A little Advice.

D

debs.D

Guest
Hello everyone,
Im looking for some advice of you guys, Ive read the best buys section and also alot of the other threads in relation to my situation.
My husband and i have a large amount of money in our bank account which are undecided what to do with right now. We have 500k in a BOI a/c which at the moment has been there for about a month. That account gets 3% interest and from reading on here we see that that is not great. The Boi guy tried to get us tied up in Evergreen funds, but we decided against it and i taught with what we are thinking you guys on here might have some valuable imput.
We would like to get involved with the best no risk account or fund not sure which for even a fixed term, Maybe 5 years even. We are a young enough couple, both 28 with 1 child and a mortgage of 410K which we can afford to pay on our incomes with no problems. We taught about paying off our mortgage but my husband thinks once we put the money off the house we may never have the chance to have that type of money again, once paid off we may never get money back off bank if we wanted in the future. Especially given we are not struggling with mortgage.
We dont want to risk the money in anything but would like the money to be doing some sort work for us for our future.
Thanks in advance for all advice from both of us.
Deb.
 
if it was me, i would clear the m/gage or may leave about 50k left on it.i would see the house as being an investment for the future, plus you would have income to save or do whatever with.
 
Ok sorry. Is there a way i can change it. What topic should i pit on it clubman. Sorry again.
 
First of all, I envy you with 500k. Second of all, I pity you with a 400K mortage. If I was in your shoes, I'd pay off the mortgage.

Assume 5% interest a year on 400K: that equates to a 20K interest payment. That will of course diminish over time as you pay off capital, but will still be over 15k per year for the next few years. Use the money that you would have used for your mortgage payment for a high return regular savers such as AIB or Halifax (lots of other threads on this subject). Any other balances you could put in something like Rabo for the moment.

That's about the best risk-free return you will get!!
 
This really depends on your goals for this money.

You don't seem to have any intention of spending it soon, but you don't want to risk it. By doing both, you'll end up with it stuck in a deposit account while inflation eats away at it.

Decide what you might spend this money on - your kids education? A new extension in 10 years time if you have more kids? Things like that. Then decide the bets way of protecting that money.

If it were my cash (oh how I wish!), I'd consider the following:

Mortgage - it's quite large and as Bob points out, it's costing you a fortune in interest each year. I'd consider bringing it down to a more reasonable level by banging 200k into it, and keeping up your current mortgage repayments, which should see it cleared sooner.

Any other debts - credit cards, car loans, etc. - clear them.

Safety - if either you or your partner were to lose their jobs, what kind of safety net would you need? Do you both work in the same company, which could result in a double-whammy? Work this one out and you'll probably end up with maybe 6-12 months salary after tax. Keep this somewhere where it is easy to get to - maybe a high interest deposit account.

Longer-term goals - inflation is your biggest enemy here, and to combat it you'll need to take on some degree of risk in the knowledge that, generally speaking, buying and holding good stocks/funds for 10 years plus is reasonably safe.

Best of luck with it anyway!
 
Hi I would agree with the trend here and reduce the morgage debt a little perhaps 200k, then divide the balance between Rabo deposit account for easy access and a longer term fixed rate product.
 
You must log in or register to reply here.
Back
Top