59years old any one know where I should put 60K very hard earned money until I retire
- Thread starter Cobra
- Start date
GeneralZod
Registered User
- Messages
- 1,198
Re: Savings
Have a look at the best buys for lump sum and regular savings. In general you'll get the best savings returns through a combination of multiple on-line accounts and drip feeding the lumps into regular saver accounts.
Have a look at the best buys for lump sum and regular savings. In general you'll get the best savings returns through a combination of multiple on-line accounts and drip feeding the lumps into regular saver accounts.
Re: Savings
Have you a pension set up? If no, set up a pension.
If yes, can you contribute by way of AVC to increase your payout when you retire.
You can drip feed the lump sum each year. You can contribute as follows
up to 60 - 35% of salary (P60 Figure)
60 to 65 - 40 % of salary
Any contribution you make you will get almost half back approx 45% assuming you pay tax at the higher rate. If you pay at the lower rate you will get approx 25% back but you will pay little or no tax on the income when you retire due to increased tax credits.
If you can make a contribution before 31st Oct, you really need to do it immediately you can offset it against last years income
Have you a pension set up? If no, set up a pension.
If yes, can you contribute by way of AVC to increase your payout when you retire.
You can drip feed the lump sum each year. You can contribute as follows
up to 60 - 35% of salary (P60 Figure)
60 to 65 - 40 % of salary
Any contribution you make you will get almost half back approx 45% assuming you pay tax at the higher rate. If you pay at the lower rate you will get approx 25% back but you will pay little or no tax on the income when you retire due to increased tax credits.
If you can make a contribution before 31st Oct, you really need to do it immediately you can offset it against last years income
Maximus152
Registered User
- Messages
- 173
Re: 59years old any one know where i should put 60K very hard earned money untill i retir
Tomjen,
can you give us an example of what you are saying in lay man terms for people who would not be familiar with "combination of multiple on-line accounts and drip feeding the lumps into regular saver accounts" i.e for example do you mean opening say 2 different regular saving a/c's in 2 diff banks then drawing monthly from each of these into a high interest savings a/c..??
Maximus152
Tomjen,
can you give us an example of what you are saying in lay man terms for people who would not be familiar with "combination of multiple on-line accounts and drip feeding the lumps into regular saver accounts" i.e for example do you mean opening say 2 different regular saving a/c's in 2 diff banks then drawing monthly from each of these into a high interest savings a/c..??
Maximus152
GeneralZod
Registered User
- Messages
- 1,198
Re: 59years old any one know where i should put 60K very hard earned money untill i r
Yes. The lump sum accounts could be used just for example with First Active eSaver (15k here at 5.22% AER), Rabo Direct (10k at 5% AER), Ulster Bank Bonus Saver (10k at 4.5%) & Ulster Bank eSaver at (4.0%). The UB eSaver could be used to feed regular saver accounts at or around 7%. Don't start draining the other accounts until the UB eSaver is empty. Feed interest from the FA account into the UB Bonus saver to avoid the balance going over 15k which triggers a lower interest rate. Caveat, there's probably a slightly more optimised set of accounts than in this example.
The advice above from asdfg about making a pension AVC is probably better than this purely savings based approach depending on the OPs circumstances.
Yes. The lump sum accounts could be used just for example with First Active eSaver (15k here at 5.22% AER), Rabo Direct (10k at 5% AER), Ulster Bank Bonus Saver (10k at 4.5%) & Ulster Bank eSaver at (4.0%). The UB eSaver could be used to feed regular saver accounts at or around 7%. Don't start draining the other accounts until the UB eSaver is empty. Feed interest from the FA account into the UB Bonus saver to avoid the balance going over 15k which triggers a lower interest rate. Caveat, there's probably a slightly more optimised set of accounts than in this example.
The advice above from asdfg about making a pension AVC is probably better than this purely savings based approach depending on the OPs circumstances.
Maximus152
Registered User
- Messages
- 173
Re: 59years old any one know where i should put 60K very hard earned money untill i retir
GeneralZod,
thank you for that mail, seems simple.
Maximus152
GeneralZod,
thank you for that mail, seems simple.
Maximus152
Maximus152
Registered User
- Messages
- 173
Re: 59years old any one know where i should put 60K very hard earned money untill i retir
GeneralZod,
can I ask a unrelated question. I am been led to believe there is a 2nd edition type SSIA account with some bank available i.e similar to the 1st and original one had before. I cant seem to nail this one down, all I get are investmentaccounts, but Im not sure if they are the same animal?? Any help appreciated..
Maximus152
GeneralZod,
can I ask a unrelated question. I am been led to believe there is a 2nd edition type SSIA account with some bank available i.e similar to the 1st and original one had before. I cant seem to nail this one down, all I get are investmentaccounts, but Im not sure if they are the same animal?? Any help appreciated..
Maximus152
Re: 59years old any one know where i should put 60K very hard earned money untill i r
http://www.citizensinformation.ie/c...nd-investments/deposit-interest-retention-tax
[broken link removed]
Note that some banks (and not just CUs) also offer "Special Term Accounts" under the same (partial) DIRT exemption scheme.
Definitely not. Perhaps you are thinking of special accounts which pay some level of interest free of DIRT subject to certain terms & conditions/restrictions? See here:
http://www.citizensinformation.ie/c...nd-investments/deposit-interest-retention-tax
[broken link removed]
Note that some banks (and not just CUs) also offer "Special Term Accounts" under the same (partial) DIRT exemption scheme.
Maximus152
Registered User
- Messages
- 173
ClubMan,
okay well I had to ask as I had the feeling it was to good to be true, but the greedy little part of me had to ask! Now need to find whcich one will give best payout after say 5 years.....
Maximus152
okay well I had to ask as I had the feeling it was to good to be true, but the greedy little part of me had to ask! Now need to find whcich one will give best payout after say 5 years.....
Maximus152