Investment Diversification Plan Review

R

regvw

Registered User
Messages
161
Hi,
I am trying to diversify in what I do with my savings, I generally put whatever I have away for a year and keep some funds available in case of a rainy day.

My concerns with this approach is
1. The interest rates are poor 3.3% KBC for one year at present.
2. Still have concerns over Ireland and the Euro, was very worried for a period last year.
3. Also feel i need to diversify and spread things out a little.

So here is what I was thinking, please let me know what you think in case this is off the chart as I am new to all this

1. I will buy some German bonds, seems like a low risk strategy even if Ireland leave the euro and end up with a devalued currency, I will have euro bonds.
2. I will still keep some funds in one of those one year euro accounts in Ireland
3. I will invest a small amount in xchange traded funds, maybe something in the emerging markets.



 
I think you would be better doing a full Money Makeover where you give details of all your assets, your mortgages, your income etc.

For example, paying off a SVR mortgage would usually be the best place to save your money.

Given the general level of uncertainty, it is not a good idea to put money away for a year. If you get nervous again about the euro, you will be even more nervous if you can't access your cash.

Brendan
 
regvw said:
I will buy some German bonds, seems like a low risk strategy even if Ireland leave the euro and end up with a devalued currency, I will have euro bonds.
Click to expand...

Sometime in the next few years people will learn the next less of a recession - bonds are not low risk, they are a different kind of risk and you need to be just as careful in buying bonds as you would stocks or any other asset class.
 
Hi Brendan, here is some further details

Age: 34
Spouse’s/Partner's age: 31
My Annual gross income from employment or profession: €64,000 (current)
- reasonably secure
Spouses Annual gross income from employment or profession: HomeMaker

Type of employment: Full Time PAYE

In general are you:
(a) spending more than you earn, or
(b) saving?

(a) Saving regularly

Other borrowings – car loans/personal loans etc
No loans or credit card debt.


Mortgage 190,000
Current Value of house 150,000
BOI Tracker Mortgage €700 per month


Banks 60,000
Shares 20,00
Total 80,000
Do you have a pension scheme? Yes

Do you own any investment or other property?
No

Ages of children: 1 and 4 years old

 
The key thing here is that you should keep your money easily accessible. If Bank of Ireland introduce a scheme for trackers, you would want to take advantage of it. If they give a 10% discount, you could pay €89k off your mortgage with €80k cash.

This would be the safest place to invest and a good return.

If, at some stage, you want to trade up, you will need cash to pay off your negative equity.

I would start by asking BoI if they would give you a deal to get rid of the negative equity. They will probably refuse, but a refusal won't cost you anything.

Brendan
 
Thanks Brendan,
allready asked my bank manager with no joy.

Agree I should not lock these funds up, but what are my best options

thanks
 
After the budget it seems State savings are the only game in town I accept 3 years is a long time but at present rates it is compelling..?
 
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