Brendan Burgess
Founder
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Posted in error
Show me the Money - Oversaving Cavanman
- Thread starter Brendan Burgess
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N
Not boring
Guest
I enjoyed it
Last night's show certainly wasn't boring. I laughed my socks off. It had; Cavanman, sparkly wife, over-saving, British property, Intel Shares, fear of taking profits and paying tax etc. The end was hilarious, and not an over-spender in sight!
Last night's show certainly wasn't boring. I laughed my socks off. It had; Cavanman, sparkly wife, over-saving, British property, Intel Shares, fear of taking profits and paying tax etc. The end was hilarious, and not an over-spender in sight!
C
Cahir
Guest
Re: Hey who moved me
She should have spent some money getting her eyebrows done - I swear to god I was hypnotised for the whole show!
She should have spent some money getting her eyebrows done - I swear to god I was hypnotised for the whole show!
P
paulie
Guest
smtm5
Not a bad programme last night. My only criticisms would be that once he had given the advise and they accepted it, the show went round in circles for the remaining 20 minutes. Eddie could also have followed up on whether they did actually take the plunge in Liverpool.
Oh yeah and the fact that her hair was a different colour in every scene
Not a bad programme last night. My only criticisms would be that once he had given the advise and they accepted it, the show went round in circles for the remaining 20 minutes. Eddie could also have followed up on whether they did actually take the plunge in Liverpool.
Oh yeah and the fact that her hair was a different colour in every scene
T
The President
Guest
overspending
Nos so sure I agree there... I think i would call increasing their outgoings, potentially, with a UK "investment " property, while at the same time reducing the income when Cavan man works less days not the brightest suggestion...
Nos so sure I agree there... I think i would call increasing their outgoings, potentially, with a UK "investment " property, while at the same time reducing the income when Cavan man works less days not the brightest suggestion...
T
Tony T
Guest
Cavanman
Cavanman needs to donate half that wealth to Cavan general hospital before the whole population gets wiped out and Cavanman is no more on this planet.
Imagine that for a scenario!!
Cavanman needs to donate half that wealth to Cavan general hospital before the whole population gets wiped out and Cavanman is no more on this planet.
Imagine that for a scenario!!
B
bluebean
Guest
re
I thought Eddie was being a bit reckless with his advice to spend, spend, spend....ok, they were saving a lot but its not like they were starving themselves in the process either. I would have advised them to diversify too, but I thought Eddie ended up being a bit forceful in his 'spend some money on yourselves' spiel...
just my opinion!
The wife seemed to be listening though - wonder how cavanman felt about her spending all their money down the local hairdressers??!
I thought Eddie was being a bit reckless with his advice to spend, spend, spend....ok, they were saving a lot but its not like they were starving themselves in the process either. I would have advised them to diversify too, but I thought Eddie ended up being a bit forceful in his 'spend some money on yourselves' spiel...
just my opinion!
The wife seemed to be listening though - wonder how cavanman felt about her spending all their money down the local hairdressers??!
P
Pat
Guest
Property Prices
What about Eddie's comment that house prices in Ireland have only one way to go DOWNWARDS and told the couple to invest in UK or Europe. His argument was that the yields in Ireland were below the UK level and Europe.
Does anyone know what the yields in property in Ireland should be. If you dont invest in property then the yield on a deposit account is at best 2%.
Also, Eddie didn't point out the exchange rate risk of investing in sterling.
Pat
What about Eddie's comment that house prices in Ireland have only one way to go DOWNWARDS and told the couple to invest in UK or Europe. His argument was that the yields in Ireland were below the UK level and Europe.
Does anyone know what the yields in property in Ireland should be. If you dont invest in property then the yield on a deposit account is at best 2%.
Also, Eddie didn't point out the exchange rate risk of investing in sterling.
Pat
B
Breeze
Guest
Re: Oops
obviously she was trying to compete with his guitars for attention. Look dear..today I'm blonde, red, brunette..
obviously she was trying to compete with his guitars for attention. Look dear..today I'm blonde, red, brunette..
D
davidt
Guest
intel shares
what was the scoop on intel shares
what was the scoop on intel shares
Y
Yield
Guest
Eddie's Argument on yield
Eddie in last nights program reckoned that property yields in the UK were twice that in Ireland. What did he mean by this ?
His example was the £150K house with a rental income of £9K per year.
That sounds pretty much like most places in Ireland - the rent just about covers the moprtgage ?
Eddie in last nights program reckoned that property yields in the UK were twice that in Ireland. What did he mean by this ?
His example was the £150K house with a rental income of £9K per year.
That sounds pretty much like most places in Ireland - the rent just about covers the moprtgage ?
P
Protocol
Guest
rental yields
That's a 6% yield, which is above Irish yields.
That's a 6% yield, which is above Irish yields.
S
Sally
Guest
Bluebean
C'mon Bluebean, thats pretty sexist stuff. She was great, and clearly changed over the programme. He had her accounting for every Euro, and saving €20,000 a year even though the Intel share price had collapsed. She woke up, and is driving the agenda to invest in property. I don't see whats wrong with that. Picking her up on her hair is just awful.
C'mon Bluebean, thats pretty sexist stuff. She was great, and clearly changed over the programme. He had her accounting for every Euro, and saving €20,000 a year even though the Intel share price had collapsed. She woke up, and is driving the agenda to invest in property. I don't see whats wrong with that. Picking her up on her hair is just awful.
Brendan Burgess
Founder
- Messages
- 54,065
Re: intel shares
I find a lot of people say that they can't make ends meet. When you look at their figures, you find that their expenditure includes €3000 a year into SSIAs and maybe €5,000 capital repayment on a mortgage. So they are net savers rather than net spenders. Eddie was right to bring this point home forcefully. It's a nice contrast to previous programmes - oversavers instead of overspenders.
However, it seems to me that he got the whole diversifiction thing wrong. They already own a property worth €400k. Their Intel shares are worth about €20k. Maybe they have €100k in their pension funds. So they are already heavily invested in property. To diversify, they should be buying more shares. Borrowing to invest in property is concentrating their investments rather than diversifying.
Most people make this mistake. They leave their home out of the picture which they shouldn't do.
Brendan
I find a lot of people say that they can't make ends meet. When you look at their figures, you find that their expenditure includes €3000 a year into SSIAs and maybe €5,000 capital repayment on a mortgage. So they are net savers rather than net spenders. Eddie was right to bring this point home forcefully. It's a nice contrast to previous programmes - oversavers instead of overspenders.
However, it seems to me that he got the whole diversifiction thing wrong. They already own a property worth €400k. Their Intel shares are worth about €20k. Maybe they have €100k in their pension funds. So they are already heavily invested in property. To diversify, they should be buying more shares. Borrowing to invest in property is concentrating their investments rather than diversifying.
Most people make this mistake. They leave their home out of the picture which they shouldn't do.
Brendan
H
Harry
Guest
Above
Brendan, I didn't pick that up at all. I've two close friends who work at Intel where the show struck a real cord, because they are all heavily concentrated in Intel stock, and wrapped up in the share. They follow it closer than the most red Manu supporter. I thought the show said he was saving €20,000 not that he held €20,000. I reckon he held an awful lot more. My guess is that most of the 20,000 was going back to buy Intel in the share purchase schemes, and that a huge part of their balance sheet was equities, which is why Hobbs pointed out that their investment assets was cash and equities, mostly Intel.
One comment I recall was to build it up in Intel stock and diversify into property, which I thought was ok. Presumably the heavy AVC's were going into an Equity fund anyway. Anyway thats what I picked up.
Brendan, I didn't pick that up at all. I've two close friends who work at Intel where the show struck a real cord, because they are all heavily concentrated in Intel stock, and wrapped up in the share. They follow it closer than the most red Manu supporter. I thought the show said he was saving €20,000 not that he held €20,000. I reckon he held an awful lot more. My guess is that most of the 20,000 was going back to buy Intel in the share purchase schemes, and that a huge part of their balance sheet was equities, which is why Hobbs pointed out that their investment assets was cash and equities, mostly Intel.
One comment I recall was to build it up in Intel stock and diversify into property, which I thought was ok. Presumably the heavy AVC's were going into an Equity fund anyway. Anyway thats what I picked up.
E
EstorilB
Guest
Re: intel shares
Hi Brendan,
From the figures given on the show they had 750K worth of intel shares at the height of the bubble which had intel shares at around the $70 mark so I'd guess they'd be worth around the 300K mark at the moment.... Thats a lot of eggs in one basket. However its the kind of problem I wish I had :rolleyes
EB
Hi Brendan,
From the figures given on the show they had 750K worth of intel shares at the height of the bubble which had intel shares at around the $70 mark so I'd guess they'd be worth around the 300K mark at the moment.... Thats a lot of eggs in one basket. However its the kind of problem I wish I had :rolleyes
EB
T
tgirl
Guest
family home
I'm afraid I agree with not treating your residence as an asset. It's not the same as an investment property which can be sold off with minimal impact to your lifestyle. There are other arguments, but I can't think of any of them at the moment!!
I'm afraid I agree with not treating your residence as an asset. It's not the same as an investment property which can be sold off with minimal impact to your lifestyle. There are other arguments, but I can't think of any of them at the moment!!
Brendan Burgess
Founder
- Messages
- 54,065
Re: family home
Hi Estoril
You are right. I got my numbers wrong by a factor of 10. His Intel shares are now worth around €300k. With his pension fund and his home, his total assets are around €800k. I would recommend reducing his Intel holding down to below €100k, unless there is some clear tax reason for not doing so. But Eddie made the point very well, that he shouldn't allow the tax tail to wag the dog.
tgirl
I have argued this issue before on many occasions and few people agree with me. Take Cavanman. Had he sold his Intel shares 4 years ago and traded up to a home worth €1.2m would you use the same argument that he must omit the home from the calculations?
If they decide to relocate to Cavan in a few years, his home will acquire a purely monetary value like any other investment.
When he is 80 and has blown all his cash, he will be able to trade down to a smaller home or release equity in his home to supplement his income.
If he accepted Eddie's opinion that Irish house prices will fall, then, from a financial point of view, he should sell his home and rent until they are cheap enough to buy in again. So he would have around €800k cash to invest.
It seems very obvious to me, but most people don't agree with me.
Brendan
Hi Estoril
You are right. I got my numbers wrong by a factor of 10. His Intel shares are now worth around €300k. With his pension fund and his home, his total assets are around €800k. I would recommend reducing his Intel holding down to below €100k, unless there is some clear tax reason for not doing so. But Eddie made the point very well, that he shouldn't allow the tax tail to wag the dog.
tgirl
I have argued this issue before on many occasions and few people agree with me. Take Cavanman. Had he sold his Intel shares 4 years ago and traded up to a home worth €1.2m would you use the same argument that he must omit the home from the calculations?
If they decide to relocate to Cavan in a few years, his home will acquire a purely monetary value like any other investment.
When he is 80 and has blown all his cash, he will be able to trade down to a smaller home or release equity in his home to supplement his income.
If he accepted Eddie's opinion that Irish house prices will fall, then, from a financial point of view, he should sell his home and rent until they are cheap enough to buy in again. So he would have around €800k cash to invest.
It seems very obvious to me, but most people don't agree with me.
Brendan
T
tgirl
Guest
residence
I see what you mean Brendan, but if I had the money to trade up, I wouldn't 'invest' it in my own home, I would buy an investment property. Typicaly people spend more money on their own residence than on a rental property, and on a 1.2million home that could be a lot of unrecoverable spending. JMO!!!! I would prefer to own my home outright and keep investing seperate.
Must go clean said home!
I see what you mean Brendan, but if I had the money to trade up, I wouldn't 'invest' it in my own home, I would buy an investment property. Typicaly people spend more money on their own residence than on a rental property, and on a 1.2million home that could be a lot of unrecoverable spending. JMO!!!! I would prefer to own my home outright and keep investing seperate.
Must go clean said home!
M
MAC
Guest
Not so Steady Eddie?
Eddie commented on teh stock price dropping from $70 to $14 and as I recall he then told him next time the share hits 23 or 24 SELL. Given that the stock is now trading @ 30 after being up to 34 that might be something he hasn't thanked Eddie for?
MAC
Eddie commented on teh stock price dropping from $70 to $14 and as I recall he then told him next time the share hits 23 or 24 SELL. Given that the stock is now trading @ 30 after being up to 34 that might be something he hasn't thanked Eddie for?
MAC