100K investment

Hi,

If you had 100K to invest what are the best options? 5 year investment will consider anything? and what type of returns whould I be aiming for. Can also probably top up but would need to get additional loan for property over 100K.

I have moved away from the idea of property as an investment, for now at least. I do not believe you can achieve a net 3% after tax at the moment. As for borrowing to invest in property forget it You certainly achieve the 5% you would need to get to make borrowing profitable.

See thread http://www.askaboutmoney.com/showthread.php?t=184415

I have been looking at alternatives recently.

I spoke to an adviser with one of the main banks on just this question yesterday.

She suggested the banks "balanced managed fund". She said it is a medium risk fund.

I asked if it was selling at a premium or a discount to net asset value. She did not understand the question.

I asked what the charges were. She said a 1% govt levy and a 1.5% fee. I asked what level transaction fees within the fund were at, she did not understand this question either.

The best return available on a deposit account appears to be 2% after DIRT that is €1,180 on €100,000. (I think those figures are correct, or do you have to pay PRSI as well).

Sorry I have no positive suggestions, maybe buy a good mattress, or a blow out holiday.

OP, why don't you contact some of the stockbroking firms and check out their offerings of investing your money. As Cremegg points out the person or adviser in the Bank, didn't have a clue and who would give their money to a Bank fr investment purposes anyway. Let's face it their track record is certainly noyjing to write home about.

cremeegg said:

I spoke to an adviser with one of the main banks on just this question yesterday.

She suggested the banks "balanced managed fund". She said it is a medium risk fund.

I asked if it was selling at a premium or a discount to net asset value. She did not understand the question.

.

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The question was actually meaningless, so it's not surprising that she did not understand what it meant.

Managed funds are open ended and are priced at market value every day. So there is no premium or discount on the net asset value.

In a closed investment trust, where you are buying or selling shares in the company, the share price might be at a premium or at a discount.

Creamegg I had followed your tread on property previously and found it very interesting and not all that surprising. I hadnt done the level of analysis you had done but had come to roughly the same conclusion.
There was a fella on the radio last week talking about angell investment. have you any experience of this or what do you think?

Brendan Burgess said:

The question was actually meaningless, so it's not surprising that she did not understand what it meant.

Managed funds are open ended and are priced at market value every day. So there is no premium or discount on the net asset value.

In a closed investment trust, where you are buying or selling shares in the company, the share price might be at a premium or at a discount.

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Well your answer has increased my stock of knowledge so thank you.

Saving Certificates provide an AER of 2.11% Tax free over 5 years.

redrow said:

Creamegg I had followed your tread on property previously and found it very interesting and not all that surprising. I hadnt done the level of analysis you had done but had come to roughly the same conclusion.

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A poster called Landlord seems to have a better return, but not so much better that I would go there. Also he says that prices have risen since he purchased.

redrow said:

There was a fella on the radio last week talking about angell investment. have you any experience of this or what do you think?

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Curiously I have. Every Angel investment opportunity is different. Perhaps the best I have come across is a "board" organised by Enterprise Ireland where EI invite a panel of potential investors with industry experience to meet monthly and consider a number of investment opportunities. If the members like what they see they can invest.

They have such a board for the Food Industry and for the Medical Technology Industry, and maybe others.

I was fortunate to be invited to take part in one of these, and it was a wonderful opportunity to hear the industry experts opinions on the various candidate businesses.

However I withdrew as average investment was approx. €150,000 per company and you would need to invest in 10 or more companies to spread your risk.

There would be no question of borrowing for an investment of this nature.

So my take on Angel investing is go ahead, but only with money you are happy to lose.

There are exchanges which set up opportunities of this nature, and if you invest €500 in 10 companies you might loose all your money on 9 of them and recoup it all on number 10. However I feel certain that some middleman or intermediary will be in a position to profit from the company that does well.

I was going to buy a house myself surprised to read in the other thread that the return is so low. Really going to have to sit down and find a good place to invest money the return from the banks is very low at the moment. If i find anything ill post it here

cremeegg said:

I spoke to an adviser with one of the main banks on just this question yesterday.

She suggested the banks "balanced managed fund". She said it is a medium risk fund.

I asked if it was selling at a premium or a discount to net asset value. She did not understand the question.

I asked what the charges were. She said a 1% govt levy and a 1.5% fee. I asked what level transaction fees within the fund were at, she did not understand this question either.

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Those charges are not disclosed and are reflected in the unit price.

As for Balanced Managed Fund being a medium risk fund. That is the kind of marketing that saw thousands of people lose 30% off the value of their investments in 2008. Your average Balanced Managed fund has between 70% - 80% in stocks and property. Not exactly a middle of the road investment in most people's eyes. In fact, I would put that at the higher end of the scale.


Steven
www.bluewaterfp.ie