100K to invest (pension is maxed out)

LadyInvestor

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Hi All, I have a lump sum of 100k to invest. My pension is fully contributed to.

I am on tracker mortgage with a family member that cant add more payments so that limits me.I have a 6 months emergency fund.

Have a deGIRO account and a Davy Self invest PRSA. Have no idea what to do, this lump sum has been sitting in my account for over a year and am determined to make it work in 2020. Have average risk appetite . Any advice is much appreciated. Thanks
 
5-year State Savings Certificates is one option for your after-tax savings, while keeping your PRSA 100% invested in equities.
 
How long can or do you plan to you lock the money up for, or for example 50k for 3 years as 50k for 7-8 years?
 
Will you be maxing tax-relieved contribitions for the next decade?

If not, then wait til you have headroom and then drip in the 100k to take you up to the ceiling every year.


Otherwise you can always top up your pension fund immediately without advantage of tax relief. You will still benefit from tax free returns.
 
Thats kind of money, i.e. money left after pension, mortgage, and cash pot, irrespective of amount, should be invested in stocks.
 
I am on tracker mortgage with a family member that cant add more payments so that limits me.

I don't understand that. Could you elaborate?

Say you have a joint mortgage of €100k at 1% making repayments of €400 a month or €200 each.

You can pay off €50k of it and your fellow mortgage holder will still make their repayments.

Of course, you need to document it and it won't change your liability to the bank if your fellow mortgage holder doesn't meet their repayments.

I think that this is an option you should consider.

The other question is do you want to buy a house of your own? If so, then having the cash available would be the best option.

Brendan
 
The current series of 5-Year State Savings Certs would produce a State guaranteed, tax-free, return of 0.98% per annum.

I suspect that's pretty close to your current tracker rate (less any mortgage interest).

It's not exactly the same thing as paying down the mortgage but it's a pretty reasonable substitute.
 
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