€13k to invest - what to do?

[kkelly77]

Hello all,

I have €13,000 to invest and I am looking for advice on what to invest in. I have read plenty of threads and looked up different products available. However, with so much choice it can get overwhelming and soon information overload kicks in.

I am open to all types of investment but my goal is for a short term investment with a decent return. Something that would provide extra income such as dividends would be great. If I am successful with that I would then like to diverse into short term and long term investments.

All advice is welcome and please fell free to PM if needed.

Regards,
Keith.

 

[Gulliver]

I would go for the ISEQ20ETF. If u are not familiar with investing, this ETF is invested in the 20 largest shares on the Irish stock exchange. It is organised by the Stock Exchange, and management charges are low. It pays a small dividend, and the value of the investment moves almost exactly in line with the ISEQ index

There is a brochure on
http://www.ise.ie/getFile.asp?FC_ID=377&docID=377

Of course the ISEQ can go down as well as up, as we have experienced recently, but medium and long-term trends have been exceptionally good in the past few years.

 

[CCOVICH]

Of course the ISEQ can go down as well as up, as we have experienced recently, but medium and long-term trends have been exceptionally good in the past few years.

The OP has said that they are looking for short-terms investment, so medium and long-term (equity based investment) is hardly suitable, and past performnace is hardly relevant.

The OP would need to clarify their timeframe, attitude to risk and other assets and liabilities they hold.

 

[kkelly77]

The OP has said that they are looking for short-terms investment, so medium and long-term (equity based investment) is hardly suitable, and past performnace is hardly relevant.

The OP would need to clarify their timeframe, attitude to risk and other assets and liabilities they hold.

Hi CCOVICH,

My timeframe initially is 3-5 yrs and am open to medium to high risk, as long as I have plenty of information concerning the investment.

As regards assets I have about €1000 in Rabodirect managed funds and receive approximately €800 per anum from stock options. I also receive 3 bonuses from work per year which amount to approx €1500 per year.

Liabilities include house, which was only purchased last year so nearly total amount of mortgage is still owed. Also have a loan of about €16,000. I understand one option would be to clear this loan as to reduce outgoings but I would like to make the money I have to invest work for me. Loan repayments are manageable at the moment. I am also in the process of renting out 2 rooms in my house for extra income.

 

[Happy Girl]

I would go for the ISEQ20ETF. If u are not familiar with investing, this ETF is invested in the 20 largest shares on the Irish stock exchange. It is organised by the Stock Exchange, and management charges are low. It pays a small dividend, and the value of the investment moves almost exactly in line with the ISEQ index

There is a brochure on
http://www.ise.ie/getFile.asp?FC_ID=377&docID=377

Of course the ISEQ can go down as well as up, as we have experienced recently, but medium and long-term trends have been exceptionally good in the past few years.

Surely an EFT based on the Irish Stock Exchange would be high risk at the moment given that most of them are heavily linked to the property market. Any opinions on this?

 

[CCOVICH]

If it was me, I would go for reducing the loan-the only other choice (for me)for 5 years or less would be cash (deposit account). The net return (after DIRT) on a deposit would almost certainly be less than the interest saved on the loan.

Even with an equity based investment, the after tax rate of return could well be less than the interest paid on the loan.

At the moment, you are essentially talking about borrowing to invest, which is certainly high risk.