helpneeded
Registered User
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- 11
This would be for parents who have asked for my help.
Not a bad position to be in overall, but what can be done better with the €500k than leave it in the bank? They are risk averse, so they are not really interested in considering equity investments. There are a handful of products that might do slightly better than banks that I can see with the likes of Irish Life/New Ireland, but requires fixed term investment and the return is not guaranteed (equity linked with a floor of 100% type thing) which ends up not a whole lot better than a state savings at best and at worst get no return after the term ends. So is there a good, but low risk investment product worth considering?
They would be minded to reduce their assets before a fair deal type scheme might ever be a consideration. Thankfully myself and my one sibling are in comfortable positions - so no urgent or immediate need/reason for money to be passed on, but my parents are of the view it will all be given over eventually and there is no point in holding onto that much cash and it could be used to pay down mortgage/upgrade houses etc for us....
I'm adamant they need to keep a good amount in quick access savings (I'm thinking €100k), they also should invest in their own house to bring it up to an A energy rating to be suitable for them for the rest of their lives. I don't know how much that will cost - but even if that's another €100k, they'll still have €300k after that.
Whilst I'd rather they enjoyed their own lives with their own hard earned cash, they don't believe they will ever need that much and are very concerned that Fair Deal will end up taking it all anyway, so in particular in the absence of having a good investment option is passing on wealth at this stage of their lives really the optimum strategy? If so, any good ways to do this, as clearly the combined wealth will exceed the CAT thresholds for both of us? Neither of us live at home and neither of us ever will.
I was a bit more minded to have the inherited home house/holiday home transferred to one of us sooner, that would put it out of reach of Fair Deal and keep it in the family (a priority for them.) In reality this would mean nothing as we all use the house freely/on demand in any case and this wouldn't change. Given they would never sell it, there is no other way they can utilise that asset.
- Both early 60s.
- Both retired, with good public sector pensions that are more than ample to support outgoings
- No debt
- Own their own house outright as well as a holiday house (that was inherited by them as my mother's original home house and will not be sold). combined value of this I'd estimate to be c. €500k (split €350k on the home house and €150k on the holiday house)
- Following the sale of an investment property (being landlords didn't work for them anymore) they have c €500k in the bank.
Not a bad position to be in overall, but what can be done better with the €500k than leave it in the bank? They are risk averse, so they are not really interested in considering equity investments. There are a handful of products that might do slightly better than banks that I can see with the likes of Irish Life/New Ireland, but requires fixed term investment and the return is not guaranteed (equity linked with a floor of 100% type thing) which ends up not a whole lot better than a state savings at best and at worst get no return after the term ends. So is there a good, but low risk investment product worth considering?
They would be minded to reduce their assets before a fair deal type scheme might ever be a consideration. Thankfully myself and my one sibling are in comfortable positions - so no urgent or immediate need/reason for money to be passed on, but my parents are of the view it will all be given over eventually and there is no point in holding onto that much cash and it could be used to pay down mortgage/upgrade houses etc for us....
I'm adamant they need to keep a good amount in quick access savings (I'm thinking €100k), they also should invest in their own house to bring it up to an A energy rating to be suitable for them for the rest of their lives. I don't know how much that will cost - but even if that's another €100k, they'll still have €300k after that.
Whilst I'd rather they enjoyed their own lives with their own hard earned cash, they don't believe they will ever need that much and are very concerned that Fair Deal will end up taking it all anyway, so in particular in the absence of having a good investment option is passing on wealth at this stage of their lives really the optimum strategy? If so, any good ways to do this, as clearly the combined wealth will exceed the CAT thresholds for both of us? Neither of us live at home and neither of us ever will.
I was a bit more minded to have the inherited home house/holiday home transferred to one of us sooner, that would put it out of reach of Fair Deal and keep it in the family (a priority for them.) In reality this would mean nothing as we all use the house freely/on demand in any case and this wouldn't change. Given they would never sell it, there is no other way they can utilise that asset.