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

Discussion in 'Investments' started by danny_01, Nov 26, 2008.

  1. danny_01

    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
     
  2. bacchus

    bacchus Frequent Poster

    Posts:
    1,818
    Where it is at the moment? earning interest?
     
  3. Flexible

    Flexible Frequent Poster

    Posts:
    158
    Is this ONE THOUSAND EURO ??
     
  4. danny_01

    danny_01 Guest

    It's one thousand euro and its in the credit union .
     
  5. Dave Vanian

    Dave Vanian Frequent Poster

    Posts:
    604
    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.
     
  6. danny_01

    danny_01 Guest

    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.
     
  7. Raskolnikov

    Raskolnikov Frequent Poster

    Posts:
    339
    Serious answer. I don't think you have enough money to consider a pension or equity based investment.

    Try taking a look at this thread (http://www.askaboutmoney.com/showthread.php?t=27891).

    The Halifax saver option looks like it might be a good option for you.
     
  8. Dave Vanian

    Dave Vanian Frequent Poster

    Posts:
    604
    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.
     
  9. baldyman27

    baldyman27 Frequent Poster

    Posts:
    629
    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.
     
  10. ubiquitous

    ubiquitous Frequent Poster

    Posts:
    3,772
    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.
     
  11. z103

    z103 Guest

    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.
     
  12. annette mac

    annette mac Frequent Poster

    Posts:
    78
    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
     
  13. danny_01

    danny_01 Guest

    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 :)
     
  14. Sunny

    Sunny Frequent Poster

    Posts:
    3,102
    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.
     
  15. oopsbuddy

    oopsbuddy Frequent Poster

    Posts:
    482
    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!
     
  16. dieter1

    dieter1 Frequent Poster

    Posts:
    160
    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)
     
  17. danny_01

    danny_01 Guest

    That's what Ive been thinking, something around those lines.
    Just need time to research and tips would be great
     
  18. krissovo

    krissovo Frequent Poster

    Posts:
    313
    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!
     
  19. ringledman

    ringledman Frequent Poster

    Posts:
    620
    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.
     
  20. dunkamania

    dunkamania Frequent Poster

    Posts:
    186
    A money clip is always nice........