What should one do with spare money now?

N

noelfitz

Registered User
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As the best interest rate I can get for a one year fixed term deposit is 1.25%, I would like advice about what I should do with about 60000 EURO, which has been on deposit in a bank. I am a 74 year old male, and obviously would not like long term speculative investments. I appreciate that very specific advice is not appropriate here, but I would like guidelines.
Thanks.
 
Assuming you are not carrying any debts, I think your best bet is probably the Nationwide (UK) 1-year fixed rate @ 1.35%. Depending on your other income, you may actually be able to get this paid free of DIRT given the fact that you over 65 - info per the link below:

http://www.revenue.ie/en/tax/dirt/leaflets/de1.html

I appreciate this interest rate may seem low but when you consider that inflation (CPI) is currently running at -0.7%, the real (after inflation) return is really not that bad at all.
 
Brendan

Are you advising a 74 year old man to invest his savings (bar €10k) in equities? Really?! Even when he says he obviously doesn't want to invest in long term speculative investments?

Inflation is hardly a pressing concern in the near term - the annual CPI current stands at - 0.7%.

You are obviously entitled to your opinions but, frankly, I think the advice in that link is bordering on reckless.

If the OP had indicated that he was interested in investing solely for his heirs or a preferred charity then an allocation to equities might make sense but there is no indication whatsoever from the OP's post that that is the case.
 
http://www.statesavings.ie/products/Pages/SavingsBonds.aspx

-Maybe put some of your money away for 3 years.
 
Why not spend some of it? Holiday of a lifetime or something, why not enjoy it?

Is there anyone in your family who could do with a gift, help put a grandchild through college or something?

Do you need to put some aside for funeral expenses or is there something you can do to ease the burden on family when the time comes?

I'm assuming here you don't need the interest for day to day living

If you do need to put it away, what are your access requirements? It might be an idea to split some of it, have some on ready access (via an easy access deposit account) and the rest on a more longer term basis
 
if you put part or all of the 60k into prizebonds the money is locked for three months but then you can cash in at any time through any post office 7 days notice i think..plus u get no interest but could win a few tax free prizes or the three year savings bond looks good athough it is nice having access to the money to so prizebonds may suit you
 
noelfitz said:
I am a 74 year old male, and obviously would not like long term speculative investments.
Thanks.
Click to expand...

Keep it in the bank, due to your age you may be DIRT exempt so you don't have to worry about paying tax on it. Also you may need easy access to your money should you require it for medical expenses etc. Lastly enjoy it, treat yourself to luxuries if you don't someone else will after you gone . Here is wishing you many more happy years of happy and content retirement
 
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