Inheritance to invest with no knowledge

the_techman

I have inherited €150K and have very little knowledge what to invest in. I am on a high tax bracket so will get hit hard on investments that are taxed yearly. I don't want to buy a house to rent as i feel this will take up too much of my time for a poor return after tax, insurance, accountants etc. I have no issue putting this money away for 10 years as I have no need for it at the moment. I am looking for advice on my best options of return. i don't really want high risk investments.
A house giving 7% return taking in my tax rate and all else involved would probably give me 3%, I looked at a government bond giving 25% over 10 years but this is tax free. I heard of an ETF that charges capital gains tax which might be better but i don't know much about these. Some managed fund might be the way to go.
Any thoughts would be appreciated and thanks in advance.

topper_harley2

That 10 year govt bond has limit of 120K. http://www.askaboutmoney.com/threads/term-deposits-fixed-lump-sum-savings.101813/ has a good list of deposit accounts.

Note the 10 year one: "NB: As the interest penalties are significant on this account, you should only consider this product if you are certain that you will not need access to your money at any stage over the next 10 years. 10 year term deposits are not suitable for most savers."

Also, "You should also be aware that you take on considerable upward interest rate risk by fixing for 10 years."

Buying an letting a house would be putting all of your eggs in the property basket, key to investing is diversifying. Hence IMO this wouldnt be a good idea, since you mention you dont have the time, nor the experience/knowledged (I'm assuming youre not a landlord currently).


At that kind of money it might be worth getting some professional advice.

the_techman

Thanks for your response and advice. I am thinking that independent advice might be the way to go.

iainBB

What about paying off your mortgage with that kind of deposit you would be saving a fortune on interest and would require no time or knowledge.

the_techman

Only €15k left on the mortgage at €350 a month. Hardly worth paying off.

Blacktie.

the_techman wrote: »

Only €15k left on the mortgage at €350 a month. Hardly worth paying off.

Why would it not be worth paying off?

Frogdog

Pay off the mortgage in full, no matter what size it is. If you have any other debt, like credit cards or loans, pay them off first as well. Then, start looking at investing. Always get debt free as soon as you can.

iainBB

I agree debts always first before investing.


15k is small mortgage so not much left to get rid off but I would close that off first then any other high interest debt.

mud_raker

Blacktie. wrote: »

Why would it not be worth paying off?

because interest rates are at record lows and returns above the cost of mortage repayment often exceed interest rates

OP id buy shares in both shell and Vodafone , dividend of over 5% for both and in the case of shell ,like most energy companies , the share price is on the floor

moneymad

I'd buy shares in macdonalds.
Not an investment, more speculation though.

arrowloopboy

Stay away from ''advisors'' ,there in it for them.
Buy some books,educate yourself ,some very low cost ETFs might make a very good passive investment ,10 per annum wouldn't be impossible by any means .
Google Bogleheads ,and read the works of John Bogle.
Your better off researching for a year ,than jumping the gun.

N.B ,and don't buy shares recommended by randomers on an internet chatroom !