# First Time Investment Advice



## connor100 (27 Jun 2007)

Hiya folks,

I'm a recent graduate from a property course in Northern Ireland and have secured a job in Dublin with a wage of £21,000 sterling (30,000 Euros), my partner has also secured employment in Dublin and will be earning a salary similar to mine.

My current financial breakdown per month will look as follows;

Total Income After Tax - Euros 2200

Outgoings - Credit Card debt 7000 Euros in total circa 200 
            Euros per month

          - Rent 350 Euros

          - Utilites and bills 300 Euros per month

So taking that all into consideration I would have left circa   1350 Euros spare each month.

My partner would have circe 1600 Euros per month available as she has no credit card debt

Can anyone recommend some form of investment advice for ourselves starting out, and prepared to put away 400 euros per month into the nest egg with the idea to build up a strong deposit for a house in the coming years.

All comments would be greatly appreciated,

C


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## ClubMan (27 Jun 2007)

Well start by clearing the _CC _debt and either getting rid of the card(s) or just using them for cashflow purposes (i.e. clearing the bill each month before interest charges accrue).


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## CCOVICH (27 Jun 2007)

Why are you looking for investment advice when you have credit care debt outstanding?

Shouldn't you pay this off first to minimise the interest bill?

Or is it at 0%?

Aside from that, if you are looking to buy a house, cash may be the best idea, but it really depends on your timeframe and attitude to risk.


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## CCOVICH (27 Jun 2007)

connor100 said:


> - Rent 350 Euros



Are you actually paying €350 each, or is that just what you expect to pay?


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## connor100 (28 Jun 2007)

Sorry guys should have made it a lot clearer;

The rental is 350 per month as myself and partner are currently sharing a two bedroom apartment.

The credit card debt is consolidated onto one interest free card until May 2008.

Just wondered if anyone had any advice as to the best options available to ourselves with each of us looking to invest approx 800 euros between us per month


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## RS2K (28 Jun 2007)

It depends totally on the term of your savings.

Less than 5 years you are probably better off in cash. Good deposit savings products post SSIA avaialable.

Any longer and it's worth taking a run at potentially higher yielding investments, albeit with a degree of risk.


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## CCOVICH (28 Jun 2007)

When do you see yourself needing the money for a house?
How much do you feel you will need (minimum)?
What is your attitude to risk?

Why aren't you putting aside at least €700 per month to service your credit card debt when it's due?

You should have a look at some of the threads in the Best Buys forum for ideas on deposits and regular saver accounts that will allow you to save towards your credit card debt while earning interest at the same time.

Fair play to you for getting a 2 bed apartment for €700 in Dublin!

The following thread on tax credits etc. may also be of interest if you are just starting to work/live in the Republic.


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## connor100 (28 Jun 2007)

I would imagine being in a position to purchase within the next 5 years..

I see your point with regard the cc but i'm reluctant to put away such a figure per month as it has been consolidated for a year, and as i would like to build a decent savings account in the period inbetween.

The rental in total is 1400 but with two couples sharing it works out at 350.

My attitude towards risk at present would be somewhere medium, I wouldnt be prepared to risk a large percentage into a portfolio but at the same time i would like to see a higher than average return for a portion of my monies


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## CCOVICH (28 Jun 2007)

connor100 said:


> I see your point with regard the cc but i'm reluctant to put away such a figure per month as it has been consolidated for a year, and as i would like to build a decent savings account in the period inbetween.


 
Well you can earn 5% + on whatever you save towards the debt if you do it right.



			
				connor100 said:
			
		

> The rental in total is 1400 but with two couples sharing it works out at 350.


 
Ah-makes more sense.



			
				connor100 said:
			
		

> My attitude towards risk at present would be somewhere medium, I wouldnt be prepared to risk a large percentage into a portfolio but at the same time i would like to see a higher than average return for a portion of my monies


 
Sounds like a unit linked fund. ETF or some other equity based investment may be suitable-probably the former if you want to make monthly contributions.


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## ClubMan (28 Jun 2007)

connor100 said:


> The credit card debt is consolidated onto one interest free card until May 2008.


Are you working on clearing the €7K by that date or what are you going to do then?


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## connor100 (28 Jun 2007)

CCOVICH can you recommend and unit linked funds?

I will aim to get as much of the debt cleared by that date and if unsuccessful i will transfer it to a card with a similar consolidation rate.


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## ClubMan (28 Jun 2007)

connor100 said:


> CCOVICH can you recommend and unit linked funds?


There are many existing threads including some in the _Financial Best Buys _and _Savings & Investments _forums dealing with low charges unit linked funds.


> if unsuccessful i will transfer it to a card with a similar consolidation rate.


Are you sure that you will be able to do this?


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## connor100 (28 Jun 2007)

Cheers clubmate, i should have had a look before clogging the thread.

Yes I would be very confident of being able to transfer the funds, there are a wide range of credit cards on the market at present offering the interest free for a 12 month period.


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## CCOVICH (28 Jun 2007)

connor100 said:


> I will aim to get as much of the debt cleared by that date and if unsuccessful i will transfer it to a card with a similar consolidation rate.


 
I think this is a pretty risky strategy-remember-if you don't clear the balance in FULL by the due date, it is highly likely that interest will become due on the full amount from the start-no matter how much you have repaid.

When you say 'wide range' are you referring to what is available in Northern Ireland?


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## connor100 (28 Jun 2007)

Yes sorry there are an extensive list of cc companies who offer the interest free balance transfer up north, i automatically assumed this would have been the case with the republic?


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## ClubMan (28 Jun 2007)

See the Financial Best Buys forum for info on _CC _offers.  But the point is that when transferring to another card provider they will generally do an _ICB _credit history check so if you have been carrying debt for a while then this could easily go against you and result in your application being rejected. In short, carrying medium/long term debt on a _CC _is a bad idea.


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## CCOVICH (28 Jun 2007)

connor100 said:


> Yes sorry there are an extensive list of cc companies who offer the interest free balance transfer up north, i automatically assumed this would have been the case with the republic?


 
No-there are not as many, and the criteria for some are a lot more stringent than others.

This sort of 'rate tarting' looks good in theory, but I have my doubts about whether it is really worth carrying it out on a regular/sustained basis.


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## emsman (28 Jun 2007)

I have a similar amount spare each month after expenses: €1300
I have just put €700 into quinn-life unit link funds. So there goes 700 per month and that leaves me with about 600 to spare not sure what i'm gonna do with that yet? I have no mortgage but i plan on buying a house within the next 3-5 years. So the stock market better keep on rising! and quick


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## ClubMan (28 Jun 2007)

emsman said:


> leaves me with about 600 to spare not sure what i'm gonna do with that yet?


Why not consider one of the high rate regular save accounts some of which accept that sort of sum each month? See the _Financial Best Buys _forum.


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## emsman (29 Jun 2007)

cheers for that. But I spoke to a financial advisor a couple of weeks ago and he basically said that your money is no good in a savings account. All these hight interest rates that diff banks are offering at the moment are all gonna go back to the average soon enough 4.2%avge. To be honest i think my savings would not be doing much here.


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## CCOVICH (29 Jun 2007)

Was this financial advisor tied to any particular banks/products?

Considering you are planning on buying a house in less than 5 years, what exactly did this financial adviser advise you to do?


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## nbs (29 Jun 2007)

1.Save 10 cents from every R1 you earn. If you put away at least 10 percent of your income as part of a long-term savings plan, there is a good chance that you will have a financially secure future and be able to attain your financial goals.

*2. *Put 10 percent of every pay increase towards savings, particularly long-term savings such as a retirement plan. If you are employed and belong to a retirement fund, your contributions will increase automatically in proportion to your pay rises. This will help ensure that you stay well ahead of inflation.

*3. *Use the “Can I sleep?” judgment when making investments. An investment is too risky if you are going to lie awake at night worrying about it.


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## emsman (29 Jun 2007)

No he was not tied to any bank/product. He was independant.
As i said i am just after investing in quinn so hopefully after 3 years i will have a nice amount saved up hopefully alot better than if  were to have put it in a savings account.


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