What should i do with cash on hand and more maturing in 2026?

L

lostbutfound

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Personal details

Age:56
Spouse’s/Partner's age:56

Number and age of children:
3 kids aged 23, 21 and 19

All three are in college funded by us. 3 different colleges all local.

Income and expenditure
Annual gross income from employment or profession: €120000 + approx 60-70K pension contribution.
Annual gross income of spouse: €95000
Monthly take-home pay €10,000 approx
Type of employment: Self employed in successful business, Wife a public servant

Monthly savings of 4-5k

Summary of Assets and Liabilities
Family home worth €950,000 with no mortgage
Cash of €150k in bank
Approx €130K in state savings, matures in 2026
Car/bike collection values at approx 200K


Investment property
Valued at €430K with No Mortgage
Could achieve €2750 PM rental.

This is not rented as having been a landlord since I was 22 and at the height of it had 16 properties I am now done with that.

Other borrowings – car loans/personal loans etc
No other borrowings


Other information which might be relevant

My company is valued at 4-5 million and as i a non sleeping workaholic plan to keep working as long as possible. (business has no debt)
My wife will have a full public servant pension at 65
I will have a fully funded pension by the time i reach 65, i.e 2million.



What specific question do you have or what issues are of concern to you?

Between 2008 and 2014 i lost my business and a lot of properties, i have worked hard to build a new business and get on top on my finances, i now have no debt either personally on in my business.
I am aware we are doing OK, specific question is what should i do with cash on hand €150K and with €130K maturing in 2026
 
I will half-answer with a cliche. You can always make more money. You can't make more time. Maintain liquidity with those savings.

Keep your business thriving and wait until your priorities change. Your spouse may retire and says "City break. Naples. Milan. Paris". Your children may benefit from help with their first house (or business). You may have 10 grandchildren to spoil.

If priorities don't change, that's totally ok too.
 
You could put half of your savings into Raisin.ie at 3% or so a year on a recurring 1 year basis. That way you'd only need 1 year notice max and would be getting a decent return
 
Overall, you are doing very well. It is particularly impressive to have come through a bad patch and have built up to where you are from scratch.

A lot of wealthy people lost everything because they didn't look out for risks. But most of them had excessive borrowings for property investment.

You don't have any borrowings so your risk is low.

But you should try to identify what the risks are and see is it possible to ameliorate them.

For example, is your business overdependent on you ? What happens if you get sick, or burnt out or lose interest? It might be a good idea to have a succession plan for yourself.

I have also seen business owners being afraid to delegate stuff so they end up doing routine tasks which they should be paying others to do. Ask yourself, could you reduce your workload by delegating to a new employee?

As regards your savings, the best long term, lowest risk approach is the stockmarket , either directly or via an ETF.

Not sure if you should hold onto your state savings as the rate is so low. It might pay to cash out early.
Brendan
 
Learn how to retire. Explore creativity. At this stage you are only working for the tax man. Hopefully your kids are like you and do their own thing in life, inspire them to live one. Well done by the way.
 
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