# 40K in cash but where to invest?



## Gunnerbar (29 May 2020)

Hi,

I have about 40K (life savings) in cash and I haven't much experience in investing in funds or stocks - some but noting I'd be confident about. 

I've increased my AVCs to max.

What would peoples advice to me as I really don't want to leave the cash on deposit for obvious reasons. What would you do?

Maybe a recommend a broker or consultant that I could have a word with. 

Any help would be appreciated. You can PM if you have an idea for a broker.

Thanks


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## Gordon Gekko (29 May 2020)

What are those ‘obvious reasons’?

One should always maintain a cash reserve; you describe this as your “life savings” and €40k isn’t a king’s ransom.

What’s your income per year (net) and what’s your annual expenditure?


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## Gunnerbar (1 Jun 2020)

Well i would have thought anyone would realise that having money on deposit is negative growth to a degree. Do I have to tell you that? And no i'm not a King or have a ransom. I'm a modest worker who has a little saved and just wanted some guidance as to where to make the best of. I also have other cash reserves as well as my pension which I've increased my AVCs. I've also no outstanding repayments.


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## Saavy99 (1 Jun 2020)

Gunnerbar, 40k is a nice chunk to have in savings unfortunately interest rates have never been as dismal, so dismal that it is nearly a disincentive to save. Have a look at raisin.ie, you could park your savings with them for the time being as they offer a better rate than any Irish bank.


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## Gordon Gekko (1 Jun 2020)

Gunnerbar said:


> Well i would have thought anyone would realise that having money on deposit is negative growth to a degree. Do I have to tell you that? And no i'm not a King or have a ransom. I'm a modest worker who has a little saved and just wanted some guidance as to where to make the best of. I also have other cash reserves as well as my pension which I've increased my AVCs. I've also no outstanding repayments.



Indeed it is. And no, you don’t have to tell me that.

It is difficult to make any meaningful suggestions without the full picture; you described the €40k as your ‘life savings’ but now it transpires that you have other cash.

Conventional wisdom is that one should maintain a certain amount of cash to cover emergencies. Some people suggest six months’ worth of household expenditure. Other people simply pick an amount that gives them comfort. My number is €50k for what it’s worth. It’s not a king’s ransom but it’s my own personal balance between expenditure and comfort.


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## Laughahalla (1 Jun 2020)

Hard to give good advice without knowing your circumstances but If you have two steady incomes in the family then 3 months of expenses(not income ) should be put away somewhere safe, it doesn't need to be invested just easily accessible. If only one income you may want 6 months of expenses. Think of it as insurance.

If you have any consumer debts put the balance towards the debt or even if you have mortgage debt it's always nice to pay that off. You get a guaranteed return of the interest rate paying debt off. If you have children then there is a chance they might want to go to college, this will be costly so you could put money away that takes the sting out of college expenses.

I suppose what I'm trying to say is that there is many places to put your money before I'd lock it away in an investment.


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## NoTomLan (1 Jun 2020)

Very hard to advise based on lack of info. Suggest OP revert with complete financial situation, savings, pension, house ownership etc. If you have a non-tracker mortgage, likely paying 40k off that is reasonable use of funds.
[Edit] assuming OP's second post that mention "no outstanding repayments" a
means mortgage free then it's less clear cut especially with "other cash reserves". I think you should give actual figures for " other cash reserves " and pension etc to get better answers.


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## Gunnerbar (2 Jun 2020)

The 40K I have is for investing. Maybe I shouldn't have said it was my life savings. I have funds as has been mentioned above besides that. I have no debts or mortgage and have a steady income sub 50 K PA (only). 

I just have this sum that I want to work for me over the next 15 -20 years and get maximum return with medium to medium/high risk. Obviously the markets are in flux at the moment. 

I just would like some direction as to what are the best and cheapest products around for a medium/long term investment. And if theres value in the market now where to focus. 

Ideally I wish I was in an investment club where I could gleam some information. 

I'm in my fifties now and just want to take advantage of opportunities. 

Thanks.


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## Sarenco (2 Jun 2020)

Do you have any say over the investment of your pension savings?

At 50, most pension providers would have a material amount of your pension invested in bonds.  One option is to increase your allocation to equities within your pension (perhaps by €40k) and hold your after-tax savings in (tax-free) State savings certs.

Simplicity is the ultimate sophistication.


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## Gordon Gekko (2 Jun 2020)

Gunnerbar,

This is like trying to get blood from a stone.

You’ve been asked for more detailed information which still isn’t forthcoming.

As a result, you’re unlikely to get the help or advice you’re looking for.

Gordon


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## Gordon Gekko (2 Jun 2020)

“Hi Doctor, I have a pain in my chest; can you help me?”

“Of course; can you just tell me a bit about yourself and maybe a little bit more detail about the pain?”

“NO, I HAVE A PAIN IN MY CHEST...THE REST IS IRRELEVANT! WHY WON’T YOU JUST HELP ME?!”


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## Laughahalla (2 Jun 2020)

I'd stay away from investment clubs. If you are willing to take some risk you could put 10k of it into Mintos ( basically loaning money to companies that loan to subprime borrowers) .  I've been messing about with this for about 6 months now and so far haven't lost anything and it is on track to make approx 9% per annum. 

Maxing the pension is the best show in town as far as I can see and you seem to be doing that.

If you are looking to buy shares then I would buy companies that sell products you really like and regularly pay dividends. Check out what the tax liabilities are though. Might be cumbersome.

If you think you'll need to update the house or car in the next couple of years I'd not bother investing it.


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## Brendan Burgess (3 Jun 2020)

Thread closed as OP was offensive to replies he did not like


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