# What to do with cash



## RobAMerc (27 Aug 2007)

Age:    :33
Partner :30

   Annual gross income from employment or profession:  K
   Annual gross income spouse:  k

   Type of employment:  self-employed / permanant.

Expenditure pattern: Saving.

   Rough estimate of value of home - € k
   Mortgage on home - € k
   Mortgage provider: TSB
   Type of mortgage: Tracker 
   Interest rate

   Other borrowings – car loans : 3k

   Do you pay off your full credit card balance each month? Yes
   If not, what is the balance on your credit card? 0

   Savings and investments:

   Do you have a pension scheme? Yes -  pm 

   Do you own any investment or other property? No

   Ages of children: 0

   Life insurance: yes.

I have about  k saved, any idea whats the best thing I can do with it ? My  job is not very secure so I would like to keep  k fairly liquid if possible.

Thanks for your help.


----------



## ClubMan (27 Aug 2007)

Are you on the best tracker mortgage rate available for your circumstances (e.g. c. 64% _LTV_)? Perhaps getting down to 60% _LTV _or less might yield additional interest rate savings? And maybe you could also save a few bob by taking out alternative/lower mortgage protection life assurance? Clearing the car loan would presumably save a few bob? Do you need life insurance (assurance?)? Can you work towards getting more secure employment? If you need €5K available on demand then make sure to get the best deposit rate (e.g. 5.22% gross _CAR _with _First Active _or 5% gross _CAR _with _RaboDirect_). Check out the _Financial Best Buys _forum for the best deposit rates on offer.


----------



## RobAMerc (27 Aug 2007)

thanks clubman,

Nearly 10k is in RaboDirect savings account - €1500 in RaboFunds and I sent the forms for a First Active account last week, for the remainder.

I'm not sure if remortgaging is an option as my company is only trading for the last  18months so banks maybe a bit cagey as to take me on.

I suppose the car loan is a bit silly, but to be honest I have blown a shocking amount of money in the past and am worried the repayments might end up somewhere stupid rather than in my savings account so I keep it.

So in the light of new information, am I using this cash is the best way possible ?


----------



## Bob_tg (27 Aug 2007)

Are you maxing out on the monthly regular savers accounts?  (For example AIB @ 7.1% or EBS @ 7%... etc.)?


----------



## RobAMerc (27 Aug 2007)

No is the short answer, are you suggesting I used the lump sum held on deposit @5% to fund one of these @ 7% ?


----------



## Bob_tg (27 Aug 2007)

After you've exhausted all your usual surplus each month, then you could raid your lump sum account to max out.  A bit of admin, but this is what I'm doing.   The 7% rates end at various points over the next year.


----------



## Brendan Burgess (27 Aug 2007)

Hi RaM 

I think you have things going fairly well. No significant borrowings apart from the mortgage. Good equity in your home. Some savings. A good income. 

Check out with NIB if they will give you one of their mortgages which are very cheap for people with low LTVs. You have nothing to lose by asking. 

The main worry you have is job security. Does this mean that your work might dry up altogether or that your income might reduce significantly? 

On the one hand, you would like to have cash available  for any period of reduced income. On the other hand, you might be better off getting your mortgage down, so that the repayments are lower if you do get into trouble. And as ClubMan points out, you will probably qualify for a lower interest rate on a lower LTV mortgage. 

You could put more money into your pension but the downside would be that this won't be much use to you if your income falls and you need cash.

Brendan


----------



## ClubMan (27 Aug 2007)

RobAMerc said:


> I'm not sure if remortgaging is an option as my company is only trading for the last  18months so banks maybe a bit cagey as to take me on.


I presume you mean switching lenders as opposed to remortgaging (for a higher emoung since I did not suggest that)?


----------



## RobAMerc (28 Aug 2007)

ClubMan said:


> I presume you mean switching lenders as opposed to remortgaging (for a higher emoung since I did not suggest that)?



I apologise, I thought in order to switch lenders I would have to go through the hoops again to basically remortgage, but if switching lenders is an option I will certainly look into it. Thank you very much.


----------



## ClubMan (28 Aug 2007)

Yes - the terms are somewhat interchangeable but I normally presume remortgaging to imply topping up and switching to mean, well, switching. Just wanted to clarify what I actually meant in my first post!


----------

