Hi all, looking for advice re investing 30k. I am a conservative investor and wonder about long term future of banks, gov bonds, etc. I would be happier with no return to ensure safety of investment rather than lose it. Any advice appreciated, an obvious "green investor". Thank you
Conservative investor with €30,000 looking for advice.
- Thread starter Fredsheep
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Steven Barrett
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Hi Fredsheep
There are a lot of factors to take into consideration first.
When all those questions are answered, you should look at a diversified portfolio of assets.
A word of warning though. Reading "I would be happier with no return to ensure safety of investment rather than lose it", the words STRUCTURED BOND screams out at me. Avoid these like the plague as you are most likely to only get your money back under these bonds. If inflation increases in the 5/ 6 years your money is locked away with no access, you will lose money in real terms.
Steven
www.bluewaterfp.ie
There are a lot of factors to take into consideration first.
- What are you trying to achieve?
- What is your investment term?
- What return is required to meet your goal?
- What emergency fund do you have?
- Can your financial situation withstand the worst case scenario for the type of investment portfolio you go with?
When all those questions are answered, you should look at a diversified portfolio of assets.
A word of warning though. Reading "I would be happier with no return to ensure safety of investment rather than lose it", the words STRUCTURED BOND screams out at me. Avoid these like the plague as you are most likely to only get your money back under these bonds. If inflation increases in the 5/ 6 years your money is locked away with no access, you will lose money in real terms.
Steven
www.bluewaterfp.ie
jamiesmoney
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Stay Clear of Bonds
Banks and bonds will be the riskiest investments in the near future. You will have to look elsewhere for safe returns. You need to understand risk and also the other investment types that you can diversify in.
Jamie
jamiesmoneyadvice.com
Banks and bonds will be the riskiest investments in the near future. You will have to look elsewhere for safe returns. You need to understand risk and also the other investment types that you can diversify in.
Jamie
jamiesmoneyadvice.com
robert 200
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Post Office @ 3 ,5, or 10 year fixed . Capital guaranteed and decent return.
Steven Barrett
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Are we all
If you find it make sure you tell the rest of us because in all my years working in finance, I haven't found something that gives you all those things you are looking for. Steven
www.bluewaterfp.ie
Under the mattress springs to mind here......!
You haven't said for how long you wish to invest. Since nobody else has mentioned it,.........have you read the best buys section on lump sum deposit accounts?
http://www.askaboutmoney.com/showthread.php?t=101813
Maybe a long term deposit account would suit you better than investing?
That simply isn't possible. There is always risk involved, which you insinuated yourself in your original post when you said you "wonder about long term future of banks, gov bonds, etc".
Yes, obviously, An Post State Savings form part of the public Govt debt.
They would be seen as one of the lowest risk asset, as in one sense they can't go bust.
Unlike a company, which can.
Steven Barrett
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I understand.
You should be looking for a combination of different asset classes and hold a number of different stocks within each asset class. Do this by investing in a fund or ETF. Not everything will go up or down at the same time.
For cash, www.irishdeposits.ie is a good site to get up to date rates.
Steven
www.bluewaterfp.ie
Eircom was about as Gilt edge as Tesco Yellow Pack razors as anyone who waited a year in 1992 to get a phone line would tell you. Theres lots of rules in investing but two that are important are
1) Dont invest in illiquid markets (i.e. the Irish Stock Exchange) and by definition any Irish Share. Illiquid markets are markets in which trade is light.
2) Dont hold less than 20 shares - as pointed out earlier this can be achieved by ETF's on major indices like the Eurostoxx 50 or S&P 500
http://www.investopedia.com/ask/answers/05/optimalportfoliosize.asp
I am struggling to think of any investment that carries no risk or term constraints. There is a good thread on here regarding Prize bonds which in theory have close to zero risk, no term constraints and a small return.
http://www.askaboutmoney.com/showthread.php?t=182819
Overall though 30k invested long term (think forever) over lots of different sectors/industries/markets will outperfrom anything else.
http://www.investopedia.com/walkthr...e/4/capital-markets/history-stocks-bonds.aspx
None of these share were ever blue chip shares, CRH might qualify, but that is about it.
There is not such thing as a risk free investment, so I'm at a loss as to what you can do.
jamiesmoney
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What about lending money?
You can try private lending. I'm not sure of the laws in other countries but there are sites where you can crowd lend with others and make good returns on your money. prosper.com is a US example.
You can try private lending. I'm not sure of the laws in other countries but there are sites where you can crowd lend with others and make good returns on your money. prosper.com is a US example.
I think he's looking for low risk ....
If you have taxable income you could invest up to 50k in a Section 481 film relief scheme and offset against tax for a net gain of around 10 percent per annum. You need to be paying tax at the top rate for this to make any sense. There is a nominal risk but in reality there is no risk at all. It's probably the safest "investment" out there, and is due to be abolished soon as the film industry moves to a tax credit subsidy system. You'll find information from the likes of Crowe Horwath or [broken link removed] (I have no affiliation).
In what sense can the government not go bust?