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23-06-2010, 17:21   #1
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€13k to invest

Guys,

Looking for a little bit of info from those more knowledgeable than me.

My five year old daughter has the above sum in her college fund. We've really skimped for it over the years (started before she was born).

Times are getting harder for us economically & it looks like we won't be able to contribute to it like we were (or at all) for the foreseeable future, but I want to keep it growing if at all possible.

It's currently in an AIB kids account where it ears a meager interest rate.

We were thinking of maybe the state solidarity thing or prizebonds (someone's gotta win, right???). IS there anything else we should look at ? No risk is much preferred (as much as anything can be no risk). I know you don't get as high a return, but it's my daughter's future I'm dealing with.

We don't mind it being locked away (probably a good idea in the long run). Also we'd like to be able to capitalise by being able to add to it if possible.

Looking forward to the replies
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23-06-2010, 18:43   #2
displaced dub
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hi iMax

I currently have my kids money paid into Anglo at 3.75%, my 2.5year old is making nice money and the newborns is now being paid into this account also.

If you are thinking of buying shares with this, think long and hard about it.
You could buy some ETFs in various exchanges also.
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23-06-2010, 19:28   #3
Xios
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My advice has no weight what so ever, but heres my two cents, i see saving money long term could yield a loss, because of inflation it'll lose value over time. I'd be more inclined into putting the money into something physical that will hold it's value over the long stretch of time. Perhaps land? Or maybe a piece of farmland for lumber, maybe a certain type of tree that'll take 16 years to be ready for harvest and by then it'd be making a profit. Of course that has it's risks over 16 years and i know nothing of it, it could would be worth the research.
Also what if the euro collapses in that time?

Take the other posters advice over mine, i'm only new to this idea of investments and i've never had any money of my own to spend really, my biggest investment was a motorbike which was 2700 euro.
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05-07-2010, 18:37   #4
 
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Originally Posted by iMax View Post
Guys,

Looking for a little bit of info from those more knowledgeable than me.

My five year old daughter has the above sum in her college fund. We've really skimped for it over the years (started before she was born).

Times are getting harder for us economically & it looks like we won't be able to contribute to it like we were (or at all) for the foreseeable future, but I want to keep it growing if at all possible.

It's currently in an AIB kids account where it ears a meager interest rate.

We were thinking of maybe the state solidarity thing or prizebonds (someone's gotta win, right???). IS there anything else we should look at ? No risk is much preferred (as much as anything can be no risk). I know you don't get as high a return, but it's my daughter's future I'm dealing with.

We don't mind it being locked away (probably a good idea in the long run). Also we'd like to be able to capitalise by being able to add to it if possible.

Looking forward to the replies
A credit union account will yield you good dividends. On that sum you could get up to 7-8% per annum. I would pay tribute to you for saving such as sum of money for your children as well as providing from them in every there are not many out there with that kind of money set aside well done
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05-07-2010, 22:35   #5
pocketdooz
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Originally Posted by iMax View Post
Guys,

Looking for a little bit of info from those more knowledgeable than me.

My five year old daughter has the above sum in her college fund. We've really skimped for it over the years (started before she was born).

Times are getting harder for us economically & it looks like we won't be able to contribute to it like we were (or at all) for the foreseeable future, but I want to keep it growing if at all possible.

It's currently in an AIB kids account where it ears a meager interest rate.

We were thinking of maybe the state solidarity thing or prizebonds (someone's gotta win, right???). IS there anything else we should look at ? No risk is much preferred (as much as anything can be no risk). I know you don't get as high a return, but it's my daughter's future I'm dealing with.

We don't mind it being locked away (probably a good idea in the long run). Also we'd like to be able to capitalise by being able to add to it if possible.

Looking forward to the replies
For your particular situation, I would recommend putting it into the government 10 year solidarity bond.

40% return after tax over 10 years would mean you would have nearly €20,000 when your daughter is 15 years old.

Can't think of a better simple solution right now.

.
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05-07-2010, 22:39   #6
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A credit union account will yield you good dividends. On that sum you could get up to 7-8% per annum. I would pay tribute to you for saving such as sum of money for your children as well as providing from them in every there are not many out there with that kind of money set aside well done
Do you really get 7-8% in the credit union?

I dont think so.

.
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05-07-2010, 22:42   #7
who what when
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+1 on the government solidarity bond.
Safe, secure and good rate of interest
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05-07-2010, 22:45   #8
pocketdooz
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+1 on the government solidarity bond.
Safe, secure and good rate of interest
One caveat is you must hold it for the full 10 years or it becomes a far less appealing investment as you dont get the full advertised rate and are penalised.

.
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05-07-2010, 23:52   #9
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Do you really get 7-8% in the credit union?
I'll be ooking into this as that would be (at a conservative 7%) around €900 per annum !!!
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06-07-2010, 08:29   #10
pocketdooz
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I'll be ooking into this as that would be (at a conservative 7%) around €900 per annum !!!
I think you'll find that's not true.

.
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06-07-2010, 09:25   #11
 
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You will not get that kind of return but the sum of money you have invested you will get good dividend return. When I was saving for my house i was getting up to 100 euro's per annum in dividends plus intrest. If you put your money in shares you will earn more but there is always a risk with shares
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06-07-2010, 13:45   #12
 
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Well done to those families who are putting some money away now for their childrens' long term education. I hope they appreciate it in time.

Why don't you split the funds between the solidarity bond and something else. Pocket knows his stuff and if he's advising the bond, I'd start with that and then put it in something else too.....just in case you ever need to borrow (!!) the money in the future.
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06-07-2010, 14:13   #13
 
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Originally Posted by Xios View Post
My advice has no weight what so ever, but heres my two cents, i see saving money long term could yield a loss, because of inflation it'll lose value over time. I'd be more inclined into putting the money into something physical that will hold it's value over the long stretch of time. Perhaps land? Or maybe a piece of farmland for lumber, maybe a certain type of tree that'll take 16 years to be ready for harvest and by then it'd be making a profit. Of course that has it's risks over 16 years and i know nothing of it, it could would be worth the research.
Also what if the euro collapses in that time?

Take the other posters advice over mine, i'm only new to this idea of investments and i've never had any money of my own to spend really, my biggest investment was a motorbike which was 2700 euro.
ur not goign to get much land for 13k
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06-07-2010, 14:16   #14
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Thanks for the advice so far guys.

Is it not worth looking at prizebonds ?
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06-07-2010, 14:37   #15
 
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Quote:
Originally Posted by Xios View Post
My advice has no weight what so ever, but heres my two cents, i see saving money long term could yield a loss, because of inflation it'll lose value over time. I'd be more inclined into putting the money into something physical that will hold it's value over the long stretch of time. Perhaps land? Or maybe a piece of farmland for lumber, maybe a certain type of tree that'll take 16 years to be ready for harvest and by then it'd be making a profit. Of course that has it's risks over 16 years and i know nothing of it, it could would be worth the research.
Also what if the euro collapses in that time?

Take the other posters advice over mine, i'm only new to this idea of investments and i've never had any money of my own to spend really, my biggest investment was a motorbike which was 2700 euro.
Land and property have not been as good value as they are now but there is an abundance of it at the moment and if you were to go down the rental route you would be make a low return but you would still have the property that will rise in value You are correct in saying that money does loose value due to inflation. I think if you were to invest into. I myself would go for the national solidarty bond for the 10yr term or Intel shares. I bought some at $11 in Jan 2009 and there are at 19:20 today.
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