200K to invest

O

Oracle24

Registered User
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Hi All

Looking for some general advice, tips and opinions as I start my research please.

Married couple, 10 years to retirement, debt free, 200K to invest. Currently in Irish bank earning very little. Looking ideally to put it away for max 5 years at a time with a half decent return. Dont want anything too risky at this stage.

Thanks!
 
Children?
Pension coverage?
Other savings/investments?
Incomings/outgoings?
Renting or home owner?
Etc...

Key Post - Basic information required for the "Money Makeover" forum

It can be difficult, but please try to use a meaningful title in your thread For example "27 year old with mortgage arrears". You will get a much better and much more coherent answer if you give as much information as possible in your first post. For example, if you give your mortgage rate, it...
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1 X DB pension + avcs (1K pm), 1 X DC pension + avcs (500pm), home owner, 2 kids one in college other prob following next year, cash flow should hopefully be able to handle that. OH will only have about 15 years DC pension when they retire as stopped working 20 years ago, returned 5 years ago. Have another 100K that can call on if needed to fund any unforeseen expenses.
 
Oracle24 said:
1 X DB pension + avcs (1K pm), 1 X DC pension + avcs (500pm), home owner, 2 kids one in college other prob following next year, cash flow should hopefully be able to handle that. OH will only have about 15 years DC pension when they retire as stopped working 20 years ago, returned 5 years ago. Have another 100K that can call on if needed to fund any unforeseen expenses.
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What about PRSI contribution records and you and your spouse's likely entitlement to OACP from age 66+?
Does "10 years to retirement" mean that you're both mid 50s?

A Money Makeover would be easier in my opinion but others moan when I suggest that...
 
Full situation isn't given but it's better to step back and take a holistic view. This is why Clubman is recommending a Money Makeover.
Some things I would be thinking about:

- Ensure you have an appropriate rainy day fund, maybe have an additional amount to cover any surprises while kids are going through college.
- Cars okay? Maybe need to allocate some towards replacements
- House? Worth doing energy upgrades?
- Do you want to assist kids with deposits for homes or other lump sums to help them as they start off.
- Pensions, if you are not maxing tax relieve pension contributions then I would be doing this before considering any after tax investments.
- Since the time frame is only 5 years and you don't want too risky , you are probably best to just stick with the best fixed term rate deposits you can get. Maybe consider some in EIIS funds (not individual companies though) for some of your money if you are still paying a chunk of income at top rate.
 
The OP has no debts, a rainy day fund and, reading between the lines, decent in-comings. Yes contribute the max you are allowed in to your pension. For available monies beyond that worth considering the investment timeline as being until the end of your days, and not 5-years, which in your case could be 30+ years. That is a decent amount of time for 200-300k, and future additions, to compound and provide scope for a comfortable retirement and generational wealth building. Money can be invested outside a pension (e.g. in equities) so as to be every bit as accessible as that left in a deposit account. That is more risky but not so much if you commit to a rest of life timeline.
 
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