A bit of thread necromancy here…
Looking into helping my mother and father make their savings work for them a bit during retirement.
They have ca. 50k EUR at hand, and just nearing retirement (within 1-2-3 years).
They live in Croatia, so a bit different context with taxation etc. - as far as I know there are both capital gains and dividend tax involved (and knowing Cro, not insignificant; will need to do a bit more research on this).
I would prefer to find something with low(er) risk, and thus accept lower returns, for their age.
However, their “safe” instrument during past 20-30 years, in form of savings accounts, has gone to the gutters, with the interest rates being miserable (probably not covering even the inflation).
Also reading a bit on bonds here on the forum - according to your discussions they seem to not make too much sense at the moment.
A few ideas I read so far over here:
- split the amount into cash + World ETF; e.g. 40+60%
- get some good quality stocks with decent dividends (this might not be too productive, if the above taxes are very high)
- something else?
I am also querying from them some data on their monthly expenses, so we can employ some math.
They own their apartment and a car, and unfortunately “in their time” in Croatia there were not many good options for 3rd pillars (like here today).
For the moment, they will only rely on their pensions (which should suffice to break even on the months’ budget), and whatever can come out of the cash stash above.
Thanks a lot for your input,