Getting started with an investment

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Bradbury1

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Mid fifties, steady civil service jobs. I have no mortgage or other debts. Both my wife and I max out our AVC's.
I have 240k in state savings on a 10 year return (10% after 10 years).
I wouldlike to divert a portion of this into a different investment, about 80k.
I know I will not need this 80k for at least the next 7 years.
I'm comfortable with risk. By this I mean that if the money was invested and say the share price dropped, I could live with leaving the money invested until it recovered, even if that took some years.
I just don't know how to get started.
Ideally I would like to go through an advisor/agency and get a steer on where to invest. I know there will be a professional cost to this but preferably I'd like to keep the cost as low as possible.
Suggestions on where I go to get started?
 
Bradbury1 said:
I have 240k in state savings on a 10 year return (10% after 10 years).
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€240k getting 10% after ten years is around 0.96% per year. Allowing for DIRT, you're still only getting the equivalent of around 1.4% per annum gross. I think you may be better off shopping around for a better deposit interest rate than looking into an investment.
 
Bradbury1 said:
I have 240k in state savings on a 10 year return (10% after 10 years).
I wouldlike to divert a portion of this into a different investment, about 80k.
Click to expand...
Is that the total of your non-property (PPR) and non-pension savings/investments?
Fortune said:
I think you may be better off shopping around for a better deposit interest rate than looking into an investment.
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Best Buy - Savings Best Buys

Savings Best Buys: There are 3 savings best buy threads on AskAboutMoney that are updated frequently. Instant Access and Notice Accounts - Lump sum variable rate savings. Fixed Term Deposits - Fixed Lump Sum Term Deposits from a few months to a few years. Regular Savings - Smaller sum...
www.askaboutmoney.com
 
Bradbury1 said:
Suggestions on where I go to get started?
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Hopefully from mid next year you'll be able to put at least €12K into the new government special investment account (or whatever they're calling it these days).


Other than that if you're looking at equity based investments then some of options are..
  • Life assurance based unit linked funds
  • ETFs
  • Directly held shares
The charges and tax treatment of these vary and there may be other pros and cons - e.g. the first two may offer better diversification than the last one but the charges will usually be higher and the tax treatment less attractive (8 yearly deemed disposal and exit tax versus CGT treatment). Although buying one or more diversified conglomerate shares might also be an option.

What to do with a million euros?

Personal details Your age: 49 Your spouse's age: 54 Number and age of children: 2 aged 9 and 14 Income and expenditure Annual gross income from employment or profession: €30,000 (state job) Annual gross income of spouse/partner: €60000 (state job) Pension: have maxed AVC’s (should I also...
www.askaboutmoney.com
 
As mentioned, you could keep €12,000 ready for the new personal investment account, which should launch in July.

For the rest, you could open an account with DeGiro, Trade Republic, Interactive Brokers or whichever broker you want. You could purchase an ETF that tracks the MSCI World Index. This gives you good diversification. But, as it's essentially purchasing shares, there's always a risk that the value of the ETF drops and stays below the purchase price for a long time.

The deemed disposal tax on ETFs can be a pain. It's due 8 years after purchase. But based on your timeline, you may be cashing in in 7 or 8 years, so you would just need to pay the actual tax at that point in time.
 
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