What would you do with €30,000

Marc said:

Jeez well I am a Klutz! There I've been completing fact finds and writing statements of suitability for the last 20 years when all I had to do was pick the best rate from a website. Think of all the money I'll save in levies to the Central bank and professional indemnity insurance premiums.

Incognito, unregulated opinions the future of financial advice.

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And now that the OP has given more details, are you going to give him free advice over the Internet? I doubt it. He wanted some advice on best returns, "all other things being equal". You could have thrown out a few ideas, "all other things being equal", rather than tell him he can't decide anything at all until he goes into excruciating detail about his circumstances.

Jim2007 said:

And if you have no idea what you are trying to achieve, then any solution will do...

The objective is to obtain the return you need to achieve your financial objectives, without taking on more risk than is needed to achieve that return. The higher the return you need, the higher the risks you are going to have to take on, so it makes no since to risk everything going for a return of say 12.5% pa, if a lower return with a lower risk will get you where you need to be. It is not a competition, although may people seem to think it is.

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That's incorrect. Very few people have a specific return in mind -- how could they possibly plan that with the vagaries of inflation etc.? People want to maximise their return while taking "acceptable" risk. The latter isn't strictly quantifiable. For instance, can you provide odds that you are prepared to stand over for each deposit taker in Ireland going bust in the next five years, or taking a deposit haircut? I doubt it, and if you told me I wouldn't believe you.

I think the people in the investment advice business on here need to understand that sometimes the questioner isn't sure what they want, and wants to ask some general questions. Telling them there's a million things to consider first is just going to scare them off.

dub_nerd said:

That's incorrect. Very few people have a specific return in mind -- how could they possibly plan that with the vagaries of inflation etc.? People want to maximise their return while taking "acceptable" risk. The latter isn't strictly quantifiable. For instance, can you provide odds that you are prepared to stand over for each deposit taker in Ireland going bust in the next five years, or taking a deposit haircut? I doubt it, and if you told me I wouldn't believe you.

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Just because you can't predict with accuracy how things will turn out does not mean that you should not make a plan and track your progress on achieving it over time, adjusting it as needs be. Now you and your friends may not do that, but I can assure you many, many people do.

Locking away money for five years is not trivial - telling someone to think about why and to consider their preferred outcomes is not unreasonable. Yes the OP asked for savings suggestions but they also said they were naive about money and unsure of what they were doing, giving them the questions to ask of themselves is not to scare them away, it is to give them the first tools to building a plan for themselves. You can't learn by being handed an answer fait accompli, you need to strive for it to really understand.

Jim2007 said:

Just because you can't predict with accuracy how things will turn out does not mean that you should not make a plan and track your progress on achieving it over time, adjusting it as needs be. Now you and your friends may not do that, but I can assure you many, many people do.

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I've no issue with that. My objection is to the idea that you make a plan in isolation and then look for an investment strategy to meet it. Ok, I've planned to make a return of 10 million percent, which is needed for my objective of owning a fleet of luxury yachts. Now what? Shouldn't the plan take into account the possible returns available and associated risks, which is what the OP was asking about?

so-crates said:

Locking away money for five years is not trivial - telling someone to think about why and to consider their preferred outcomes is not unreasonable. Yes the OP asked for savings suggestions but they also said they were naive about money and unsure of what they were doing, giving them the questions to ask of themselves is not to scare them away, it is to give them the first tools to building a plan for themselves. You can't learn by being handed an answer fait accompli, you need to strive for it to really understand.

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I've no issue with that either. But I don't accept that "nobody can offer any meaningful advice without properly defining these issues". That's simply not true.

Hi all
Not wishing to hi-jack the thread ....but I'm in the same position, having €35k. to invest and looking for security and a good return. Would I be mad to buy Prize Bonds for say 12 months...or should I go for 4 yr. or 10 yr National Solidarity Bond ?
Thanks.

amtc said:

I'll meet you at 8pm tomorrow then...

...seriously Prize Bonds not the worst idea...avg return is 3% and is easily encashable. I spoke to someone senior there last year, and lots and lots of people withdraw their bonds in October, when the self-employed tax returns go in, so it's a form of ring fenced saving but secure to pay Revenue

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I've had two bonds for over 50 years and never won a thing.

cash them in id say..