# €40k - what to do



## Jed3kids (14 Jul 2012)

We have €40k and we were going to pay it off our mortgage but our bank won't renegotiate with us. They will take our money but that's it so we are not interested. Have also looked into moving banks but yet again this is a no go.

Would like to invest some or all off it for up to 5 years in the hope that the situ with the banks maybe a bit better and then we can use it to our best advantage.

Have no idea where to start looking really. Any help would be really great.

Thanks


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## Jed3kids (14 Jul 2012)

Nope not in neg equity. Tried AIB to take us on and they won't. Hubby sole earner and say we need to have €2800 to live on a month after loans and mortgage taken out. But we have no loans. Thats for 2 adults, 3 kid.

pTsb is our bank and we wanted to remortgage and take out a lesser loan to avail of lower interest rates but they say once we are on the system that's it. We are currently paying 4.69% on €139k so we can either reduce our term to 12 years and keep same payments or reduce repayments to about €654 over 20 years. 

We were hoping to try to negotiate a better interest rate but they say no.


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## Jed3kids (16 Jul 2012)

Anyone???


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## better (17 Jul 2012)

*Pay off mortgage*

Paying off the mortgage, partially as in this case, with the available cash seems a good deal as you are going to save in interest money (unless you have a way to invest the cash which is safe/r and with greater returns)


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## tester1 (17 Jul 2012)

Never give bank all your money cause they dont ever give it back. 

What I mean is keep a pot of money for emergencies etc is your hubbies job safe. If it isnt keep a lump sum to keep up payments while he would be out of work etc or for rainy days.


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## JohnM1 (17 Jul 2012)

When you say you're looking to invest the money for 5 years and then see if "the situ with the banks may be a bit better", what do you mean?  Where do you hope to be in 5/10 years financially?

Planning for where you want to be financially in 5/10 years FIRST, and then evaluating investment opportunities as to how they could meet this 5/10 year goal would probably seem like the first stop.


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## petminuti (18 Jul 2012)

I believe you need to divide your money on three groups. You know - one for higher risk, one for more secured investments and one part in cash in the safe for emergency.


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## Slim (19 Jul 2012)

cashier said:


> I am sorry but I still have no idea what the OP is on about


 
I think OP wants somewhere to invest the €40k for 5 years in the hope the bank will negotiate either a discounted reduction in his capital or allow him switch to a lower rate, or another bank will welcome him with open arms to a better mortgage deal.

National Savings Bonds from an Post?


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## Jed3kids (19 Jul 2012)

Slim said:


> I think OP wants somewhere to invest the €40k for 5 years in the hope the bank will negotiate either a discounted reduction in his capital or allow him switch to a lower rate, or another bank will welcome him with open arms to a better mortgage deal.
> 
> National Savings Bonds from an Post?




That's it in a nutshell. Thanks


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## Molli (19 Jul 2012)

Post Office Savings Certs give something like 21% interest after 5 and half years, tax free which is excellent.


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## gbh2930 (23 Jul 2012)

I would use the money to put in place as many steps as possible of this money makeover process. Complete each step before moving on to the next and see how many steps you can complete. Get his book or workbook and work through the recommendations - I think its very good
daveramsey.com/new/baby-steps/

And go see an IFA for the finer details of what products are available in this country but do it with goal of fulfilling the steps recommended above


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## confide (24 Jul 2012)

While you're deciding what to do with it, you should put it in a RaboDirect online account - the interest is higher than a standard current account.


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