A passive investment plan for €700k assets aged 35

Limits are per product, per issue. E.g for the 10 year bond issue 6 (the current one), the max holding is 120k. But the max holding is also 120k or 250k for each previous issue. It is possible to have over 1 million in 10 year bonds alone and then there's the 3 year, 4 year and 5 year products, all of which have had multiple issues in the last few years.

Thanks for that info, never knew that. Going back a few years some people would have done good out of these products and probably missed out by not knowing what you've just told me.
 
If US interest rates are now 3% what about putting 700k into certificate deposits



Obviously exchange rate risk but dollar is getting stronger
 
I would make a couple if suggestions here if I were in your shoes. These are important decisions and your future financial security may be dependant on the outcomes. So I would do every thing I could to make sure I had all the information needed to allow me to make an informed decision as to what plan of action was in my best interests. If it makes sense to pay for some advice if required, then not do so could be a false economy.

To start with, the first question is "Do I have enough money?". We do this type of analysis regularly for clients and it is always surprising just how much money you need as a lump sum to replace a working life of earned income. This plan would incorporate all the current expenditure and assets/liabilities under assumed rates of return for the assets. You should also factor in different scenarios e.g part time work or perhaps factor in additional costs for children if that is something you are considering. Look at potential negative scenarios e.g large market fall etc and see just how robust your finances are over the long term. This should give you clarity as to whether or not you currently have enough money to last your lifetime and also quantify the required rate of return. Ps also look at the options of receiving the state contributory pension or not, as this may influence you thinking. You should also ask for this analysis to be modelled on both CGT and Exit tax treatment for your investments.

Secondly look specifically at the investment options and tax treatment, knowing what rate of return you will require. I suspect that the CGT option will be materially better for you. The Irish tax treatment of investments is problematical but there are options which can provide a CGT vehicle for you.

A good adviser can do all of the above for you on a fixed fee basis, ( so no product sell )and can outline all the tax issues that need to be addressed. I suspect that you will need some assistance from an accountant/tax adviser re annual tax computations but again this can be easily achieved. We work with several firms whom we refer clients on to for the specific tax advice and cost is rarely if ever an issue.

AAM is an excellent resource, but for such a big decision I would want the comfort of professional advice even if only to challenge my assumptions.

All the best. Vincent
 
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I have no investment advice. I would make two points about your lifestyle:

1) You will struggle to keep your annual living expenses to €17k if you have one child, never mind more. Even social welfare gives a family of two adults and two children more than this:)
2) If you finish work at your age you will get a very limited state pension, and not until you are 68 at the earliest. It makes sense to keep up a low level of work - even a little self employment - so that you are maintaining a PRSI presence. A full contributory state pension of €12k a year is incredibly good value for someone on a low income making low PRSI contributions.
 
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