We should be asking you on how to be prudent with money - no humour intended.1. Yes
2. No
3. One aged 7 but we have college money pit away
4. 43
5. 120k, maxing out contributions now and just did also for 2022
6. Teacher with full govt pension
Ok thanks, interesting. Why not the buy to let and why the investment trust ?Thanks.
In your shoes, I think I would invest the bulk of the €100k in a global equity investment trust like FCIT.
You already have significant investments in Irish property - your home. Investing in a buy to let concentrates risk in one asset class and geographic region. In general that should be avoided. Plus, you're unlikely to buy a place for €100k so will need leverage (borrowing) which further exacerbates the risk.Why not the buy to let and why the investment trust ?
No I'm a simple case really, no debt of any kind, no investments just pensionYou already have significant investments in Irish property - your home. Investing in a buy to let concentrates risk in one asset class and geographic region. In general that should be avoided. Plus, you're unlikely to buy a place for €100k so will need leverage (borrowing) which further exacerbates the risk.
But we don't really have enough details about your overall financial/personal circumstances to say for sure. E.g. any debts and other savings/investments. It really needs a Money Makeover thread.Can I borrow against a mortgage-free property to buy a property investment?
Hi, I have 2 properties in my name at the moment. Property 1 has an outstanding loan of around €150,000. It has a value of around €300,000. I live in this property. Property 2 has never had a loan in my name, I bought it for cash. It has a value of around €210,000. I rent this property...www.askaboutmoney.com
Money makeover
Budgeting and dealing with debt moved to Mortgage Arrears and Debt Forum .www.askaboutmoney.com
It creates some risk but if your timeframe is long enough (maybe 10+ years) then that mitigates the risk. Investing in equities also spreads the risk compared to concentrating it in one asset class and geographic region/economy.Doesn't putting the 100k into an investment trust create a large amount of risk within the equity space ?
Is the trust mentioned above bought on degiro for example ? Thanks for the infoIt creates some risk but if your timeframe is long enough (maybe 10+ years) then that mitigates the risk. Investing in equities also spreads the risk compared to concentrating it in one asset class and geographic region/economy.
I don't know and I wouldn't be a fan of such specific suggestions. I would suggest that you invest in a diversified basket of equities, whatever that may be in practice. It doesn't have to be lots and could even be a single share like Berkshire Hathaway or a similar diversified conglomerate which can arguably act like a proxy fund, ETF, or market tracker. Just to be clear, that's just an example and not a stock tip/recommendation.Is the trust mentioned above bought on degiro for example ? Thanks for the info
What don't you like about the trust suggestionI don't know and I wouldn't be a fan of such specific suggestions. I would suggest that you invest in a diversified basket of equities, whatever that may be in practice. It doesn't have to be lots and could even be a single share like Berkshire Hathaway or a similar diversified conglomerate which can arguably act like a proxy fund, ETF, or market tracker. Just to be clear, that's just an example and not a stock tip/recommendation.
Given the questions that you are asking I would suggest that you consider getting independent professional advice.
Why not one of the many other funds, ETFs, shares?What don't you like about the trust suggestion
Not sure but ETFs have a higher tax than investment trustsWhy not one of the many other funds, ETFs, shares?
Why that specific instrument in this specific case?
Because FCIT is very diversified, holding interests in hundreds of companies across the globe.Why that specific instrument in this specific case?
How is FCIT taxed and how do you make an annual return ?Because FCIT is very diversified, holding interests in hundreds of companies across the globe.
And because the taxation of funds/ETFs is pretty horrible/complex.
I agree with you that we really need a Money Makeover thread to offer more focussed advice.
I agree with this, I'm an impulsive person and have found leaving stock positions open for extended periods of time very difficult. It's ok with the pension because I can't close the positions but I think I'd struggle if I saw a 100k position lose 20%It seems the advice on here is biased against property
Nothing wrong with the equity suggestion
My concern about that is how accessible and liquid it is
So if you wanted to go on holidays you night say to yourself.. I'll just take 10k for the holiday.
And then I'll just take 4k for the Christmas.
A house is less easy to dip into.
And if there are ups and downs you will tend soldier through them.
And history has proven property goes up over time.
There are number of advantages to property which i can go into but one i like is the rental income.. especially when fully paid off.
Only question really is do you want to be a landlord.
Logically that’s no different to receiving dividends on an investment trust that has had a downturn in its capital value.If the house was generating rental income and lost 20% of it's value I don't think that would bother me