900k to invest risk free for 12 months

Baby01032012

Hi all,

Due to family inheritence i will be in the lucky position of having €900,000 to invest for approximately 12 months. I will have close to zero risk appetite.

With grant of probate to complete probably in September, CAT will be due October 2021 rather than 2020. At that stage i will be paying approx. 750k in CAT to Revenue as i will have other non cash assets inherited.

Any ideas for capital guarantee that offers something more the fractional interest that a bank deposit offers. For now I've stuck 250k into prize bonds.

Many thanks.

gailforecast

Baby01032012 wrote: »

Hi all,

Due to family inheritence i will be in the lucky position of having €900,000 to invest for approximately 12 months. I will have close to zero risk appetite.

With grant of probate to complete probably in September, CAT will be due October 2021 rather than 2020. At that stage i will be paying approx. 750k in CAT to Revenue as i will have other non cash assets inherited.

Any ideas for capital guarantee that offers something more the fractional interest that a bank deposit offers. For now I've stuck 250k into prize bonds.

Many thanks.

Firstly, congratulations on the cash.
There’s plenty of investment firms that will be more than happy to work your money for you. Currently I’m with Mercer, with a much smaller amount than that, so I can only imagine they’d be dying to speak to you. You can also choose the risk vs reward scale, if you want 0 risk.

But shop around, speak to different firms and find something that works for you.

Bottom line is that no investment is guaranteed to be risk free, but stay away from banks if you want a return outside of the minuscule interest rates.

Jimbobjoeyman

I'd be curious to hear peoples thoughts on riding down the long end of the yield curve where rates are positive and selling after one year in an instance such as this ?

Only risk is rates going up causing price to move against you when selling, but under the circumstances I'd consider it incredibly unlikely.
Credit spreads could move negativaly but for government bonds thats no so much an issue as your only real exposure is duration.

daheff

Really if you have zero risk appetite you should be placing the funds in deposit accounts with a number of financial institutions (around 10 to keep under the 100k deposit guarantee limit).

You won't earn much in the way of interest, but your funds will be guaranteed.


If you have more risk appetite then there are other options available.

greyday

Gordon Elliots in 2.30 Rosscommon

dxhound2005

Along with the 250K they already have in Prize Bonds they could have 490K in Savings Certs, Savings Bonds and An Post Deposit Account, if they went to the individual saver limits. That would leave a bit less work to do opening bank accounts.

All NTMA products are fully guaranteed with no limit. Not going to earn much interest, but they are zero risk.