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## kINGKONG (28 Dec 2006)

deleted


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## markowitzman (28 Dec 2006)

*Re: 100K to put away*



> Im looking to help my dad.


 I think best bet is independent financial advisor first off.


> I like the idea of A tracker fund linked to the stock market with captial security.


 Be aware returns are often poor and in effect you pay for capital guarentee. I think an advisor needs to look at your father's whole picture financially.


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## RainyDay (28 Dec 2006)

*Re: 100K to put away*



kINGKONG said:


> Hey,
> 
> Im looking to help my dad.
> 
> ...


Most tracker funds would involve locking the money away for 3+ years. I have reservations about the complex charging structures and lack of transparency with many of these funds.

What is your dad's overall financial position - other assets (residence, other), income? If he is comfortable overall, you might want to try and convince him of the benefits of not wanting to completely avoid any risk. He is probably going to be investing some of his funds for 10-20 years, which is more than enough to last out any temporary dips in the market.


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## kINGKONG (28 Dec 2006)

*Re: 100K to put away*

Does anyone have an advice with getting in touch with an independent financial advisor


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## Murt10 (28 Dec 2006)

*Re: 100K to put away*



kINGKONG said:


> He not into da online scene meaning Rabo and northern rock arent suited for him.





I had an account with Northern Rock. No computers, just operate by phone and post.


Murt


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## Carrie2006 (29 Dec 2006)

*Re: 100K to put away*

[broken link removed]
The above link brings you to a find a local adviser page. The link is supplied by Hibernian, not sure if they are only IFAs affiliated with Hibernian or not, I am not affiliated with Hiberian in anyway! I just have my SSIA with them.
C


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## CCOVICH (29 Dec 2006)

*Re: 100K to put away*

This link is a (recent) list of all authorised (as close to independent as you can get) advisors.


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## kINGKONG (30 Dec 2006)

*Re: 100K to put away*

Cheers for the link use to work for the finacial regulator know alot abt investment intermidataries. My experience with them isnt the greatest. They do a lot of talkin thats abt it. Sound financial advice is really hard to come across.

So I ask this question 

if you had 100k to put away what wud you do?


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## oldtimer (30 Dec 2006)

*Re: 100K to put away*

Reading Kingkong above I was in a similar situation to the dad and my views were the same as his when I got my retirement lump sum. When you get to my age you do not want to get into anything longterm or risky, just peace of mind. I want to know where I stand re interest all the time. So I did the following. I opened regular saver accounts with the four institutions offering 6% or more both for myself and Mrs. Oldtimer. This sees €6100 invested at over 6% per month. I opened a Northern Rock demand on line account (4.15% variable) with the remainder. I drip feed  my AIB current account as required each month.That keeps me happy as I watch my money move around, while at the same time keeping up to date with interest rates. I still have a small interest in shares and watch the stockmarket daily, but now more of a hobby.


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## markowitzman (30 Dec 2006)

*Re: 100K to put away*

oldtimer is your principal eroding or not and if so at what rate? I would be aticking a certain amount in highyielding blue chips with yields of 4% or so. That said I do not think there is a right or wrong way to do so although I would like to think I could preserve capital.


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## Marie (30 Dec 2006)

*100K to put away*

Most of us don't work in the financial industry and many many people have no experience of financial investments.  if you have a bank account or want to invest in property you can sit down with someone beforehand and read a 'product pack', discuss all aspects of what you are going to do and list the costs which are all transparent.  

When it comes to a situation (for most of us that means over 50!!!) where there is surplus money which can be 'invested' there is very little in the way of signposting or information available in the public sphere from which to make informed comparisons and choices.

Having "consulted an independent financial advisor" on _one _occasion in the past (after meeting with three others and finding they were actually 'tied' so were wheeling on insurances and other 'products' not directly to do with the business I wanted to transact) I feel this is a real lack.  I'm not suggesting anyone give financial advice _on what to invest _in  but surely there must be something which can be communicated to the uninitated about (a) how  to invest money (b)  the range of different types of investment (c) when and how is such investment preferable to a RABO-type account (d) what actually happens! (i.e. do you, or your broker, decide where the investment goes?  Do you (or the broker?) track it?  Do you get a share-certificate each year and what do you do with that?  (e) what exactly are the tax advantages?  If you put money into a high-interest bank-account the bank (at least my bank does) deducts appropriate tax annually from the interest.  If you invest do you have to do this yourself or does your broker deduct it before you get paid the annual premium thingie (if there is one and how do you know there should be one?)  (f) If you invest 100K before retirement is profit taxable (what IS profit on investment?  Is profit every increase in value of your shares/investment or only anything over the rate of inflation? After retirement does other income (pension etc.) affect  the  tax liability on investment?  (g) Last but not least if the OP's retired father invests 100K through a broker "for 10 - 12 years" how can he ascertain if this investment is doing well or badly, given there will be troughs and highs.

Phew!  I keep reading bits of advice on AAM about investment for us paesans but it remains as obscure as ever as the nuts and bolts are never articulated.  It would be interesting if an AAM financial wizard whose professional role is investment could let the rest of us in on the secret - but that could only be by remembering what it was first like when approaching the investment field as an uninitiated newcomer.

I wish all AAM'ers a Happy New Year and a peaceful and prosperous 2007!


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## kaymin (30 Dec 2006)

*Re: 100K to put away*

As there are so many answers to your questions, the list below is only a few of the many possibilities. I don't recommend any of the parties that I've named. Information memorandums / offering memorandums ("OM") are generally available on request which potential investors should read thoroughly and ensure they understand prior to making an investment. Areas of the OM that I focus on are:

fees charged (entrance / exit and ongoing),
restrictions on return,
business rationale of the project / fund,
past performance,
investment restrictions / policy,
restrictions on exiting investment,
whether the promoter is regulated by IFSRA (Ireland), the FSA (UK) etc
whether the individuals behind the promoter are reputable (do a google search on the individuals, check [broken link removed] to determine whether the promoter / principals behind the promoter are prohibited, disqualified or otherwise disreputable) etc,
I'd also tend to get independent information (through web searches) to support (or challenge) the promoters claims.
*How to invest money:*
Pensions - invest in company defined benefit or contribution schemes. In addition, invest up to the maximum permissible for your age category into AVC's. Tax relief (from PRSI and PAYE) is available at the marginal rate.

Business Expansion Scheme - invest by making enquiries directly with companies seeking finance (they advertise in national newspapers) or in the Davys / BDO BES fund (risk is spread over many companies but Davys / BDO take a cut of your investment). Tax relief is available at marginal rate of tax.

Film investment - Anglo Irish Bank, among others, arranges finance for many films made in Ireland. It is structured such that a loss is incurred on your investment but tax relief brings you back into the black. You have to be paying income tax at 42% to be profitable. 

Deposit interest - open one or any number of the high yielding deposit accounts available in the market.

Invest in shares or bonds directly - I use ameritrade (www.tdameritrade.com) to buy US quoted shares and NIB ([broken link removed]) online account for shares quoted in any other market.

Invest in shares or bonds through investment funds - If you don't have the expertise to properly research quoted companies or the time to research a sufficient number of companies in order to be well diversified then let the professionals do it - rabodirect and Danske Bank / NIB offer funds online and the entrance / exit fees are much the same as the transaction costs of buying and selling shares directly. All of the Irish banks offer funds for investment and advertise these funds in newspapers now and again. 

Property - home or abroad. Again companies often advertise developments which they manage and are open to investment by the public e.g. 

The process for opening share trading accounts, investing in funds / BES companies etc varies - call them up / read their website / obtain the application form to find out exactly what you need to do. If you don't understand the investment opportunity then don't invest in it. 


*What happens after you have invested:*
Your investment should be used for the purpose that was originally communicated to you i.e. as set out in the OM. Funds tend to have independent administrators that keep the books and records of the fund and a trustee that ensures that the investment manager complies with the investment restrictions as set out in the OM.

Pensions - trustees to the pension scheme issue statements on at least an annual basis which shows how many units you hold and the value of those units together with opening value, contributions made (employer and employee), investment return, closing value.

Investment funds tend to publicise their performance on their website - some funds are valued daily, others are valued once per week / month. Holdings in funds are recorded in book entry form which means you don't get a share certificate. However shareholders will get a periodic statement showing the number of shares held / value of shareholding.

Quoted companies - usually shares are held in electronic form (such as crest) and therefore you don't get a share certificate. The broker will provide you with periodic statements and /or you will be able to see your holdings in your online account.

BES - you will generally receive a share certificate. This share certificate is proof of your shareholding and therefore should be kept safe and will be needed when / if you decide to sell your shares.

*Tax implications:*
Tax is operated by way of self assessment => if you make a capital gain it is your responsibility for paying the correct amount of CGT by the due date. You will also need to complete a CGT tax return form. Similarly if you receive dividend / interest income etc you will need to include such income in your income tax return. Brokers / banks are not responsible for ensuring you are tax compliant. Where an asset (such as a share) was acquired before 2003, inflation relief (for CGT purposes) may be available, effectively adjusting the cost in line with a published inflation factor. Indexation relief is not available in respect of periods of ownership of the asset after 31 December 2002. Capital gains are generally taxed at 20%. Income from investments such as interest and dividends are subject to income tax and therefore would need to be considered together with other income in arriving at your total income tax liability.

*Evaluating the investment return:*
The return achieved could be compared to similar investment opportunities, stock market benchmarks such as FTSE, ISEQ etc, cash deposit rates etc. Yes there are highs and lows of every investment and there is no guarantee that an investment will recoup losses in the future - it's up to the investor to evaluate the investment themselves. If an investor is not able to assess for themselves the likely future direction of the investment returns then they shouldn't have invested in it.


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## Marie (30 Dec 2006)

*100K to put away*

Kaymin this is so enlightening and helpful as a way into investment.  Am off to study........


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## RainyDay (30 Dec 2006)

*Re: 100K to put away*



Marie said:


> When it comes to a situation (for most of us that means over 50!!!) where there is surplus money which can be 'invested' there is very little in the way of signposting or information available in the public sphere from which to make informed comparisons and choices.
> 
> Having "consulted an independent financial advisor" on _one _occasion in the past (after meeting with three others and finding they were actually 'tied' so were wheeling on insurances and other 'products' not directly to do with the business I wanted to transact) I feel this is a real lack.  I'm not suggesting anyone give financial advice _on what to invest _in  but surely there must be something which can be communicated to the uninitated about (a) how  to invest money (b)  the range of different types of investment (c) when and how is such investment preferable to a RABO-type account (d) what actually happens! (i.e. do you, or your broker, decide where the investment goes?  Do you (or the broker?) track it?  Do you get a share-certificate each year and what do you do with that?  (e) what exactly are the tax advantages?  If you put money into a high-interest bank-account the bank (at least my bank does) deducts appropriate tax annually from the interest.  If you invest do you have to do this yourself or does your broker deduct it before you get paid the annual premium thingie (if there is one and how do you know there should be one?)  (f) If you invest 100K before retirement is profit taxable (what IS profit on investment?  Is profit every increase in value of your shares/investment or only anything over the rate of inflation? After retirement does other income (pension etc.) affect  the  tax liability on investment?  (g) Last but not least if the OP's retired father invests 100K through a broker "for 10 - 12 years" how can he ascertain if this investment is doing well or badly, given there will be troughs and highs.


Hi Marie - I'd have thought that you'd get answers to many of your questions in the relevant [broken link removed].


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## CCOVICH (31 Dec 2006)

*Re: 100K to put away*

Some helpful hints/tips here as well.


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