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how would you invest 200K?

  • 27-02-2021 6:07pm
    #1
    Bullrush11
    Registered Users Posts: 8 ✭


    Hi
    Due to an inheritance I have 200K to invest. It is currently sitting in a bank account earning 10 cents p.a.! I am mid 50's, single and mortgage free and with a civil servant DB pension.
    Any suggestions on making this work for me?
    Thanks


Comments

  • #2
    Jim2007
    Moderators, Business & Finance Moderators Posts: 9,981 Mod ✭✭✭✭Jim2007


    Bullrush11 wrote: »
    Hi
    Due to an inheritance I have 200K to invest. It is currently sitting in a bank account earning 10 cents p.a.! I am mid 50's, single and mortgage free and with a civil servant DB pension.
    Any suggestions on making this work for me?
    Thanks


    You need to define a quantifiable objective, only then can you start to look at the type of investing opportunities that will enable you to achieve that objective. Without it anything from bitcoin to doing up one of those one euro properties in Italy is in play.


    If your in you mid 50s what about early retirement?


  • #3
    [Deleted User]
    Posts: 1,344 ✭[Deleted User]


    Basically, all investments are based on your appetite for risk / gain. Leaving money on deposit is basically COSTING you money through inflation. Prize Bonds ( though not as lucrative as they were 3months ago) leave your money safe and give you the ( very) slight odds of a " win" now& again . Personally, I've have a net interest rate of circa 6% on prize Bonds over last decade....BUT that is more to do with luck than anything else. The only realistic possibilities for meaningful gain on an amount of 200€k is property or land speculation but IIwould lean towards max caution at present as we will be in a state of flux/ volatility for next 5yrs. The BEST thing you can get is TIME, believe it or not, as another poster suggested RAMP UP the pension with a view to earlier retirement. I'm of a similar age to you, I work a 3day week and aim for 3foreign holidays ( in normal times) a year... I've no intention of sitting on a 'wad' of cash in 70's when the knees/ hips are on way out.


  • #4
    athlone573
    Registered Users Posts: 726 ✭✭✭athlone573


    Can you buy extra years on your pension or set up an outside AVC? Definitely something to consider carefully.


  • #5
    Jim2007
    Moderators, Business & Finance Moderators Posts: 9,981 Mod ✭✭✭✭Jim2007


    Deleted User wrote: »
    Basically, all investments are based on your appetite for risk / gain.
    [/OUOTE]

    Not at all. Your investments should never be based on your appetite for risk, because there is a very big gap between your perception of risk and reality. You should never take on more risk that is necessary to realistically achieve a quantifiable objective. Without such an objective to guide you, you will almost certainly flip flop and loose money.
    The only realistic possibilities for meaningful gain on an amount of 200€k is property or land speculation but IIwould lean towards max caution at present as we will be in a state of flux/ volatility for next 5yrs.

    Property is one of the high risk asset classes regardless of the current situation. Given the risk profile, it represents a very poor return. It is why we consider portfolios with double digits allocations to property to be very high risk. And as the OP already has a large exposure to property a further allocation would put him of the scales.


  • #6
    discodiva92
    Banned (with Prison Access) Posts: 353 ✭✭discodiva92


    Enjoy life.No one will ever be able to save that


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  • #7
    [Deleted User]
    Posts: 0 ✭[Deleted User]


    Dogecoin.

    Just kidding, perhaps an index tracker?


  • #8
    billyhead
    Registered Users Posts: 9,525 ✭✭✭billyhead


    State Savings products for a safe although low ROI.


  • #9
    padjocollins
    Registered Users Posts: 461 ✭✭padjocollins


    https://www.youtube.com/watch?v=qCMYKggIQpk
    i would look into novartis more than tesla . if i had 200k i'd go 150 novartis, 50 tesla but it depends on your appetite for risk. tesla has a lot of good new already built into the share price but mayb have a lot more upside depending on how you think their sales will go in the future


  • #10
    Shedite27
    Registered Users Posts: 9,359 ✭✭✭Shedite27


    Bullrush11 wrote: »
    Hi
    Due to an inheritance I have 200K to invest. It is currently sitting in a bank account earning 10 cents p.a.! I am mid 50's, single and mortgage free and with a civil servant DB pension.
    Any suggestions on making this work for me?
    Thanks
    What's your life plan? You looking for a way to retire a few years early, set you up with a house in the sun, leave an inheritance for relations?


  • #11
    Jim2007
    Moderators, Business & Finance Moderators Posts: 9,981 Mod ✭✭✭✭Jim2007


    Shedite27 wrote: »
    What's your life plan? You looking for a way to retire a few years early, set you up with a house in the sun, leave an inheritance for relations?

    This is the thing, without an objective anything goes. The OP is in their mid 50s, single, house bought and paid for and in a good pensionable job. If they want to finance the period from now to retirement, it may be tight but doable. If so, then preserving the capital would be paramount, so very low risk options would be all that is in play.


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  • #12
    Joe4321
    Banned (with Prison Access) Posts: 158 ✭✭Joe4321


    Top up pension with AVCs, or for very Conservative approach there is state savings, but these rates of return have been lowered this year but for guarenteed return and peace of mind maybe have a look at them.


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