What to do with €200K?

nodrog2013

Inheritance of just over €200K will be received shortly.

Married, both work, adult children both work and live at home.

Both put max into our pensions.

No loans, mortgage paid off, cars reasonably new.

I work 4 days pw, he works full time and will be retiring in 4 years.

Financial advisor said max pensions which we are now doing.

Any other aadvice greatly appreciated

Buddy Bubs

https://www.boards.ie/discussion/2058324190/what-to-do-with-200k

You are in an enviable position that you have most things ticked off already with pensions and mortgage.

When you say your pension is being maxed, thats a good thing, but is the fund high enough that you are happy with?

Depending on a whole host of factors, I would suggest ring fencing some of it to help the 2 children buy a house, if you find that a reasonable thing to do and looking at an inflation matching / beating low risk fund if you dont need the money for at least 5 years to be used alongside pension.

Dont be tempted to buy an investment property would be my big suggestion though.

nodrog2013

I would love to downsize and give the adult kids money to help them on the property ladder.

Buddy Bubs

https://www.boards.ie/discussion/comment/121411122#Comment_121411122

Well I think you've hit on what to do with it so. Not always about investing and risking money. You can give it tax free too although it will affect inheritance thresholds for them later, may or may not be relevant.

Jim2007

https://www.boards.ie/discussion/2058324190/what-to-do-with-200k

Without an objective it is impossible to suggest or select financial products that might be of interest to you.

You say you have visited a financial advisor, so my very first question would be did he work with you in developing a financial plan for your future or did he simply sell you a product or products?

https://www.boards.ie/discussion/comment/121411122#Comment_121411122

Again this is where your financial plan comes into play - do you have sufficient financial resources to live say for the next 25 years or so allowing for higher inflation, lower interest rates, pension receipts and all the usual type of additional financial expenses the typical retired couple encounter.

The starting point for all of this is a proper financial plan, so did your advisor work with you on this?

Apiarist

https://www.boards.ie/discussion/comment/121411122#Comment_121411122

On downsizing -- it might be not a advantageous as one expects. Your house might be worth a lot of money, but the strongest demand is for houses your children might be after. Unless you are planning to retire to Portugal? Selling your house to buy a smaller house in the same area where you live currently might not be very profitable.

This is to say that may be putting these 200K into some growth fund outside of your pension scheme could be good if you want to take the money out for your children's house deposits.

rowantree18

If you've all your other boxes ticked - as you seem to - on balance I'd give 100k to each child and get your privacy back!

SuperBowserWorld

https://www.boards.ie/discussion/comment/121411815#Comment_121411815

They'd spend the money and come back 🤣🤣🤣

rowantree18

I had a flat abroad. Sold and giving proceeds to 26 year old to help her on her way. She, in fairness, never caused a seconds trouble, aced exams, masters etc. Working hard, saves regimentally. I want her living an independent life, they are infantalised too long now, laundry done at 30.... Told her there may be little other inheritance as I may sell and blow the lot, otherwise the unfair fair deal will get it anyway