€12,000

M

markiemark

Guest
Hi everyone,

From searching the forum I realise this has been asked before, but most of the post are fairly old and i would like to get some information that is not dated.

I have €12,000 to invest and i am unsure what i should do.

A friend has advised me to put a lump sum of 10k into a Rabo account and invest the rest in AIB shares. Does this seem like a good idea?

I plan on leaving the money alone for 2-3 years.

Any help is really appreciated, thanks.
 
€2k is a very small sum to invest in shares. It would not be worthwhile with bid/offer spread and share dealing costs. I would advise sticking the money into a deposit account. See www.deposits.ie for the best rate.

I think Rabo have some low cost investment fund options that might be worth looking at
 
markiemark said:
A friend has advised me to put a lump sum of 10k into a Rabo account and invest the rest in AIB shares. Does this seem like a good idea?
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In essence, your friend’s advice is to: (a) put almost all your money in a high interest savings account and (b) with the remainder take a medium-term bet on a single share.

This is not without risk, as you are taking on both market risk and the risk specific to the share you pick. Unless you have a firm conviction the share you select will outperform, you would probably be better buying an index tracker.
 
Although €12K is small you can make a return on it thro stocks over time. My investment has outperformed deposit interest by a multiple of times. I had a small lump sum about 5 yrs ago and invested it at about 2K each on a wide range of mostly Irish stocks. Despite the economic downturn it has performed well. I did the research on which stocks to invest in myself using a range of sources for advice; Goodbodys, Bloxham, Sharewatch etc. Keep in mind that you can also earn dividends from some companies and also keep in mind CGT, (Capital gains tax), if you plan to sell them.
 
I would steer clear of trying to pick individual shares yourself in particular bank shares and especially Irish bank shares. Its better to spread it across a number of regions and companies and the easiest and cheapest way to do this is by buying into a global equity fund or an etf. Rabo have a range of funds that can be accessed with small sums and fees are very reasonable.
 
Invest 3000 in AIB, 3000 IN BOI, 3000 in IL and P and 3000 in 3000 in Ryanair
 
strmin said:
Worst advise ever
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Yes! But what about Aer Lingus? Surely worth a punt too?!! ;-)

Don't go risking it all on one or a few Irish shares that may rocket yet may collapse totally. The future is very uncertain and we will see many more casualties over the next decade.

If you want to invest in equities then I would suggest a global growth tracker with low fees (i.e. less than 0.5%). This will invest in a number of leading companies around the world. Spread your risk across a number of markets and once you have researched further then you can go dabbling in individual countries, then sectors and only then individual shares!

Otherwise throw it in the bank and look for return of capital not return on capital.

2-3 years is not really long enough to invest in shares. We are in a long term secular bear market that started in 2000 after the dot com bubble. Such secular bear markets last approx 10-20 years.

We may have another decade before the markets reach new highs and then embarks on another secular bull market (as occured between early 80's - 2000).

The secular bear follows the bull.

I think shares are decent value now but you may have to wait a long time for them to bear fruit.
 
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