Index Funds in Europe

[chiangrai]

I need some advice about Indexed Mutual Funds.

It's not my money it's belongs to a family member in Ireland.

 

I'm trying to advise her that she should put her money in Mutual Funds.

I know very little about them except that Warren Buffet recommends them.

He says that ordinary investors should put their money into,

S and P 500 funds with Vanguard and I respect his advice.

 

So my only question is is this wise for somebody in Europe with Euros.

Would changing currency from euros to dollors decrease the return from it.

 

And if it would what would be the nearest thing to S and P 500 Vanguard Indexed Mutual Funds that somebody with euros should invest in.

 

 

 

 

My question is

 

[Oxx]

It would not be appropriate for someone in Europe to invest 100% in the United States for a couple of reasons (a) EUR/USD exchange rate risk, (b) relying upon the performance of a stock market tied to a foreign economy, not one's domestic economy.

 

The nearest European equivalent would be a European equity ETF, for example https://www.ishares.com/uk/intermediaries/en/products/251860/ishares-msci-europe-ucits-etf-inc-fund

 

However, it would be most imprudent to have this as a single holding.

[persimmon]

Vanguard do a range of low cost tracker funds .Maybe one that tracks global stocks might be appropriate.

[chiangrai]

Thanks,

I know that Vanguard has funds linked to the European market and others

to the world market would these be wise to invest in if her currency is Euros.

 

Are there professionals in Ireland that you can go to for advice.What are they called.Do you need to go to a special profession or would an accountant do.

 

 

 

 

 

[mogandave]

The whole idea of investing in an indexed mutual fund is to minimize the fee associated with managed funds.

 

Hiring a "professional" to buy off the shelf investment vehicles would not (IMO) be wise.

 

Go to a few financial websites and read up on what is available locally.

[chiangrai]

I know what you mean.........mate.

 

This whole thing is for my mother.She has all her money in term deposits in the bank and now she is realizing that she only has enough for ten years.

 

I'm trying to explain to her that she has to invest it and live off the interest without me having to go home and explain it all to her.Also she might have more faith in a professional than she would in me.

 

Who should I tell her to contact,a financial advisor or what are they called.Some one who would manage her money with the bucket system e.c.t........what are they called in europe.

[Oxx]

If you want proper advice you need to provide a lot more information.  For example:

 

- How old is your mother?

- What is the value of her current investments/bank accounts?

- How much money does she need annually to maintain her current lifestyle?

- How much money is she currently receiving from pensions and similar?

- Is she in good health?

- Does she anticipate any future windfalls, e.g. inheritance from another relative?

 

 

 

[chiangrai]

I don't have most of that information.I would have to go back home to find all that out.

i might be better off doing that than sending her to a financial advisor who might rip her off.Unless I could find one that I trusted.

She would not have a clue how to do it herself.