# What to do with Savings?



## Anker92 (13 Feb 2021)

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Age: *28
*Spouse’s/Partner's age: *N/A
*
Annual gross income from employment or profession: *70K (+30-35k ish after tax in bonus's etc)
*Annual gross income of spouse: *N/A
*
Monthly take-home pay *3750 + 1.5-2k from the +30 above
*
Type of employment: e.g. Civil Servant, self-employed *Permanent - Private sector
*
In general are you:
(a) spending more than you earn, or
(b) saving? *This one - Save 4k ish a month give or take
*
Rough estimate of value of home *N/A - Rent paid by work - I've this included in the +30k above
*Amount outstanding on your mortgage: *N/A
*What interest rate are you paying? *N/A
*
Other borrowings – car loans/personal loans etc *No
*
Do you pay off your full credit card balance each month? *Don't use one
*If not, what is the balance on your credit card? *N/A
*
Savings and investments: *70K Cash , 30K invested
*
Do you have a pension scheme? *Yes, Pay 5% atm matched, upping this to max at the moment. Next year work will match up to 12%. Barely started this so only a few K in it.
*
Do you own any investment or other property? *N/A
*
Ages of children:  *N/A
*
Life insurance: *Through work, not sure of the details off hand
*

What specific question do you have or what issues are of concern to you? *

Seems like a waste leaving 70K sit in the bank and adding 4k ish a month and gaining zero interest. so basically ideas on what to do with this? Especially now with covid can't spend any for the time being on holidays etc. Was considering buying a buy to let but then you hear horror stories on this.

Thanks


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## jpd (13 Feb 2021)

Are you prepared to risk losing some or all of the 70K?

If not, then the best you can do is buy some prize bonds - with 70k, you could expect to win about € 200 per annum


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## Slippers (13 Feb 2021)

Is working paying your rent a short term arrangement or an indinfite arrangement?

You make reference to buying a buy to let.  Is that in Ireland, and long term do you want to buy a PPR in Ireland?


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## Mousehelp (13 Feb 2021)

jpd said:


> Are you prepared to risk losing some or all of the 70K?
> 
> If not, then the best you can do is buy some prize bonds - with 70k, you could expect to win about € 200 per annum



I have €100k in Prize bonds and I win nowhere near €200 a month. In fact,  on average I win about €50 every 2 months.


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## PebbleBeach2020 (13 Feb 2021)

200 per annum. that's a year, not a month.


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## Clamball (14 Feb 2021)

Would you consider buying a weekend home, someplace to consider retiring to in the future?  You have a good deposit and with €4K savings per month you can furnish etc.  You are still very early in your career so will you have future life plans, spouse, children, hobbies to consider if your career path changes.  

Having work pay for your accommodation allows you a lot of freedom.


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## Anker92 (14 Feb 2021)

Slippers said:


> Is working paying your rent a short term arrangement or an indinfite arrangement?
> 
> You make reference to buying a buy to let.  Is that in Ireland, and long term do you want to buy a PPR in Ireland?


Yeah would be Ireland and correct. More i look in to BTL I'm not so sure


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## Mousehelp (14 Feb 2021)

PebbleBeach2020 said:


> 200 per annum. that's a year, not a month.



Apologies. I somehow read per month


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## Slippers (14 Feb 2021)

Hi Anker92

Can you give more detail.  Reading your initial post, to me, it reads that the rent paid by your employer is part of your "+30-35k ish after tax in bonus's etc".  

Is work paying your rent a short term arrangement or an indefinite arrangement?
What percentage of the bonus is rent?
If work stop paying rent, does your bonus value change?


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## Anker92 (14 Feb 2021)

Clamball said:


> Would you consider buying a weekend home, someplace to consider retiring to in the future?  You have a good deposit and with €4K savings per month you can furnish etc.  You are still very early in your career so will you have future life plans, spouse, children, hobbies to consider if your career path changes.
> 
> Having work pay for your accommodation allows you a lot of freedom.


Thanks for the reply

No, retiring is a long way off and what I think I want now will definitely change between now and then. Don't see my career path changing bar progressing up as my industry is fairly solid/ covid proof etc.


Slippers said:


> Hi Anker92
> 
> Can you give more detail.  Reading your initial post, to me, it reads that the rent paid by your employer is part of your "+30-35k ish after tax in bonus's etc".
> 
> ...


Hi Slippers, 

So i just lumped it together, hindsight probably shouldn't have. 

To make it easier to read:
70k salary
20-25k bonus
Rent paid indefinitely


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## Slippers (14 Feb 2021)

Do work own the property you are staying in, and is covering rent indefinitely in your contract?  If work are covering your work indefinitely that gives you a lot of flexibility, and really allows you to take your time on making a decision.    

My personal feeling is to continue pay into your pension and save with the intention of buying a PPR either outright or with a very small mortgage in 2 to 3 years. 

There was a scary article about the cost of Dublin apartments in todays SundayBusiness post.  Mental numbers, whether that remains reality who knows?  I also acknowledge that you may not be in Dublin and that the property market is more than just Dublin.  In 2 to 3 years if buying a PPR is of no interest, at least you will have a cash pile to put into something else.        

Until Covid passes and the world re-opens I feel now is not the time (unless a seasoned campaigner) to be making any big financial decisions/commitments.

Note:  I used the word "feel".  It is not based on any facts or figures.  I could be completely wrong but I feel having a large cash pile in the coming years will serve people well.  Come the time there may be many out there bringing 50 => 80k cash to the table, but I suspect there won't be many bringing 150k+ cash to the table.


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## Anker92 (15 Feb 2021)

Slippers said:


> Do work own the property you are staying in, and is covering rent indefinitely in your contract?  If work are covering your work indefinitely that gives you a lot of flexibility, and really allows you to take your time on making a decision.
> 
> My personal feeling is to continue pay into your pension and save with the intention of buying a PPR either outright or with a very small mortgage in 2 to 3 years.
> 
> ...



You make a few very good points there now. I don't what to throw this money into something just for the sake of it either so might be best to wait awhile. 

And yes, work pays my rent/bills indefinitely and it is in my contract.

Thanks


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## presidenttttt (19 Feb 2021)

If employer will match/contribute 12% into pension then contributing 12% is a no brainer and should have be done tomorrow, it is essentially free money, and amazing how many people do not avail of it.

I would want a property.  Someday your rent will not be paid - retirement, or far more likely a big move, an unexpected change, whatever. There are horror stories about BTL however much of that relates to people with 2nd and 3rd properties, dealing with high BTL interest and capital gains tax. Given your comfortable position, but wider uncertainty I would play the long game for return on investment, and therefore i wouldn't touch an apartment. Using the benefit of not needing to rush to market  I suggest monitoring locations and getting a feel for value, with a view to building a deposit to buy a decent property in a good area, which you have as a back up and can rent in the meantime.

So; pension to 12% asap, build a deposit for a decent property, and after that max pension.


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