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

Gorteen

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 :)

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

b v

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

Nighttime22

https://www.boards.ie/discussion/2058271411/what-would-you-do-with-a-large-sum-of-money-sitting-in-bank-account

Your 60 lad with a maxed pension buy a lambo, go trekking all over the world, litterally do what ever you want to do at that age just enjoy it above anything else. Dont invest it in anything enjoy it! you earned it!

callaway92

https://www.boards.ie/discussion/comment/119878035#Comment_119878035

Was gonna say similar. Enjoy the **** money while you still can

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.

Apiarist

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

AnF Chuckie egg

https://www.boards.ie/discussion/2058271411/what-would-you-do-with-a-large-sum-of-money-sitting-in-bank-account

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

BingCrosbee

I was you 3 years ago. Invest in nothing. You only live once. Enjoy it. See the world and have a great time. I did and am still doing so. I found that miserable people soent their life saving and doing duck all.

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.

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.

Yoshimi79

Drink it in a week

Jim_Hodge

https://www.boards.ie/discussion/comment/119878356#Comment_119878356

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

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.

Cynical

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

masterboy123

1. Invest in shares.

2. But a property and give it on rent.

3. Invest in crypto (but high risk).

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.

Invest some. Spend some.

Retire early, enjoy it!

Shauna677

https://www.boards.ie/discussion/2058271411/what-would-you-do-with-a-large-sum-of-money-sitting-in-bank-account

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!

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.

Jim_Hodge

https://www.boards.ie/discussion/comment/119905119#Comment_119905119

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

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

Apiarist

https://www.boards.ie/discussion/comment/119905338#Comment_119905338

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!

Jim2007

https://www.boards.ie/discussion/2058271411/what-would-you-do-with-a-large-sum-of-money-sitting-in-bank-account

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.

Jim2007

https://www.boards.ie/discussion/comment/119905119#Comment_119905119

Having retired at 55 I can’t tell you boredom is not an issue. There are plenty of interesting things to do.

elperello

https://www.boards.ie/discussion/comment/119905338#Comment_119905338

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.

https://www.boards.ie/discussion/comment/119914686#Comment_119914686

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 -

https://edition.cnn.com/2022/10/03/business/money/spending-savings-in-retirement-psychological-adjustment/index.html

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

notsocutehoor

https://www.boards.ie/discussion/2058271411/what-would-you-do-with-a-large-sum-of-money-sitting-in-bank-account

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

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.