Investment Strategy advice

[Shaneoc]

Hi all,
Im currently looking for some guidance/advice as to what approach to take when it comes to making some investments. Im considering seeking an independent financial advisor also as I really dont know what best approach to take and currently Im not doing anything ie. leaving my money sitting in a bank account doing nothing. If anyone had a recomendation of one in Dublin, I would appreciate that also.

My current situation: Im 29 years old, recently graduated as went back to University as a mature student, working as a trainee Accountant for the past year earning in the low €30k per year range. I am renting and am currently not saving a penny of my earnings. I feel like I have decent earning potential in the next couple of years with a yearly bonus/salary reviews and hoping to be fully qualified in two years time. Although saying that, the price of living in Dublin means I probably wont be saving from my salary over the next couple of years.

I have ~ €100k in savings mainly from an inheritance that I have sitting in a basic savings account. In the short term, I wont really need this at all but in the medium term, I would be hoping to purchase a house. This is certainly I would say at least 3 years down the line. Now, I did look into opening a Degiro account and investing in a variety of low fee ETF's but as I hold both an Irish and US passport, Im not sure if I can. Im not sure of the ins and outs of what holding a US passport limits me from investing in.

Any advice on what type of investment plan given my situation? Would sitting down with a financial advisor be best?

 

[aristotle]

If you need some\all that money to buy a house within the next 5-10 years then I would not invest it into equities. The timeframe is too short really.

Consider putting some of it into a pension and max out your AVC each year for the next 3-5 years and see then about a house? Put the pension into a fund that is 90% or more in equities.

 

[gnf_ireland]

In the short term, I wont really need this at all but in the medium term, I would be hoping to purchase a house. This is certainly I would say at least 3 years down the line.

Is your intention to work in Dublin for the foreseeable, or are you considering moving out of Dublin - either to a commuter town or down the country? Have you any intention of going international any time soon?
What are you paying in rent? What are your current living arrangements - renting a place on your own or a room in a house etc?

Have you considered the option of using the money to buy a place now (assuming you would get a mortgage), and renting out 1-2 rooms earning you 14k tax free a year? This would go a long way to paying towards a mortgage ...

Agree re not invest in equities as your timeframe is too short!
I would also suggest holding off on the pension until you are either in the high tax bracket or have your house purchased. I don't see the value in maxing out your AVC's when you are only on the standard rate of tax, especially when you will need the money in a few years time !

 

[Gordon Gekko]

Just keep it in cash; you sound like you’ll need it soon enough so you cannot take the volatility of markets.

 

[Shaneoc]

Is your intention to work in Dublin for the foreseeable, or are you considering moving out of Dublin - either to a commuter town or down the country? Have you any intention of going international any time soon?
What are you paying in rent? What are your current living arrangements - renting a place on your own or a room in a house etc?

Have you considered the option of using the money to buy a place now (assuming you would get a mortgage), and renting out 1-2 rooms earning you 14k tax free a year? This would go a long way to paying towards a mortgage ...

Agree re not invest in equities as your timeframe is too short!
I would also suggest holding off on the pension until you are either in the high tax bracket or have your house purchased. I don't see the value in maxing out your AVC's when you are only on the standard rate of tax, especially when you will need the money in a few years time !

Thanks for all the responses.

To answer your question above, really I dont know. In the next 3 years or so, I cant see myself leaving Dublin but after that, I cant say I have a plan. It wont be International anyway but very well could move down the Country. Currently, Im renting a room living with mates paying 700 pm.

The though of buying a house now hadnt really crossed my mind. For one, even with 100k in my pocket, I dont think I would get a large enough mortgage given my salary to get a 3 bedroom house within the M50 so I would have to look at moving out which I dont really want to do currently or look into a 1 or 2 bedroom apartment. Admitatley, I havent researched mortgage limits but I beleive its capped at 3.5 times salary? I think Id rather wait a couple of years and see where I am then both in terms of salary/career opportuntiies and figuring out where I would like to settle down long term.


Going from the responses, It seems my best option may be to keep it in the bank in a short term deposit account and reassess in 12/24 months time.