A split between a couple of large cap ETFs would probably be a better choice something like the http://uk.ishares.com/en/rc/stream/pdf/false/publish/repository/documents/dffs_comit/dub/CURRENT/PDF/FFS_EQ_CSSX5E_IE00B53L3W79_GB_en.pdf (STOXX 50), http://uk.ishares.com/en/rc/stream/pdf/false/publish/repository/documents/dffs_comit/dub/CURRENT/PDF/FFS_EQ_CSINDU_IE00B53L4350_GB_en.pdf (DOW) or perhaps the SMI.
I have been quite risk adverse with this money so far and this is not to be a big change.
II also have a bit of a fear of professional advisors. I consider them sales people for the products they stock. And even a fee-based advisor is basically working from that template.
. This would avoid having to keep up-to-date on 19 companies and would also avoid you getting spooked and selling when one drops for no apparent reason (which, by the way, is highly likely if you only invest in 5 shares).
The product I'm now considering is a portfolio, it's got 4 asset types, bonds, equity, other asset types and cash. Then there are 5 types of bond, government, 32 % corporate, index, other, emerging markets .01%. There's currency allocation, 10, from Euro 62% to CHF .85% (Swiss I guess), Theren there are about 10 sectors, and finally Geographic allocation. So naturally enough I'm totally lost. Will be interesting to see what Cremeegg is offered.
The above product has a risk of losing 5% of the capital. Their is no tax on any gain, unlike deposits here. Since it's launch it's made 3.21%. There is an entry cost of 3.5% - negotiatable. Annual costs of around €125 Euro, and can withdraw at any time. And I cannot make a decision on what to do.
Why are you going to a bank for financial advice? They are the most product driven of anyone in the industry? They cannot charge a fee for advice so they will never tell you to leave it where it is.
Sounds a bit suspect to me.
The above product has a risk of losing 5% of the capital. Their is no tax on any gain, unlike deposits here. Since it's launch it's made 3.21%. There is an entry cost of 3.5% - negotiatable. Annual costs of around €125 Euro, and can withdraw at any time.
I've a meeting with an Irish financial advisor later this week (he is also an expat in the country we live in) and I'll ask him lots of questions. We went to him; he didn't cold-call us. But at the end of the day, I'm worried - like that all he'll have to offer are complex, sterile products that I won't understand.
I have no idea what to do with my money and it sucks.
For someone in your position I would make the following suggestions
3.Use smallish money to actively invest in shares. That is a question of temperament.
4. Buy a property. Borrow as much as you can comfortably service.
This is basically my own financial history from 30 to 35, except I bought the property in Ireland.
For someone in your position I would make the following suggestions
1. The rainy day fund
2. A pension. Putting 5% to 10% of your income. Invest it cautiously but get started, don't wait until you identify the perfect pension. Don't over contribute to the pension, because the money can only be used within the constraints of pension rules. The govt gives you tax relief but they restrict what you can do with the money. Although these has been made much less restrictive in the UK recently.
3.Use smallish money to actively invest in shares. Say 10 shares at €2k a time. Read the financial press and back your judgement. You might loose heavily or you might do well. The purpose of this activity is to determine if investing with significant money suits you. That is a question of temperament.
4. Buy a property. It makes no difference weather you will ever live in it. These are uncertain times, a 2 bed apartment in London today will be a 2 bed apartment in London in 20 years time. You don't get that type of certainty with any other investment. Borrow as much as you can comfortably service.
This is basically my own financial history from 30 to 35, except I bought the property in Ireland.
He works for a company that was highly lauded on a busy expat forum. The forum has a culture of hatred for financial advisors, but this one company was the only one people had any time for. My wife and I went to see one of their people last year (a lady who was mentioned positively on the forum), but my wife didn't like her. The company proposed this other guy instead and he helped us to secure a decent life insurance policy and told us then to come back to him in 6 months once we'd amassed a rainy day fund. We've amassed one, so it's time for us to meet again.I've been around the block a few times. On that particular bit here's my advice.
1. Don't believe that you called him and not the other way around. I'd bet anything you 'heard' about him from other 'friends'
Good point. Noted.2. 'Friends' are sometimes paid for referring.
You're right - the company are frequently on expat radio and they have a columnist in the local expat paper.3. The expert will have subliminally got to you. In the pub talk, the expat web advertising, the expat helpful advice on living, in the local English media article, followed by big advertisment somewhere.
Thanks. I live in Dubai and I wouldn't buy anything here. Ever.As expected I'd agree with all you've posted Cremeegg. Even though I've never done shares I think the smallish amounts over time could work out well. And he's young and can go with the ebb and flow of it, and the temperament is a good indicator too. I'd say that also applies to property investment.
Apart from Ireland i've invested in property here, bought twice and sold once, so far it's worked out. But I think it's much harder to manage property that is abroad. And stay away from places one doesn't know about. Bulgaria, Spain and Dubai. Proven markets like London will always be ok.
3.Use smallish money to actively invest in shares. Say 10 shares at €2k a time. Read the financial press and back your judgement. You might loose heavily or you might do well. The purpose of this activity is to determine if investing with significant money suits you. That is a question of temperament.
4. Buy a property. It makes no difference weather you will ever live in it. These are uncertain times, a 2 bed apartment in London today will be a 2 bed apartment in London in 20 years time. You don't get that type of certainty with any other investment. Borrow as much as you can comfortably service.
But again, we don't know where to go to buy shares. I am used to seeing the prices of individual shares at, say, 60 euro for SAP or 30 cent for AIB. Are you saying that we should target businesses that have an individual share price of around 200 euro? So, for example, based on the industries I mentioned above (fast food, gambling, shipping, waste disposal), we'd invest as follows (for example):
EUR 200 in Dominos
EUR 200 in McDonalds
EUR 200 in Paddy Powers
EUR 200 in Ladbrokes
EUR 200 in Garbage Company X
EUR 200 in Recycling Company Y
EUR 200 in Maersk
EUR 200 in DHL
EUR 200 in Primark
EUR 200 in cheap clothing company abc
^^ Is that basically what you have in mind?
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