# What To Do With 80,000 Euro



## johnycash (12 May 2012)

Hi all i know some people will say this is a very good complaint.
I am 32 and married with no kids at the moment.
I dont own a house or have a mortgage.
I am currently renting an apartment.
myself and the wife plan on having 2 kids in the next couple of years.
I plan on continuing to rent maybe for the rest of my life as i will be left the family home in 20 or 30 years as i have no brothers and sisters and i may also be left a second home by my uncle as he has no family other than myself.
myself and my wife would like to use this 80,000 to set ourselves up for the future so that we can retire to a foreign country in our late fiftys.
my wife is unemployed at the moment and with us thinking of having kids in the next year or to i will be the sole earner for the forseeable future.
my net income monthly is 2,400.
My main question is what should i do with the 80,000 to try to help us in later years???


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## irishmoss (12 May 2012)

Just an observation but I would not count on inheriting your family home, you can't predict the future. The house could possibly have to be sold to provide for nursing home care for example. I'm not advocating buying a house but while everything is rosey in the garden now things may change in the future


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## sarahanne23 (12 May 2012)

It's a strong position to be in...however, be careful, you hardly want to spend the next 20/30 years renting...that is a lifetime!!! If you have children you will never have a place of your own if renting. Things do not always turn out as planned...
Life is too short to be planning on inheriting a house in 30 years time..your life will have passed you by! As somone else pointed out your parents may need the cash for health care in their old age...we never know what life will throw at us. If I were you I would consider using some of the cash as a deposit to buy a house...every woman wants a home especially if married with children. 
If you do go on to inherit the family home you will be in a strong position to sell/rent your own house. 
As for retiring to the sun in your late fifties..have you considered buying a holiday rental or using some of your cash to but a place abroad. Contrary to what you may think..if you have a place in the right location and maintained to a high standard there will be a demand for it. This would give you a stepping stone to the retirement plan. I would only however buy one property..in Ireland or abroad and keep the other half £40 000 for a "rainy day!!"
Good luck with your plans...live for the present!!!!


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## Jim2007 (12 May 2012)

johnycash said:


> Hi all i know some people will say this is a very good complaint.
> I am 32 and married with no kids at the moment.
> I dont own a house or have a mortgage.
> I am currently renting an apartment.
> ...



Well the first thing to do is try and get a ball point figure on what you'll need to accumulate in order to generate an income sufficient to allow you to retire at say 58. It is of course very difficult to come up with anything accurate, but that does not mean you should not try.  This is important because it gives you some idea of how much you need to save, what kind of returns you need and how much risk you'll need to take on.  Have the same plan myself.

Here in Switzerland, we keep the calculation simple: Required Income less state or other pensions divided by 0.04 or 0.05 plus an amount to plug the gap for the years before you qualify for a state pension...

So for example, suppose you need an income of 25K and get a state pension of 9K, you retire at 58 and will not receive a state pension until 65, that would mean you'd need to have some where between 380K and 490K at a rough guess.  Now I'll let you do the math on the other side, you start with 80K, make a guess at how much you can save pa and see what kind of return you'll need to achieve.


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## Purple (15 Jun 2012)

sarahanne23 said:


> It's a strong position to be in...however, be careful, you hardly want to spend the next 20/30 years renting...that is a lifetime!!! If you have children you will never have a place of your own if renting.


I see no reason why a family would or should buy their own home. I don’t see why a rented house is not their home. It’s still cheaper than buying in our still over-priced property market. This is particularly true in more expensive areas. 

If I was planning to move abroad in my late 50’s I’d be even less likely to buy a house in my early 30’s.


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