# Help!! what should I do with €1000.00??



## danny_01 (26 Nov 2008)

I've got €1000.00 freed up by a loan I'm looking into putting this into a long term portfolio would this be a good idea with the recession going on buying cheap share and selling them in say 5 to 8 years ? 
Should i just keep it where it is?
Any suggestion on what would make €1000.00 grow quicker would be great


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## bacchus (26 Nov 2008)

danny_01 said:


> Should i just keep it where it is?


Where it is at the moment? earning interest?


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## Flexible (26 Nov 2008)

Is this *ONE THOUSAND EURO* ??


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## danny_01 (26 Nov 2008)

It's one thousand euro and its in the credit union .


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## Dave Vanian (26 Nov 2008)

I would suggest that €1,000 may be too small a sum to invest in shares, as transaction costs would eat into your €1,000, unless you're willing to put it all on one or two shares, which is a risky strategy.  

Have a look at the Best Buys section here on Askaboutmoney for the best deposit rates available at present.  There's also a thread there on the cheapest stockbrokers.


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## danny_01 (26 Nov 2008)

Ya I saw , is there anything else I could possible do , I do have more money how about €2,000 or €3,000. 
I'm 26 self employed with no pension looking at the current market and looking at the long term.


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## Raskolnikov (26 Nov 2008)

Serious answer. I don't think you have enough money to consider a pension or equity based investment.

Try taking a look at this thread (http://www.askaboutmoney.com/showthread.php?t=27891).

The Halifax saver option looks like it might be a good option for you.


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## Dave Vanian (26 Nov 2008)

As you don't have a pension, you could set up a PRSA - kick it off with a lump sum of a thousand or two and then keep it going with a monthly amount by Direct Debit.  The monthly amount spreads your entry into the markets over a range of prices, rather than trying to time the perfect time which is virtually impossible.


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## baldyman27 (26 Nov 2008)

In the same boat Danny, hard to get good advice here sometimes as you're looked down on if you're not a millionaire. I'm taking a punt and sticking a similar sum into one of our esteemed financial instittutions. Am prepared to lose it all but its worth a chance IMO. Good luck.


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## ubiquitous (26 Nov 2008)

baldyman27 said:


> In the same boat Danny, hard to get good advice here sometimes as you're looked down on if you're not a millionaire.



I think its more a case of emphasising (as several posters have already) that equity, pension or fund investment options tend not to be economic for such a small sum, as transaction fees and minimum management fees will more than eat up any return on the original investment.


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## z103 (26 Nov 2008)

> I think its more a case of emphasising (as several posters have already) that equity, pension or fund investment options tend not to be economic for such a small sum, as transaction fees and minimum management fees will more than eat up any return on the original investment.


This is true.
However, there's no need for comments such as buying pints or Amsterdam etc... 
I don't think a grand is a small sum either. Then again, I've spent the last 5 or 6 years watching every penny, and a grand would make a huge difference. 
I suppose times are changing.

I would suggest paying the money off any other loans the OP may have.


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## annette mac (26 Nov 2008)

The simplest and safest thing to do with it is to buy An Post Savings Certificates or Bonds.  They're completely state-guaranteed and there is no tax on interest earned. Check out www.anpost.ie


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## danny_01 (26 Nov 2008)

Thanks guys the thing is I've got €9,000 Excluding the €1,000 euro freed up by the loan. I am treating myself in February with a trip to California for a month driving around the state. I am looking at investing some of this money. Ive no extending Loan  NONE whatsoever . I think as people are saying I haven't enough money to invest which I think is bull. there has to be something worthwhile i could do with my cash . 
I'll keep saving and looking


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## Sunny (26 Nov 2008)

danny_01 said:


> Thanks guys the thing is I've got €9,000 Excluding the €1,000 euro freed up by the loan. I am treating myself in February with a trip to California for a month driving around the state. I am looking at investing some of this money. Ive no extending Loan  NONE whatsoever . I think as people are saying I haven't enough money to invest which I think is bull. there has to be something worthwhile i could do with my cash .
> I'll keep saving and looking


 
Some of the comments on this tread were just plain rude. A €1000 is still a €1000. There is nothing wrong with looking to invest your €1000 in equities if you are happy with the risk. Everyone has to start somewhere and there is nothing to stop you adding to your investment. If you don't know much about the stock markets, read a few of the other threads on the subject. Might be worth looking at the funds offered by the likes of Quinn and Rabo.

By the way you mentioned in your fist post something about wanting your €1000 to grow 'quick'. Be aware that with higher rewards comes higher risks.


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## oopsbuddy (26 Nov 2008)

Make sure you get it to earn maximum interest for you while you are deciding what to do with it longer term. The longer you take to decide, the more interest you will earn and therefore the less it will have depreciated. Credit Union accounts are not the best interest earners, but they have other advantages for savers. 

If you really don't need it for the foreseeable future, do think about the PRSA option, as you have said that you have no pension and you can get tax relief on the contribution. Also, depending on what you choose to invest in within the PRSA, you can HOPEFULLY enjoy some investment return on the PRSA. The earlier you kick-start a pension and get contributing to it regularly, the better fund you should have when you approach retirement. 

Then, when you retire, you can take 25% of the fund as tax free cash, and THEN go to Amsterdam,...for a few pints!

I hope that was helpful!


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## dieter1 (26 Nov 2008)

just walk into your nearest bank (in my case aib), give them a thousand euro and say that you want to buy their shares.  

You're 26, you dont want to put the money away for 39 odd years (i.e. pension), buy a bank share that you think might last 5 years. if you got say 400 odd shares, they could well be worth more than 1000 euro in 5 years or maybe not.

Either way, no-one will accuse you of being crazy for buying a bank share after it had dropped 90% of its value, you saw a bottom and you invested on it.

Very simple (and great craic)


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## danny_01 (26 Nov 2008)

That's what Ive been thinking, something around those lines. 
Just need time to research and tips would be great


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## krissovo (26 Nov 2008)

If it is a €1000 you would not miss then its worth a bet on the stock market.  I would look for stock valued at or around 80c > €1 from a major company.  Banks might be a good idea BOI should come through the downturn so there is a good chance you will make a nice profit medium to long term.  I recently stuck 10k into Yell.com with the hope this well known UK company pulls through and the price will rocket.  So far its down but the revenue and profits will be announced soon and also they are releasing a plan that should boost the price..... I hope!

Maybe also look at spread betting, this has more risk but the gains are very big if you guess right.

Anyway have fun!


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## ringledman (26 Nov 2008)

ubiquitous said:


> I think its more a case of emphasising (as several posters have already) that equity, pension or fund investment options tend not to be economic for such a small sum, as transaction fees and minimum management fees will more than eat up any return on the original investment.


 
Disagree there are tracker funds and ETF's out there that cater for small monthly amounts. 

Management fees can be as low as 0.5% or less in some even cases. 

What difference does a 0.5% fee make to 1000 euro or 100,000 euro? 


If your going to invest in such funds then also add to them monthly and forget about the value for at least 5years.


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## dunkamania (27 Nov 2008)

A money clip is always nice........


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## diarmuidc (27 Nov 2008)

Dave Vanian said:


> I would suggest that €1,000 may be too small a sum to invest in shares, as transaction costs would eat into your €1,000, unless you're willing to put it all on one or two shares, which is a risky strategy.
> .


Here's an option:

Capital : €1000.
Open [broken link removed] account -€0
Buy 40 VT shares (total world market ETF, annual mgt fee of 0.25%) fee = $29.95 cost of shares = $1242.80
Annual account fees = €0

=> total fees for duration of investment  = $29.95

And now you are holding a very widely diversified portfolio (granted a small one) that you don't need to look at for the next 20 years. 

One catch is that reinvesting the dividend (assuming that VT pays a dividend) might not be worth it. You'd need to check this out.

What's wrong with this approach?


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## mercman (27 Nov 2008)

baldyman27 said:


> In the same boat Danny, hard to get good advice here sometimes as you're looked down on if you're not a millionaire. I'm taking a punt and sticking a similar sum into one of our esteemed financial instittutions. Am prepared to lose it all but its worth a chance IMO. Good luck.



Baldyman, this is a most unfair post. I dfo not think that AA looks down on anybody regardless of their financial position. Look as to how many replies Danny has received.


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## extopia (27 Nov 2008)

danny_01 said:


> Thanks guys the thing is I've got €9,000 Excluding the €1,000 euro freed up by the loan..... Ive no extending Loan  NONE whatsoever




I'm not sure what you mean by 1,000 "freed up by a loan", or what an extending loan is. Do you mean you've consolidated some loans and ended up with 1,000 left over that you don't know what do do with? 

If so, you might consider using it to pay down the new loan.


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## baldyman27 (28 Nov 2008)

Mercman, I was a little harsh there alright, my apologies. I was looking for similar advice not so long ago and found that I got a lot of posts in reply which seemed to say that unless I knew what I was doing I shouldn't even consider buying shares. There are a lot of people out there in the same position, i.e. with a small amount of money, just a few grand, that are looking at the markets and thinking that they'd like to take a punt. Don't get me wrong, I haven't got a clue what I'm doing, haven't a notion of how the markets work and I don't think that just because I've made a few quid on my one and only punt that I'm now a successful investor. I took a gamble with a small amount of money and it paid off. Sometimes these threads seem to descend (or ascend!!) into a load of confusing stockmarket jargon that goes completely over the head of the OP. That said, there is a lot of good advice on AA too and have learned a lot from it.
You're dead right though, the OP has had a lot of replies and none of them disparaging, at least after my post! Would they all have been as simple and as supportive had I not posted?
Excellent site though and great information to be found in general.


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## MortgageGuy (28 Nov 2008)

you won't get rich on a grand investment, now may well be a good time to get into the market but there is a lot of volatility out there too. if you don't have a nest egg put away then perhaps the best thing to do would be to start one, keep it in the credit union or where ever you like, but if you don't have a fund in case you lose your job or something then this could be the start of one


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## election0 (30 Nov 2008)

I am unemployed and have never had an awfull lot of money . I am from a working class area and hate snobery . I have managed to save some money but this was from living very well within my means and always seeking bargains etc . In all honesty I do not know a lot about investments and shares in fact I am a complete novice .

With all that said my inclination is that €1000,00 (One thousand Euro) is not a large enough amount to start off with . I am only now looking to start investing having saved $40,000 (forty thousand dollars) over a number of years . I would like to know how to go about investing this without changing it to Euros ?


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## colm5 (5 Dec 2008)

election0 said:


> I am unemployed and have never had an awfull lot of money . I am from a working class area and hate snobery . I have managed to save some money but this was from living very well within my means and always seeking bargains etc . In all honesty I do not know a lot about investments and shares in fact I am a complete novice .
> 
> With all that said my inclination is that €1000,00 (One thousand Euro) is not a large enough amount to start off with . I am only now looking to start investing having saved $40,000 (forty thousand dollars) over a number of years . I would like to know how to go about investing this without changing it to Euros ?


 
You should decide what type of risk you are willing to take before deciding what to do with this lump.


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