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Retired couple with 'money under the mattress'- what to do?

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Comments

  • #32
    Hibernicis
    Registered Users, Registered Users 2 Posts: 1,601 ✭✭✭Hibernicis


    BrianD3 wrote: »
    Anything above 72k, 7.5% of the capital has to be paid per year under the Fair Deal. You don't think that is onerous? Try introducing a wealth tax of 7.5% per year on assets over 72k to pay for public services and see the reaction to that.

    Just to note that the rate is 3.75% if the applicant is part of a couple, and the principal residence will only be included in the financial assessment for the first 3 years. The actual cost of the the fair deal to the applicant is often misunderstood and feared unnecessarily. I've worked this out for a number of people and it is always very good value in view of the cost of healthcare.


  • #33
    AndrewJRenko
    Registered Users, Registered Users 2 Posts: 29,235 ✭✭✭✭AndrewJRenko


    Hibernicis wrote: »
    Keeping that amount of cash in a house is a recipe for disaster. If anybody outside got a whiff of it their lives would be in immediate danger. If there is a fire/flood/whatever it is gone. And it is almost certainly exclude from any household insurance policy.
    The missus told me about an older couple in her extended family, both in poor health in the 60s, who gave out gifts of €3k cash to each of about 15 relatives recently. They live in a rough enough part of Dublin, with no obvious security measures on the house. The family understand that there is lots more cash where that came from stashed around the house, most likely cash earnings for himself.

    I couldn't sleep if I had anything near that amount of cash in the house.


  • #34
    Hibernicis
    Registered Users, Registered Users 2 Posts: 1,601 ✭✭✭Hibernicis


    AndrewJRenko wrote: »
    I couldn't sleep if I had anything near that amount of cash in the house.

    And frankly I'd sleep even less if I thought it was stashed around my elderly parent's house, especially if they lived in a rural area.


  • #35
    Henry Ford III
    Moderators, Business & Finance Moderators Posts: 17,738 Mod ✭✭✭✭Henry Ford III


    madmaggie wrote: »
    State savings with the post office. Interest is dirt free, your investment never loses value, access whenever you want it.

    Loses value every year in real terms (adjusted for inflation).


  • #36
    The J Stands for Jay
    Registered Users, Registered Users 2 Posts: 5,786 ✭✭✭The J Stands for Jay


    BorneTobyWilde wrote: »
    So a billionaire could have his bank account emptied, but they protect 100k of it.

    A billionaire wouldn't have that much money in a bank account


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  • #37
    The J Stands for Jay
    Registered Users, Registered Users 2 Posts: 5,786 ✭✭✭The J Stands for Jay


    madmaggie wrote: »
    State savings with the post office. Interest is dirt free, your investment never loses value, access whenever you want it.

    It does lose value because it doesn't keep up with inflation.


  • #38
    JPup
    Registered Users Posts: 920 ✭✭✭JPup


    Well there’s been no inflation in Ireland since 2008 (quite a remarkable fact!) but that is a risk alright.

    It’s sounds like this couple has a reasonable amount of cash set by without being outlandish for their stage in life. As others have said, they can give €6k (i.e. €3k each) to any individual in any year with no tax implications at all. No forms to fill out for Revenue or anyone else. For family members there are higher lifetime exemptions too.

    One nice thing they could do would be to open a savings account for each grandchild and put some money aside each month to cover college fees for example. Obviously many charities would love to get a donation from a couple like that also!

    I’m sure they’ll know themselves what the best thing is for their money. But they needn’t feel like there will be a lot of questions or form filling if they want to put it in a bank account. If they really want to avoid raising any eyebrows then keep lodgements below €10k at a time but really there is no need.


  • #39
    DubLad69
    Registered Users Posts: 498 ✭✭DubLad69


    JPup wrote: »
    Well there’s been no inflation in Ireland since 2008 (quite a remarkable fact!) but that is a risk alright.

    Of course there has been inflation since 2008. It has to been above 2%, but there has been inflation


  • #40
    Frozen Veg
    Registered Users Posts: 513 ✭✭✭Frozen Veg


    Bitcoin.


  • #41
    JPup
    Registered Users Posts: 920 ✭✭✭JPup


    DubLad69 wrote: »
    Of course there has been inflation since 2008. It has to been above 2%, but there has been inflation

    Not as far as I know. Average has been zero for last 12 years. Minus 1% over last year.


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  • #42
    athlone573
    Registered Users, Registered Users 2 Posts: 724 ✭✭✭athlone573


    JPup wrote: »
    Not as far as I know. Average has been zero for last 12 years. Minus 1% over last year.
    Not to be a bald man arguing over a comb, it's been low alright, 3% in total over the last 10 years

    Prices fell slightly after the crash but inflation starting to kick off again the last 2 years as the ECB are printing money.

    It's all there on the CSO website if you really care.


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