Help!! what should I do with €1000.00??

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danny_01

Guest
I've got €1000.00 freed up by a loan I'm looking into putting this into a long term portfolio would this be a good idea with the recession going on buying cheap share and selling them in say 5 to 8 years ?
Should i just keep it where it is?
Any suggestion on what would make €1000.00 grow quicker would be great
 
I would suggest that €1,000 may be too small a sum to invest in shares, as transaction costs would eat into your €1,000, unless you're willing to put it all on one or two shares, which is a risky strategy.

Have a look at the Best Buys section here on Askaboutmoney for the best deposit rates available at present. There's also a thread there on the cheapest stockbrokers.
 
Ya I saw , is there anything else I could possible do , I do have more money how about €2,000 or €3,000.
I'm 26 self employed with no pension looking at the current market and looking at the long term.
 
As you don't have a pension, you could set up a PRSA - kick it off with a lump sum of a thousand or two and then keep it going with a monthly amount by Direct Debit. The monthly amount spreads your entry into the markets over a range of prices, rather than trying to time the perfect time which is virtually impossible.
 
In the same boat Danny, hard to get good advice here sometimes as you're looked down on if you're not a millionaire. I'm taking a punt and sticking a similar sum into one of our esteemed financial instittutions. Am prepared to lose it all but its worth a chance IMO. Good luck.
 
In the same boat Danny, hard to get good advice here sometimes as you're looked down on if you're not a millionaire.

I think its more a case of emphasising (as several posters have already) that equity, pension or fund investment options tend not to be economic for such a small sum, as transaction fees and minimum management fees will more than eat up any return on the original investment.
 
I think its more a case of emphasising (as several posters have already) that equity, pension or fund investment options tend not to be economic for such a small sum, as transaction fees and minimum management fees will more than eat up any return on the original investment.
This is true.
However, there's no need for comments such as buying pints or Amsterdam etc...
I don't think a grand is a small sum either. Then again, I've spent the last 5 or 6 years watching every penny, and a grand would make a huge difference.
I suppose times are changing.

I would suggest paying the money off any other loans the OP may have.
 
The simplest and safest thing to do with it is to buy An Post Savings Certificates or Bonds. They're completely state-guaranteed and there is no tax on interest earned. Check out www.anpost.ie
 
Thanks guys the thing is I've got €9,000 Excluding the €1,000 euro freed up by the loan. I am treating myself in February with a trip to California for a month driving around the state. I am looking at investing some of this money. Ive no extending Loan :) NONE whatsoever . I think as people are saying I haven't enough money to invest which I think is bull. there has to be something worthwhile i could do with my cash .
I'll keep saving and looking :)
 
Thanks guys the thing is I've got €9,000 Excluding the €1,000 euro freed up by the loan. I am treating myself in February with a trip to California for a month driving around the state. I am looking at investing some of this money. Ive no extending Loan :) NONE whatsoever . I think as people are saying I haven't enough money to invest which I think is bull. there has to be something worthwhile i could do with my cash .
I'll keep saving and looking :)

Some of the comments on this tread were just plain rude. A €1000 is still a €1000. There is nothing wrong with looking to invest your €1000 in equities if you are happy with the risk. Everyone has to start somewhere and there is nothing to stop you adding to your investment. If you don't know much about the stock markets, read a few of the other threads on the subject. Might be worth looking at the funds offered by the likes of Quinn and Rabo.

By the way you mentioned in your fist post something about wanting your €1000 to grow 'quick'. Be aware that with higher rewards comes higher risks.
 
Make sure you get it to earn maximum interest for you while you are deciding what to do with it longer term. The longer you take to decide, the more interest you will earn and therefore the less it will have depreciated. Credit Union accounts are not the best interest earners, but they have other advantages for savers.

If you really don't need it for the foreseeable future, do think about the PRSA option, as you have said that you have no pension and you can get tax relief on the contribution. Also, depending on what you choose to invest in within the PRSA, you can HOPEFULLY enjoy some investment return on the PRSA. The earlier you kick-start a pension and get contributing to it regularly, the better fund you should have when you approach retirement.

Then, when you retire, you can take 25% of the fund as tax free cash, and THEN go to Amsterdam,...for a few pints!

I hope that was helpful!
 
just walk into your nearest bank (in my case aib), give them a thousand euro and say that you want to buy their shares.

You're 26, you dont want to put the money away for 39 odd years (i.e. pension), buy a bank share that you think might last 5 years. if you got say 400 odd shares, they could well be worth more than 1000 euro in 5 years or maybe not.

Either way, no-one will accuse you of being crazy for buying a bank share after it had dropped 90% of its value, you saw a bottom and you invested on it.

Very simple (and great craic)
 
That's what Ive been thinking, something around those lines.
Just need time to research and tips would be great
 
If it is a €1000 you would not miss then its worth a bet on the stock market. I would look for stock valued at or around 80c > €1 from a major company. Banks might be a good idea BOI should come through the downturn so there is a good chance you will make a nice profit medium to long term. I recently stuck 10k into Yell.com with the hope this well known UK company pulls through and the price will rocket. So far its down but the revenue and profits will be announced soon and also they are releasing a plan that should boost the price..... I hope!

Maybe also look at spread betting, this has more risk but the gains are very big if you guess right.

Anyway have fun!
 
I think its more a case of emphasising (as several posters have already) that equity, pension or fund investment options tend not to be economic for such a small sum, as transaction fees and minimum management fees will more than eat up any return on the original investment.

Disagree there are tracker funds and ETF's out there that cater for small monthly amounts.

Management fees can be as low as 0.5% or less in some even cases.

What difference does a 0.5% fee make to 1000 euro or 100,000 euro?


If your going to invest in such funds then also add to them monthly and forget about the value for at least 5years.
 
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