Newbie to Investing

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DublinAnthony45

Registered User
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Hi All

as title says , complete newbie to investing

looking for ideas as to how i can make my money work for me

approx €150k to use , now i'm not against a high interest account with compounding interest but which offers the best rates etc

to be honest that's ideally what id like to do if im honest as i have no ideas about stocks and bonds and ntfs , i don't want any risk as this money will be more for my 2 kids as they mature ( 15 & 13 ) so it would be nice that when they are 10-15 years older i can help them on the property ladder etc

any advice welcome
 
In my opinion it's impossible to offer useful suggestions without more info about your overall personal/financial circumstances and goals such as a Money Makeover would provide.

Key Post - Basic information required for the "Money Makeover" forum

It can be difficult, but please try to use a meaningful title in your thread For example "27 year old with mortgage arrears". You will get a much better and much more coherent answer if you give as much information as possible in your first post. For example, if you give your mortgage rate, it...
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DublinAnthony45 said:
do you work for them ?
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Work for who? :oops:
DublinAnthony45 said:
seems you post this alot
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Yes, for the reasons that I mentioned above.
DublinAnthony45 said:
i'm looking to get a better offer than 2.5% per year that's it
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Ok so, here you go.

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
 
Fortune said:
Double you'll do too much better than 2.5% though
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There are several 5 year fixed term accounts offering higher gross rates than that. There may also be 5+ year accounts on offer too.
DublinAnthony45 said:
i don't want any risk as this money will be more for my 2 kids as they mature ( 15 & 13 ) so it would be nice that when they are 10-15 years older i can help them on the property ladder etc
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Of course, there is no such thing as a no risk savings/investment option and the main risk here would be inflation eroding returns and/or the value of the lump sum.

That's why some sort of equity/mixed asset investment might be a better option for a 10-15 year timeframe even if it means taking on more risk/volatility - depending on many other factors not known here.

But, for all we know, there could be better uses of this money now such as paying down unsecured or secured/mortgage debts, investing tax efficiently via a pension, etc.

Taking a silo approach to investing pots of money is almost always a less optimal approach than taking a more holistic view/approach to one's overall "portfolio".
 
i mean 150k at 2.5 % compounding for 5 years is 170k so i know 7k will be dirt so 13k not a bad return for nothing , i don't need the money now for anything , it's proceeds from clearing my mortgage and still keeping €100k ( making excess €250k from sale after paying off mortgage )
 

€150,000 in 5 Years: Real After-Tax Value​

Here's the breakdown using 2.5% compound interest, current Irish DIRT tax (33%), and an assumed 2% average inflation (close to recent trends and the ECB's target).

Step-by-Step Calculation​

[th]
Component​
[/th][th]
Calculation​
[/th][th]
Result​
[/th]​
 [td]Gross future value[/td][td]€150,000 × (1.025)⁵[/td][td]€169,713[/td] [td]Interest earned[/td][td]€169,713 − €150,000[/td][td]€19,713[/td] [td]DIRT (33%)[/td][td]€19,713 × 0.33[/td][td]−€6,505[/td] [td]After-tax future value[/td][td]€169,713 − €6,505[/td][td]€163,208[/td] [td]Inflation adjustment[/td][td]€163,208 ÷ (1.02)⁵[/td][td]€147,819[/td]

Summary​

  • Nominal after-tax value in 5 years:~€163,200
  • Real (inflation-adjusted) purchasing power:~€147,800
At these rates, your money roughly maintainsits purchasing power—you'd end up with slightly less real value than the original €150,000, primarily because DIRT eats into gains faster than the net interest outpaces inflation.
 
DublinAnthony45 said:
approx €150k to use , now i'm not against a high interest account with compounding interest but which offers the best rates etc
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I've tried doing this recently and to get good rates is messy if you don't want to lock away the money.

But you could start with Raisin, then when their temporary higher rate offer runs out, you could move to Advanzia, then Moco, next up will be maybe BankInter.

All can be setup online. There is faffing about though because the Irish banks limit daily transfers made online and the other complication with Raisin and Advanzia is that you have to pay the DIRT to Irish Revenue yourself.

If you want the comfort of being able to access the money anytime, there is either hassle to "beat the banks" or you have to accept a reduced rate. And after all that, as other posters have said, you're not really making money.
 
The probability of you not equalling 171k when investing this in some sort of reasonable allocation of stocks/bonds/ETFs etc, over a 15 year period must be close to nil while the probability of only obtaining 170k is certain at 2.5%

If you place this in a global equity fund you would at some point at get the 170, probably very quickly, and you could then put the 170 in cash if you so wished.

A lot of people at the moment say hard assets are the way to go right now because cash is going to be wiped out by high inflation yet to come.
 
Irish Government Bonds that mature in May 2035 currently yield 3.245%. With your €150k you could buy c. €192k nominal meaning (assuming no change in tax on capital gains on government bonds) you would get that amount at maturity without having to pay any CGT. You would also get an interest payment of c. €770 a year that would be subject to tax, PRSI and USC. Using 2% inflation you still get a positive real return. Low cost online brokers will charge you very little to do a trade like this, if you are happy to use one of them.
 
thanks for the comments

TBH i have no idea what to do , i'm fortunate to say unless i have a medical operation or the house burnt down i won't need this money , as i have a home that is rent / mortgage free @ 45 and a good income of €102k per year , this is purely to give to my 2 kids ( 15 & 13 ) when they are about 30ish to help them on their way
 
i will do , they both have kids revolut accounts , but id like to try get something set up that will give them a decent return with no risk

chance be a fine thing :D
 
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