Investments

06608124

Hi

So I have 20k in savings. I have put my money into trade republic, they have a pretty nice interest rate of 4% paid monthly.

But...as someone who knows nothing about investing....is there a way to get a better return on my 20k that doesn't expire me to alot of risk?

For instance, there is a "Bond" for Vallourec SA, return is over 8% for a 2 year or so investment. I'm guessing that the bond is not really safe though and I am not guaranteed my money back and 8% on top each year?

Any advice of what to do or where I can learn more would be ideal? Or maybe even thinking about anything other than my 4% savings rate is stupid for someone without independence knowledge in all this

Thanks

Marti

Nody

Basically anything beyond a bank account with EU bank guarantee is going to bring you more risk; it's the nature of the beast because no one will pay more for the fun of it. The bond you mention for 8% is a bond to a company (https://www.vallourec.com/); the reason it's 8% is because the borrower's say they need higher compensation in case the company does not pay back over the "risk free" bank interest. That's the additional 4% interest rate over the base rate that you see there.

Honestly your best bet if you want to accept slightly more risk would be a very low fee global or S&P 500 index fund. Basically unless all the largest companies in the world goes bankrupt (and then it does not matter what you've invested in anyway) you'll get money back however that money may go up and down so only consider that if you got at least a 5 year+ investment horizon because the investment may go down in the short term (year or two) but over time (5+ years) you're likely to be up. For example if you had invested right before the 2007 stock crash in an S&P500 fund you'd be up about 4x the investment value today which is why the investment horizon is so important.

06608124

Thanks this is all very useful info :)