I'm 23 years old and own my own home (although this is currently rented out whilst I'm living at my parents home). The LTV is 55%. I have a credit card debt of €1,800 which should be paid off by January after which I will be earning about €1,900 - €2,000 after tax.
Looking at other investment opportunities, I feel that the stockmarket is my best bet. I have looked alot at German property but feel I have missed the boat on the big gains.
I had originally intended to open a Quinn Life freeway fund but now feel that, as I am in this for the long term, it may be best to invest directly in a basket of shares.
Looking at stockbrokers, NIB seems to be the best for me as it has very competitive charges and I will be soon moving all my banking business to them anyway (mortgage and currrent account). They charge 0.75% on the first €15,000 with a minimum of €20 commission. This gives access to all European and US stocks. Based on this, I work out that you can place a trade of €2,666 whilst paying the minimum commission of €20.
Therefore, my current plan is to save €890 per month and select one share every three months. I will then purchase €2,666 worth of that particular share. Using this approach, it will be 2.5 years before I have a basket of 10 shares. After I have a basket of ten shares (probably spread throughout Europe) and have saved a further €2,666, I will review the ten shares and, if there is any particular share I feel should be sold, sell it and purchase (€2,666 + proceeds from share sale) of another share. Otherwise, keep all ten shares and purchase €2,666 worth of my choice of one of the ten shares I currently hold thus increasing my holding.
In 2.5 years time, I will have spent a total of €26,660 on shares and paid €200 in charges. If I had been with quinn-life, I would now be paying a 1% p/a charge which is €267 p/a. I would also have paid their charges along the way which I work out at a total of €367 ( I can show my workings if you like but this is based on the values of the shares purchased not changing which will, obviously, not be the case. However, this is useful to illustrate the affect of charges ).
Note: On the NIB fees page on their website, it doesn't mention an annual charge. I read two conflicting views on different forums - one saying that there was a €40 p/a maintenance charge and one saying there was no annual charge. Even if this charge is applicable, the NIB charges would amount to €300. Also, quinns current charge of €367 would increase as you purchase more shares. NIBs charge, if there is one, would stay the same at only €40. After 5 years, that €40 is nothing compared to Quinns €734.
I'm aware that I will be at increased risk during the initial period when I only own 1/2/3/4 different shares. However, would you agree that, in the long term, this is the best way someone can enter the stockmarket. Obviously, one exception is where someone wants to invest in the stockmarket but doesn't want to look at the nitty gritty of particular shares in which case a Quinn Life fund would be better.
Looking at other investment opportunities, I feel that the stockmarket is my best bet. I have looked alot at German property but feel I have missed the boat on the big gains.
I had originally intended to open a Quinn Life freeway fund but now feel that, as I am in this for the long term, it may be best to invest directly in a basket of shares.
Looking at stockbrokers, NIB seems to be the best for me as it has very competitive charges and I will be soon moving all my banking business to them anyway (mortgage and currrent account). They charge 0.75% on the first €15,000 with a minimum of €20 commission. This gives access to all European and US stocks. Based on this, I work out that you can place a trade of €2,666 whilst paying the minimum commission of €20.
Therefore, my current plan is to save €890 per month and select one share every three months. I will then purchase €2,666 worth of that particular share. Using this approach, it will be 2.5 years before I have a basket of 10 shares. After I have a basket of ten shares (probably spread throughout Europe) and have saved a further €2,666, I will review the ten shares and, if there is any particular share I feel should be sold, sell it and purchase (€2,666 + proceeds from share sale) of another share. Otherwise, keep all ten shares and purchase €2,666 worth of my choice of one of the ten shares I currently hold thus increasing my holding.
In 2.5 years time, I will have spent a total of €26,660 on shares and paid €200 in charges. If I had been with quinn-life, I would now be paying a 1% p/a charge which is €267 p/a. I would also have paid their charges along the way which I work out at a total of €367 ( I can show my workings if you like but this is based on the values of the shares purchased not changing which will, obviously, not be the case. However, this is useful to illustrate the affect of charges ).
Note: On the NIB fees page on their website, it doesn't mention an annual charge. I read two conflicting views on different forums - one saying that there was a €40 p/a maintenance charge and one saying there was no annual charge. Even if this charge is applicable, the NIB charges would amount to €300. Also, quinns current charge of €367 would increase as you purchase more shares. NIBs charge, if there is one, would stay the same at only €40. After 5 years, that €40 is nothing compared to Quinns €734.
I'm aware that I will be at increased risk during the initial period when I only own 1/2/3/4 different shares. However, would you agree that, in the long term, this is the best way someone can enter the stockmarket. Obviously, one exception is where someone wants to invest in the stockmarket but doesn't want to look at the nitty gritty of particular shares in which case a Quinn Life fund would be better.