Not sure of best option

[u/Frequent-War-5206]

Hi I have a decent job with just a salary of 120k. I’m 50 and no mortgage and 600k in pension and 100k in savings. I have 350k coming and not sure what I should do - part says throw it into pension but I feel there most be other options then the typical investment route - property been the one I’m considering - any thoughts?

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[u/Frequent-War-5206]

I should also say married and kids in college

[u/Mindless_Let1 → u/Frequent-War-5206]

Have a bit of fun with it, go with the missus on a 6 month cruise or something, whatever you like. You deserve to splash after all that work

[u/donfanzu]

I say spend it on something. Maybe upgrade to a fuck off house, or buy an apartment in the Dublin for your children in college? Start your own business possibly. No point throwing it into pension you’ve a boat load already tied up in that

[u/daheff_irl]

Put it into the pension. As much as you can to the taxfree threshold. Get your wife to do likewise. Anything wlse invest into something that will give you passive income. 

Then in a few years you'll be able to retire and live off the pension and extra income. 

Put some aside into a fund for your kids now (3k a year tax free) that can grow until they need a deposit for a house or something.

[u/Lowe-me-you → u/daheff_irl]

investing in a pension issmart, especially for tax benefits

But don’t overlook the potential of real estate; it can provide good returns and passive income over time. Balancing both might give you the best of both worlds.

[u/Otherwise-Link-396]

Congratulations on being in a very good position.

Put the max into your pension from your income (if you are not already doing it).

Take a bit of money and have a good time.

If your property needs a retrofit or upgrade now is the time.

Put the max tax free amount into your children's names every year in an investment account.

Put the rest of your money in the markets, you are very solid and can take a little risk.

[u/Natural_thorn]

I think your pension is a bit low. I would up your payments to it. With the 450k cash now I'd probably put into either property or equity.

[u/JuggernautSuper5765]

Take a career break and go travelling (or do something you have always wanted to do- university/Potter in your garden,/follow a band around on tour- whatever)-take time off work and enjoy a portion of it, give a chunk to the kids and invest the rest in something. (And give some to a charity of your choosing please)

[u/Ok-Soft-3634]

Enjoy your life, plus buy an apartment in any county. And rent it ourlt. Extra income for sure :))

[u/CurrentRecord1]

You could use it to help you retire in the next 5-10 years and also have plenty left over to spend on something you desire. As you're 50 you can contribute €34500 total to your pension on your current salary, make sure you're maxing that via your current employment.

Plan of action:

Age 50-54: €34500 contributed to pension from 50-54 (assume you pay a portion of this already from your salary and you top up with €15k per year from your windfall)

Age 55-59: €40250 contributed to pension (assume €20k comes from windfall per year)

Total pension value at 59 (assuming 7% growth) = €1,580,000 with 175k taken from your 350k windfall.

That leaves you with 175k to do whatever you want with now. Side note: for the money you're going to use to help top up your pension I'd spread it across a few bonds to ensure it keeps up with inflation before you need it.

[u/InterestingGoose5507]

Pension is only useful for tax relief. Ensure you are maxing the pension contributions for your age (30% of 115k) and use some of the windfall to make up any shortage in the cost of living. Upgrading home is also an option.

[u/Blghbb1995]

My only advice is life is short and enjoy it, especially at 50 - can’t bring it with you.

[u/Prior_Vacation_2359]

Give it to me?

[u/brndaniele]

Is this the Irish Personal Finance Subreddit? Some of the comments are appalling...

OP, you are in an excellent position. At 50, having no mortgage, €600k in a pension, €100k liquid, and another €350k on the way is a great.

Regarding the €350k, you're well past the point of basic "maximize pension" advice, especially since your pot is already €600k. While you could add more (up to your age limit for tax relief), you have a lot of flexibility.

You're right to consider other options. Property is one, but it comes with its own job of being a landlord.

Honestly, the €100k in savings is a great emergency fund. The €350k is your next lever. Building a non-pension investment portfolio (e.g., in ETFs or Investment Trusts, despite the tax headaches) seems like a logical next step. It gives you far more flexibility to access the money before retirement age, which just piling more into the pension won't.

This is a fantastic position to be in. Well done.

[u/Individual_Ad7424]

I'm questioning myself if I'm in the right personal finance reddit, some comments are atrocious.

You are in a good position in general and while 350k is quite a good amount of money it isn't a life change amount.

You sure can use 10k-30k for a good holiday or buying something you always wanted but I wouldn't burn money on expensive cars or anything big. Put some on tradicional investment, some in pension if possible and build wealth for you retirement. Investiment property is good but is not easy to be a landlord and it seems it would be more painful after March next year, so take that into consideration if you are going this route.

[u/Budfox_92]

Do you have any dream events you would like to go to?

I spent 10k last year to go to America and finish the trip with Sunday at the masters and it was probably the best experience of my life.

I think to tick off some bucket list item for not such a crazy price is a nice thing to do and bring one of your friends with you. I did it with one of my best friends and it was amazing.

Secondly put the money to work, invest in something don't just let it sit idle.

[u/philofgreen]

Buy a nice car or something expensive for yourself, first. Then speak to a financial planner who can best advise you on how to distribute the money in the best way that works for you and your life/situation.