Key Post "I am 65 – where should I invest my life savings? "

I would suggest you get financial advice, I would suggest someone like Rory gillen , he has given a lot of advice on this site previously. Obviously you will have to pay for this but relative to the large amount of money you have it would be insignificant. He has contributed to the investment trust thread on this site and is highly knowledgeable. I have no connection with him and do not even subscribe to his services but even the free advice he gives is bang on. Obviously with such a large amount of money sitting in state savings means you are very risk adverse. Even though the stock markets have done well over the last decade , a lot of it is recovery from the big financial crash and even during that recovery there have been several rapid sell offs where up to 15 percent was wiped off a share portfolio in the space of a month, you only remember this when you have your own money invested.
Financial advisors have got a bad reputation in Ireland because they were linked to the banks selling their own products previously, it seemed like a good deal at the time because it was free and the advisor was a local guy or gal who had no reputation to protect, they were just employees of the banks getting commission for selling banks products.
 
joe sod said:
I would suggest you get financial advice, I would suggest someone like Rory gillen , he has given a lot of advice on this site previously. Obviously you will have to pay for this but relative to the large amount of money you have it would be insignificant. He has contributed to the investment trust thread on this site and is highly knowledgeable. I have no connection with him and do not even subscribe to his services but even the free advice he gives is bang on. Obviously with such a large amount of money sitting in state savings means you are very risk adverse. Even though the stock markets have done well over the last decade , a lot of it is recovery from the big financial crash and even during that recovery there have been several rapid sell offs where up to 15 percent was wiped off a share portfolio in the space of a month, you only remember this when you have your own money invested.
Financial advisors have got a bad reputation in Ireland because they were linked to the banks selling their own products previously, it seemed like a good deal at the time because it was free and the advisor was a local guy or gal who had no reputation to protect, they were just employees of the banks getting commission for selling banks products.
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Thanks joe sod, just on your comment about me being risk averse this is certainly a factor but not the full story. One of the main reasons why I have invested such a high percentage of my capital in state savings is due to the simplicity and ease of doing so. The terms and conditions are very easy to understand, there is no tax, no brokers, no advisors, no small print regarding additional charges. You can encash your investment with 7 days notice. You have physical evidence of your investment in the form of a certificate. Investing is as easy as buying a stamp in the post office. It is no surprise to me why many people, especially the elderly, have substantial holdings in state savings.
 
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The Ghoul said:
Investing is as easy as buying a stamp in the post office. It is no surprise to me why many people, especially the elderly, have substantial holdings in state savings.
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Yes thats very true, however I think alot of it is the trauma that people experienced after the financial crash with the wipeout of bank shareholders and the 50% collapse in property prices (although this aspect is being rapidly forgotten now). Your state savings will be very safe but are being slowly eroded by inflation , well actually not that slowly I dont trust the official inflation figures I think its much higher. I think the price of a pint is a good indicator of overall prices in the irish economy (even if you dont drink because they include disposable income and insurance costs and irish specific costs which are sky rocketing) . In 2010 the price of a pint of Guinness (cheapest drink in bar) was 4euros, today in 2020 its 5.50euros. So your 850K savings would buy 212,500 pints in 2010, now it buys 154,500 pints, thats a fairly substantial reduction. Of course you were getting reasonable interest rates in 2010 which compensated somewhat for inflation now its nothing. Negative interest rates are a stealth tax on savers, basically governments are secretly stealing your savings without you realising it.
 
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Well, the (tax-free) rates currently being paid on State savings products come pretty close to matching the current low rate of inflation.

But I agree that somebody in The Ghoul’s position should have at least a proportion (I would suggest 25% at a minimum) of their portfolio in equities.
 
Brendan, I know you mentioned buy 10 stocks but it’s hard for the layman to pick. Would MAPS from Irish Life or something equivalent be just less hassle and risky.. more diversity for sure
 
Also trading accounts can be expensive with charges. DEGIRO is only guaranteed for 20k so IMO it’s not a longer term custodian
 
All investment brokers, including insurance companies, are only guaranteed for 20K so that's not a relevant criteria

Trading accounts charges are what they are - fund charges are as high, if not higher
 
Revisiting this in November 2024.

I had last revisited this in Feb 2020 when I said:

I know one can't time the stockmarket, but it just does seem to be a bit high at the moment.
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I talked to a pension guy recently who said "we spent 2023 trying to talk clients out of equities but look what's happened......."
 
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