100K to invest please recommend best options.

M

Mapara

Registered User
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Hi
I am in the lucky position of having 100k to invest so wondering whether to use it as a down payment on a buy to let and top up with a mortgage to around 250k or would an investment fund be a better way to go, or what other suggestions might you guys have.
 
It’s impossible to give a meaningful recommendation without understanding your overall position and your attitude to risk.

Do you have an existing mortgage?
Do you have a pension?
Do you have savings?
What are your family circumstances?
How might you react if your investments fell in value by 10/20/30/40%?
What’s your income?
What other investments do you have?
How old are you?

They are just some of the pertinent questions.
 
And do you have any loans? Paying off existing loans normally gives the highest rate of return.
 
True Galway_blow_in, but to clarify, they need to check the interest rate on the loan and check what you would get by deposit/investing.
I would guess, most credit union, credit card, car or personal loan will have a higher interest rate.

Assuming they have loans in the first place.

The OP will need to do a bit more leg-work/give more information.
 
Buddyboy said:
True Galway_blow_in, but to clarify, they need to check the interest rate on the loan and check what you would get by deposit/investing.
I would guess, most credit union, credit card, car or personal loan will have a higher interest rate.

Assuming they have loans in the first place.

The OP will need to do a bit more leg-work/give more information.
Click to expand...

Ah OK, i didn't realise the OP was just looking for a savings investment
 
Just to give you guys some more info on my situation.

I aged 55

No Mortgage on PPR

Investment property value about 200K...no mortgage

Pension. Of about 200k

Savings 100k
Shares. 70K

Income 70k

Rental income. 19200

So hopefully this helps to give a more informed opinion.
 
Hi Mapara,
to get the best possible answers, you might consider filling out the form here

Key Post - Basic information required for the "Money Makeover" forum

It can be difficult, but please try to use a meaningful title in your thread For example "27 year old with mortgage arrears". You will get a much better and much more coherent answer if you give as much information as possible in your first post. For example, if you give your mortgage rate, it...
askaboutmoney.com

Also, have a look at previous threads on the same or similar questions. There is a wealth of information there.

(for example, the fact that we now know you have an investment property will change the answers given).

The more information you provide, the better.
 
You seem to be pretty underfunded on the pension side; at 55, you can put €70k x 35% (i.e. €25k) a year away, so I’d focus on that. Maybe write a cheque for €50k now less whatever you’re currently putting away, i.e. 2019 and 2020 contributions? €20k of it will come back to you in time in the form of tax relief.

Then keep contributing the €25k for 2021 and subsequent years until you’re 60 and then ramp it up again in accordance with the rules.

Then I’d set aside 6 months’ worth of net salary (say €25k) and keep it in cash.

Then I’d forget about buying more property as you’re already overexposed to the asset class and to the geography.

I’m going to assume that you have the €100k in savings and we’re talking about another €100k.

So we’ve committed €55k to cash plus pension.

I’d add the other €145k to the €70k of shares you already have, review those shares (are they global or legacy Irish junk for example)? My aim would be to end up with a €215k diversified and global investment portfolio with a focus on a 10 year plus time horizon.

If there aren’t two tranches of €100k, I’d add the €45k to the €70k and just build a smaller portfolio using collectives rather than direct stocks.
 
@ Mapara,
If I were you I'd invest the lot with Fundsmith.co.uk T class product & watch it blossom.
 
Fundsmith.

A low turnover, concentrated portfolio of 25-30 stocks, with an AMC over 1%.

Well, it wouldn’t be for me but each to their own.
 
@Sarenco fully agree each to their own but it's been kind to us:
4166
 
Well, the fund has only been in existence for 9 years, which is not a long time in stock market terms.

In any event, past performance is not predictive of future returns.
 
Horatio said:
Any counter proposals for his 100K?
Click to expand...
I would invest the €200k pension pot in a global equity index fund and use the bulk of the €100k cash savings to buy 5-Year State Savings Certs.

He would still have more than 80% of his investments in risk assets (equities and property), which I think is plenty for a 55 year old.
 
I wouldn’t trust the state with a dime I didn’t have to tbh. I’m not familiar with the certs at all but state is a red flag imo. What do they return?
 
Horatio said:
What do they return?
Click to expand...
1%pa. No tax, commissions or fees.

Pretty good compared to 5-year Irish government bonds, which currently have a negative yield of around -0.4%.

The market does not share your view on the creditworthiness of the Irish State.
 
Horatio said:
I wouldn’t trust the state with a dime I didn’t have to tbh. I’m not familiar with the certs at all but state is a red flag imo. What do they return?
Click to expand...
Best buys. Take a peek, 100k in 5 year state savings as ~Sarenco suggested.
 
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