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What to do with €30k

  • 25-04-2019 2:59pm
    #1
    Registered Users Posts: 4,741 ✭✭✭ c.p.w.g.w


    So my savings have kind of accumulated over the past 24 months. They are quiet healthy, but I'm getting SFA out of the money.

    So i'd like to do something with 30k. I was considering a lump sum pension contribution, and starting a pension

    But have seen 2 people close to me diagnosed with terminal illness' and they won't make retirement age now, despite investing heavily in them over the years. So not so sure about the pension.

    Bought a house 24 months ago, on fixed rate for another 24 months, mortgage (incl. Insurances) is €445 a month (between 2).

    Is there anything good with government bonds? Yields seem low at 2% PA.


Comments

  • Closed Accounts Posts: 5,019 Brian Microscopic Spleen


    Lots of info missing from your post. Age, dependants, risk etc.

    Have you looked at over paying your mortgage, either a lump or monthly? What sort of savings do you make by overpaying?

    I agree with you on the pension side. While I would advocate starting a pension, especially if your employer will match your contributions, I would not put any lump sum payments into a pension until you're closer to retirement age.


  • Registered Users Posts: 4,741 ✭✭✭ c.p.w.g.w


    Lots of info missing from your post. Age, dependants, risk etc.

    Have you looked at over paying your mortgage, either a lump or monthly? What sort of savings do you make by overpaying?

    I agree with you on the pension side. While I would advocate starting a pension, especially if your employer will match your contributions, I would not put any lump sum payments into a pension until you're closer to retirement age.

    Age:31
    Dependants: None

    No employer pension contribution

    Mortgage is fixed term, so overpayment will cost me I thought


  • Closed Accounts Posts: 5,019 Brian Microscopic Spleen


    Over payment depends on your bank. Who do you have your mortgage with and what sort of value is your mortgage? You should contact your bank and ask for details on overpayment. It can be up to 10% overpayment during the fixed term. Here is an article from Apr 2018 but at least it gives you an idea of what type of options may be available for a fixed term (here). Contact your bank mortgage department and ask about overpayment. Make SURE you get your options in writing.

    If you're both working and fit / healthy, I would look at investments with a higher risk than plonking it in a bank. Diversify into cash (savings account), prize bonds, possibly stocks/ETFs etc. You will not get a good or decent return without a some risk. Do look at the overpayment on the mortgage, use some of the online calculators once you have your info to see what sort of saving you can make.

    Other posters will help I'm sure. Best of luck.


  • Registered Users Posts: 456 ✭✭ jayjay2010


    c.p.w.g.w wrote: »
    Age:31
    Dependants: None

    No employer pension contribution

    Mortgage is fixed term, so overpayment will cost me I thought


    Overpayment won't necessarily cost you any penalties. I called my bank, the customer service person said there would be a charge to overpay my fixed rate. I asked her to double check with a manager and she came back to me confirming that currently there is no charge. So I could make the overpayment with no penalties.

    Call your bank, see what they can do for you. Be careful, a lot of people don't actually know the rules inside and out so always ask them to double check with a manager if in doubt!


  • Registered Users Posts: 23,317 ✭✭✭✭ lawred2


    Over payment depends on your bank. Who do you have your mortgage with and what sort of value is your mortgage? You should contact your bank and ask for details on overpayment. It can be up to 10% overpayment during the fixed term. Here is an article from Apr 2018 but at least it gives you an idea of what type of options may be available for a fixed term (here). Contact your bank mortgage department and ask about overpayment. Make SURE you get your options in writing.

    If you're both working and fit / healthy, I would look at investments with a higher risk than plonking it in a bank. Diversify into cash, prize bonds, possibly stocks/ETFs etc. You will not get a good or decent return without a some risk. Do look at the overpayment on the mortgage, use some of the online calculators once you have your info to see what sort of saving you can make.

    Other posters will help I'm sure. Best of luck.

    Cash and prize bonds would be worse than a low interest savings account


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  • Closed Accounts Posts: 5,019 Brian Microscopic Spleen


    By cash I meant a savings account of some sort, not a current account. I would presume the OP knows that having cash in a current account is not the best place for his funds, hence why they're here looking for advice on better options. *sigh* I'll update my post to make it clear though.

    To give you an example OP, KBC Extra Regular Saver Account at just over 2% if you have an Extra Current Account with them. There's a thread on askaboutmoney.com "Savings Best Buys", a super thread and updated regularly.

    I keep part of my portfolio in prize bonds, for the kids mostly, but also as another alternative to having cash in a bank. Banks can go bust as we've all learned in recent years.
    lawred2 wrote: »
    Cash and prize bonds would be worse than a low interest savings account


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