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What would you do with a large sum of money sitting in bank account

  • 12-11-2022 1:49am
    Registered Users Posts: 970 ✭✭✭

    Sum of €200,000... Pensions already maxed, no mortgage, kids almost finished college.

    Age 60. Worried about inflation eating away at a sum of €200,000 but fairly 'risk-averse'

    What would you do? Asking for a friend :)


  • Registered Users Posts: 2,436 ✭✭✭dartboardio

    Personally? I would buy a small investment property that yields around 7-8% per year

    Somewhere like Spain, Canary Islands, or Dubai, even a studio apartment in a busy location in one of those places.

    Personally I'd choose a studio apartment, furnish it well, in Dubai Marina that can be rented out for up to 20,000 euros per year . A studio apartment in a decent building in Dubai Marina can be got for around 130k euro

    Post edited by dartboardio on

  • Registered Users Posts: 75 ✭✭b v

    Buy an investment property in Dublin. You’ll make a Killing, obviously you’ll have to add to the €200,000.

  • Registered Users Posts: 27,912 ✭✭✭✭HeidiHeidi

    Spend it (or some of it anyway) while you're able, and can enjoy it to the max.

    I have known a scary number of people who were "waiting for retirement" or "waiting till I'm X age" or whatever, not even sure they knew what they were waiting for - and either they got there and it didn't last long, or they never got there at all.

    If you're sure that you'll be financially comfortable in your dotage, and your family are provided for sufficiently - do it now. There's no pockets in a shroud.

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  • Registered Users Posts: 1,472 ✭✭✭victor8600

    Buy an apartment somewhere cheap and sunny and go there for an early retirement?

  • Registered Users Posts: 113 ✭✭AnF Chuckie egg

    Hold onto it, with the way property is going I'd say those kids will still need to visit the Bank of Mum and Dad in the future

  • Registered Users Posts: 5,437 ✭✭✭SuperBowserWorld

    Cocaine ?

    Wondering though, how can a pension be maxed ? You can always add to it, but not get the tax break after a certain amount.

  • Registered Users Posts: 9,754 ✭✭✭Jim_Hodge

    At 60 I'd retire early. I assume your pension has a lump sum coming to you as well, so you could just spend and enjoy it. New car, travel, help out the kids? Anything need doing about the house to make your retirement or old age more comfortable? Or just let your wife loose with it.

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  • Registered Users Posts: 19 Yoshimi79

    Drink it in a week

  • Registered Users Posts: 9,754 ✭✭✭Jim_Hodge

    Surely even you couldn't drink €30,000 a day for 7 consecutive days.

  • Registered Users Posts: 5,437 ✭✭✭SuperBowserWorld

    Non cynical

    Give it to charity ! Or some of it.

    Charities can also claim the tax you paid earning it back.

    You could save many lives.

    So it's a win win.


    Also, those stairways to heaven don't come cheap.

  • Registered Users Posts: 5,470 ✭✭✭masterboy123

    1. Invest in shares.

    2. But a property and give it on rent.

    3. Invest in crypto (but high risk).

  • Registered Users Posts: 2,519 ✭✭✭Yellow_Fern

    If this is a PRSA lump sum, there is an argument that it is best left in the pension, for some people. Prob doesnt apply to you but worth mentioning.

  • Registered Users Posts: 44,904 ✭✭✭✭Bobeagleburger

    Invest some. Spend some.

    Retire early, enjoy it!

  • Registered Users Posts: 476 ✭✭Shauna677

    make sure he/she has an excellent health insurance policy. You don't want to be relying on the public health system now and the state of it.

    make a will!

  • Registered Users Posts: 1,297 ✭✭✭walterking

    Don't invest in property, you don't want the hassle.

    Don't retire early, you'll get bored.

    Do look at cutting back on work but I suspect you are self employed and that is easier said than done.

    200k is not a huge amount but I'd be looking at some premium holidays and investment in a hobby such as golf that will give enjoyment in retirement.

  • Registered Users Posts: 9,754 ✭✭✭Jim_Hodge

    Don't cod yourself that people are bored in early retirement. Far from it.

  • Registered Users Posts: 75 ✭✭littlecopilot

    Just enjoy it. My dad saved and saved and saved so that he can enjoy his retirement. He got dementia 2 years after retirement and now doesn't know what money is and even his own name.

    Obviously not saying this will happen to you but live is short and good health even shorter. Live for today

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  • Registered Users Posts: 1,472 ✭✭✭victor8600

    Exactly, it really depends on whether one have hobbies or time-consuming relationships to pursue in their free time.

    Also retirements does not mean that you are barred from doing any work. If you are a computer programmer or a web designer, there are many open source / good cause projects that can benefit from your expertise. If you are a solicitor, like Richard Grogan, you can give free legal advice on TikTok. And so on!

  • Moderators, Business & Finance Moderators Posts: 9,401 Mod ✭✭✭✭Jim2007

    How good are you at investing? Do you have a track of delivering a high rate of return? Do you know the track record of anyone making suggestions here? Inflation is a risk, but getting bad advice or acting on your own poor understanding are even bigger risks when comes to investing. I spent three decades to perform and attribution work, in other words explaining why portfolios performed the way they did. The best performers tended to be those that did not know much about investing, not interested and just follow the rules, the worst: those that fancy themselves as investors and then go on to demonstrate just how little they know.

    Take Ireland’s property, property approach, when you invest in a property you break every tenet of investing:

    • You invest in a high risk asset class
    • You accept a potential return rate that is not commiserate with the risk you are taking on
    • You fail to diversify your risk
    • You borrow to invest

    When people do this kind of thing they should not be surprised if they get wiped out as they did in 2007. Of course it is much easier to blame the government and the banks and the newspaper articles etc. But the reality is that had they not ignored the rules they would not have gotten burned.

    On top of all of this advising a 60 year old with a limited investment horizon only compounds the bad advice. This is the kind of advice you should avoid like the plague.

    A 60 person has a very limited investment horizon and should already be in the process of moving to cash or near cash financial products such as money market funds and perhaps a small holdings of blue chips or a big caps index as a hedge against inflation.

  • Registered Users Posts: 12,749 ✭✭✭✭elperello

    Most retirees that I know are far from bored and seem to be happy in their skins.

    It's not just the well off ones either.

    Sorry to hear about your dad but at least the money will help to make life a bit more comfortable for him.

    The balance between living for today and having a bit put away is often difficult to achieve.

    There have been studies done about the problem of transitioning from being a saver to being a spender.

    This link is a quick introduction to the subject -

  • Registered Users Posts: 1,616 ✭✭✭Ideo

    Have you a large estate and will your kids be caught with inheritance tax? Sounds probably if your pension is maxed. Might be good to consider a section 72 life assurance policy

  • Registered Users Posts: 391 ✭✭notsocutehoor

    Probably too little info but you sound as if you're really well set up with pension maxed and a reasonably nice cash fund, so I'm assuming you don't have financial worries which believe me is a great position to be in heading towards retirement. If you have a mind to retire early then most certainly do, there are a myriad of things to do, pastimes, parttime work (without the pressure), voluntary work, loads, you are in a position to be as busy or as lazy as you want to be. I dislike the idea of retirement at a specific age, far better to go at a time of your own choosing, that might be 55, 65, 75, or 85, whatever floats your boat with the important thing being its your choice.

    You sound like you might have more issues with CAT rather than affording retirement, so if you're not doing it already you might consider the €3k (€6k if you're a couple) free of CAT to each of your children annually, they will find ways of spending it.

    Most important - don't let it be a burden

  • Registered Users Posts: 54 ✭✭noahungry

    Honestly, "spend some, invest some" sounds like a way to go for me. There must be a place you've always wanted to visit or something you've always wanted to have. There is no better time to do some of your "always wanted", that's my point.