Where should I invest?

W

Washy EK

Registered User
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Personal details

Age: 59
Spouse’s/Partner's age: 53

Number and age of children: 2 Children Grown up 33 and 27

Income and expenditure
Working part time €950 per week after tax etc
Income of spouse: None


Type of employment: e.g. Civil engineer/foreman

In general are you are
Saving €725 per month

Summary of Assets and Liabilities

Family home worth €350,000 with no mortgage
Investment property 1 worth €300,000 with no mortgage.
Investment property 2 Spain €80,000 with no mortgage and no income.
Cash of €300,000 (sitting in bank earning zero)


Other borrowings – car loans/personal loans etc

No borrowings

Buy to let properties
Value: €300,000
Rental income per year: €1250 x 12 = €15,000

Other savings and investments:

Small pension valued at €38,000




What specific question do you have or what issues are of concern to you?

I have assets and savings that I would like to make work for me, I know I need to invest, and Im not afraid of some risk.
Any advise or suggestions would be greatly appreciated.
 
Last edited:
Why is your pension fund so small?

If you are taking home €950 per week, after-tax, you must have an annual income well in excess of €60k, in addition to your rental income.

You should really be maximising your tax-relieved pension contributions, maintaining a high allocation to equities in your circumstances.

Beyond that, are there any improvements you could make to your home to make it more energy efficient/comfortable?
 
Never believed in pensions (how wrong was I). But it is what it is.
I have a nice bit on deposit.
House only recently renovated..
 
I will see my company and see what the situation is will also speak with my pension provider.
Where should i invest my savings was thinking estoxx and Raisin!!
 
Washy EK said:
I will see my company and see what the situation is will also speak with my pension provider.
Where should i invest my savings was thinking estoxx and Raisin!!
Click to expand...
You may be able to do an AVC to your pension for a last year and place savings in there. Then chose carefully the funds the pension is based on.
 
Your paye salary must be about €70,000 a year.
That means you can and should contribute 35% or €25,000 for this year and another €25,000 for last year.
You will get tax relief on this, so the net cost will be only €30,000

So you have another €270k cash to invest.

You are already overinvested in property.
Your investment horizon is probably 20 to 30 years at your ages, so you should invest in the stock market.

Either a diversified portfolio of shares (my preference) or an Exchange Traded Fund.

You should not leave your money in cash as it will be slowly and surely eroded by inflation over the next 20 years.

In the short term, the stock market may well go down, but it is very likely to outperform cash and inflation over your investment horizon.

As you have a good income, you won't need to access your shares early or in an emergency, so a temporary fall in the stock market won't impact you.

Brendan
 
Have a read of these ETF threads:

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Hi Washy

I really think you should max your pension contribution for this and for last year. Its a lot of money but as others have said its an absolute no brainer.

To plug the gap in disposable income, if there is one, you could dip into some of the savings that you are considering buying shares on de giro with.

IMO it'd be a mistake if you didnt do this.
 
If there are investment properties, could the OP's spouse make pension contributions based on the income? I don't have property investments so forget the details and apologise if this is a red herring!
 
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