. I remember Dow Jones at 7000 on Bloomberg with people screaming in the background. Good days. If I had a time machine, well, I'd be on a beach right now...

Smcgie · 12-07-2010 8:59am

carveone wrote: »

While I'm making opinion and in no way disseminating financial advice that would possibly incur a mod's wrath I like to point out that:

- Gold is at an all time high. Not an opinion, more of an observation that these are points that don't necessarily make good investments.

- Equities are at an all time low. Finding a good stock that has been beat into crap has always been a good way of making money (Ask Mr. Buffett). Some things always have long term values regardless of what the market is doing.

Take Alcoa for instance (At $11. I only mention this stock as it's an example and because they are the first of the earning season on Monday. It's not a recommendation!). They make Aluminium since the 1880s. Don't see demand for Aluminium going away any time soon. Um. What else. Bank of America at $14 odd which includes Merrill Lynch for free (heh heh )

- Pessimism always peaks before a rally. I remember Dow Jones at 7000 on Bloomberg with people screaming in the background. Good days. If I had a time machine, well, I'd be on a beach right now...

Good post, in relation to the wrath of mod this is not askaboutmoney

you can give opinions.

mickman · 12-07-2010 9:25am

carveone wrote: »

While I'm making opinion and in no way disseminating financial advice that would possibly incur a mod's wrath I like to point out that:

- Gold is at an all time high. Not an opinion, more of an observation that these are points that don't necessarily make good investments.

- Equities are at an all time low. Finding a good stock that has been beat into crap has always been a good way of making money (Ask Mr. Buffett). Some things always have long term values regardless of what the market is doing.

Take Alcoa for instance (At $11. I only mention this stock as it's an example and because they are the first of the earning season on Monday. It's not a recommendation!). They make Aluminium since the 1880s. Don't see demand for Aluminium going away any time soon. Um. What else. Bank of America at $14 odd which includes Merrill Lynch for free (heh heh )

- Pessimism always peaks before a rally. I remember Dow Jones at 7000 on Bloomberg with people screaming in the background. Good days. If I had a time machine, well, I'd be on a beach right now...

equities at an all time low? where did you see this nonsense?

UpAgainToday · 14-07-2010 12:24am

Brendygg wrote: »

Hi,

Iv been saving around 200e a week for the last year on aib online savings. Im thinking some of this money might be better invested.

The last few weeks iv been looking at stocks and trying to learn about investing.

I have an inital 5k to invest, im 23 with no ties, so not really worried about loss.

Im thinking of planning my portfolio like this

40% bluechip stocks
40% gold
20% other stocks and silver

What would be my best option regards buying theses?

Bluechip, good broker for these?
Gold, looking at bullion vault and goldmoney, would pert mint be better?
other stocks mostly uk and irish, so thinking of goodbodies or davies.

Also looking at the option of prizebonds too, are they worth it?

Any advice greatly appreciated.

Thanks

Tbh any broker is fine for the amount your going to invest whether its goodbodies davies etc plus no one is going to front run or flash order at this level so you have nothing to worry about

In terms of gold id recommend just buying a gold ETF easier and better

ixus · 17-07-2010 11:03am

As the Title says.

tagueule · 23-07-2010 11:51pm

Hi,

I am starting my final year in college this September. I have a small sum of money approx. 1k and I am considering making an investment. I am willing to take a risk. However, I may need this money in the not so distance future (2-3 years) to help towards paying for a masters, so nothing TOO risky

I have a great interest in getting involved in buying shares so I guess this is a good place to start.

I would really appreciate any advice.

Thanks in advance.

pirelli · 24-07-2010 12:45am

These stocks according to Motely fool could yield a profit of up to 8,000 on your initial 1,000. There even better stocks out there. Hopefully some people will make suggestions and you could spread your portfolio into 2 or 3 stocks and might I recommend you get another few hundred euro and open a margin account ( $2000 minimum) and use the Brokers money also. They will double your initial invesment of $2,000 so you can invest up to $4,000 dollars. With the exchange rate it would only be a few hundred more euro. Then you could possibly seriously make money. I would look at shipping and banks also.

Perhaps DRYS and LYG and a bio tech HRBR and a lithium stock ROC or SQM and maybe the Lithium ETF coming out this week also. And perhaps one of the stocks below. Also Sandisk is another good pick and is retreating in share price so an oppourtunity buy might offer itself soon. Also take a gamble on an otc stock small cap for a big 300% gain.

So if you want to actually make some real money then get a margin account and dont be afraid to buy and sell at highs and lows.

IMAX Corporation (Nasdaq: IMAX)
(22.5%) 3-Month Change (%)
12.3 Forward P/E
N/A

Lowe's (NYSE: LOW)
(21.5%) 3-Month Change (%)
12.0 Forward P/E
2.2% Dividend Yield

Verizon Communications (NYSE: VZ)
(10.1%) 3-Month Change (%)
11.7 Forward P/E
7.2% Dividend Yield

Exelon (NYSE: EXC)
(7%) 3-Month Change (%)
10.0 Forward P/E
5.1% Dividend Yield

Activision Blizzard (Nasdaq: ATVI)
(5%)
13.7
1.3%

http://www.fool.com/investing/general/2010/07/15/5-stocks-that-could-make-ordinary-folks-rich.aspx

Saving for retirement is an extremely difficult task. If you're like me, after work, family, and errands, there isn't much time left over to plan for the future. And who really has all that extra cash laying around, just waiting to be invested? I know I certainly don't.

So what's the good news?

You don't need big bucks, recommendations from Wall Street, or hundreds of hours hunched over company financials in order to start saving. All you need is a couple hundred bucks, a little extra time on the weekend, and the realization that investing in individual stocks is both easier and much more lucrative than you previously thought.

Just look around you
With the recent oil spill, looming federal deficits, and financial troubles in Europe, no one would blame you for being fearful of getting into the market. The truth, however, is that many undeserving stocks have plunged, and there's actually a plethora of opportunities out there today.

Legendary investor Peter Lynch always recommended that investors use their common knowledge and buy stocks that they already knew. In his book One Up On Wall Street, Lynch describes his wife's admiration for L'eggs pantyhose, made at the time by Hanes. His wife liked it so much that it forced Lynch to look into the company, invest in the stock, and ultimately, he made six times his original investment.

In actuality, these sorts of opportunities are all around you. Over the last five years, a time in which the general market declined by 10%, you could have made a ton of money, simply by investing in companies that you already knew! Take a look at what would have happened had you invested $1,000 in each of the following companies

priceline.com

Company Details
Online Travel Company

826% 5-Year Return
$1,000 Original Investment
$9,256 Ending Investment

Apple (Nasdaq: AAPL)
Computers, iPods, iPhones
558% 5-Year Return
$1,000 Original Investment
$6,584 Ending Investment

ExpressScripts (Nasdaq: ESRX)
Pharmacy Services
354% 5-Year Return
$1,000 Original Investment
$4,539 Ending Investment

Steven Madden
Apparel & Footwear
235%
$1,000 Original Investment
$3,347

Hewlett-Packard
Computer Products & Services
145%
$1,000 Original Investment
$2,445 Ending Investment

Source: Google Finance; data from 1/7/2005 to 12/31/2009.

Almost everyone has booked a hotel reservation or plane ticket on priceline.com. And I'd be shocked if you've never bought a computer or printer that had the HP label on it. Companies like those and Apple are the obvious ones. If everyone you know has an iPod, an iPhone, an iPad -- then it's almost impossible to not notice the company.

Other times, it takes a savvy eye to recognize a good company. For instance, a few years ago, I should have noticed the convenience and ease at which my mom was ordering her multiple sclerosis medicine by mail. If I had, maybe I would have noticed it was ExpressScripts behind the scenes -- and if I'd made a simple investment of $1,000, I would have quadrupled my money.

So, let's get started!
Now that we've established it's not nearly as difficult to invest as you may have thought, let's take the first few steps. For new or beginning investors, these are the traits I like to see in a stock: a low forward price-to-earnings ratio to ensure good value; a solid dividend yield, and it's always great to find a stock that's trading cheap because of an irrelevant event or a bearish environment. Here are five stocks that I think fit the above criteria:

Stock

IMAX Corporation (Nasdaq: IMAX)
(22.5%) 3-Month Change (%)
12.3 Forward P/E
N/A Dividend Yield

Lowe's (NYSE: LOW)
(21.5%)
12.0
2.2%

Verizon Communications (NYSE: VZ)
(10.1%)
11.7
7.2%

Exelon (NYSE: EXC)
(7%)
10.0
5.1%

Activision Blizzard (Nasdaq: ATVI)
(5%)
13.7
1.3%

Source: Google Finance; data from April 15 to July 14.

Next time your kids are begging you to shell out nearly $20 per person for a movie and some popcorn, know that most likely it's an IMAX theatre they're going to. IMAX has continued to increase revenue this year, in addition to signing 89 new contracts for screens all the way from the U.S. to Russia to Japan. Despite reporting good news time and time again, the stock has been battered down to a pulp, leaving it ripe for you to buy.

How the heck could Lowe's have possibly dropped by 22%?! Sure, unemployment is high and the economic recovery is in doubt, so people are naturally spending less money. But the next time you need a ladder and some fresh paint, chances are it's Lowe's you'll be heading to.

As the leader in wireless carriers, you're probably on Verizon's network (unless you have an iPhone), and most likely you're using one of Verizon's smart phones. In fact, if you're a video gamer, you may have even played one of Activision's games like Call of Duty on a Verizon phone. Activision Blizzard is the largest video game publisher in the world and considering its vast pipeline of new games and past franchises, it's trading at a ridiculously dirt-cheap price.

You may not have heard of Exelon unless you live in southeastern Pennsylvania. That's because this utility provider provides electricity to 1.6 million in PA and over 3 million people in northern Illinois. Because of the BP debacle, it's been lumped in with other energy stocks and has lost ground. But trading at 10 times next year's earnings and paying a fat 5% dividend, this is a truly a stock to love.

The foolish bottom line
Of course there's no guarantee that any of the five stocks above can quintuple in value -- they're just examples of how easy it is to start investing. The point is that anyone can make a sound investment -- all it takes is an observant mind, some extra cash, and the motivation to get started

RATM · 01-08-2010 12:32pm

Great post Pirelli, especially for us n00bs=)

I agree fully what you say about watching what is going on around you for market trends. I remember living for Australia for a year in 1997. I was amazed at their concept of coffee which hadn't yet hit Ireland (At the time your choice in coffee in Ireland was instant or nothing at all).

I couldn't believe how many different coffees the Aussies were sserving, capucinos, lattes, mochas etc. Then about a year later I was at home and took a job as a bar manager in a swanky new 4 Star hotel. The hotel manager insisted on getting a swanky new coffee machine to make real coffee. When it was being installed I spoke to the tradesman about the price. He said the machines cost 9,000 each- my jaw nearly dropped.

We had a discussion about what it is exactly a coffee machine does (from an engineering perspective). We figuered it does the exactly the same function as a washing machine- it sucks in water, heats it up, throws it around a bit and then spits it back out again (simplified I know but you get the idea). To my mind a coffee machine wasn't that much different that a tumble dryer in terms of functionality yet a coffee machine was costing 9 grand and a washing machine around IR400 punts at the time.

I never really thought too much more about it as I was young and carefree. But then about 5 years later I read about an Irish company who claimed that they sold over 12,000 of these machines in Ireland. Every pub, cafe and even homes were getting swanky coffee machines as a coffee culture hit Ireland throughout the boom. I figure that even if this company was selling machine at 5k they would have had a turnover of over 6 million euro. From that it would be fair to assume that a 3 million net profit was possible from the venture.

Could I have made money from it? Almost certainly- I knew of the trend when I was in Oz and then I saw it continuing when I got home. I could have either looked up coffee machine manufacturers on the markets and invested or I could have starting importing them myself and undercutting the (then) 9k price per machine. Nowadays a coffee machine sold to a pub/cafe costs a hell of a lot less than 9k so there was a lot of money to be made in that market for those with the early mover advantage.

So by just observing what is going on around you money can certainly be made if you're willing to take the risks.

highlydebased · 01-08-2010 7:19pm

Basically, I'm starting College in September.

Essentially, I wish to invest money for the 4 years I'm in college and have it when I finish. I figured that I could get at least 650 from overdrawing a student account, interest free, and repay it at the end of my course and hopefully have some sort of a profit. Seeing as I have to pay it back it needs to be seemingly low risk.

I've looked at the various products that banks offer and the solidarity bonds etc however the return would not be worth it and others require a large investment.

So what would it be worth my while investing in, and how would I go about it?

offalyman · 04-08-2010 10:02pm

Hi All,

Hopefully i'm posting in the right place. I've 20000 that i would like to invest, any recommendations on where to put it? Don't really need to be able to access it for a few years but would like to be able to make a little more money than the banks are offering in interest. Any ideas would be appreciated!

Thanks

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.

Beginning to Invest - All questions go here please

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