First time looking into investing money and I have no idea where to start. Any help much appreciated!

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CosyFox

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Hi all! I'm new here and looking for some advice on how to start investing my money as someone who is fairly financially responsible and good with saving my money, but not at investing it. A bit of background: I'm 28, a 3rd year post-primary teacher, single, no dependents and still living at home with my family. I finally got my permanent contract in the school I work for this year, and now that I don't have to worry too much about job security, I would like to start investing my money or finding a way to increase my savings. I don't understand how investing works, especially the maths and tax side of things - I find myself getting confused and a little overwhelmed trying to research a topic that I genuinely struggle to grasp. I'm anxious about making bad investments and particularly afraid of losing money.

Apart from car loan, insurance payments and bill contributions I don't have any big expenditures. I don't smoke, only drink/eat out very rarely nowadays, and I usually have a fair bit of disposable income left over after payments/savings/discretionary spending (usually ~€250 extra). I'm fortunate enough to be able to save around €500 every fortnight and have been putting this into a regular savings account, plus some extra that I have left over at the end of the fortnight as a buffer in case of emergencies. However, I feel like my progress is so slow. I've seen many videos online of people my age having saved 10x what I have due to good investments, but they're usually all American so I don't know if what works for them will work for me.

I would really appreciate some help on where to look. I'm not sure what investment companies are trustworthy, or should I open an investment account with my bank eg B.O.I. mortgage saver or super saver? My main reason for wanting to increase my savings is to buy a property in the next 3-5 years, and then after that I plan to supplement my pension for possible early retirement (I have been told Cornmarket AVCs are what most teachers go for, but heard its better to go with Irish Life?).

Any advice or recommendations would be very much appreciated. Thanks in advance!
 
CosyFox said:
Hi all! I'm new here and looking for some advice on how to start investing my money as someone who is fairly financially responsible and good with saving my money, but not at investing it. A bit of background: I'm 28, a 3rd year post-primary teacher, single, no dependents and still living at home with my family. I finally got my permanent contract in the school I work for this year, and now that I don't have to worry too much about job security, I would like to start investing my money or finding a way to increase my savings. I don't understand how investing works, especially the maths and tax side of things - I find myself getting confused and a little overwhelmed trying to research a topic that I genuinely struggle to grasp. I'm anxious about making bad investments and particularly afraid of losing money.

Apart from car loan, insurance payments and bill contributions I don't have any big expenditures. I don't smoke, only drink/eat out very rarely nowadays, and I usually have a fair bit of disposable income left over after payments/savings/discretionary spending (usually ~€250 extra). I'm fortunate enough to be able to save around €500 every fortnight and have been putting this into a regular savings account, plus some extra that I have left over at the end of the fortnight as a buffer in case of emergencies. However, I feel like my progress is so slow. I've seen many videos online of people my age having saved 10x what I have due to good investments, but they're usually all American so I don't know if what works for them will work for me.

I would really appreciate some help on where to look. I'm not sure what investment companies are trustworthy, or should I open an investment account with my bank eg B.O.I. mortgage saver or super saver? My main reason for wanting to increase my savings is to buy a property in the next 3-5 years, and then after that I plan to supplement my pension for possible early retirement (I have been told Cornmarket AVCs are what most teachers go for, but heard its better to go with Irish Life?).

Any advice or recommendations would be very much appreciated. Thanks in advance!
Click to expand...
Those videos are only trying to sell you something. Ignore them. Those videos are usually made by kids with Ferrari's* who are trading from a desk in their bedroom!! For most, growing wealth is a long process that takes time. Invest in a global index of stocks and over time you will see the returns. Always spend less than you earn and save the rest.

If you are looking to buy a property in the next 3-5 years, you should keep your money in cash as the risk of a market crash is too great as there will be no time for a recovery. Save as much as you can to build up as big a deposit as you possibly can.


Steven
www.bluewaterfp.ie
 
Hello CosyFox

For most people starting off in investing I would recommend an ETF like IWDA
www.justetf.com

iShares Core MSCI World UCITS ETF USD (Acc) | A0RPWH | IE00B4L5Y983

Key facts and comparisons for iShares Core MSCI World UCITS ETF USD (Acc) (EUNL | IE00B4L5Y983) ➤ justETF – The ETF Screener
www.justetf.com www.justetf.com
Or if you don't want to have to deal with the tax yourself, then go with an execution only broker to setup a fund with Zurich, or IrishLife or New Ireland.

But in your particular case I wouldn't recommend any of that. Because you will be better off financially, by paying off your car loan first.
On Average you can expect to earn 7.5% per annum investing. After tax this will be closer to 4.5%. The interest rate on your car loan will be much bigger than this. If for example, your car loan has an interest rate of 9%, by paying it off first, you are making a tax free, risk free, 9% return on investment.

This will also help you buy a property as the bank will reduce your potential mortgage because you have other debts, like the car loan. Once you have the car loan paid off I would recommend stashing your cash in a high yield interest account E.g. Trade Republic offer 4% at the moment on balances up to 50k. I would not recommend investing for 3 years. Markets fluctuate a lot and in general you want to be investing for 5+ years to give yourself a better chance of making money.

Good Luck.
 
Thank you both for your kind advice! I'll take it on board and look into the options you have given. I appreciate your time
 
Whilst I agree with the sentiment above on paying off car loans first etc. I also think there is value in starting to invest and learn from a young age. The barrier to entry is now incredible low vs even 10 years ago.

I'd suggest just using revolut or equivalent and investing each month in something like the VUSA (Vanguard S&P tracker). I'm talking about using 5% of your monthly savings e.g. 50 Eur maybe even less. Build that discipline of just continually each month every year putting in the same amount of money.
 
I would agree with the previous posters who suggest paying off the loan first and then putting the money on deposit at the best rate you can find.

However, if you do decide to follow the advice to invest a small amount each month, I would recommend using a platform that is NOT also a daily banking/payment platform. E.g. you could use De Giro, or use Trade Republic WITHOUT the debit card. Advantage of Trade Republic is that they also offer a very good deposit rate. So you could keep most of your money there on deposit and a small amount in investments in order to learn.

Too many horror stories of people losing money through Revolut. I'd only keep about €200 there.
 
CosyFox said:
However, I feel like my progress is so slow. I've seen many videos online of people my age having saved 10x what I have due to good investments, but they're usually all American so I don't know if what works for them will work for me.

I would really appreciate some help on where to look. I'm not sure what investment companies are trustworthy, or should I open an investment account with my bank eg B.O.I. mortgage saver or super saver? My main reason for wanting to increase my savings is to buy a property in the next 3-5 years, and then after that I plan to supplement my pension for possible early retirement (I have been told Cornmarket AVCs are what most teachers go for, but heard its better to go with Irish Life?).

Any advice or recommendations would be very much appreciated. Thanks in advance!
Click to expand...
malone_financial on YouTube does good introductory videos to investing in Ireland and Trading212 provides a practice account to trade stocks with fake money.

But you are doing fine. As others have said, try to ignore any feelings around the fear of missing out or of thinking you are behind other people. Keep it simple by paying off the loan and using a bank saving account for a few more years then reevaluate. Invest in yourself first as needed to increase your income long term.
 
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