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Sons investment or savings.

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  • 07-09-2017 10:00am
    #1
    tevey08
    Registered Users Posts: 72 ✭✭


    Hi,

    My son is 1 year's old and we have a savings account in the Credit Union under his name with a couple of thousand in it. We both put small amounts in it each week and plan to do so for college fund or and investment fund when he's 18. We also have purchase some prize bonds.

    I would just like to know is there somewhere better I could put the money that might increase in interest or even a safe investment for 15+ years?

    Only looking for suggestions and not investment advice in case this thread gets closed.

    Thanks


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    #2
    BrokenArrows
    Registered Users Posts: 7,500 ✭✭✭BrokenArrows


    You can buy 10 year bonds which will return 15% after 10 years.
    Its not great but its tax free and safe.

    http://www.statesavings.ie/products/Pages/NationalSolidarityBond.aspx
    They also have a 5 year bond. You can gradually buy them and they can mature gradually too as you need the money.


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    #3
    Cute Hoor
    Registered Users Posts: 1,788 ✭✭✭Cute Hoor


    This is most definitely not investment advice but if I were in your shoes I would seriously look at an ETF like VOO. Now nobody can predict what will happen in the future but if this fund's past performance ($100 in 2010, now $226.80) is anything to go by then this will comfortably beat any safe haven investment like Government Bonds, Savings Certs or Prize Bonds. VOO is invested in 511 of the largest US/Worldwide companies, household names such as Apple, Microsoft, Google, Facebook, Johnson & Johnson, JP Morgan etc etc. They also pay a dividend, roughly 2% pa paid quarterly which can be re-invested thereby increasing your overall fund value. You can also liquidate your investment at a moment's notice if the need arises for you/your son, very easy to get into and very easy to get out of.

    With safe haven investments like Government Bonds, Savings Certs or Prize Bonds there is no risk, other than inflation eating away into your investment.
    VOO is not without risk, you could lose all your son's fund (it is difficult to envisage a scenario where you would lose everything but the risk is still there) and of course there is also the currency risk. There will inevitably be blips in this (or any) fund along the way, but over your investment timeframe they can be mostly ignored (once they are only blips of course).

    This is not advice, but an option for you to consider.


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