€50,000 - What to do with it?

LaVail

Hi

I have about 50k that I'd like to put in some sort of savings acc or similar. Obviously I'd like a nice interest rate. Have no clue regarding savings acc's or where the best deal lies.

Also does DIRT mean you're left with nothing after your savings term is up?

Any advice welcome.

Cheers

bear_hunter

LaVail wrote: »

Hi

I have about 50k that I'd like to put in some sort of savings acc or similar. Obviously I'd like a nice interest rate. Have no clue regarding savings acc's or where the best deal lies.

Also does DIRT mean you're left with nothing after your savings term is up?

Any advice welcome.

Cheers

DIRT is a form of tax which the goverment takes at source on your savings

if you have 50 k in a 12 month fixed savings account at 3% , your NET rate is a little over 2% as the rate of DIRT is presently 30%

would you consider putting the money in a high dividend paying stock

companies like mc donalds , microsoft , tesco , vodafone , all pay in exces of 3% , the difference between those and banks is your money can grow , vodafone pays 5% and is a very stable stock , telecoms dont tend to suffer nearly as much during volatile markets

LaVail

Thanks for the reply bear

To be honest I know nothing about the stock market so that's why I was inclined to stay away from it. I'm afraid of losing the money I invest.

I suppose I should do a little research into it before making a decision.

I don't know how to buy stocks or when to buy either so I will do a little research in that department also.

Thanks for your help.

FernandoTorres

I wouldn't ever advise putting all your money in one stock. Yes as Bear Hunter says you can earn a nice dividend and the stock value also has the potential to go up, however it could also plummet. All those companies are seen as stable yes but so were the banks a few years ago. Don't put all your eggs in one basket.

If you don't know anything about the stock market, put it in a savings account. Shop around and get the best rate.

LaVail

FernandoTorres wrote: »

I wouldn't ever advise putting all your money in one stock. Yes as Bear Hunter says you can earn a nice dividend and the stock value also has the potential to go up, however it could also plummet. All those companies are seen as stable yes but so were the banks a few years ago. Don't put all your eggs in one basket.

If you don't know anything about the stock market, put it in a savings account. Shop around and get the best rate.

Yes, even if I was going to put money in stocks the amount wouldn't be anything near 50k and seeing as though I know nothing about them I would only be willing to gamble a few thousand if I was going ahead with it.

I see permanent TSB offer 5 Year Fixed Access 3.54% AER (Gross term 19.0% ) on a 50k lump sum deposit which would return 9.5k before Tax. That seems pretty good to me but should I break up the 50k and try a few different things instead?

turbobaby

FernandoTorres wrote: »

Don't put all your eggs in one basket.

If you don't know anything about the stock market, put it in a savings account. Shop around and get the best rate.

... but putting the full 50k into a euro savings account is putting all his eggs into one basket.

I would agree that you should have the majority of your savings on deposit, while you learn more about savings, investments, politics etc.

€50k is a lot of money and I am sure you have gone through a lot of hard work to put it away. Investing some time in reading investment books would certainly be justifiable if you want to protect your purchasing power.

ResearchWill

LaVail wrote: »

Hi

I have about 50k that I'd like to put in some sort of savings acc or similar. Obviously I'd like a nice interest rate. Have no clue regarding savings acc's or where the best deal lies.

Also does DIRT mean you're left with nothing after your savings term is up?

Any advice welcome.

Cheers

Hello Sir,

I own a bank in Nigeria, we have huge amounts of our money invested in the Nigerian Oil fields. If you send your money to me by Western Union, I will promise you a return of 100% per year, and no silly DIRT tax.

BTW the above is a joke (just in case).

clappyhappy

Have you looked at the an post national solidarity savings, 50% (less dirt) return after 10 years. Money can be accessed within 2 weeks. You get a lesser return after 5 years onwards. I am putting all kids money into it, will come in handy for college. Check it out anyway, good luck :-)

bear_hunter

FernandoTorres wrote: »

I wouldn't ever advise putting all your money in one stock. Yes as Bear Hunter says you can earn a nice dividend and the stock value also has the potential to go up, however it could also plummet. All those companies are seen as stable yes but so were the banks a few years ago. Don't put all your eggs in one basket.

If you don't know anything about the stock market, put it in a savings account. Shop around and get the best rate.

you cant compare utilitys and telecoms to a financial stock , vodafone has a very narrow range , its a boring stock but pays a good dividend

if it was me and i had a spare 50 k to put away for five years , id put 10 k in the following

apple = the richest company in the world in terms of cash balance and debt level , it has no debt

paddy power = best run company in ireland , people gamble when their rich or poor , expansion ongoing

glanbia = the agri business sector is looking extremley bright going forward , kerry is another option

tesco = because its cheap at the moment and is not going to go anywhere , also pays a very good div

spy = an etf which tracks the top 500 american companies

bear_hunter

ResearchWill wrote: »

Hello Sir,

I own a bank in Nigeria, we have huge amounts of our money invested in the Nigerian Oil fields. If you send your money to me by Western Union, I will promise you a return of 100% per year, and no silly DIRT tax.

BTW the above is a joke (just in case).

never heard that gag before, did you write it yourself , classic :rolleyes:

EMPM

What would you do with 50k?

First of all i would not ask for financial advise on the internet. This is a very general question that nobody can answer without knowing anything about you. For example: (obviously do not answer any of this on here)

What are you current financial commitments?
Are you employed?
Do you have any debts?
What is your age?
Are you married?
Does your wife work?
Do you have any children?
Any other investments?

Other things that you will need to consider:

What is your attitude to risk? i.e. risk averse or high risk
What is your investment horison? 1 year or 5+ years

One other thing, you will pay Income tax on your dividends, so a div yield of 5% may seem attractive on the face of it, but in reality its only worth half that to you. You also have the hassle of making an annual return.

EMPM

LaVail

EMPM wrote: »

What would you do with 50k?

First of all i would not ask for financial advise on the internet. This is a very general question that nobody can answer without knowing anything about you. For example: (obviously do not answer any of this on here)

What are you current financial commitments?
Are you employed?
Do you have any debts?
What is your age?
Are you married?
Does your wife work?
Do you have any children?
Any other investments?

Other things that you will need to consider:

What is your attitude to risk? i.e. risk averse or high risk
What is your investment horison? 1 year or 5+ years

One other thing, you will pay Income tax on your dividends, so a div yield of 5% may seem attractive on the face of it, but in reality its only worth half that to you. You also have the hassle of making an annual return.

EMPM

Yes I understand it's a very general question but really all I'm looking for is some safe suggestions.

I am currently debt free - No mortgage - No loans - Single - unemployed atm - No children - no other investments.

I am looking for something which involves little to no risk but I am willing to put say €2-4k in something of medium risk just to see how it goes.

I have no issue with putting my money aside for say the nest 5 years so that's why something long term with fairly good returns would suit be better.

Thanks for your advice.

bear_hunter

LaVail wrote: »

Yes I understand it's a very general question but really all I'm looking for is some safe suggestions.

I am currently debt free - No mortgage - No loans - Single - unemployed atm - No children - no other investments.

I am looking for something which involves little to no risk but I am willing to put say €2-4k in something of medium risk just to see how it goes.

I have no issue with putting my money aside for say the nest 5 years so that's why something long term with fairly good returns would suit be better.

Thanks for your advice.

no such thing as no risk , we live in the eurozone so even cash inside a box buried in the garden is not 100%

five years is a fairly short time for an investment

Liam D Ferguson

LaVail wrote: »

Yes I understand it's a very general question but really all I'm looking for is some safe suggestions.

I am currently debt free - No mortgage - No loans - Single - unemployed atm - No children - no other investments.

I am looking for something which involves little to no risk but I am willing to put say €2-4k in something of medium risk just to see how it goes.

I have no issue with putting my money aside for say the nest 5 years so that's why something long term with fairly good returns would suit be better.

Thanks for your advice.

For the deposit part, there's a good Best Buys section over on Askaboutmoney.com here.