# Recently won 20k - need investment advice.



## johnboy26 (7 Aug 2013)

Hi all recently won 20k in a credit union car draw.

A few ideas I've had are to buy saving bonds, but coincidentally AIB rang and were talking about 30 day saving accounts...

Any ideas on how to best invest it to make an extra few bob?

Thanks


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## emeralds (7 Aug 2013)

Congrats on your win!
Do you have any short term debt that you could pay down - credit cards?


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## Lightning (7 Aug 2013)

Have you read the best buys?


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## johnboy26 (7 Aug 2013)

Thanks! I have a car loan of 3k but other than that debt free!

Ya had a look at the best buys alright! Was just looking for other opinions


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## Ryan (9 Aug 2013)

My first suggestion would be to clear the car loan as these loans usually carry high interest.  Then invest the remaining 17k in an account to suit your needs. This depends on factors such as how long you want to lock in for etc.


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## Ship_da_loot (11 Aug 2013)

Receiving a sum of money like this can be a bit overwhelming for some people.  They're not quite sure what to do with the dough.  They immeadiatly think that putting it away for some time might be the best course of action.  However  - I for one think differently.

According to the Best buys the Op can  make an maximum of $140 pa  (approx) on 17k pr year.  Now in my opinion - that's SFA.  (i'm not counting nationwides regulaor savings acc as i dont belieieve it'll stay like that.)

Not much eh?

So why not enjoy it?  Spend it on something.  A really nice holiday that you'll remember for  the rest of your life.  A new car?  If you have kids - buy them something nice.  Sure you could put it away for ten years but the return on the amount of not worth it IMO. 17k over ten years with state savings amount to about 1100 in interest (please check my figures). Enjoy it in these times of tightness.

SDL


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## Evander73 (18 Aug 2013)

Spending your winning on 'a nice holiday'  or 'something nice for the kids', to put it nicely ,is not a very prudent piece of advice, IMO. The fact you have an existing car loan suggests you don't have other financial resources to replace your car, or other high cost items, as they arise.  So, what happens when the prize money is spent and you encounter such expenditure - another loan, paying interest?  This is a double whammy i.e. you're paying interest rather than receiving interest on your money - a recipe for financial hardship. The kind of thinking which largely contributed to the Celtic Tiger credit disaster. 

So, the prudent (some would say, boring) thing to do is to pay off the car loan and save the rest in a product which suits your needs, while trying to add a little to your lump sum via a regular savings habit.  While this approach is not likely to make you rich, it is a recipe for financial security and piece of mind, which is 'priceless', to borrow a phrase!


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## Redshoes (18 Aug 2013)

Where is 'best buys' on the site?


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## kev53 (18 Aug 2013)

Couldnt agree more with Evander73, to go splash on 'a nice holiday'  or 'something nice for the kids' is bonkers, IMO. You can have a nice holiday for a few hundred, payoff the car loan, pay the health insurance, put the balance in best currently available interest account. While boring, piece of mind to have a little pot in case of a rainy day is indeed priceless. Just look at all the people pulling their hair out at the moment with money worries. I prefer the piece of mind!


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## theresa1 (18 Aug 2013)

Redshoes said:


> Where is 'best buys' on the site?








http://www.askaboutmoney.com/showthread.php?t=90481 - start here.


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## dnme (6 Oct 2013)

First post so hello all.

OP, I agree with both arguments above really. I think first pay off the car loan as this is costing you at least 6-7% if the loan is with a Manufacturer but probably 10+% more like if the loan is with a bank.

Then I would think about taking a pool of the cash, say 7-10k and putting it on deposit at the best possible rate you can find.  Nationwide UK do a 4% product for example.   Think of this as your backup rainy day savings fund. Use it for emergencies, also as leverage for future borrowings / credit ratings etc. Keep this and add to it. Set up a dd into it however small from your current account.  If you do have to plunder it for emergencies, try and restore it when you can.

Then use the rest to improve your life. A holiday, or some sort of treat. New car etc.

I just think that deposit interest rates are so ridiculously mean now, and to make matters worse the government then takes another third off anything you do earn on your savings, so saving money atm is almost a stagnant process. There is no proper incentive to save and when you think about "real" inflation, *saving money costs us* these days.


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## DerKaiser (6 Oct 2013)

dnme said:


> There is no proper incentive to save and when you think about "real" inflation, *saving money costs us* these days.



I agree with your advice but not the justification. It's unexpected money so unless you having a pressing need, spend at least some of it on yourself!

The incentive to save these days is not about the rate of interest, but putting aside the capital for when you need it. Inflation is very very low for now, so even with very low interest rates your savings are retaining their value in real terms.


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