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28-09-2019, 20:58   #61
Permabear II
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My partner is from Limerick, not sure that will do ��
Probably not, alas
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28-09-2019, 21:07   #62
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What if you're unable to maintain your garden as you get older?
All part of the pre-retirement planning - finding ways to make it productive but almost maintenance free (raised beds, companion planting, passive irrigation, etc). And if I'm saving money by not driving any more, I can pay someone to come in once a month and do the heavy duty maintenance. Or take in a lodger. Or even blackmail one of the children to come back and help out every so often!

Full disclosure: I'm not against making money work for itself, and if I had that million, I'd be pretty disappointed if the invested first half didn't generate a significant return, and the remaining 10k pa stayed at 10k+RPI.
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28-09-2019, 21:55   #63
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You'd need more than a million to stop working.
Depends on your age, location and circumstances.

If you were 21 and looking to live in Dublin, then I agree, you'd need to make some seriously crafty investments to retire on a million. Or use that million to recruit and train a fleet of bank robbers and turn it into 10m.

On the other hand, I'm 40. I live in the North West. I could pay off my mortgage and build a substantial property portfolio with €1m, enough to generate at least €50k a year net.

Could I retire on that? Yeah I could, I wouldn't be touring around in a sports car or cruising the Bahamas 3 times a year but I could sack work.
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28-09-2019, 23:57   #64
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Instinct tells me buying two luxury apartments in the centre of Dublin would be the best option, cater to the executive type high earning tenant, three grand per month type client
Putting all your investment eggs into one basket (Dublin executive property) breaks the golden rule of investment - diversify, diversify, diversify. If you time your investment badly and the market drops, you could find yourself in very hot water.
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29-09-2019, 00:35   #65
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Let's say a great aunt died and left you a million euro, could you retire and having put the money to work, live off it?

If so, what would you do with the money - where would you invest it?


Idea stems from stories you read about people who either build up enough of a nest egg to retire early, replace great aunt with won it on the 3.10 @ Cheltenham if you prefer.
Don't want to retire.

With a million I'd sell my house, buy about 10 acres and buy or build a slightly bigger house elsewhere. Set up a CSA smallholding- community supported agriculture http://communitysupportedagriculture.ie and I'd hire a head grower to help with the labour.

I'd buy a house for my partner in Germany-houses are cheap in the east. Stay there with him a few weeks in the year and rent it out at a nominal amount just to keep it heated.

No investments. I can live on less than €10,000 a year at the moment easily-own my own home so a million would be more than enough for anything I wanted.
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29-09-2019, 00:50   #66
Uncle Charlie
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If your great-aunt left you the money, the first €32,500 would be tax-free, and then you would pay Capital Acquisitions Tax of 33% on the remainder. So your million euro would be down to €680,725 straightaway.

One of the implications of the current Irish taxation system.

Its best to deal in cash then you wouldn't have that problem.
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29-09-2019, 09:23   #67
Mad_maxx
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Instinct tells me buying two luxury apartments in the centre of Dublin would be the best option, cater to the executive type high earning tenant, three grand per month type client
Putting all your investment eggs into one basket (Dublin executive property) breaks the golden rule of investment - diversify, diversify, diversify. If you time your investment badly and the market drops, you could find yourself in very hot water.
That's text book orthodox investment advice, doesn't always apply, this country penalises equity investment in the way it does not with property, a market drop is not a problem unless you are carrying a lot of debt.

Most major cities nowadays have areas which have growing exclusivity
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29-09-2019, 09:30   #68
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Instinct tells me buying two luxury apartments in the centre of Dublin would be the best option, cater to the executive type high earning tenant, three grand per month type client
That’s what I did. Bought 3 apartments in Ringsend in 2012 when prices had almost hit their lowest. Kitted them out with really decent furnishings, kitchen, beds etc, and rent them at a premium to Italians working in tech in places like Google and Airbnb.
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29-09-2019, 10:09   #69
Permabear II
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Putting all your investment eggs into one basket (Dublin executive property) breaks the golden rule of investment - diversify, diversify, diversify.
To quote Buffett again, "Diversification is protection against ignorance. It makes little sense if you know what you are doing."

If one actually knows and understands the market for Dublin executive property, investing in it could make more sense than investing in multiple things one doesn't understand just for the sake of being diversified. Plus, we now see a higher degree of correlation across investment classes. If property crashes, stocks and other investments are likely to tank as well.

Like it or not, most people who have got really wealthy have done so by putting all of their eggs in one basket.
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29-09-2019, 12:10   #70
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Instinct tells me buying two luxury apartments in the centre of Dublin would be the best option, cater to the executive type high earning tenant, three grand per month type client
That’s what I did. Bought 3 apartments in Ringsend in 2012 when prices had almost hit their lowest. Kitted them out with really decent furnishings, kitchen, beds etc, and rent them at a premium to Italians working in tech in places like Google and Airbnb.
You couldn't have bought at a better time, I'd go for somewhere around the IFSC
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29-09-2019, 12:12   #71
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Putting all your investment eggs into one basket (Dublin executive property) breaks the golden rule of investment - diversify, diversify, diversify.
To quote Buffett again, "Diversification is protection against ignorance. It makes little sense if you know what you are doing."

If one actually knows and understands the market for Dublin executive property, investing in it could make more sense than investing in multiple things one doesn't understand just for the sake of being diversified. Plus, we now see a higher degree of correlation across investment classes. If property crashes, stocks and other investments are likely to tank as well.

Like it or not, most people who have got really wealthy have done so by putting all of their eggs in one basket.
If you aim for equity diversification in Ireland, that means having to sell your fund after seven years with a 40% exit tax, U. S etfs are no longer available to be bought and even when they were a few years ago, you had no choice but to take the dividend cash pay out, reinvesting the dividend wasn't an option
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29-09-2019, 12:36   #72
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He must be a close friend. I wouldn't tell that sort of information to strangers.
He doesn't have the same standards as you and is far from a close friend of mine, he openly tells everyone when he has a good few drinks in him on his payday how stupid they are to be working all their life.

He gloats on it, I've seen him order a drink for people with the line "Give him a drink on me there, shur that poor man has to work".
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29-09-2019, 13:12   #73
AndrewJRenko
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Like it or not, most people who have got really wealthy have done so by putting all of their eggs in one basket.
That may well be correct - and if it is, it is a very good indication that they took some serious financial risks on their journey - risks that should not be taken lightly.
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29-09-2019, 13:15   #74
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Its best to deal in cash then you wouldn't have that problem.
Tell that to lads getting visits from the CAB to seize their assets each week. If your lifestyle does not match your declared income, Revenue will find you, sooner or later.
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29-09-2019, 13:26   #75
AndrewJRenko
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If you aim for equity diversification in Ireland, that means having to sell your fund after seven years with a 40% exit tax, U. S etfs are no longer available to be bought and even when they were a few years ago, you had no choice but to take the dividend cash pay out, reinvesting the dividend wasn't an option
There are ways of diversifying without doing ETFs or even funds. But anyway, why would you HAVE to cash out of your fund after seven years?
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