redunancy money

irishboy19

brother got made redundant last week.. got 20k
where would be a solid place to put it..
he was going to put it in to the aib . i said to hold off till we look at the options.

Fitzer12345

Your brother really needs to ask himself what does he need the money for. To tide him over for run of the mill day to day spending or an investment for the future. Depending on his needs he can then evaluate what to do. However depending on their rates of interest if he has outstanding loans/credit card balances I would recommend he clear them or at least change his credit balances to companies offering 0% intraductory offers.

waldo

RaboDirect offer 3% interest. Aib wont offer anything near this. They also have some good mutual funds, and he could put a little of his 20k into a few of these funds. (no i dont work for them). Its an easy way to put money into shares.

i71jskz5xu42pb

Depends on how long he wants to put it away for and what level of risk he wants to bear.

Rabo only offer 3% if the money is in the account for 12 months (large print giveth, the small print taketh away).
Anglo offer a 30 day notice @ 2.65%
Irish nationwide offer a 7 day notice at 2.3%
http://www.irish-nationwide.com/freedomaccount.html

Mutual funds are a good option for the long term.

My recommendation would be to get proper financial advice (i.e. not boards). With 20k he can afford to spend a few hundred on advice from a professional (e.g. http://www.mko.ie/ ). A lot of these guys will do fixed price sessions i.e. you call them tell them what your situation is and they will quote you a fixed price for some sound advice.

I also don't work for anybody above.

waldo wrote:

RaboDirect offer 3% interest. Aib wont offer anything near this. They also have some good mutual funds, and he could put a little of his 20k into a few of these funds. (no i dont work for them). Its an easy way to put money into shares.

madaboutmoney

Confession - I'm a Rabodirect customer. They pay 3% on your deposit and there's no notice. The confusion might be that while they calculate interest on your money daily you only get it at the end of the year or I guess if you close your account before then.

I've been looking at the funds. If I had 20K to put away I'd stick it 50/50 between savings and the funds. That's if I had 20 grand...

CCOVICH

Northern Rock offer 3.05% interest.
AIB now offer 3% and possibly more (bonuses) through their online savings.
But €20k is quite a lot to have on deposit, and is quite a bit of money full stop.
An independent fee based advisor (as suggested above) should be able to give you brother objective advice. Worth paying for if €20k is all he has IMHO.

What are his job prospects? €20k could send him to college if he's never been, or do a course that could improve his job prospects.

Or if he's confident of getting a new job, why not use some of the money to travel? He might not get the opportunity again.

The suggestion about clearing debts above has some merit as well, assuming he has any debts.

madaboutmoney

CCOVICH wrote:

Northern Rock offer 3.05% interest.
AIB now offer 3% and possibly more (bonuses) through their online savings.
But €20k is quite a lot to have on deposit, and is quite a bit of money full stop.
An independent fee based advisor (as suggested above) should be able to give you brother objective advice. Worth paying for if €20k is all he has IMHO.

What are his job prospects? €20k could send him to college if he's never been, or do a course that could improve his job prospects.

Or if he's confident of getting a new job, why not use some of the money to travel? He might not get the opportunity again.

The suggestion about clearing debts above has some merit as well, assuming he has any debts.

When did you last meet an 'independent' financial advisor. They get commissions from the banks/insurance companies that they work for so be careful. 20K is a nice lump sum but I reckon it's important always to have around 3 months salary saved up in case of things like redundancy or ill health. You just never know what's around the corner.

CCOVICH

madaboutmoney wrote:

When did you last meet an 'independent' financial advisor. They get commissions from the banks/insurance companies that they work for so be careful.

Not all advisors get commissions from banks/insurance companies. Fee based advisors earn their money from the customer, not the financial institution. While I'll agree that they are thin on the ground, they are out there. The flip side of independent advice is the cost aspect, be prepared to pay a few hundred euro an hour, but you can't have it both ways, advisors have to earn their money somehow.

IFRSA is currently preparing a list of authorised firms that will be published on their website in due course. I don't know whether this will give the status of authorised firms (whether they are tied agents, multi-agency intermediaries or authorised advisors etc.). Authorised advisors are required to give broad based advice, i.e. recommend the most appropriate product available on the market to the client regardless of whether or not they have an appointment in writing with the product provider.

lostinsuperfunk

While your brother is making up his mind what to do he should stick it in one of the high interest deposit accounts mentioned above (Rabo / Northern Rock / AIB). If he has an SSIA and isn't already contributing the maximum amount he could drip-feed some of it in there until the scheme ends.

garred

If he has no job how about buying a Taxi? If he does'nt want to use it himself he can rent it out. I was paying 380 a week to rent one.