25k to invest

hey guys,

I'm looking to save 25 grand in a long-term investment. What would be my best options?

Appreciate any feed back.

pocketdooz

Rojomcdojo wrote: »

hey guys,

I'm looking to save 25 grand in a long-term investment. What would be my best options?

Appreciate any feed back.

pocketdooz wrote: »

First of all well done on saving that amount.

Secondly - do you have an debt ? Any at all ? If so - pay it off. No sure investment will pay you a return after tax that will beat what you are getting charged on a loan (incl. student loans / credit cards etc.)

Thirdly - I think you have enough to diversify between maybe 4/5 assets. Personally if I had that money I'd be lumping the max into Anglo's 8% account for the next 3 months (which I am) - and the the min. for the rest of the year to get the rate - This will give you €3,000 at 8% in a secure account - resulting in (if rates stay same) €4,400 in 5 years. http://www.angloirishbank.ie/Personal_Savings/Regular_Annual_Saver_Account/

What is your opinion on the Irish market ? - if you think it will recover by 2013 (which I do) you could buy an ISEQ ETF, which is basically buying into the Irish Stock Market as a whole. Your buying the index for 5 years. You could invest another €3,000 in there. If this offers HALF it's average return of 16.56% over the past 20 years it'll be giving you 8.28% (and I think more) giving you €4,465 in 5 years with possibly some additional upside if the banks recover nicely in 2011 - 2012.

http://dublinstockexchange.com/discussion/discussion/11/historical-iseq-returns-2007-prediction/


International diversification should be available through many of the fund companies (Zurich, formerly Eagle Star and Hibernian maybe - I'm not too knowledgable about this area) - they should offer some leveraged funds that invest in the Middle East and Asia. You could buy into these funds, possibly invest another €3,000 there - I think these funds have been returning c. 11% over the past years (again past performance is not a guarantee of future success). The economies of Brazil, Russia, China and India are booming, with Russia and Brazil being natural resource-based and China and India being manufacturing and service based. You have to do a bit of your own research on where you think will offer the return but an 11% return should be available if you choose wisely. Obviously the volatility and risk associated with these economies would be slightly higher than developed economies (although not recently !!) so you accept slightly higher risk for potential higher returns. An 11% return would give you €5,055 in 5 years.

For your final €3,000 you could make the riskiest investment of all and put it into 1 or 2 stocks that you feel offer growth potential over the next few years. For this you would have to get either profesional advice or do your own research. If you PM me I can let you know what I think would be worth looking at or you could do your own research. You need not limit yourself to the Irish market for this. Obviously this option would involve higher risk but you could put a stop loss of 10 - 15 % on this investment to limit your downside in the event you are wrong in your decision. If you pick a stock that performs well for you it is not unreasonable to assume a 12/13% return averaged per annum over the next 5 years. This would give you €5,527 in 5 years.

Again - these are just examples of what you could do - there are many potential homes for your money but I think you should spread it between risky and secure investments and do some international diversification. These returns are arbitrary and may not be returns that people will all agree with but they are not unreasonable to assume and could even be on the low side depending on how things go.

Your overall portfolio would be c. €20,000 then in 5 years.

Best of luck with it.






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DOUBLE THE AMOUNTS

GOOD LUCK




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Jay D

This account offers a rate of 8% VARIABLE, with a minimum guaranteed rate of the ECB + 2

Marksie

its a term deposit too so at the end of the year the account is closed and sent into a 4% account.
if you nitend to look around, best to have your money in something like a 6 month deposit account if you just have it sitting there. At least it will earn until you decide what you want...i think you can also get three months deposits.. you will see that teh year seems to giove the best interest rate yearly as conmpared to two or more years

have a look at the halifax

With markets on edge it may be best to wait.

Jay D

it seems the most available is falling in and around the 5.5% mark.

I am aware the short term solution for the 6 months as well. If only the interest rates were better but whatever about anything, Irish Life will never get another penny of my money.

Marksie

Jay D wrote: »

it seems the most available is falling in and around the 5.5% mark.

I am aware the short term solution for the 6 months as well. If only the interest rates were better but whatever about anything, Irish Life will never get another penny of my money.

I am agreeing with you on irish Life..underperforming even before this crash.