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investing lump sum

  • 25-06-2013 1:31pm
    #1
    sillybilly
    Registered Users, Registered Users 2 Posts: 124 ✭✭


    Hello,

    Any recommendations with what to do with a lump sum of 50K?

    Whats the best savings account at the moment?

    Any other suggestions


Comments

  • #2
    kilburn
    Registered Users, Registered Users 2 Posts: 3,912 ✭✭✭kilburn


    have you a mortgage?


  • #3
    tommylimerick
    Registered Users, Registered Users 2 Posts: 213 ✭✭tommylimerick


    hi sillybilly the first investment you should make is in some investment books 50k is a tidy amount
    eddie hobbs has a pyramoid in one of his books about how you should have your cash allocated hope that helps


  • #4
    sillybilly
    Registered Users, Registered Users 2 Posts: 124 ✭✭sillybilly


    thanks guys.

    i have mortgage but its a tracker mortgage, so hoping to gain more interest/dividends on my 50K than the cost of my mortgage interest...


  • #5
    ongarboy
    Registered Users, Registered Users 2 Posts: 5,201 ✭✭✭ongarboy


    If you can obtain a savings account that pays interest less DIRT of 33% that is higher than the equivalent interest you pay on your tracker mortgage, then I suggest you open such a savings account (KBC, Nationwide UK Ireland and Rabo Direct all have rates above 2% gross).

    If your tracker rate of interest is higher than the net interest you would earn on a savings account, I'd suggest maybe paying off a lump sum of 25K of your mortgage and keeping the other 25K in a savings account so that you have ready access to cash for any unforeseen circumstance that may arise in the future.


  • #6
    Buzzliteyear
    Registered Users, Registered Users 2 Posts: 25 ✭Buzzliteyear


    If its a long-term investment consider a low cost index fund. But as some else was surmising invest a little in your own financial education. I recently read Rory Gillen's book and found it very helpful.


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  • #7
    BobbyHolly
    Registered Users, Registered Users 2 Posts: 1 ✭BobbyHolly


    I think ongarboy provided the perfect answer for your situation.. I believe your tracker rate of interest is higher than the net interest so I would go with splitting your cash between mortgage and saving account, I would do that if I'm in your situation because the I don't know what the future holds for me.


  • #8
    gordongekko
    Registered Users, Registered Users 2 Posts: 5,301 ✭✭✭gordongekko


    BobbyHolly wrote: »
    I think ongarboy provided the perfect answer for your situation.. I believe your tracker rate of interest is higher than the net interest so I would go with splitting your cash between mortgage and saving account, I would do that if I'm in your situation because the I don't know what the future holds for me.

    but the talk from the ecb is that there will be no increases in the rate this year and possibly next year. There is a greater chance of a reduction in rates than an increase.


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