# 100k where to put it?



## bluegums (16 Dec 2018)

what do you suggest?

where best to put it to get best outcome, nothing past 5yrs

thanks


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## Lightning (17 Dec 2018)

Have you read the best buys thread? 

You could put it in a KBC 1 year term deposit at 0.75% if you open a KBC Extra Current Account. 

To get the best return, drop feed it into multiple regular saver accounts, if you can deal with the work involved.


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## moneymakeover (17 Dec 2018)

Post office
3 year 1%
4 year 2%
5 year 5%

I would avoid stock market for a few months

But after 6 12 months there could be good buying opportunities


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## cremeegg (17 Dec 2018)

moneymakeover said:


> I would avoid stock market for a few months
> 
> But after 6 12 months there could be good buying opportunities



We KNOW that the stock market is circa 10% cheaper now than it was a few months ago ( depending on which market and the exact time frame). 

We DO NOT KNOW where the stock market will be in 6 12 months. 

I have no idea if a stock market investment would suit the OP or not, but waiting 6 12 months is the type of buy high, sell low advice that makes many private investors losers.


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## messyleo (17 Dec 2018)

moneymakeover said:


> Post office
> 3 year 1%
> 4 year 2%
> 5 year 5%
> ...



Just to be aware the state savings rates above are the total return not the AER


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## moneymakeover (17 Dec 2018)

I meant to mention, buy low



cremeegg said:


> We KNOW that the stock market is circa 10% cheaper now than it was a few months ago ( depending on which market and the exact time frame).
> 
> We DO NOT KNOW where the stock market will be in 6 12 months.
> 
> I have no idea if a stock market investment would suit the OP or not, but waiting 6 12 months is the type of buy high, sell low advice that makes many private investors losers.


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## cremeegg (17 Dec 2018)

moneymakeover said:


> I meant to mention, buy low



Stocks are lower now than in the summer. That is not speculation. 

Any opinion as to the price of stocks in the future is pure speculation.


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## noproblem (17 Dec 2018)

It's gambling in fairness,  but with lots of tax to pay if you win


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## Steven Barrett (18 Dec 2018)

noproblem said:


> It's gambling in fairness,  but with lots of tax to pay if you win



It's not gambling. Gambling is betting on the successful outcome of one event. You either win or lose everything and you never own anything. 

Investing is becoming an actual owner of an asset. Investing in Apple stock, you become an owner in Apple (albeit a tiny, tiny, owner). You share in their successes and failures. Even if they are unsuccessful in one product, you are still an owner. You only lose everything if the company goes out of business. 

Steven
www.bluewaterfp.ie


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## Grizzly (18 Dec 2018)

moneymakeover said:


> I meant to mention, buy low



Be aware that share prices can rise and then drop around ex-dividend dates. So always check out the dates a share is going ex-dividend.


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## Grizzly (18 Dec 2018)

moneymakeover said:


> I meant to mention, buy low



Be aware that share prices can rise and then drop around ex-dividend dates. So always check out the dates a share is going ex-dividend.


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## PGF2016 (18 Dec 2018)

moneymakeover said:


> I meant to mention, buy low


This is poor advice. How do you determine if the price is low? Rhetorical question of course. 

If you're investing for 5 years or less the stock market is not the place to be.


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## cremeegg (18 Dec 2018)

PGF2016 said:


> How do you determine if the price is low?



Well maybe like this. 


cremeegg said:


> We KNOW that the stock market is circa 10% cheaper now than it was a few months ago ( depending on which market and the exact time frame).


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## PGF2016 (18 Dec 2018)

cremeegg said:


> Well maybe like this.


Lower is not the same as low.


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## noproblem (18 Dec 2018)

SBarrett said:


> It's not gambling. Gambling is betting on the successful outcome of one event. You either win or lose everything and you never own anything.
> 
> Investing is becoming an actual owner of an asset. Investing in Apple stock, you become an owner in Apple (albeit a tiny, tiny, owner). You share in their successes and failures. Even if they are unsuccessful in one product, you are still an owner. You only lose everything if the company goes out of business.
> 
> ...


I know exactly what you mean, just that I disagree with your logic. As far as i'm concerned, playing the stock market is gambling. By the way, i'm not saying it's wrong or whatever, but like backing a horse you better be prepared to lose everything even though that same horse might win some races. A horse is bloodstock, shares are financial stock, you take your chance and run with it. What will be, will be


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## Steven Barrett (18 Dec 2018)

noproblem said:


> I know exactly what you mean, just that I disagree with your logic. *As far as i'm concerned, playing the stock market is gambling.* By the way, i'm not saying it's wrong or whatever, but like backing a horse you better be prepared to lose everything even though that same horse might win some races. A horse is bloodstock, shares are financial stock, you take your chance and run with it. What will be, will be



But it's not.


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## PMU (18 Dec 2018)

CiaranT said:


> To get the best return, drop feed it into multiple regular saver accounts, if you can deal with the work involved.


Yes, but not into regular savings accounts but into a series of fixed-term deposits, with different maturities.  For example, if you are staying in cash for 5 years, put 20,000 into each of the 1-, 2-, 3-, 4-, and 5-year to maturity 'best buys' https://www.askaboutmoney.com/threads/term-deposits-fixed-lump-sum-savings.101813/. After one year, put the maturing 1-year product (capital and interest earned) into a 4 year best buy (thereby earning interest on the interest already earned in the 1-year product), after the second year, put the maturing 2-year product into a 3-year best buy, etc., and continue like this each year for 4 years. If interest rates rise over the five year period year each re-investment will capture the increase in interest rates.


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## Itchy (19 Dec 2018)

noproblem said:


> but like backing a horse you better be prepared to lose everything



Even a very basic diversification strategy should mitigate the the risk of losing *everything* in the stock market.


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## noproblem (19 Dec 2018)

"Should" being the appropriate word and not "Will".


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## Allpartied (20 Dec 2018)

SBarrett said:


> But it's not.



But it is, just a different kind of bet.  
Many people were told, in 2006, that Irish Banks were rock solid, the shares had dependable dividends, a quality blue chip stock that was a dead cert for investors.  Lots of people put their entire life savings into these dead certs. But like the sure thing in the 2.20 at Kempton Park, they can come a cropper and you lose the lot.


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## Steven Barrett (20 Dec 2018)

Allpartied said:


> But it is, just a different kind of bet.
> Many people were told, in 2006, that Irish Banks were rock solid, the shares had dependable dividends, a quality blue chip stock that was a dead cert for investors.  Lots of people put their entire life savings into these dead certs. But like the sure thing in the 2.20 at Kempton Park, they can come a cropper and you lose the lot.



Picking a cabal of banks that were mismanaged as your example? 

What about the dividends that were paid to investors for years before that? If you held the shares for long enough, you could have made back your initial investment through dividend payments alone. I am not aware of any type of betting that gives a gambler back his money over time as well as keeping his original stake...


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## Allpartied (20 Dec 2018)

SBarrett said:


> Picking a cabal of banks that were mismanaged as your example?
> 
> What about the dividends that were paid to investors for years before that? If you held the shares for long enough, you could have made back your initial investment through dividend payments alone. I am not aware of any type of betting that gives a gambler back his money over time as well as keeping his original stake...



It wasn't just Irish banks that went pop, there were loads of them.

Yes, some people won with their bet, fair play, but some people lost.  That's how gambling works.
I'm not saying it's likely, but it did happen and there is no guarantee it won't happen again.  Who knows if companies like Apple, or Facebook will be here in 5 years time, they might be mismanaged  too. If there is another crash, shareholders will take a big haircut and dividends will be suspended.  Deposit holders will be protected by the state up to 100k, so as risk free as possible. He will get a modest return over 5 years, probably several thousand and he won't have to pay any fees or charges.

In this case I would advise the lucky investor with 100k to steer clear of equities, unless he likes a gamble. 5 years is too short, there could be another 2008 style crash next year, or the year after, which would decimate his capital and might take a decade or more to recover.  If he plumps for individual shares rather than a diverse fund, he might never see his money again.


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