100K to invest please recommend best options.

Horatio said:
Wait, what?
That's 105k after 5 years. What am I missing here?
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Nothing. That’s the State guaranteed, tax-free return.

It’s entirely possible that a €100k investment in Fundsmith could be worth €50k after five years. Or €200k. Who knows?
 
Sure Fundsmith piece aside for the moment, surely you could do better than 1pa with acceptable risk. I'm even more convinced now that I wouldn't touch those certs.
Sure inflation is around 1.5% right? But like you said earlier to each his own.
 
If you know of any investment instrument that will give you a State guaranteed, tax-free, return of 5% after 5-years, I’m all ears.
 
That’s absolutely fine but I simply suggested what I would do with the €100k cash savings if I was in the OP’s shoes.

Savings certificates may well be the wrong choice for you depending on your specific circumstances.
 
The flaw in your analysis versus Sarenco’s is that you’re looking at the €100k in isolation rather than as part of the OP’s overall asset allocation.

1% per year tax-free for 5 years is good for the defensive part of one’s overall pot. I wouldn’t be as conservative as that, as I’ve articulated above. My preference would be to ramp up the pension, keep six month’s net income in cash (i.e. €25k), and buy equities with the rest. But for the “safe” part of one’s portfolio, those State investments are decent.
 
For the avoidance of doubt, I absolutely agree that the OP should be maximizing his tax-relieved pension contributions (if he isn’t already).

But Gordon is bang on - it’s important to look at the OP’s full financial picture and not to focus on any particular investment in isolation.

My suggestion would still leave over 80% of the OP’s investment in risk assets (equities and property). I don’t think that’s particularly conservative for a 55-year old with ~€570k of investments.
 
80% in risk assets by OP to me sounds fine.
Say 100k goes into 5 year state savings. In other words for a defensive play. This sum can be called on at any time with only loss of interest.
In other words should a very sweet opportunity arise at any time the full 100k can be used with minimal notice.
 
Sarenco said:
...State guaranteed....
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We need to stop using the word guaranteed in relation to State Savings.

It's simply not true and the word is nowhere to be found on any doucumentatation in realtion to these products. For a reason.
 
Thank guys for the feedback the debate and opinions so far, it's been very informative

Most important point I took on board is to max out my pension and then look at making the other investment

Gordon Gekko said:
The flaw in your analysis versus Sarenco’s is that you’re looking at the €100k in isolation rather than as part of the OP’s overall asset allocation.
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I was probarly not looking at the big picture myself so that's a valuable point.

Horatio said:
Source: https://www.fundsmith.co.uk/fund-factsheet

I hadn't heard of this before but will will do some research now.

All input has been appreciated so keep it coming.
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Personally I would have faith in the state savings guarantee,But at this moment I'm looking for something with a little more upside potential which I know will also carry a risk of downside,but going foward in the future
I would have no hesitation in investing in the State Savings.So still open to all opinions and suggestions ,,,keep them coming.
 
If you want to invest in equities outside your pension, a global equity investment trust (like F&C Investment Trust plc) might be worth investigating.
 

"Keep them coming" you say. Very easy to do that but you're basically gambling with it and basing your projected return on events that happened in the past.
 
Sarenco said:
If you want to invest in equities outside your pension, a global equity investment trust (like F&C Investment Trust plc) might be worth investigating.
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Do you still rate the city of London investment Trust?

Appears to be more stable than the broader FTSE from what i can see?

Decent dividend.
 
galway_blow_in said:
Do you still rate the city of London investment Trust?
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As always, it depends on an investor's objectives and circumstances.

City of London Investment Trust is an income focused vehicle that seeks to maintain a high dividend, which can make a lot of sense for an investor with modest taxable income (a retiree, for example).
 
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Would the fact that city of London focuses exclusively on one country bother you in terms of diversity?
 
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