# 180k to deposit and invest



## Ship_da_loot (31 Oct 2012)

Hi all.  
I'm lucky enough to have about €180,000 to invest/save/put away etc.  I was wondering if it's a good idea to spread it around a lot?  I have a basic idea of what to do with it, but I would like someone to throw an impartial eye over my plan.

€50,000 into state saving certs or bonds.  For either 3 or 4 years. 
€10,000 into my AIB 7 day notice account - 
€10,000 into my AIB 30 day notice account
€10,000 into my credit union account
€70,000 into a KBC term deposit account.  For 1 year
€15,000 into a few ETF's
€15,000 into Gold (physical)

Thoughts?

Thanks


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## amadain (31 Oct 2012)

First of all, put 120k into this asap !




STATE SAVINGS BONDS 

3 Years 3.23% (A normal deposit account would need to be paying **4.61%* to match this rate because this product is not subject to DIRT at 30%.) ***High Rate*** 
*Maximum: €120,000*
Early withdraw is possible but is subject to interest penalties.
Deposit Protection: Unlimited via Irish government sovereign debt guarantee.


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## Lightning (31 Oct 2012)

Ship_da_loot said:


> €10,000 into my AIB 7 day notice account



Why? You can get a better return for your money elsewhere with a similar product. 



Ship_da_loot said:


> €10,000 into my AIB 30 day notice account



Why? You can get a better return for your money elsewhere with a similar product. 



Ship_da_loot said:


> €10,000 into my credit union account



Why? You will get a zero return or a near zero return from the credit union.


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## Ship_da_loot (31 Oct 2012)

Mostly for ease of access.  Admittedly the 30 day and the 7 day are not strictly instant access, but the CU is.  Also I suppose it's somewhat out of loyalty. - Pretty foolish I admit


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## Dermot (31 Oct 2012)

Look for the best deal you can get with the access that suits you.  Never mind the loyalty part as banks no longer have any appreciation for that sort of thing. Your bank manager may think he is a very important person but not many of them can ok much in excess of 10k. If you do not require some of the money for a long time you might consider locking in for a good long term rate as I feel banks are going the route of lowering deposits rates into the future.


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## The Ghoul (1 Nov 2012)

30k between instant access and notice accounts seems like a lot but obviously I have no clue about your circumstances or risk tolerance. IMO you should think about the percentage of your income that you save and whether you got the 180k through regular saving or a windfall. If you got a windfall and save a low percentage of your income then you might invest differently than if you have a steady job and save a large percentage of your income.

Remember that you can encash State Savings bonds and certs with 7 days notice. There may or may not be a big interest penalty if you encash early - depends on the anniversary. Also, State Savings products pay more interest in the last 6 month/1 year period before maturity than they do up to that point so it is advantageous to leave them the full term.

You could buy 6 x 10k in 3 year bonds and 6 x 10 k in 5.5 year certs. That way if you need 10k you can just encash one of them.

Do you have a credit card. Credit cards are dangerous in the wrong hands but can be useful for someone who is disciplined and also has 180k in the bank. See the below blog and comments about credit cards and emergency funds.
http://earlyretirementextreme.com/i-dont-need-an-emergency-fund-i-have-a-credit-card.html

Just a few thoughts.


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## Ship_da_loot (2 Nov 2012)

Thanks all for the input.

So what you are all saying i should take the 30k from the short term notice acc's and put them into decent (state savings) certs.  Should i forget about the KBC 1 year deposit acc or just limit the amount i put in there?  The use of my credit card(s) is a good idea as an emergency/quick access fund as I've a limit of about 22k and pay it off fully every month.

FWIW.  The cash is result of a windfall.  I've no mortgage (just Paid it Off).   And have an net income of about 3k a month.  In the next couple of weeks  I will be arranging to save about €500 a month.

What do you all think about the 30k into Gold and ETF's?  I know there's a lot of people on here who dislike gold (including my FA) but is it worth having a little gamble on?  Using this cash as an income generator has some appeal to me, but I suppose i need to wait a couple of years to see how I get on with a small amount before i invest substantially more.


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## Jim2007 (2 Nov 2012)

Ship_da_loot said:


> I'm lucky enough to have about €180,000 to invest/save/put away etc.  I was wondering if it's a good idea to spread it around a lot?  I have a basic idea of what to do with it, but I would like someone to throw an impartial eye over my plan.



What is your investing objective?  Your plan can only be evaluated against your objectives.  You may be taking on more risk than is necessary to achieve your objectives or perhaps not enough... without knowing one can't comment...


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## amadain (19 Feb 2013)

Ship,

What did you do ?


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## Ship_da_loot (20 Feb 2013)

Hi amadain,

Thanks for your interest - it's a pity I don't get more from my bank.....

Anyway here's what I've done so far.

€80k into state savings (3 year certs)
€20k into a BCP high yield investment bond (5 years) 
€9.8k into my 7 day notice account
€10k into my 30 day notice account
€30k into various ETF's, ETC's and stocks/shares
€10k into my credit union
€20k is still in my current account.

So essentially I really only 'invested' €130k - the rest is faffing about in low/no interest accounts.  I'm putting €500 p/m away now too, but that's going into my CU account (it's easier as it's my work CU).  It's only been three/four months, so I'm trying to see where I'm at before committing to putting the €40/€50k away for the medium to long term.  Using the cash in my current account for a couple of holidays and some mickey mouse home improvements, but with the salary coming in, it shouldn't take too much of a hit.  Unfortunatly - deposit interest rates are falling rapidly so I can't wait too long.

FWIW, I didn't buy any gold. 

Comments?


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## amadain (25 Feb 2013)

Hope you lodged the 80k _BEFORE the *16th December*_ as the rates decreased after that date.

STATE SAVINGS BONDS 3 Years was 3.23%. (NOW only 2.28%, but still Tax Free) from 16th Dec.2012.


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## Ship_da_loot (26 Feb 2013)

yep, lodged on the 27th november.


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## billdavies63 (1 Mar 2013)

*DIRT and age*

I have 150k available for deposit.  I am 76 years old.  Is DIRT liability affected by age?  Or is it irrelevant and I must pay the 33%

BillDavies


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## suzie (1 Mar 2013)

There is exemption based on age


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## dub_nerd (1 Mar 2013)

suzie said:


> There is exemption based on age


 
Based on age _and_ income.


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## Trapper (1 Mar 2013)

A practical question (not meant to be morbid) but what happens if you die during the period of the state savings bond? Does your estate loose all its interest? I can't find any info on the NFMA site


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