best way to use 30k

W

warnerbottom

Registered User
Messages
19
hi

myself and mrs bottom have a few bob left over from our ssia's. 30k in fact!

thinking about putting this in a high interest ac and drip feeding it into one of the 7% ac's. Is this what most people are doing or is there a better way to use the money?
 
It really depends on your overall personal/financial circumstances. You'll need to post some more info for people to make any meaningful comments.
 
Thanks clubman. Your right.

We are quite good overall. Both in early 30's. Two small kids. Both professionals with combined income of 110k (although wife is on maternity leave at the mo) After paying for holiday and clearing car loans its whats left over from the SSIA's.

Its really savings for the future. Its not money that we will need in the next 5-7 years.

Our options are:

1. Put it off the mortgage (still owe approx 50% of cost)
2. Put it into shares (was thinking of a tracked fund rather than individual shares)
3. Keep it in the bank for the duration, switching it about between high interest accounts.
4. Buy overseas investment property (Hungary or Poland possibly).

The more i look at some of these the more confused I get!!!!


My only gripe with the celtic tiger is that we missed a lot of the early stuff because of our age and jobs at the start. e.g got on the ladder 4 years ago when property had already risen quite high and also only really started earning good salarys in the last 3-4 years (4 years ago our combined income was 70k). We now are concerned that we are behind the pack again in using our savings.

We now feel very fortunate to be in this position but are not really sure how to maximise the use of something that we have saved quite hard to build up. We were hoping to get an idea of what other people in the same situation have done or are doing with their savings.
 
We now are concerned that we are behind the pack again in using our savings.
Click to expand...
Dont worry! There is a fire sale in the stock market now. Whatever you do, do not put it on deposit as you will miss the eventual upturn.
 
Agreed, my point being don't wait for the media or the taximan etc to say it is now the time to "get back in".........get in and stay in.
 
It is always the right time to get in if you have the $$ and you don't need it for 5-7 years plus!
And yet you seem to be suggesting that now is the "right" time to get in?
Click to expand...
Yes especially now as valuations so attractive. Financial Times had a very interesting article recently where they reported yield crossover of the dividend yield of ftse100 and five year gilts rates. This has only happened twice in 50 years and both times the market rallied strongly thereafter. Who knows? No one!
 
well jim cramer is not all there now is he .

i belive its wrong to think that you cant time the market. now is a fantastic time to get into the market. there are lots of indicators to prove this
 
mickman said:
time to get into the market. there are lots of indicators to prove this
Click to expand...

Which market?

Is the US market the best because the US$ is also down and could give an added bonus as it strengthens along with rising share prices?

Irish market preferred over Euro area?

UK preferred over Euro markets because of greater economic growth prospects?

I'm sceptical that it doesn't make sense to time the market on the time scale of economic cycles.

If you start with €100 and the market falls by 50% to €50 it requires growth of 100% to get back up to the original level. So if you can get out before most of the fall it's a lot easier to get up to the original level again. The markets were obviously in a downturn for the last 18 months or so. Getting out then and staying out until the worst of the falls were over didn't require huge insight. The chatter of people starting to look for the recovery is already rising.
 
generalzod -
the US and brazil in my opinion. obviously the best way to trade brazil is using the MCSI brazil ETF.

the dollar being down has nothing to do with the US being the best market at the moment . it has all to do with liquidity. US interest are very very low, the FED is pumping money into the markets. the US markets have being going up nicely over the past few weeks and will continue to do so in my opinion. recession will be avoided or be very short and corporate profits will start to climb once again. look at the dow transports. they always lead at the start of a new bull market
 
You must log in or register to reply here.
Back
Top