S
schuhart
Guest
I’ve read the material around this site and tried a few books out of the library on personal finance, all of which has been very useful. Based on that, I've come up with an approach that I think suits me. Any comments are most welcome, as I’m interested if anyone sees a glaring gap in my reasoning.
I have no debts and pension is looked after. I have €45k that I have no immediate use for. I’d expect to be able to add at least €500 per month to that lump sum. I would regard capital accumulation/protection rather than income as the goal. I’ve no particular object in mind – but if the money is there I should try to make the best use of it. Hence I'd almost arbitrarily pick a timescale of seven years - just to have a target to plan around.
I would regard myself as moderately risk adverse. I would therefore aim for a split of 60% in some kind of deposit and 40% in equities. I have two shares at present – Bank of Ireland and Irish Life and Permanent. I’ve no deep reason for having them – the ILP ones date back to demutualization and I just bought the BOI ones a couple of years back because I’d cash spare and reckoned bank shares would be reasonably safe. I accept that this is not diversified – but I reckon given the money at stake (15k between both equities - included in the figure of 45k above) it’s just not worth the transaction costs to break them up.
I find myself unimpressed by what I read about funds – whatever benefits might come from diversification by the fund seems to me to be lost by the need to pick the right one. I would consider the ISEQ ETF as a potential option, but even there I’d prefer to control what I own. I know that I should probably accept the basket of shares in the ETF as necessary diversification, but I suppose I feel that the fact 60% of my money is in cash means that I'm reasonably protected in the event of a meteor hitting BOI or ILP.
I would plan to add to my equities in tranches of 5k – basically built up 5k in cash and buy one to keep that 60/40 ratio constant over the next seven years. (I’ve also opted to take the BoI dividend in the form of shares). I will probably add a non-bank equity next – just to have something else – but other than that I will simply buy more of the ones that I’ve got for the foreseeable. If I got to, say, owning 50k in equities I would probably think at that stage about adding a fourth company to my portfolio.
I’ve most of my cash in Rabodirect – I find the internet service fine, once its set up. I also have some Post Office bonds, which are rollovers of previous bonds that I’ve held. I am thinking about getting a long term bond, but as interest rates seem to be going up this weather I’m a little wary of committing to a long term rate just at the moment.
Apologies for going on at such length. If anyone got to the end of all that, I’m interested in any perspectives.
I have no debts and pension is looked after. I have €45k that I have no immediate use for. I’d expect to be able to add at least €500 per month to that lump sum. I would regard capital accumulation/protection rather than income as the goal. I’ve no particular object in mind – but if the money is there I should try to make the best use of it. Hence I'd almost arbitrarily pick a timescale of seven years - just to have a target to plan around.
I would regard myself as moderately risk adverse. I would therefore aim for a split of 60% in some kind of deposit and 40% in equities. I have two shares at present – Bank of Ireland and Irish Life and Permanent. I’ve no deep reason for having them – the ILP ones date back to demutualization and I just bought the BOI ones a couple of years back because I’d cash spare and reckoned bank shares would be reasonably safe. I accept that this is not diversified – but I reckon given the money at stake (15k between both equities - included in the figure of 45k above) it’s just not worth the transaction costs to break them up.
I find myself unimpressed by what I read about funds – whatever benefits might come from diversification by the fund seems to me to be lost by the need to pick the right one. I would consider the ISEQ ETF as a potential option, but even there I’d prefer to control what I own. I know that I should probably accept the basket of shares in the ETF as necessary diversification, but I suppose I feel that the fact 60% of my money is in cash means that I'm reasonably protected in the event of a meteor hitting BOI or ILP.
I would plan to add to my equities in tranches of 5k – basically built up 5k in cash and buy one to keep that 60/40 ratio constant over the next seven years. (I’ve also opted to take the BoI dividend in the form of shares). I will probably add a non-bank equity next – just to have something else – but other than that I will simply buy more of the ones that I’ve got for the foreseeable. If I got to, say, owning 50k in equities I would probably think at that stage about adding a fourth company to my portfolio.
I’ve most of my cash in Rabodirect – I find the internet service fine, once its set up. I also have some Post Office bonds, which are rollovers of previous bonds that I’ve held. I am thinking about getting a long term bond, but as interest rates seem to be going up this weather I’m a little wary of committing to a long term rate just at the moment.
Apologies for going on at such length. If anyone got to the end of all that, I’m interested in any perspectives.