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 Post subject: Investment Advice
PostPosted: Mon Nov 10, 2014 6:37 am 
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Single Home Owner

Joined: Dec 11, 2007
Posts: 129
Location: out of harms way
Hi Guys,
I’m a long time pin member but rare poster. I really appreciate the advice I come across on the posts of others and this site prevented me from finally bowing to pressure and buying in 2006.
So, here is the deal.
I’m currently working in Asia and am close to 6 figures in terms of savings. I’ve recently been approached by a rep from DeVere’s with view to investing in an offshore account in the Isle of Man. The account that the agent favors offers 7.2% interest. Though a variable account I am informed that the 7.2% figure reflects 2004-2014 growth.
Having researched DeVere’s online I’m somewhat wary of dealing with them. I haven’t been nor will be hard sold but the net is full of stories of those who have been.
In any case I need to find a place for my cash that’s other than here as the financial system is not the most robust (only 10K guarantee on deposits, banks have closed their doors twice in the past 20 years)
What I would like to know is…
Where could I put my cash that’s legal, will beat inflation with a bit to spare and is safe.
Where I currently live does not have a tax agreement with Ireland so this is putting me off repatriating anything significant.
Thanks in advance, I welcome any advice you may have.

Cheers
N


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 Post subject: Re: Investment Advice
PostPosted: Mon Nov 10, 2014 6:38 am 
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Under CAB Investigation

Joined: Feb 9, 2007
Posts: 2358
Location: Still Awaiting The Pearly Gates
Beawre of devers


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 Post subject: Re: Investment Advice
PostPosted: Mon Nov 10, 2014 7:06 am 
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Of Systemic Importance

Joined: Sep 13, 2012
Posts: 5480
It is impossible to earn a 7.2% return from a hands-off investment without risk.

Where is the risk? What is a "variable account"?

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 Post subject: Re: Investment Advice
PostPosted: Mon Nov 10, 2014 7:27 am 
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Property Magnate

Joined: Oct 10, 2010
Posts: 663
Location: the airport
onlyone wrote:
Beawre of devers

+1
I don't think there is anything that will beat inflation that is safe myself. More than happy to be proven wrong.
With that kind of cash its actually hard to find something decent, because its probably not enough to dedicate a large amount of time to understanding the investments so that you know the full risks. If you had a few million, like say a property landlord, you should be making plenty of time to understand all the risk involved in the Irish market, property ownership, credit risk etc, but that's because its basically a full time job.
I think the only thing to do with your cash is find somewhere safe, like a well funded to big to fail bank, that has offshore facilities, and put it there, but it will not beat interest. If beating interest is really your think, take a few percent of it, and invest in equities of something you really understand, and are willing to take the time to understand. That's the only way to truly protect your investment.


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 Post subject: Re: Investment Advice
PostPosted: Mon Nov 10, 2014 7:36 am 
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Single Home Owner

Joined: Dec 11, 2007
Posts: 129
Location: out of harms way
Eschatologist wrote:
It is impossible to earn a 7.2% return from a hands-off investment without risk.

Where is the risk? What is a "variable account"?


Again, I'm very new to this and at the beginning of the process.
The person I spoke to said he could offer 5% fixed rate, a low risk variable that currently yields 7.2 and a riskier 12% product.


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 Post subject: Re: Investment Advice
PostPosted: Mon Nov 10, 2014 7:40 am 
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Single Home Owner

Joined: Dec 11, 2007
Posts: 129
Location: out of harms way
onlyone wrote:
Beawre of devers



This seems to be a common impression but when I looked on the web the main negative sentiment was that they were awful to work for.

I'm meeting the guy again on Wednesday to look at things more closely as I was in a rush at our last meeting.


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 Post subject: Re: Investment Advice
PostPosted: Mon Nov 10, 2014 10:06 am 
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Single Home Owner

Joined: Dec 11, 2007
Posts: 129
Location: out of harms way
macannrb wrote:
onlyone wrote:
Beawre of devers

+1
I don't think there is anything that will beat inflation that is safe myself. More than happy to be proven wrong.
With that kind of cash its actually hard to find something decent, because its probably not enough to dedicate a large amount of time to understanding the investments so that you know the full risks. If you had a few million, like say a property landlord, you should be making plenty of time to understand all the risk involved in the Irish market, property ownership, credit risk etc, but that's because its basically a full time job.
I think the only thing to do with your cash is find somewhere safe, like a well funded to big to fail bank, that has offshore facilities, and put it there, but it will not beat interest. If beating interest is really your think, take a few percent of it, and invest in equities of something you really understand, and are willing to take the time to understand. That's the only way to truly protect your investment.



Cheers Macnnarb and the rest of you, all advice greatly appreciated. If DeVere's are to be avoided could someone recommend a reputable outfit.
PS how close to matching inflation is realistic..?


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 Post subject: Re: Investment Advice
PostPosted: Mon Nov 10, 2014 10:18 am 
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Of Systemic Importance

Joined: Sep 13, 2012
Posts: 5480
Noljakka wrote:
PS how close to matching inflation is realistic..?

Inflation in what? What are you saving for? What is your investment timeline? How much do you need to keep on hand for emergencies (e.g. six months unemployment or sickness)?

Need to separate concepts of savings (storing taxed income for when you'll need it later ) from investment (taking risk in order to get richer). Savings (barring very bad things happening) guarantee return of principal but will tend to get eroded by inflation, whereas investments do not guarantee return of principal but may grow faster than inflation.

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Tyrion Lannister


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 Post subject: Re: Investment Advice
PostPosted: Mon Nov 10, 2014 10:34 am 
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Single Home Owner

Joined: Dec 11, 2007
Posts: 129
Location: out of harms way
Eschatologist wrote:
Noljakka wrote:
PS how close to matching inflation is realistic..?

Inflation in what? What are you saving for? What is your investment timeline? How much do you need to keep on hand for emergencies (e.g. six months unemployment or sickness)?

Need to separate concepts of savings (storing taxed income for when you'll need it later ) from investment (taking risk in order to get richer). Savings (barring very bad things happening) guarantee return of principal but will tend to get eroded by inflation, whereas investments do not guarantee return of principal but may grow faster than inflation.



Noted with thanks Eschatologist,

I was originally thinking of buying a property in Ireland in 2015. I'm now uncertain how things will pan out I'm looking into different options. Ideally I'd like to invest roughly 50k for a minimum of 10 years with the option to extend. The model that was presented to me, where I could put down a principal and add to it monthly, quarterly or annually, suited my particular circumstances. I am single and have no dependents so am somewhat open to a limited punt on an offshore investment account. The DeVere product looked attractive in theory but I'm spooked by the organization. I just wonder who might offer the same service but without the bad press.


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 Post subject: Re: Investment Advice
PostPosted: Mon Nov 10, 2014 10:51 am 
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Under CAB Investigation

Joined: Jan 2, 2008
Posts: 1591
How about a deposit account with HSBC in the Isle of Man denominated in USD or GBP if you are currently in euro and take the view that euro will weaken. (also they may be charging neg rates on euro accounts).

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