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Where to get long term us bonds

  • 08-10-2019 2:59pm
    #1
    Registered Users Posts: 21 ✭✭✭ ezra160192


    Right i know lately im been making a lot of threads on here, but its just alot of anxiety on my end. Anyway after much discussion with my brother who advised for what i want( super low risk interest earning investments) just somewhere i can put my money and something that will generate some revenue ive decided to invest in us bonds. Again i know next to nothing about this stuff. Wheres the best place in ireland to invest in us long term bonds?

    I found this site https://www.davyselect.ie/investment-choices/bonds.html but dont know much bout its reputation. How do I start and whats the best us bonds to get. I know theres a thing called secondary market where you can buy bonds off other people im NOT interested in that impurely just interested in buying into a bond for ten years then getting my principle back with interest as a way to protect my money from the unpredictability of the euro zone and global economy. Any advice very much appreciated on this topic.


Comments

  • Moderators, Business & Finance Moderators Posts: 8,088 Mod ✭✭✭✭ Jim2007


    ezra160192 wrote: »
    Right i know lately im been making a lot of threads on here, but its just alot of anxiety on my end. Anyway after much discussion with my brother who advised for what i want(super low risk interest earning investments) just somewhere i can put my money and something that will generate some revenue ive decided to invest in us bonds. Again i know next to nothing about this stuff. Wheres the best place in ireland to invest in us long term bonds?

    And did you brother explain that more money is lost on bonds and bond products than on equities... did he explain who bonds are priced, did he explain the FX risk involved in buying US bonds? did he explain the potential risk of the US/China trade war could have on US bonds?

    Foreign bonds are anything but a low risk investment.


  • Registered Users Posts: 21 ✭✭✭ ezra160192


    Jim2007 wrote: »
    And did you brother explain that more money is lost on bonds and bond products than on equities... did he explain who bonds are priced, did he explain the FX risk involved in buying US bonds? did he explain the potential risk of the US/China trade war could have on US bonds?

    Foreign bonds are anything but a low risk investment.

    hey Jim. Whats an FX risk? How are they priced and how would the US trade war affect them? What would yo recommend I do? I just figured bonds as I wouldnt be touching the money for at least ten years anyway and the way the euro is going figured my money would be more safe in us dollars while earning interest. I realize inflation is a risk but theres ways to counter that like Tips. Any advice you can give me in regards protecting my savings in fear of a EU euro collapse?


  • Registered Users Posts: 525 ✭✭✭ To Alcohol


    You're talking US Treasury Bonds? These are long term investments but have a minimum trading amount of 100,000 and are traded between registered institutions and not individuals. That link you had to Davys might be the way to go. You might also be able to buy into a fund that's made up of US Treasury Bonds. Davys would tell you more.


  • Registered Users Posts: 143 ✭✭ BillyBird


    ezra160192 wrote: »
    Any advice very much appreciated on this topic.


    Given you know next to nothing about this stuff (and I'd put myself in the same boat) why don't you get some advice from a qualified financial advisor? I don't know how much money you are talking about but I'd be wary of investing lots of money based on advice from family members or advice from online (given nobody here knows the full nature of your circumstances)


    Might also do something to help your anxiety.

    ezra160192 wrote: »
    the way the euro is going figured my money would be more safe in us dollars while earning interest.


    Again, if you know next to nothing about this stuff, why are you taking a bet on dollars over Euros (especially if you plan to live in Euro land).


  • Registered Users Posts: 7,494 ✭✭✭ BrokenArrows


    Don't take advice from family members.
    Regardless of how sound that advice is, there is always an element of risk, and if your investment goes bad you don't want it to ruin family relationships.

    If you have a significant amount of money to invest then go to a professional paid financial advisor.

    FX Risk is foreign exchange risk.
    Say you invested all your money in US bonds which are priced in USD. The current exchange rate of EUR to USD is 1.10. then say the exchange rate changes to 1.20 then you have lost 8.3% of your money when converted back to euro. But it could also work the other way and you could gain money.


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  • Registered Users Posts: 21 ✭✭✭ ezra160192


    BillyBird wrote: »
    Given you know next to nothing about this stuff (and I'd put myself in the same boat) why don't you get some advice from a qualified financial advisor? I don't know how much money you are talking about but I'd be wary of investing lots of money based on advice from family members or advice from online (given nobody here knows the full nature of your circumstances)


    Might also do something to help your anxiety.





    Again, if you know next to nothing about this stuff, why are you taking a bet on dollars over Euros (especially if you plan to live in Euro land).


    yeh i might get some professional advice about this stuff


  • Registered Users Posts: 21 ✭✭✭ ezra160192


    Don't take advice from family members.
    Regardless of how sound that advice is, there is always an element of risk, and if your investment goes bad you don't want it to ruin family relationships.

    If you have a significant amount of money to invest then go to a professional paid financial advisor.

    FX Risk is foreign exchange risk.
    Say you invested all your money in US bonds which are priced in USD. The current exchange rate of EUR to USD is 1.10. then say the exchange rate changes to 1.20 then you have lost 8.3% of your money when converted back to euro. But it could also work the other way and you could gain money.

    yeh i understand i might go to a broker. cheers


  • Moderators, Business & Finance Moderators Posts: 8,088 Mod ✭✭✭✭ Jim2007


    ezra160192 wrote: »
    hey Jim. Whats an FX risk? How are they priced and how would the US trade war affect them? What would yo recommend I do? I just figured bonds as I wouldnt be touching the money for at least ten years anyway and the way the euro is going figured my money would be more safe in us dollars while earning interest. I realize inflation is a risk but theres ways to counter that like Tips. Any advice you can give me in regards protecting my savings in fear of a EU euro collapse?

    Do you seriously think that the richest trading block in the world is going to let it's currency collapse???? Because if you do, then you need to attach the same risk to the US Dollar...

    China is the biggest holder and buyer of US bonds, if they want to cause serious pain to the US, then all they have to do is stop buying and or start dumping. If something like that was to happen then good luck with your US bonds.

    Another possibility is the the Middle East get PO with Trump and decide to trade only in Euros... The US economy would take a massive FX hit and again good luck with your US bonds.

    The US Dollar is no less risky that the Euro.

    If you have to ask what FX risk is and how bonds are priced, then your biggest risk is your own lack of knowledge on the topic. My advice would be to stop listening to the talking heads and your brother and spent the next three years learning about investing...

    In the mean time leave your money in the bank or put it into the Irish State Savings. It's as safe as any others out there. All through the last recession my colleges here in Switzerland kept pushing Irish bonds to their clients, their argument was very simple Ireland is a northern country: meaning we're reliable and stick to our word and we have been a net exporter for over 20 years and as they say if you are continuously selling more that you buy you will eventually work your way out of any difficulties.. and they were very right, Irish national debt per capita has fallen from 124% to 64%, with German standing at 61% and the US at 105%... that is not small achievement.


  • Registered Users Posts: 21 ✭✭✭ ezra160192


    Jim2007 wrote: »
    Do you seriously think that the richest trading block in the world is going to let it's currency collapse???? Because if you do, then you need to attach the same risk to the US Dollar...

    China is the biggest holder and buyer of US bonds, if they want to cause serious pain to the US, then all they have to do is stop buying and or start dumping. If something like that was to happen then good luck with your US bonds.

    Another possibility is the the Middle East get PO with Trump and decide to trade only in Euros... The US economy would take a massive FX hit and again good luck with your US bonds.

    The US Dollar is no less risky that the Euro.

    If you have to ask what FX risk is and how bonds are priced, then your biggest risk is your own lack of knowledge on the topic. My advice would be to stop listening to the talking heads and your brother and spent the next three years learning about investing...

    In the mean time leave your money in the bank or put it into the Irish State Savings. It's as safe as any others out there. All through the last recession my colleges here in Switzerland kept pushing Irish bonds to their clients, their argument was very simple Ireland is a northern country: meaning we're reliable and stick to our word and we have been a net exporter for over 20 years and as they say if you are continuously selling more that you buy you will eventually work your way out of any difficulties.. and they were very right, Irish national debt per capita has fallen from 124% to 64%, with German standing at 61% and the US at 105%... that is not small achievement.

    thanks jim


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