# where to invest 100k



## tech (28 Dec 2013)

Ok I have about 100k that is maturing in January and would like to it 100% capital guaranteed. I have the rest of my money split between 

KBC 
PTSB 
AIB 
BOI 
some bonds 

thanks


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## Brendan Burgess (28 Dec 2013)

This question cannot be answered meaningfully in isolation.

You need to fill out the Money Makeover format.

Brendan


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## tech (29 Dec 2013)

Age:
33
Spouse’s/Partner's age:
na

Annual gross income from employment or profession:
E49k
Annual gross income spouse:
na

Type of employment:
private sector 

Expenditure pattern:
generally savers

Rough estimate of value of home
na living at home
Mortgage on home
na
Mortgage provider:
na
Type of mortgage: Tracker, interest only, fixed rate
na
Interest rate
na

Other borrowings – car loans/personal loans etc
None

Do you pay off your full credit card balance each month?
Yes

Savings and investments:
300k in Savings / Bonds 

Do you have a pension scheme?
Yes, I pay E200pm into personal pension
Do you own any investment or other property?
No.

Ages of children:
None.

Life insurance:
Yes.

What specific question do you have or what issues are of concern to you?
I have 100k maturing from a 26 month deposit account in Jan and Im looking for some where to reinvest this, where my capital is secure and get a good return on this money, I know the banks are only offering 1.9% - 2.3% MAX 


I have funds invested in other banks  & bonds also


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## Brendan Burgess (29 Dec 2013)

Hi tech 

As you have a good income, good savings, no accommodation costs and no dependents, you do not need capital security.  You can handle the risk of short term volatility for long-term returns and lower risk. 

A diversified investment in the stockmarket is the least risky and the most likely to provide you with a higher return. Investing as you are in deposits runs the real risk that your capital will be whittled away by inflation. While the value of  an investment in the stockmarket will fluctuate, over the long term, it should outperform other asset classes, and deposits in particular. 

In any event, you should also remain as flexible as possible. Although at 33, you may feel that you can predict your future, in reality, the future surprises people. Therefore, you should remain flexible and so you should not put money away in long term deposits. 

Having said that, you probably should maximise your contributions to your pension fund. You will get tax relief on the way in, and although the Minister for Finance has created huge uncertainty over the future taxation of pension funds, I think it's still right for someone in your position on the top marginal tax rate to contribute the maximum amount. Of course, your pension fund should be 100% invested in equities.


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## tech (29 Dec 2013)

Thanks Brendan, im still slow to put any money at risk,


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## Marc (29 Dec 2013)

You don't have 100k that you need to keep safe. You have a sum that you need to keep safe and accessible, lets call that "savings" that you know you need to spend or think that you might need to spend and another part that is not required in the near future for planned expenditure or an emergency fund lets call that "investment capital"

The real key here is to work out how much to allocate to each part and this should not be determined by interest rates or marketing brochures or anything other than this: what do you need the money to do for you?

For example, if you know you are going to buy a house in the next year then irrespective of how poor an "investment" cash is, you are not an investor and you should keep your savings accessible on deposit.

Your investment decisions should be determined by your need, willingness and capacity for risk in the context of what you need your money to do for you.


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