Hi there. As the title says I need a bit of advice on an investment. Supposing I had 650k to invest. The aim is to recieve a once yearly Interest payment(since I assume they dont pay out on a monthly basis, Alas!). I would be hoping for a low/very low risk fund hence why I asked about deposit to start with. It doesnt nessesarily have to be a Deposit mind.
Does anyone have any advice on this one? Even a link to other sites or further reading would be appreciated.
Thanks in advance!
For that amount of money I would see a professional. IFSRA.ie will have a list of suitable candidates.
Canada Life's Dividend Bond has given great returns in the past and is still a good performer. It has exactly the income option you ask for.
However, the risk factor is slightly above what you specify, moderate risk, but is nowhere near extreme risk.
You can invest your lump sum and chose whether to take a half-yearly income or have it reinvested back into the fund. The best returns would be achieved over a 5-8 year, or longer, period. If you are considering a lesser term, I would not recommend it as highly.
In addition you can instantly receive an extra allocation on this size of investment of 1.25%. This means that once you invest your 650K, it immediately becomes worth 658,125 (This figure excludes any charges that may, or may not be, applicable).
Canada Life Dividend Bond (http://www.canadalife.ie/investments/product_dividend.asp)
PDF Brochure Download (http://www.canadalife.ie/downloads/Dividend_Bond.pdf)
It should be one of the options that you consider.
Hi there. As the title says I need a bit of advice on an investment. Supposing I had 650k to invest. The aim is to recieve a once yearly Interest payment(since I assume they dont pay out on a monthly basis, Alas!). I would be hoping for a low/very low risk fund hence why I asked about deposit to start with. It doesnt nessesarily have to be a Deposit mind.
Does anyone have any advice on this one? Even a link to other sites or further reading would be appreciated.
Thanks in advance!
what you should consider is a more diversified portfolio for your 650K, perhaps split it into 3 different risk categories, and assign a certain amount of cash to them. Property, stocks blue chip and IPO, bonds are some of the things that you would look at
When you are evaluating risk, don't forget to consider the risk of losing value to inflation with many deposit options.
Thank for the replies. What kind of interest rates could I get on a Deposit for that amount? Is 10% waaaay off?
Im not against a bit of risk, I obviously just dont want to throw this away chasing a few bob. I can take it to the race track for that. :)
When you are evaluating risk, don't forget to consider the risk of losing value to inflation with many deposit options.
Great advice, and something I neglected to mention in my post earlier. (although I never did specifically deal with deposit options)
While some of the deposit options look great you need to factor in inflation which is, in recent historical terms, quite high right now.
Thank for the replies. What kind of interest rates could I get on a Deposit for that amount? Is 10% waaaay off?
Im not against a bit of risk, I obviously just dont want to throw this away chasing a few bob. I can take it to the race track for that. :)
for that amount , the best savings rate you can get is 4.5% with anglo irish bank
for that amount , the best savings rate you can get is 4.5% with anglo irish bank
2006 inflation rate was 4%. :(
Northern Rock pay 4.5% annually or 4.25% monthly. You'll never get 10% on a deposit account.
Why not stick a load in an ISEQ ETF? The stock market is very low at the moment and should rise. Would anybody else agree?
Northern Rock pay 4.5% annually or 4.25% monthly. You'll never get 10% on a deposit account. :eek:
Just buy government treasury notes. You can sell them off if you think things are gonna go tits up. Failing that wait 3 months and buy some gold through a german company. You will get some very nice tax rebates (not sure how much at that cash amount). It;ll hold value against inflation.
As Random Walk says you should see a finance specialist if you know nothing about investing. (One who isn't on commission). I'm not sure of your age but as a rule of thumb you should be able to achieve a long term return of 4% above inflation at around 90% certainty over a period of 20-25 years.
This means you should be able to take an inflation adjusted income of 25,000 over quite a long period. The critical thing here is not to invest in funds with up front charges and high ongoing annual 'management' fees. These will reduce your income substantially
Lots of finance brokers will point you towards these funds because they get a healthy commission from them.
