Living overseas - where should I invest €300k?

[ptsc]

Mods' note - Extracted from another post

A little bit about me: early 40's, divorced with a 7 year old child from marriage. They live in Ireland. I live outside and have new life there and will marry soon and hopefully have family but would hope to return to Ireland as soon as the economy turns or I find the right position. But I can afford to wait, I am not desperate.

Anyway due to some good investment decisions and disciplined cash management I have approx €300k cash saved up. No property anywhere and no personal debt. I have a pension at around €100k.

My question is what would you do with the cash? The stock Market seems too volatile and unction now, deposit rates are low, I don't want to buy property abroad if I will move back but the property Market in Ireland is still falling, commodities are all over the place. I am thinking of spreading it across 5 currencies and just leaving it on deposit.

Any better ideas? I am at a stage in life where I don't feel I can afford to screw this up.

Thanks in advance.

 

[ontour]

Jim,

The fact that you 'can't afford to get it wrong' indicates that you are require low risk. If you look at the Best Buy threads under the deposits section you will see a return of over 5% on state savings and a range of other 4% plus on bank savings.

Marc on another thread gave a very good post on ETFs which provides a method of stock and potentially currency investment that has a diversification that you would not get from an individual stock purchase.

Diversification is the name of the game because no one here know what will actually happen.

The most important point in your case, as Marc raised, is the tax implication. Depending on your residency / domicile this may impact you choices.

Also we do not know what country you are in and what investment opportunites are available to you there as a resident and potential tax benefits. If you are in a country with euro financial products that also give you more options.

To answer your suggestion just picking 5 currencies and putting all your money in them would not match the risk profile you indicate.

 

[ptsc]

Thanks ontour.
I live in Asia. I saw that 5% but the issue I have is that if the euro is diluted or the punt nua is introduced what good is 5%?
I live in a country with exchange controls so better to keep my money mobile and flexible for now. I don't need low risk necessarily, I have 20 years to go....medium or even high risk is ok as long as it is informed...

 

[Bronte]

I don't need low risk necessarily, I have 20 years to go....medium or even high risk is ok as long as it is informed...

I think you're low risk but you want a high return, it doesn't exist.

You have cash and a pension and no property. Where are you planning to live with your new wife, is she agreeable to living in Ireland in the future, are you sure you could get a job easily here. Long term what are your plans for your 7 year old (education, third level etc)? As an aside, have you made a will? Very important if you are getting married and presumable have children that you make a will.