Timid investor 51 years old - long term investment plans

Thanks for all your replies.
Apologies for the long posts!

8 months on: Pretty much the same, no better joint planning wise. Still doing sensible enough things like maxing out pension contributions.

I made a small life assurance investment (65% gold, 35% equity), down 2% over the last 6 months in Euro, after selling a holiday house.

Cash built up, better than shares for the last 6 months (i.e. cash was wrong for 10 years then right for 6 months).

We viewed some apartments nothing we thought we could not live without, largely eventually for my son, but for renting out temporarily.

(No financial advisor. If I am reluctant to pay professionals, my wife is if anything more reluctant than me.)

An ex colleague said someone he dealt with was good when he was going for early retirement, might be worth a try. Of course the advisor could specialise in retirement planning rather than family finances. However retirement is not that far off. I read a popular book about retirement planning recently, I really need a 'not work' plan. My wife changed jobs for the better, less commute for her and easier to take holidays.

I might just invest what is in my name (most cash is in a joint account or is in her name) if I feel the need to do more investment, run of the mill shares maybe Berkshire hathaway brk.b as a way of buying the USA economy in a single share. I had been holding on to cash to pay a possible tax bill, but that tax is not due for a long while.

There is a small inheritance coming up which may make investment topical again. (Neither of us has great communication skills.) Strangely the holiday home cash was thankfully considered "my money" not to be converted directly into more cash.

It is a bit funny complaining about her cash, when I leave a bit of cash lying around myself.

The only investment that I did that was over 5% per year was the company shares, so I cannot say I am a crack investor, a couple of things roughly 5% (pension, house plus some extra life assurance, so maybe 5% is pretty standard, which was OK when inflation was 2%).

Small bets on bitcoin and (specific share) lost 50% so I do not see me exercising any great stock picking skills.

I could use the life assurance, to invest in a fund and the life assurance company can calculate/deduct the tax, but that might lock the funds away for a while, and cost 1% Annual Management Charge. (I only picked the life Assurance to buy gold thinking it might be something my wife might invest in with similar properties as cash, store of wealth but rise with inflation rather than 0% cash.) I did not shop around or do much fee minimisation planning for the life assurance.

That's just a 'lack of progress' report, I think the financial retirement planner may be the thing to follow up on, where we would not admit to having to go to a financial planner because we cannot talk to each other.

You've done well managing things by yourself so far. You don't need an Independent Financial Advisor but you're making things harder on yourself.

I am in a similar situation and was also reluctant to get professional advice as for truly independent advice, there are fees. I'd previously done my own research and also got free informal ad-hoc advice from a friend who is in the pensions business. He didn't give wrong advice, but obviously he could only set me up with products from the company he was tied to.

I can't emphasise to you however how happy I am to have gone the independent Advisor route last year. I understand the basics of investing but the Advisor was able to review that with me and make suggestions for improvement that far, far outweighed the fees, and also it gave me the peace of mind that I'd prepared for the future and wasn't missing out on opportunities.

Another advantage was that I could put a meeting in my diary with the Advisor - that forced me to have my financial affairs prepared for the meeting. I procrastinate on things and having a deadline was very helpful.

Additionally, the Advisor was able to help with estate planning and discussing how best to approach financial discussions with other family members. It's not only about the money, and I found it helpful to have the independent perspective of someone who has seen a lot of financial journeys.

If it's ok to give a recommendation on this website (I'll delete if not), I used the company of the poster Marc, and am very happy with the service so far. I assume other folks who post here are also very competent and good. Regardless of the specific company, I do recommend paying for independent advice - you'll sleep better!

Sounds good. There is no point in engaging a financial advisor without my wife's buy in, so basically pursuading her is the challenge. I am pretty sure the financial planner will agree with me on investing the cash, and that is the only thing I have a strong feeling about. Plus general inertia and procrastination.

Things we need advice on:
-the cash
-investments (pretty well assuming 5% p.a. or maybe inflation plus 3 %)
-retirement planning (I am 52)
-estate/death planing (15 year old son)
-Wife seems obsessed with USA stock market and currency crash (she is from Belarus), so holding Euro cash helps, or at least to her is better than falling USA stock market shares.

Instead of cash I have suggested gold, apartment, emerging market (i.e. China and Taiwan), Germany, whole World (only 50% USA)), property based funds, REIT.

She was most interested in Dublin apartment ( - highly illiquid).
-Slight interest in (Russian) oil - Russian Market sanctioned.
-Slight interest in picking tech stocks (I work in tech - I picked the wrong one with a small investment).

(We are at least piling money into our pensions. Moving pension a little between limited set of 10 funds is probably the biggest impact I can make without explicit approval from my wife. But might be for example a way of moving from USA stock.)

There is not zero movement, the one plan that seems a financial plus is to put a bedroom in the roof space and rent a room. (We live in Dublin 5km from the city center.) I have been pushing for rent a room for years, but my wife does not want to share a kitchen, we will need to put in a kitchenette. Not sure how practical that plan is.


Also I have bipolar which means:
-employment uncertainty so too into savings and investments
-too into decisions when up
-too avoiding of decisions when down
-better off investing a small amount every month rather relying on 'today's mood'.

If I’ve read your figures correctly, your cash reserve only represents around 15% of your net worth. That doesn’t seem excessive to me.

I would be far more concerned about the proportion of your net worth that is tied up in the stock of a single company. You really need to diversify that holding.

Otherwise, I think you need to take a step back and decide what you want to achieve with your money. Do you want to retire early? Do you want to leave a large bequest? Do you want to assist with your kid’s first house purchase?

Cash reserve 15% and rising.
My wife's pension is additional 10% and not invested.
Liquidising stock possible on a days notice, so access to cash/liquid assets at short notice not a problem.

Single stock I should do something about, I am basically buy and hold, I am certainly not buying any more. (Employee perks at buying cheap stock died 10 years ago).

-Retire early?
My wife wants to retire early, I do not have a plan for retirement either early or forced.
-Big bequest?
Yes at least max by CAT
-Son's deposit for house?
Yes at least max by CAT.

Sarenco is right we are arguing about the edges and missing any big picture, and main deal (maxing out on pension) is done.

Tiny bit of talk about an apartment in Minsk, not clear if this was only to show how overpriced apartments are in Dublin, or whether it was serious 'her retirement' planning.

Sounds like Sarenco would go with previous gradualist agreement, no more cash but keep at current levels and invest surplus. Sounds like a 'keep the peace' agreement and start a wider discussion.

One close friend is basically gone part time early retired at 56. His retirement preparation is 3 houses. House he lives on, house his son lives in, and house set up officially as a pension. Sounds like too much to try and copy the one semi retired person I know.

One easy way to keep cash or cash equivalent down would be to invest my wife's pension which would be good faith at doing something, where growth would not be overly taxed.

Funny I do not see the point in the cash, left to her own devices would my wife be 100% cash? She has never invested in anything. (Does house extension count?)

I am too open to making/receiving comment or persuasion.

That last agreement, no additional cash, about 3 months ago, was basically the last agreed common goal. Since then it's basically watch the stock market go down. Of course I was a bit too vocal when the stock market was going up, I was watching daily market wrap reports etc. My wife is interested in absolute s&p500 value, not today's % change in s&p500.


The outcome is:
-invest cash in my name, brk.b
-argue about inheritance when it comes up,
-'enforce' previous no more cash agreement (my wife may think 10% in pension in cash is allowed/agreed, rather than something to be fixed).
-Pretty well money always brings arguments sniping, the main thing I am worried about is too much cash so half sensible 3rd party to suggest or act as an example might be enough.

Financial Planner may be a solution when we agree we have bigger / wider things to sort out. Retirement and inheritance.

To be honest we argue about many things, maybe I pick too much cash as the argument I am most obviously 'right/opinionated' about.

I am looking for resolution/vindication whereas the likely option is, as usual, intermittent bickering between spouses.

Thanks for your responses, sorry for the long posts, it was just a tiny update.

Regards,
Red Baron

Red Baron said:

That last agreement, no additional cash, about 3 months ago, was basically the last agreed common goal. Since then it's basically watch the stock market go down. Of course I was a bit too vocal when the stock market was going up, I was watching daily market wrap reports etc. My wife is interested in absolute s&p500 value, not today's % change in s&p500.

Click to expand...

Alot of people on this site are too obsessed with the S&P 500 but the outperformance is really only since 2012. I remember the period after the dot com crash and the tech implosion after 2002 and nobody was interested in US stocks even today's tech behemoths like Amazon and Microsoft took a decade to recover from 2001 crash. On top of that by 2012 the dollar was ridiculously cheap around $1.45 to buy a euro now its $1.02.

In my opinion this is not the time to be investing in US assets especially now that the ECB is raising interest rates and probably the dollar has peaked because the US is simply too expensive now for everything whereas the rest of the world is cheap. Using cheap euros to buy expensive US stocks with expensive US dollars is not a good strategy

Hi Joe,

Basically less USA/Dollar.

(I seem to be persuaded most by who I last read.)

S&P500 is easiest to buy. The only shares I have bought/sold directly, while I have slightly considered Irish shares or German non dividend tecdax shares as an alternative. I basically hate/make a mess of paperwork and I am used to taxes on USA shares.

I could invest more through life assurance, which has some variety by asset class and geography, and they administer the tax. Slight problem with locking away funds and 1% management charge. (It looks like early withdrawal penalties are only the first 3 years.)

I do have a second life assurance I inherited I had not thought of moving that between assets (just cashing it in and paying the tax).

I have a (very) few pension options to have less overall USA exposure. (The choice is about 10 funds, nearly all varying only by risk.) Most notable non USA is Emerging Markets (effectively China & Taiwan). i.e. Invest in s&p500 shares but rebalance by moving my pension away from USA for easy tax paperwork.

My pension is currently whole world by market capitalisation so 50% USA.

Sounds like I should do all options:
-use pension to move away from USA
-invest in life assurance
-buy some s&p500 as easy

Probably not open more options up for ease of tracking/paperwork.

ie it is not a case of choosing only one option.

We have enough for most likely purchases, except maybe a huge purchase like an apartment, from cash/liquid funds, so life assurance addition within reason is ok.

Regards,
Red Baron

News: Redundancy last week at 54. Wife 48. Wife's salary about Eur38000. One son 17.

Can I retire?
How do I invest post tax assets?
(Discussion with my wife: Me USA shares - her other: including cash, apartment for son (Not more USA shares))
Difficulties paperwork with not pension or life assurance wrapped funds.

Moving slowly towards my wife investing her pension and getting a brokerage account to hold shares in her name.
Part of the problem is assets not in her name so she hoards cash.
Can my wife's flexible pension davies select hold basically any stock symbol with reason- i.e. wrapped so no tax paperwork, only income tax when retired.
( What my wife is thinking of is Indian passive index fund. )
( Particular index trackers etc removed too much like stock picking for ask about money - do I narrow it down to one or two and get her to ask davies select?)

Gathering information together for appointment to be booked soon with financial advisor.

After tax assets: (Including redundancy and minor inheritance) (for can I retire question)
1,127,000

Not including PPR 450,000, My Pension 840,000, Her pension 120,000

Of which not invested liquid assets:
415,000 for investment
600,000 (up to) assuming I sell some currently invested assets to invest in apartment for son.

Ask about money generally thought apartment bad idea last time - as
1/illiquid
2/do not know where my son will eventually settle down. Better off eventually to give deposit for apartment or house at a later date
(Change now he is closer to 18 - Parents PPR is in Beaumont Dublin so maybe stay at home as a student).
Also last time advice "too much in my current employers shares".

Currently letting redundancy happen - a bit burnt out not looking for many other jobs immediately.
Ask about money will say no rash decisions give the redundancy a couple of months to settle in/relax.
I have been delaying positive investment decisions for years - at least max out pension AVC in the mean time.

Regards,
Red Baron

"Can I retire?"

A hugely important question, but one that can readily be answered. Pay a fixed fee for a comprehensive financial plan for you self and your family. Done properly it will provide clarity and hopefully the comfort and confidence that you are looking for re this important question. Even if the answer is not what you want to hear, then you you know exactly where you stand and what needs to or should happen next. Leave all the product and or investment items to one side and focus purely on the financial plan for you all.
A couple of comments based on many experiences working with clients in a similar position.

1. Generally we know what we earn but not how much we spend, so stepping back looking at the lifestyle you want , what is a reasonable budget to enjoy a 'good' life. Make sure to include enough discretionary spend for the funs things like travel etc
2. After a redundancy there can be a big change and as you suspect, many will recommend that you take things easy for a while. However, choosing to go to work can be very different from having to go to work and that change can be quite significant. Also after a big 'job' sometimes the next stage is not another new 'big' job but more of a portfolio career, doing several things in smaller scale but where you want to be and what feels right. The skills and experience you have are probably very transferable and valuable. A change like this can be empowering as well as giving you a route to what could be a better work life balance and more time for relationships and experiences.

Either way, the very best wishes for your next chapter.

All the best Vincent

Interested in married near retirement investment planning if you have a lot in USA stockbroker (Estate tax free only first $60,000)

Only 'trick' is to give it all to my son so double taxation would work out USA Estate taxes vs son's CAT.

Maybe I am over thinking this if CGT is wiped out on death if there is practically 33%CGT due on my symbol ORCL shares up to 40% tax is not so bad.

My pension is not affected by USA Estate tax.

Need to transfer some assets to my wife, there may be USA gift tax considerations. It looks like there is at least a $17,000 annual gift threshold for tax/reporting.

Minor follow on information follows:

Personal update:
Over weight stock symbol ORCL doing well EUR800,000. Gold/equity zurich.ie doing well EUR142,000. Pension EUR1,000,000
Looking for new job or occupation or hobby not going well.
New investment: redundancy money into BRK.B up 10% in 4 months.
EUR200,000 put into bank for 2 years at 2.96% per year less DIRT - better than 0% I guess.

Trying to think of what in particular my wife and I would pay to get advice on:
-Best ARF? (Currently keeping with company pension until 65 and running down non pension assets)
-Estate planing (Better records, making a will.)

Advice not taken:
Getting advice - allergic to general advice - but did pay an accountant recently.
Diversifying away from selling my one big stock symbol ORCL. (New investments have gone elsewhere Gold and BRK.B)

Really happening:
My wife wants me back at work, any work

Red Baron said:

Really happening:
My wife wants me back at work, any work

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Regardless of what she wants...do you want to go back to work? You dont need to from what I can see.

is it you're tripping over each other at home?

Its going to be the reality either now or when you hit 65 and if its causing annoyance now, then could be problematic later and really impact the finances in a worst case scenario.

You need to sell the work shares, I worked for a tech company in the late 90s and there were a lot of colleagues solely invested in work shares, there were more than a few millionaires basesd purely on the share and they didn't bank profit and got creamed when the bubble burst.

Gone were their dreams of retirement at 40, villas in Portugal etc....

....indeed gone was the job as the company withdrew from Ireland(EMEA) back to US market only.

Knuttell said:

Regardless of what she wants...do you want to go back to work? You dont need to from what I can see.

is it you're tripping over each other at home?

Its going to be the reality either now or when you hit 65 and if its causing annoyance now, then could be problematic later and really impact the finances in a worst case scenario.

You need to sell the work shares, I worked for a tech company in the late 90s and there were a lot of colleagues solely invested in work shares, there were more than a few millionaires basesd purely on the share and they didn't bank profit and got creamed when the bubble burst.

Gone were their dreams of retirement at 40, villas in Portugal etc....

....indeed gone was the job as the company withdrew from Ireland(EMEA) back to US market only.

Click to expand...

In a very similar situation myself…same age and could retire. Wife believes it would be better to keep working in some field…unless you are very motivated to travel (with partner/self), do part-time collage, outdoor activities, volunteering, you will get bored very quickly and people of your own age/generation are still working very hard to pay pensions, mortgages and kids at university which is very expensive if they have to move there..