Money to park

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Rosinsky

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I have a substantial amount of money sitting on deposit here in Ireland (lets face it it is a waste of time) and am looking for alternatives.

My criteria:
Annual return 7%-10%.
Low medium risk
No repatriation issues if abroad.
No exit issues.

I am looking for something hassle free.

Your feedback will be appreciated.
 
Hi Rosinsky,

I think you might be looking for the 'holy grail' - seeking a 7 - 10% low risk, hassle free return in an interest rate environment where ECB now stands at 1% and some commentators indicating it may fall further.

I think you'll either have to lower your return expectations or be willing to increase your risk profile somewhat to to achieve your goals.

You say you have a substantial amount of money - I'd suggest you need to meet with either an independent financial advisor or a Private Banking wing of one of the major banks and complete a full fact find - only then can you make a decision on how best to invest your funds - my suspicion is you will be advised to invest varying amounts in a variety of safe/secure mechanisms and others with varying elements of risk. In effect there are only really five asset classes for you to invest in a) cash , b) bonds c) equities d) property and e) alternatives e.g. art, gold, derivitatives etc.

I'm suggesting you seek advice - only then will you be in a position to make an informed decision ...

Best of luck with it.

Regards,

BM
 
If it is a substantial amount that you are looking to invest, would you consider engaging an independent professional investment adviser to work with you to develop an investment strategy that suits your requirements?

As an aside I always recommend spending a reasonable amount of time identifying your investment objectives and high level strategy, before considering the tactical which asset or asset class options.

You should receive plenty of other responses, just ensure you review witha very critical eye,
Good luck
 
HI,

Depending on the amount, i have come across a number of bespoke investment options being offered by various Institutions in the country. They are usually offered by the capital markets divisions and are nearly always deposit based, hence no risk attaches to the capital.

on a recent shopping trip i came across one in particular which, to me was very attractive. It offered me the opportunity of selecting 5 stocks of my own choosing and runs over a 3 year period. On the date the term begins, the starting price of each stock is noted and is looked at on each yearly anniversary if all stocks are above the initial level (even by as little as 1c) i get a coupon of 12% paid for that year.

All 5 have to be above the level for the coupon to be paid, but if this doesn't happen in a given years, the 12% from that year rolls into the next year. If it never happens, i get my money back at the end of year three. There are no fees and charges and as it's deposit based, gains are subject to DIRT +3%.

Given the current discounted equity levels, it was a no brainer for me, i got the chance to earn great returns and test my hunches without taking risk or paying fees or charges. The range available for cautious investors is pretty good at the moment.
 
There are a lot of good absolute return products out there that try to minimise risk and get a return of somewhere like 4%-6% per annum. Try Global Reach or Hibernian (using Blackrock).

Alternatively maybe chat to your broker about maybe a Govt Gilt or Blue Chip Bond. I think someone stable like CRH was trading at a yield of over 7% recently.

In general if its too complicated or sounds to good to be true it might be wise to stay clear.
 
Might not be the answer you want, but if it was me, I'd take half put into something that will give a return, with the remainder I'd open a share dealing account and bang the lot into some shares that you can trade on a daily basis.

One stock that is worth looking at, is aapl (apple inc). This company owes no money, has 20 something Billion in cash reserves, and for each of the last few quarters has report their best earnings in that quarter (even in these times). check out this
http://www.google.com/finance?q=NASDAQ:AAPL

I know you want low to medium risk, and this is a high risk option, but worth considering.
 
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