Re: Advice on my savings strategy

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lotus

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I currently save €500 per month in the Quinn Life Freeway product. The breakdown of this is as follows:

10% China Freeway Investment
40% Emerging markets Freeway Investment
30% Euro Freeway Investment
20% Latin America Freeway Investment

There is over €20K in this account in total – I accumulated this money with my Quinn SSIA which was invested entirely in the Euro Freeway and performed very well. I changed to the above breakdown last October.

I now intend to save a further €500 per month so as to save towards a house deposit.

I would like to buy in the next year or two. I am in no huge rush to buy as I am currently renting a very nice house in a great location for quite reasonable rent. However, I do want to own my house in the future. I intend saving this extra €500 in a fixed return, high interest a/c (if such a thing exists).

I have a few queries:

Is it a good idea to place this extra €500 savings in a fixed return a/c or would I be better putting it in a fund?.................I am not adverse to some risk.

Is the Quinn Life breakdown I have above OK?

The markets are quite turbulent at present and according to my reading, the ride ahead could be quite bumpy. In light of this, should I put some of the €20K in something more secure?

Advice, comments and discussion invited..........
 
Lotus,

If you are looking to buy in the short term (1 - 2 years) then I would shy away from the stock market as this is more of a longer term proposition unless you are interested in researching and buying specific companies which can take a lot of work. Check out the rates on offer at the moment with the major financial institutions on their regular savings accounts as some are quite attractive. Be aware though that it looks as if the ECB will drop rates in the near future and that there are also some onerous stipulations on some of these accounts e.g. the rate drops drastically on one account if you save over a certain amount. So read the small print and keep an eye on it.

Good luck.
 
If you are looking at a two year time frame I would recommend regular saver account with Anglo Irish Bank. I took one out a year ago. 7% interest currently (variable) and guaranteed not to drop below 4.5%. Acc is held for two years and you can change your monthly contribution online. For example the month or so before Xmas I just reduced my monthly amount and in January upped it again. So if you have a bit of spare cash in a particular month you can throw it in too. I have no link whatsoever with Anglo but I just felt this was the better of all option for regular saving with its flexibility.
 
lotus said:
I currently save €500 per month in the Quinn Life Freeway product. The breakdown of this is as follows:

10% China Freeway Investment
40% Emerging markets Freeway Investment
30% Euro Freeway Investment
20% Latin America Freeway Investment

There is over €20K in this account in total – I accumulated this money with my Quinn SSIA which was invested entirely in the Euro Freeway and performed very well. I changed to the above breakdown last October.

I now intend to save a further €500 per month so as to save towards a house deposit.

I would like to buy in the next year or two. I am in no huge rush to buy as I am currently renting a very nice house in a great location for quite reasonable rent. However, I do want to own my house in the future. I intend saving this extra €500 in a fixed return, high interest a/c (if such a thing exists).

I have a few queries:

Is it a good idea to place this extra €500 savings in a fixed return a/c or would I be better putting it in a fund?.................I am not adverse to some risk.

Is the Quinn Life breakdown I have above OK?

The markets are quite turbulent at present and according to my reading, the ride ahead could be quite bumpy. In light of this, should I put some of the €20K in something more secure?

Advice, comments and discussion invited..........
Click to expand...

If you are looking at buying within 2 years I would go for something less risky like a savings account. If you do stay with the freeway I would divest away from emerging markets. 70% is an awful high allocation imo
 
Thanks for comments.

I am going to check to see if the Anglo Irish rates are the best for regular savings at the moment.

I think I might chance leaving the money I have accumulated already in the freeways for the moment. Obviously, the growth in these funds has not been great over the past few months as a result of the turmoil in the stock market. Hopefully there will be a pick up in the next yr or 2.

I think I will try to put all my savings (other than the savings accumulated thus far) from now on into a regular savings a/c with a good return. Is this a better plan?
I know nobody can predict or guess the market but I want to try to earn/save as much as possible in order to buy a house in a good location.

Thanks again
 
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