Where to invest - 240k

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elainem

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Hi! Just sold a property - got out of being a landlord. Had no mortgage on the property but the tax and hassle was a killer! I am putting 120k into State Savings for my kids college in 4/5 years time, but have 240k to invest - I'm a very cautious investor. My solicitor has suggested buying a bolthole abroad - but have already an holiday property here and don't get enough time to use it. Still have one rental property - don't want to invest in property again. Any ideas from those seasoned investors out there. I have a rainy day fund of e25k. Salary 58k. Single parent. No mortgages. No credit card debts. e900 maintenance for kids.
 
The most conservative "investments" you can make:
Have you arranged life assurance to protect the maintenance payments?
Is your will up to date as you have dependents?
Is you own pension topped up to the max?
 
Yes, I have about 1 million in life insurance. My will is up to date. I am missing a lot of years in my pension as I worked part-time and took years out of the Public Sector. I have just bought back 9 years of my U.K pension - so I should have 33 years contributions when I eventually retire age 65. I am 50 now.
 
Is the life cover on you or on the person paying the maintence? Arguably, you need both.

If you worked in the UK, have you looked at topping up your UK State pension?

Non-uk residents can pay voluntary class 3 national insurance contributions to top up their basic state pension entitlement in addition to an Irish contributory state pension.

If you are still in public sector in Ireland you should look into added years in Ireland.

Then you will have good protection, an emergency fund, a college fund, good retirement provision and several presumably debt free properties. You are in good financial shape and have the capacity for investment risk over the longer term.

It would certainly make sense to invest in equites given your overall financial capacity to do so. Whether you have the willingness to do so is another matter.
 
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What about another €120k into the 10 year State Savings Product, €60k into a cheap MCSI World ETF, and €60k into a basket of REITs?
 
The 10 year State Savings Bond is a relatively high risk investment subject to both interest rate and inflation risk over a 10 year period.

It also suffers from a lack of flexibility during the term.

Finally there is also some default risk. Remember that two year Irish Government bonds were paying 22% just a few years ago.

Agree that a diversified ETF portfolio (although not with a substational REIT allocation due to the existing overweight property position) is the way to go but not EEA Domiciled funds funds due to the crazy taxation.
 
If default by the Irish State is a consideration, then a more fundamental assessment of the approach is required. You would custody the account outside of Ireland.

This is long term money. The State Savings element would provide the fixed income type characteristics. The poster has at least a 10 year time horizon. I would not have an issue with a diversified (non Irish) basket of REITs and a cheap global ETF.
 
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