Inherited a lump sum . What should i do?

Former Great

With all the talk of the euro collapsing i have no idea what to do. What would you people on here do.

coylemj

Spend it.

Seriously, you need to give us a rough idea of how much we're talkng about and what your priorities are - do you need money for kids going to college next year or in 5 or 10 years time?

Do you have an occupational pension or a business that you can sell when you retire?

Are you risk averse, do you lie awake at night worrying about the future?

Lots of different ingredients need to go into the pot before anyone can give you advice.

One thing to consider if you don't need the money in the short term is to upgrade your house while the market is depressed, provided you can find a buyer for your currrent house. Anyone with cash to upgrade has a raft of bargains sitting there for less than half of what they were going for a few years ago. If you upgraded now and aimed to sell in 10 or 15 years time, you've be looking at a significant tax-free capital gain.

Former Great

coylemj wrote: »

Spend it.

Seriously, you need to give us a rough idea of how much we're talkng about and what your priorities are - do you need money for kids going to college next year or in 5 or 10 years time?

Do you have an occupational pension or a business that you can sell when you retire?

Are you risk averse, do you lie awake at night worrying about the future?

Lots of different ingredients need to go into the pot before anyone can give you advice.

One thing to consider if you don't need the money in the short term is to upgrade your house while the market is depressed, provided you can find a buyer for your currrent house. Anyone with cash to upgrade has a raft of bargains sitting there for less than half of what they were going for a few years ago. If you upgraded now and aimed to sell in 10 or 15 years time, you've be looking at a significant tax-free capital gain.

40 k im 25 and no loans to pay back or anything like that. Is it safe to keep it in euro with all the talk of it collapsing .

toxicity234

Give it to me, i look after it.

Custardpi

coylemj wrote: »

One thing to consider if you don't need the money in the short term is to upgrade your house while the market is depressed, provided you can find a buyer for your currrent house. Anyone with cash to upgrade has a raft of bargains sitting there for less than half of what they were going for a few years ago. If you upgraded now and aimed to sell in 10 or 15 years time, you've be looking at a significant tax-free capital gain.

No, you almost certainly won't, do not do this (at least not as an investment, nothing wrong with doing up your house or buying a better one for your own enjoyment of it if you have the money & are prepared to live there indefinitely). The housing market is not depressed relative to what a normal market should be doing, it is in the process of correcting from the enormous bubble of the Celtic Tiger years.

Given the negative economic outlook & the unlikelihood of easy credit returning anytime soon, chances are that prices will continue to fall for the forseeable future, there will be no "return to normal" - the high prices we saw in 2006 were abnormal for a country of Ireland's size & relative economic importance.

Even after all that's happened I'm amazed that there's still people out there who believe that playing the property game is a good investment in Ireland. Prices will eventually rise again yes, but it will be from a much lower base than where they are now & will have a much less steep upward curve than during the Tiger years, we have much further to fall.

Very few if any definite good investment bets in the current climate, I'd look at funds which invest in renewable energies (I think Rabo offer a couple iirc) if I had the cash to spare myself but there's a lot of spoofery in that sector so caution is probably advised. Still a safer bet than buying a "bargain" property & expecting the spondoolicks to magically appear a few years later though.

Macker1

I have friend that knows somebody that can treble your money no questions asked.........

soddy1979

Custardpi wrote: »

No, you almost certainly won't, do not do this (at least not as an investment, nothing wrong with doing up your house or buying a better one for your own enjoyment of it if you have the money & are prepared to live there indefinitely). The housing market is not depressed relative to what a normal market should be doing, it is in the process of correcting from the enormous bubble of the Celtic Tiger years.

Given the negative economic outlook & the unlikelihood of easy credit returning anytime soon, chances are that prices will continue to fall for the forseeable future, there will be no "return to normal" - the high prices we saw in 2006 were abnormal for a country of Ireland's size & relative economic importance.

Even after all that's happened I'm amazed that there's still people out there who believe that playing the property game is a good investment in Ireland. Prices will eventually rise again yes, but it will be from a much lower base than where they are now & will have a much less steep upward curve than during the Tiger years, we have much further to fall.

Very few if any definite good investment bets in the current climate, I'd look at funds which invest in renewable energies (I think Rabo offer a couple iirc) if I had the cash to spare myself but there's a lot of spoofery in that sector so caution is probably advised. Still a safer bet than buying a "bargain" property & expecting the spondoolicks to magically appear a few years later though.

I agree with a lot of this. I'm not sure we will ever return to the property growth levels we experienced in the last 30 years. However, that hypothesis goes out the window if the ECB turns on the printing press, and God forbid we end up in hyperinflation. Then I will wish I owned property.

Simtech

"Warning! Value of investment may go down aswell as up"

You hear it on all the ads. Only invest money you are willing to lose.

You're 25 now, after paying off a 25-30 year mortgage you will be 50-55. That's a nice age to be mortgage free. 40k is a nice deposit for a mortgage and the there is great value to be had in the housing market at the moment. Take your time and think about where and how you would like to live. Look at lots of houses. See how you feel then. I would love to have been in your position at your age. If you decide to do so, you will be very glad in a few short years that you bought the house you want to stay in.

Caveat: advice is free coz it's usually worth fook all. It's a big decision, make sure it feels right.

Raskolnikov

What are your financial goals?

In the short-term, I don't think you can go wrong by putting it in Ulster Bank for a year with a 4% interest rate. It's a market beating rate, plus you're guaranteed by the British government.

http://www.ulsterbank.ie/roi/personal/saving/medium-term/fixed-term-deposit.ashx

Of course, this won't protect you if Ireland leave the Euro. If this is a concern to you, then you could always consider going across the border and setting up a British bank account.

http://preparefordefault.ie/?p=337

shannon_tek

Invest in British government bonds.

chinwag

Yeah, UB good rate, but probably not market leading. There are other good rates around, also what about KBC, EBS, who are as good (possibly better) but with more flexibility?

Hal Emmerich

chinwag wrote: »

Yeah, UB good rate, but probably not market leading. There are other good rates around, also what about KBC, EBS, who are as good (possibly better) but with more flexibility?

Click this when you want to quote someone and don't delete [/QUOTE] at the end of whoever you are quoting.

nino1

what about investing in shares in a solid company like tesco's or similiar?

How would this type of investment be affected by a euro colapse?

shannon_tek

nino1 wrote: »

what about investing in shares in a solid company like tesco's or similiar?

How would this type of investment be affected by a euro colapse?

Question is how much can 40 grand get u in shares. Tescos does not seem like the place to be. To get a nice investment back.

Technology is the investment market.

Hal Emmerich

shannon_tek wrote: »

Question is how much can 40 grand get u in shares. Tescos does not seem like the place to be. To get a nice investment back.

Technology is the investment market.

Coke.

Anything to do with old sick people....stents, pacemakers...diabetes from the Coke.

Energy.

shannon_tek

Hal Emmerich wrote: »

Coke.

Anything to do with old sick people....stents, pacemakers...diabetes from the Coke.

Energy.

Theres a poor investment back in coke. :pac:

HowFinancial

Stash it.
Take say 50% and invest in commodity backed currency like US or canada dollar. Look for good interest rate with remainder.
Unlikely to find good return on dollar deposits, but make sure any euro deposits get good fixed rate returns - Rabo tend to be good.

However, if you have risk appetite try funds instead of directly in shares - that way you have professional picking stocks investing for you. If you're half & half re risk then maybe a guaranteed fund might suit.