Investment Advice for Novice!

suzzi

Hi all,

Was wondering if I get some advice on behalf of my mother. She has sold her house (yes!) and has approx. 100,000 she want's to save. She is going to live with my sister so has no bill's to worry about and has a modest pension. I don't have a clue what to advise her as to do with this lump sum. The bank she goes to are trying to get her to lodge it with them but I think that's not such a good idea.

Where do you think that she could safely leave this money for 5 years at least that it would be safe. The way things are going I'd rather she just left it in a safe place with a modest return.

What do the Boardies think?......

Thank you!:)

OfflerCrocGod

Why are you so negative towards a savings account? It fits all your requirements.

consultan

http://www.boards.ie/vbulletin/showthread.php?t=2056652670

euroboom13

BANK fits...trying to be to clever isnt a game for pensioners savings...would be more upset about capital loss than buying power and 3%/4% will add about 20k over 5yrs which will help spending power....banks are still safe...keep the terms short(6mths) and play hardball on rates

Timmaay

Check out an posts long term tax free savings accounts.

Liam D Ferguson

If it was my mother and she was a complete novice with a 5-year time horizon, I'd advise her to split it between a few deposit accounts across a few banks, both Irish and non-Irish.

consultan

Saving account gives you 3-5% gross annual....gold gave me 54% net profit nontaxable money in one year only
why dont you invest in land?

Liam D Ferguson

Two points on gold:

(1) Gold has been on a "bull run", i.e. increasing in price quite dramatically for over ten years, although it's come down a bit since Autumn 2011. Which is fine if you invested in it ten years ago. But as anyone who bought Irish property around 2005 or 2006 knows, NO asset class keeps increasing in value forever.

(2) As a general rule, any asset that has the potential to rise by 54% in value in one year also has the potential to fall by 54% in one year.

roro2

Saving account gives you 3-5% gross annual....gold gave me 54% net profit nontaxable money in one year only
why dont you invest in land?

Buying gold (or land for that matter) is not an option if the priority is to provide somewhere to "leave this money for 5 years at least that it would be safe", i.e. capital preservation.

whysomoody

consultan wrote: »

http://www.boards.ie/vbulletin/showthread.php?t=2056652670

consultan wrote: »

Saving account gives you 3-5% gross annual....gold gave me 54% net profit nontaxable money in one year only
why dont you invest in land?

This is the worst advice ever. Do not do this.

Your criteria should be
1. Safety of Capital
2. Stability of Returns
3. Inflation Protection.

Land is a terrible idea as it doesnt pay you any income, the fees you would go through to buy/sell it would reduce all but massive gains which would be unlikely.
Gold is incredibly risky, offers no fixed return either and is basically a huge ponzi scheme as its whole value is derived from the fact you believe some other punter will pay more for it that you will.

Any of the main irish banks, BOI, AIB and Ulster would be more than suitable.

The other thing is that if your mother is >65 years old she won't have to pay DIRT which is a massive advantage.

whysomoody

consultan wrote: »

Saving account gives you 3-5% gross annual....gold gave me 54% net profit nontaxable money in one year only
why dont you invest in land?

Also, why was it not taxable?