to all those with ssia's... what ye gonna do with cash?

LegacyUser

mine matures in 18 months, i expect to get around 10k.

not realy sure what i'm gonna do with cash, i know the sensable thing to do is to re invest it...... but i'm not v sensable, i'm thinking maybe of taking a year out and traveling, (i'm 29 this week)

so, what are you planning to do with your big wad of cash?

(mods, if i've missed obvious options, please put em in)

impr0v

Donate it to the Fianna Fail party for teaching me the joy of saving.

nesf

Tbh, I'm probably going to re-invest it. I've mine earmarked to go towards buying a house.

That is now though, in a year's time I might have need of the money for something more urgent.

DublinWriter

Buy a house made of solid-gold and eat liver-and-onion meals every day.

Seriously, I'll probably stick it in my First Active Mortgage current account and leave it sitting there in order to offset the Mortgage balance to reduce my payments by about €100 a month.

Or I might use it to help buy a second investment property.

Or buy a 5-year old Jag S-Type.

But I certainly won't use it to get any house-improvements done. Almost everyone I know is getting all their small to medium sized house-jobs done now as prices will totally sky-rocket when the SSIAs start maturing.

irlirishkev

Like a lot of people who have bought their first property, I got a hefty loan and a hefty gift of money from my parents to help me along. I'm going to use the SSIA to repay them what they lent me. So in a sense, I'd already invested my SSIA.

Kev.

LegacyUser

DublinWriter wrote:

Almost everyone I know is getting all their small to medium sized house-jobs done now as prices will totally sky-rocket when the SSIAs start maturing.

good point

Stephen

Deposit on a house/apartment/flat/shoebox most likely. Although the bank won't give me a mortgage that will buy more than a cardboard box on my current salary unless I can get a guarantor (i.e. my parents).

Kernel

Blow it all on shoes and cocaine... crocodile skin shoes.

NeMiSiS

Motorbike..
TK

trishw78

Little Miss sensible here deposit for a shoebox type house or whatever I can afford

Femelade

taking my daughter to disney land hopefully. she will be 6 by then

robinph

Think I'll be reinvesting as it still wouldn't make much difference as to my ability to be getting a house. Of course that is after a large chunk of it has been spent on beers.

Ann Elk

I'm going to give mine to Eddie Hobbs - the poor tyke needs it terribly, hasn't two brass farthings to rub together.

RustySpoon

10 -year ticket for Irelands soccer matches.

Santa Claus

Where' s the hookers & beer option ?

mad m

Attic conversion,hopefully.

Mr.Nice Guy

I haven't got one.

Do you guys recommend it?

When do you reap the rewards, so to speak?

LegacyUser

Mr.Nice Guy wrote:

Do you guys recommend it?

3 years ago, ye.

Gazza22

Mr.Nice Guy wrote:

I haven't got one.

Do you guys recommend it?

When do you reap the rewards, so to speak?

Neither have i

Yes it was highly recommended....you can't get one now, they will never ever offer them again

You save up to €250 a month in an account which you cannot touch for 5 years...at the end of it, the government adds 25% of what you saved to your account and you can withdraw the lot and go wild!

I pity the country when these accounts mature...inflation is going to rocket

Wertz

Mr.Nice Guy wrote:

I haven't got one.

Do you guys recommend it?

When do you reap the rewards, so to speak?

Wee bit late off the mark. They start maturing late next year....they started about 3 yrs back.

Personally I'm not too sure...I have the max amount coming to me...thinking of putting a van on the road and trying to go independent in my work (decorating). I suppose that's reinvesting it kinda...other stuff may come up between now and then though...

Mr.Nice Guy

Damn. Fair play to all those who saved. I suppose they deserve the chance to go crazy.

Wertz

The thoughts of the governement giving you 25% of what you save is a very good incentive..SSIA's robbed a lot of funds from other worthy causes over the years though, and will prolly cause a huge inflation rise when they mature.
If you were someone who simply couldn't afford to put aside the cash (it had to be the same amoutn evry month for the full term, or you got penalised) then you get no benefit from the scheme but were most likely contributing toward it through taxes.
On the other hand if you had a lot of disposable or investable income you could set these up for any of your older kids or others in the family and reap the rewards five years down the line...it takes money to make money as they say...

Drapper

PC
Car
Beer

in no particular order!

Thomas_S_Hunterson

Slightly off topic but Does anyone know if the actual percentage return is above the amount the money will have devalued dueto inflation?

Dave!

So, what exactly is an SSIA?

crazymonkey

Pay off personal loans i got when i bought my home..

RainyDay

sean_keevey wrote:

Slightly off topic but Does anyone know if the actual percentage return is above the amount the money will have devalued dueto inflation?

There is no 'standard' rate of return - each institution offered different rates - some offered both fixed & variable rates. Those who took the 'equity' option and invested their savings into shares could choose from a wide range of funds available.

If you took a standard variable deposit SSIA, you were probably earning 2%-3% interest on your savings, on top of the Govt 25% top up. This works out somewhere around 8%-9% per annum over 5 years, so yes - it definitely beat inflation.

Sparky

Id say id spend mine on travel, but i may decide to spend it on the car insurance , pay off a loan i have etc etc.

I expect to get around 15,000

grimloch

Sparky_S wrote:

I expect to get around 15,000

[sexy voice]Hey, how yoo doin?[/sexy voice]

In seriousness, well done to all those that invested.

God help me with this 'inflation' though.

Sparky

grimloch wrote:

[sexy voice]Hey, how yoo doin?[/sexy voice]

In seriousness, well done to all those that invested.

God help me with this 'inflation' though.

yeah will be worth it, i have to tell myself to forget about it, or ill spend spend spend

Ann Elk

I invested but it's all going to be eaten up paying back the loan for my wedding in december - expensive business.

One balmy summer evening in a small town in the West of Ireland.....

Enter SSIA from left stage, dressed from head to toe in clothing suggesting a large party is never too far away.

Lights come up downstage right to reveal one female looking alluring, provocative and exciting,

Exit SSIA.

Drapper

DaveMcG wrote:

So, what exactly is an SSIA?

Its a one time payoff by the government for shafting us for 10 terms !!

LegacyUser

15k, nice

gotta pay off some loans my self, i expect to get 10k, and will be happy if i have 5k after paying off loans

Sparky_S wrote:

Id say id spend mine on travel, but i may decide to spend it on the car insurance , pay off a loan i have etc etc.

I expect to get around 15,000

Tazz T

Most people I know are using theirs to pay off debts and making purchases/downpayments for large items with remainders.

I hope to have my debts paid off by then so I'm hoping to use mine to buy a Greek ruin in Crete for doing up when I have more cash.

adonis

again slightly off topic...i dont think the government give you that 25%...
they put the 25% on every month, then u get the percentage investment offered by the ECB, then the government take back the 25% that they gave u...leaving u with the original investment plus the Interest Rate...its just u get more interest because the government gave you 25%...
**i think**

jor el

No, you do get the 25% plus interest at 4% fixed, or a variable rate which is currently artound 3% I think, or you could have invested in a PIP (stocks).

I was talking to a savings and investments guy from the bank a couple of weeks ago and he pointed out some interesting things about the SSIA to me.
Something for everyone to remember is that the SSIA is actually 4 years and 11 months, not 5 years. So it'll mature 1 month before the fifth anniversary of when you opened it. That means that the first of them mature on the 1st of April next year.

Also, the revenue commissioners want to tax you aswell and so you will have 1 month from the date it matures (1 month before you currently think it will) to have a special form filled in and returned or else they will tax you on it. The banks will be sending this form to anyone with an SSIA from around January. So fill it in straight away and return it to the bank.

jelly9

adonis wrote:

again slightly off topic...i dont think the government give you that 25%...
they put the 25% on every month, then u get the percentage investment offered by the ECB, then the government take back the 25% that they gave u...leaving u with the original investment plus the Interest Rate...its just u get more interest because the government gave you 25%...
**i think**

No thats not it at all you keep the 25%

bullrunner

sean_keevey wrote:

Slightly off topic but Does anyone know if the actual percentage return is above the amount the money will have devalued dueto inflation?

yeah....guaranteed 25% on everything u invest (plus interest or capital growth ..depending on which option you took)....so unless inflation is running at over 25% a year you are making money

DaisyDuke

The payments are almost sapping my will to live at the moment, but at least it's gonna be worth it when I see those wonderful numbers on my statement next summer...

I was going to do the house deposit thing, but yeah, house prices will go through the effin' roof next year - the whole 100% mortgage nightmare won't help either.

Dunno. Maybe I'll buy me a portfolio. At least I won't have to mow the lawn/repair the roof/deal with arseholes trying to break in.

Thomas_S_Hunterson

bullrunner wrote:

yeah....guaranteed 25% on everything u invest (plus interest or capital growth ..depending on which option you took)....so unless inflation is running at over 25% a year you are making money

Ahh, but i thought it was just a flat rate of 25% for whatever you invested, so therefore with inflation being about 5% a year over 5 years = 25%.

Wertz

sean_keevey wrote:

Ahh, but i thought it was just a flat rate of 25% for whatever you invested, so therefore with inflation being about 5% a year over 5 years = 25%.

As the government put it at the time, they give you £1 for every £4 of your own money you save. On top of that each financial institution applies their own interest rate (~3% before DIRT)...I'm not gonna do the maths but that puts that money well ahead of any loss due to inflation.
BTW 5% a year over 5 years does not amount to 25%

galwaydude

going to pay back the deposit for the house i bought 6 months and pay off a 10k loan to furnish it with the rest.

Does anyone know how much you will get if you invested the max from the start. Would be roughly around the 20k mark.

Dave!

Drapper wrote:

Its a one time payoff by the government for shafting us for 10 terms !!

I'm still none the wiser, so I'm gonna smile, nod my head, and never return to this thread...

Wertz

galwaydude wrote:

going to pay back the deposit for the house i bought 6 months and pay off a 10k loan to furnish it with the rest.

Does anyone know how much you will get if you invested the max from the start. Would be roughly around the 20k mark.

12 (no. of months) * € 318 (max amount including govmt supplement) = €3,816 then add ~3% saving's rate for each of those 5 years (which is compounded)

3,930 after yr 1
7,979 after yr 2
12,149 after yr 3
16,444 after yr 4
20,868 after yr 5

They recently moved back the maturity date so not sure how much more interest will be applied to the get the final total...I'd say €21.1K is a ballpark figure

Oral Slang

I'm due about €9200... I started low & increased every year.
Hope to spend at least €2k on a holiday to Canada or somewhere I haven't been before. Don't really have a clue what I'll do with the rest. Just about to move house, so might need some of it for that at that stage.
Only joined up on the very last day, so mine won't mature until March 2007! So I'd say by then prices of everything will have rocketed! :mad:

RainyDay

Wertz wrote:

They recently moved back the maturity date

Please explain further? Surely the maturity date is still 5 years from the date on which you opened your account?

DublinWriter

Wertz wrote:

then add ~3% saving's rate for each of those 5 years

3% is a bit optimistic isn't it? The deposit rate was averaging about 1.5% - 2.0 % during the SSIA years.

In the face of spirling oil prices, let's just hope the rate of inflation stays low or else the money we eventually receive will be worth a lot less than it's worth now.

Anyone out there with equities-based SSIA schemes, sorry, scheme? *grin*

I think the majority of us went for the safe option.

Dave!

Hey is there a closing date on when you can start this scheme? My girlfriend just told me that she's doing one and she's gonna get back about €4,000 in a year and a half(she's been doing it for a while, her parents opened it for her), but that you can't start one anymore... Was it a once-off thing? Or do administrations do it at the start of their term or somethin? I feel like I should have heard of this thing before today, lol.

Wertz

RainyDay wrote:

Please explain further? Surely the maturity date is still 5 years from the date on which you opened your account?

AFAIR the maturity date was supposed to be in or around early Jan 2007 regardless of when you opened your account, but they pushed it forward to around 4th quarter of 2006...I can't find a link to this but I recall getting an update about it from my bank and heard it on the radio round the same time.
Maybe this only specifically refers to my bank (BoI) but I think it's across the board...

DublinWriter wrote:

3% is a bit optimistic isn't it? The deposit rate was averaging about 1.5% - 2.0 % during the SSIA years.

BoI offered me 4% subject to change and DIRT on a fixed account...having checked back through my statements, this rate has remained at that figure. Again this may only be BoI....don't forget this was a 5 yr deposit with no access allowed (withoutforfeiture)

RainyDay

Wertz wrote:

AFAIR the maturity date was supposed to be in or around early Jan 2007 regardless of when you opened your account, but they pushed it forward to around 4th quarter of 2006...I can't find a link to this but I recall getting an update about it from my bank and heard it on the radio round the same time.
Maybe this only specifically refers to my bank (BoI) but I think it's across the board...

No - the maturity date was 5 years from the date of opening the account. I haven't heard of any changes to this plan, and I'd follow these matters fairly closely. This Revenue document from earlier this year confirms this;

the first SSIAs will not mature until 31 May 2006, depending on when accounts were commenced, they will mature on a monthly basis thereafter until 30 April 2007.

DublinWriter wrote:

Anyone out there with equities-based SSIA schemes, sorry, scheme? *grin*

I think the majority of us went for the safe option.

Yep - I went for Quinn Life Celtic Freeway fund (a low-charging index tracker which tracks the top 20 shares on the Irish Stock Exchange). My current fund value is somewhere around €22k with 9 months still to run thanks to the great performance of the ISEQ index this year. How's your 'safe option' doing?

Wertz

RainyDay wrote:

No - the maturity date was 5 years from the date of opening the account. I haven't heard of any changes to this plan, and I'd follow these matters fairly closely. This Revenue document from earlier this year confirms this;




Yep - I went for Quinn Life Celtic Freeway fund (a low-charging index tracker which tracks the top 20 shares on the Irish Stock Exchange). My current fund value is somewhere around €22k with 9 months still to run thanks to the great performance of the ISEQ index this year. How's your 'safe option' doing?

I'll bow to your greater knowledge on this...I'm just some guy who believes what my bank tells me.
Opened the account in October '01, initial maturity date given upon confirmation was 02/01/07....later they wrote to say it would actually be a month or months earlier, and to contact them for a specific date...maybe BoI were breaking some Revenue law by holding onto the money for longer or something