# Inherited 500k, What to do with it.



## djustoe (19 Dec 2007)

Sorry Brendan. I wasnt aware. Im familiar with the rules but I  dont see anything about hypothetical questions not being allowed.
Its not actually a hypothetical question. 
I have recently inherited the above amount and im lost as to what I should do with it to get the best return. (just dont want my business known when its not required, hence I asked in a hypothetical context in the previous post which you locked) 

Im not interested in investing in property especially due to the volatility atm. Is it too small an amount to seek professional advice taking into consideration the cost of professional advice? 
Id consider investing a certain amount of it in some blue chips however id prefer leaving it in a deposit account. For this size of money, who offers the best rate. I will not be needing access to the money...


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## iggy (20 Dec 2007)

Pesonally I would stick it in the highest interest deposit accounts around  at the moment, you probably won`t get a hell of a lot more than 4.5% ish somewhere like anglo irish bank or ulster bank ( reward reserve account) of course stick 10k in rabo (5% at present), 14500 in first active(5.22% at present up to 15k)this account adds interest monthly so if you stick in 15k straight away after 1 month you go over the 15k threshold and rate drops to something like 3.75%, then you have the new aib 7 day online account giving 5% up to 10k. I would spread the rest around a bit to minimise your exposure to any northern rock type problems... unlikely but worth it for a few hours extra work. I am in a similar situation but am waiting for the first few months of 2008 to see where or even if I invest in something else as volatility is the worry at the moment.Nice position to be in though!


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## soy (20 Dec 2007)

Stick it in a high interest deposit account for now and seek professional advice in the new year (ensure it is independent and fee based).
In the meantime, read the key posts and then sit down and document what your long term goal is for this money and your tolerance for risk. This will ensure you are fully prepared before you hire a financial advisor.


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## mickeyg (20 Dec 2007)

You can get 4.99% or thereabouts from Anglo for a 3 month deposit.


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## Bronte (20 Dec 2007)

Bare in mind that putting money in a deposit account is actually losing you money because of inflation and DIRT tax.


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## derryman (20 Dec 2007)

Bronte said:


> Bear in mind that putting money in a deposit account is actually losing you money because of inflation and DIRT tax.


 
but not to the extent that recent ISEQ and / or property investment might have


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## ClubMan (20 Dec 2007)

Bronte said:


> Bare in mind that putting money in a deposit account is actually losing you money because of inflation and DIRT tax.


Not necessarily - especially if you deposit at c. 5%+ and consider _HICP _rather than _CPI _inflation (_HICP _is arguably a more meaningful measure of inflation for people who have no mortgages for example). Still - medium/long term it probably doesn't make sense to have large sums of money on deposit...


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## Caveat (20 Dec 2007)

Bronte said:


> Bare in mind that putting money in a deposit account is actually losing you money because of inflation and DIRT tax.


 
You were actually right the first time with "bear" BTW


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## noel 2006 (20 Dec 2007)

You could split the money between (i) blue chips or equity funds and (ii) high yield deposits.  That way you have protection from further stock market falls but benefit on some of your investment from increases in the stock market. Over time you could increase the equity component if you get more comfortable with the risks involved.


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## FredBloggs (20 Dec 2007)

If you have a mortgage you should consider putting a portion of it against that.
I would also consider putting €20K in a share account with the Irish Nationwide if you are not already a member. I know everyone will say its too late and the INBS will demutualise in a matter of months and well before 2 years but the way things are happening at the moment you never know - plus you will get an ok rate of interest on your €20K.


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