# Investment Diversification Plan Review



## regvw (15 Nov 2012)

Hi, 
I am trying to diversify in what I do with my savings, I generally put whatever I have away for a year and keep some funds available in case of a rainy day. 

My concerns with this approach is
1. The interest rates are poor 3.3% KBC for one year at present.
2. Still have concerns over Ireland and the Euro, was very worried for a period last year.
3. Also feel i need to diversify and spread things out a little. 

So here is what I was thinking, please let me know what you think in case this is off the chart as I am new to all this

1. I will buy some German bonds, seems like a low risk strategy even if Ireland leave the euro and end up with a devalued currency, I will have euro bonds.
2. I will still keep some funds in one of those one year euro accounts in Ireland
3. I will invest a small amount in xchange traded funds, maybe something in the emerging markets.


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## Brendan Burgess (15 Nov 2012)

I think you would be better doing a full Money Makeover where you give details of all your assets, your mortgages, your income etc.  

For example, paying off a SVR mortgage would usually be the best place to save your money. 

Given the general level of uncertainty, it is not a good idea to put money away for a year.  If you get nervous again about the euro, you will be even more nervous if you can't access your cash. 

Brendan


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## Jim2007 (15 Nov 2012)

regvw said:


> I will buy some German bonds, seems like a low risk strategy even if Ireland leave the euro and end up with a devalued currency, I will have euro bonds.



Sometime in the next few years people will learn the next less of a recession - bonds are not low risk, they are a different kind of risk and you need to be just as careful in buying bonds as you would stocks or any other asset class.


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## regvw (15 Nov 2012)

Hi Brendan, here is some further details 

*Age:* 34
*Spouse’s/Partner's age:* 31
*My Annual gross income from employment or profession:* €64,000 (current)
- reasonably secure
*Spouses Annual gross income from employment or profession:* HomeMaker

*Type of employment:* Full Time PAYE 

*In general are you:
(a) spending more than you earn, or
(b) saving?*

*(a) *Saving regularly

*Other borrowings – car loans/personal loans etc
*No loans or credit card debt. 


Mortgage 190,000
Current Value of house 150,000
BOI Tracker Mortgage €700 per month


Banks 60,000
Shares 20,00
*Total 80,000*
Do you have a pension scheme? Yes 

*Do you own any investment or other property? 
No
*
Ages of children: 1 and 4 years old


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## Brendan Burgess (15 Nov 2012)

The key thing here is that you should keep your money easily accessible. If Bank of Ireland introduce a scheme for trackers,  you would want to take advantage of it. If they give a 10% discount, you could pay €89k off your mortgage with €80k cash. 

This would be the safest place to invest and a good return. 

If, at some stage, you want to trade up, you will need cash to pay off your negative equity. 

I would start by asking BoI if they would give you a deal to get rid of the negative equity.  They will probably refuse, but a refusal won't cost you anything. 

Brendan


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## regvw (18 Nov 2012)

Thanks Brendan, 
allready asked my bank manager with no joy.

Agree I should not lock these funds up, but what are my best options 

thanks


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## Palerider (7 Dec 2012)

After the budget it seems State savings are the only game in town I accept 3 years is a long time but at present rates it is compelling..?


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