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Safe investment

  • 01-08-2014 8:00am
    #1
    porker36
    Registered Users, Registered Users 2 Posts: 170 ✭✭


    Hi all
    I'm looking to put away about 10,000 euro each for my four young kids,so would be long term 14 years+.

    Would I be better off in govt savings bonds or is there such a thing as a safe investment that would do ok for the time frame

    Regards porker


Comments

  • #2
    Negative_G
    Registered Users, Registered Users 2 Posts: 1,367 ✭✭✭Negative_G


    porker36 wrote: »
    Hi all
    I'm looking to put away about 10,000 euro each for my four young kids,so would be long term 14 years+.

    Would I be better off in govt savings bonds or is there such a thing as a safe investment that would do ok for the time frame

    Regards porker

    Hi Porker,

    In my opinion, the best option for you for both peace of mind and a guaranteed return is the 10 year national solidarity bond if you are confident you can commit to it.

    Granted it is only 2.66% AER or more simply 30% return over 10 years, it is tax free which means you are not liable to DIRT which will erode 41% of your return with the potential to rise. It has risen from 20% over the last decade or so and as it often happens they rarely go down again.

    There will be more qualified people along to comment on stock/share options which may well offer a better return but as I'm sure you are aware, there is always an element of risk with this option. You also have tax considerations to consider as well on your profits which affect return.

    By all means examine and consider all available options but I would consider the NSB as the best bet for both return and peace of mind.

    Just my two cents.


  • #3
    porker36
    Registered Users, Registered Users 2 Posts: 170 ✭✭porker36


    many thanks for the reply negative_g
    I might look into the govt bond issue probably a safer bet for the longterm


  • #4
    tennisfennis
    Registered Users, Registered Users 2 Posts: 29 ✭tennisfennis


    porker36 wrote: »
    Hi all
    I'm looking to put away about 10,000 euro each for my four young kids,so would be long term 14 years+.

    Would I be better off in govt savings bonds or is there such a thing as a safe investment that would do ok for the time frame

    Regards porker

    How much spare time do you have to research companies/industries? If you are serious about investing 40k for 14 years you should spend a large period of time picking the investment. Spending 6 months researching yourself (not earning any return on your capital) should lead to a better return in the long run.

    If you dont have the time/inclination to follow this approach the other advice about bonds is always a worthwhile path to follow


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