Please help, I inherited €850k and dont know what to do...

[chlipps]

i suggest that you take a few weeks off work and visit a few financial advisers asap. not that you are stuck for the cash and would be wisely spent longterm. having all the cash in banks that are backed by irish gov is pointless.. suggest you move some abroad where possible and this is where a financial advisor can assist you.

(Note I am not a financial advisor)

 

[legoman]

Would the credit union be a good option for some of it?

 

[Lightning]

Is having €100k in BOI and €100k in AIB any different than having €200k in just one of them?

Very little difference, you are exposed to Irish state risk either way.

 

[mercman]

OP you are in a very lucky position, that with some proper planning and keeping away from leeches you should be well away in providing for your future.

You should use AAM to learn of the mistakes others have made. There is no easy formula in making fast money or making better returns than what others profess is a 'great' investment. Over the past few years people invested money on he basis of glossy brochures, fancy presentations and exotic meals simply that others could benefit from the handing over of funds.

I for one was suckered into a complete web of myths, lies, deceit and promises by you guessed it -- Irish Banks. Yeah sure I've lost money by these gangsters operating on greed. They really could not care one piece if a customer's money was performing -- only what was in it for them individually.

There are a few golden rules that you have to teach yourself.

1. No matter what you intend to invest in, get the full details in writing.
2. Check what ever financial product you are sold as to what the full commissions, fees and charges are applicable to the product and to the person that introduced you or within the organisation themselves.
3. Do not be afraid to ask questions and get the answers in full in writing.
4. Remember anything that looks to good to be true normally is.
5. It's your money - nobody else's.
6. Do your OWN research.

Get an appraisal from a firm of stockbrokers (at least one) who will give you a professional analysis of where to put your money and the best way in their opinion to invest, denoting the risk, the possible return and the risk.

And finally keep away from the Irish Banks. I can safely say that even with the mess they are in, that they are a bunch of chancers. And in case anybody reading this doubts me, I will if the Mods will allow me to post my occurrences and losses.

I have absolutely no affiliation or association with any brokers, investment firms or otherwise.

The best of luck to you.

 

[Marc]

Sorry merc agree with most of what you say except one point.

Don't get an appraisal from a firm of stockbrokers.

Stockbrokers sell shares and Irish stockbrokers sell Irish shares.

The Irish market is currently 0.07% of the world and owning Irish shares makes no sense globally especially as Irish shares are subject to 1% stamp duty and uncompetitive brokerage commissions.

Furthermore stockbrokers typically recommend active fund management and tactical asset allocation both of which are expensive and add nothing to a portfolio. Most stockbrokers service their clients the way bonnie and Clyde serviced banks!

Finally the traditional brokerage model is based on being paid for transactions and so recommendations to frequently change a portfolio are common.

As Nobel prize winner bill sharpe says before costs the return on the average actively manages euro will equal the return on the average passive euro. After costs the return on the average passive euro must exceed the return on the average active euro. This is just an adding up constraint. Active management is more expensive and therefore on average does worse.


I have in my career met a few stockbrokers who served their clients well and in each case the biggest contributor to this was leaving their brokerage they used to work for and setting up on their own as a fee based financial planner.

I am not saying all stockbrokers are bad advisers just that virtually all stockbrokers operate a investment model that is flawed attempting to identify mis priced securities or timing the markets when all of the empirical evidence says that this isn't possible to do consistently.

As burton malkiel says in a random walk down wall street a portfolio selected by a monkey with a dart will do as well as one carefully selected by experts.

Merc you may be happy with your adviser but remember you started from a pretty low base as you yourself will admit.

If you ever want a free second opinion I can assure you that you can improve your portfolio.

 

[North Star]

Finance Noob,
There are a range of strategies available to you which would fall under the very low risk "capital preservation" categorisation. This may suit your short term objectives allowing you time to further research your options and conclude as to what overall long term investment strategy suits your needs best.
I agree with other posters that a fee based Authorised Adviser is probably your best port of call. I would contact several to get a range of options and choose the adviser that feels the best fit. There are many different schools of thought and approaches to managing and growing wealth. A key point is that there is no one "correct" approach, otherwise it would be universally adopted - which clearly isnt the case. Your choice will be influenced by your personal preferences, objectives and situation as well as being influenced by current market developments.
The Sunday Business Post previously asked me to write an article for them on " How to choose a financial adviser" in which I include a list of questions to ask any potential adviser which you may find helpful. The link is below. For full disclosure I operate as an Authorised Adviser.
Unfortunately for people who are looking for a fee based adviser there is no comprehensive register of fee based advisers. Perhaps this is something AAM could help with though I am veering off your particular post. Good luck with your search.

Regards [broken link removed]
[broken link removed]

 

[Bronte]

If I can earn 2-4% interest on it I will be happy enough that in the short term

Why would you accept 2% when you can get 4%? Basically you want a no risk return? So post office, prize bonds and deposit accounts are what you need.

 

[dam099]

Why would you accept 2% when you can get 4%? Basically you want a no risk return? So post office, prize bonds and deposit accounts is what you need.

All 3 of these are essentially the same risk i.e. the Irish Government unless you move funds abroad or into a foreign owned Irish bank like Rabo, Ulster etc. Even then these are not no risk just likely lower than the Irish govt and banks

 

[Bronte]

All 3 of these are essentially the same risk i.e. the Irish Government unless you move funds abroad or into a foreign owned Irish bank like Rabo, Ulster etc. Even then these are not no risk just likely lower than the Irish govt and banks

Well under the mattress then is as good a strategy as any. But then the house might get burnt down. As long as the OP spreads the money around he should be ok. If the banks collapse there'll be none of us ok and probably no AAM either.