Nomoneynohoney
Registered User
- Messages
- 13
I recently inherited 200k. I know I'm lucky to have this money even available. However, it appears the options for actually growing it and making it last are quite limited.
To take an example, an AIB "wealth advisor" pitched an Irish Life MAPS fund to me. But the annual charge appears to be quite high, and I get taxed at 41 percent anyway on any gain, meaning 200k for ten years on their band 3 fund (averaging 5.7 p.a. return for its first 5 years) would leave me with:
200,000*((1.057)^10)) = €148,160 profit before tax.
Subtract the 41 percent tax, my profit is now = €87,414.
Expected loss from fund management charges (calculated at CandidMoney) = €36,077
Total profit on 10 year investment = €51,337
Do these calculations look accurate? And is that an acceptable return? I'm not very financially savvy so just trying to work out the best way to maximize my investment. Furthermore, the returns above aren't guaranteed, and I could just as easily lose money over ten years, couldn't I?
To take an example, an AIB "wealth advisor" pitched an Irish Life MAPS fund to me. But the annual charge appears to be quite high, and I get taxed at 41 percent anyway on any gain, meaning 200k for ten years on their band 3 fund (averaging 5.7 p.a. return for its first 5 years) would leave me with:
200,000*((1.057)^10)) = €148,160 profit before tax.
Subtract the 41 percent tax, my profit is now = €87,414.
Expected loss from fund management charges (calculated at CandidMoney) = €36,077
Total profit on 10 year investment = €51,337
Do these calculations look accurate? And is that an acceptable return? I'm not very financially savvy so just trying to work out the best way to maximize my investment. Furthermore, the returns above aren't guaranteed, and I could just as easily lose money over ten years, couldn't I?