If you like to save some money, then a fundamental tip is to make investments. However, when we are in another country, some ways of investing change completely. If you want to know the best investment opportunities in Ireland, check out some tips.
While it may seem intimidating to many people, making investments is simple, easy and quick. As in Brazil, Ireland offers several types of investments, some riskier and others more cautious. Most investment banks have apps that allow you to do everything yourself.
Therefore, our first tip is to look for an investment broker. Investing through a broker is better than investing through a specific bank, as banks typically only offer their products.
Just as in Brazil there are several brokers, such as Rico, XP, Orama, BTG, Clear and many others, in Ireland you also have access to several brokers. The most popular being:
- Ava Trade
However, you can search online for other platforms. Each of them has its advantages, exclusive services and fees for some types of service. Do some research before investing, but don’t make a soap out of it, or you’ll never start investing.
Discover the main types of investments in Ireland.
High-yield savings accounts
Irish banks offer the option of High Yield saving accounts, which is very similar to our savings accounts. If you don’t want to think about risk and just want a minimum income to have access to your money at any time, this is the best option.
It is worth mentioning that this is the safest investment, but also the one that guarantees the lowest income.
Certificates of deposit (CD)
This type of investment is already more similar to CDB, LCI and other investments classified as “fixed income” in Brazil. It guarantees you a yield a little better than savings. However, it requires a minimum deposit amount and sets a deadline for you to get your money back. Basically it works like this:
- Deposit the amount you want to invest
- Wait a certain time
- Withdraw your money with the pre-established interest
So, let’s say you choose a CD that has a term of two years, requires a minimum amount of €500 and guarantees you 15% per year. That way, if you invest €1000 and wait until the end of the contract to withdraw the money (in this example, two years), you will redeem €1300. That simple.
This investment is very similar to Investment Funds in Brazil. As with CDs, there is a minimum amount to be invested, but here your income is not fixed, it is variable. Just as you can earn, say 20% in a year, you can lose 20%. Therefore, study the history of the fund to see if it is stable.
In practice, you are lending your money to professionals to diversify their investments. It is as if you are outsourcing your investment, putting it in the hands of professionals. Therefore, a maintenance fee is usually charged. These are small fees that often make up for the gains.
There are many types of Mutual Funds. Some are riskier and some are more stable. So don’t think they are all the same.
In this type of investment, you can withdraw your money whenever you want, there is no deadline. However, there is a “quotation” or “liquidity” time, which may take a few days. Imagine you asked to take your money today. The fund needs to calculate your wallet to deliver you exactly what is yours, so the deadline for you to receive this money takes a few days. Each fund has a different deadline. Check this deadline before investing your money.
ETFs are similar to funds, but with characteristics of stocks. It is as if you are trading a “pack of shares”. In practice, it is as if you were investing in stocks. They can depreciate or appreciate more quickly. You can buy and sell them on the same day.
These are just a few types of investments. There are many others, such as the shares themselves, others specific to retirement, etc. The best way to do this is to register with one or more investment brokers and follow the steps.
Are you still afraid? Register with two or three brokers in Brazil to make your first investments and then start investing directly in Ireland, so you will have a better idea of how each type of investment works.
If you think it’s important to save money to buy a house, take a trip, or to create a “snowball” throughout your life, diversifying your investments is the best way to do that.
Ireland has a stable economic system that is attractive to many investors, so don’t let your money sit still. Start investing slowly and achieve the financial freedom you’ve always dreamed of.