Am I crazy for considering ten year NTMA bonds?

joe sod said:
sorry i only saw this afterwards, good decision except regarding taxation of ETFs in Ireland, its crazy, there is an investment trust that does a similar job but without the crazy irish ETF taxation, its discussed in another thread

Regarding IT its a very ageist profession, not too many IT people working into their 70s except maybe on legacy stuff, in other professions like legal everything is legacy, thats why you still have the oul codgers in the courts around the country
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Thanks! I'll check out that investment fund thread. I'm kinda gambling/hoping the ETF tax will drop before its due.
 
Put the money into National solidarity bonds for 10 yrs option, the 2.1% (No DIRT) rate is pretty good as a conservative option in comparison to 3.5% (minus DIRT) options on raisen. Additionally you can pull the money out at 7 days notice, so if there is a correction in ETFs price this may become a more favourable option.
 
I have €20k to put away for 3-5 years. Don’t want online institution. Am between 5 year saving cert (1.7AER but Tax free) and PTSB 3 year deposit at 3% AER but with DIRT. What do u think?
 
Mousehelp said:
I have €20k to put away for 3-5 years. Don’t want online institution. Am between 5 year saving cert (1.7AER but Tax free) and PTSB 3 year deposit at 3% AER but with DIRT. What do u think?
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Do you know what the "early withdrawal charge" penalty is for the PTSB account?
 
Not sure but don’t intend to withdraw. It’s my daughter’s (ex UB) account and she wil have no need for the money.
 
Mousehelp said:
Not sure but don’t intend to withdraw. It’s my daughter’s (ex UB) account and she wil have no need for the money.
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3% aer for three years seem a better deal even with dirt tax on the interest earned.

20k today is the equivalent of 22,081.62 in 2029 assuming 2% inflation. At 2.5 inflation, its 22,628.16 by 2029.

1.7% a year returns just 21,773.03 in 2029, meaning a potential loss in spending power unless inflation drops below 1.8% and stays there for most of the five year period.

But bare in mind I tend not to know what I'm talking about !

www.forbes.com

Inflation Calculator: Historical & Future Value

Inflation is the gradual increase in prices across an entire economy. When inflation rises, consumers need to spend more money to buy the same goods and services. A rate of inflation that’s not too high and not too low is necessary to drive spending among businesses and consumers and support a ba
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Compound Interest Calculator

Use our compound interest calculator to see how your savings or investments might grow over time using the power of compound interest
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Thank you. I agree - the 3% looks better even after the dirt. Just hassle getting to the branch!
 
Back in January I had a small bond mature and I re-invested it for another 10 years. Recently I also purchased with new funds a new 10 year bond.
I was sent out recently a new bond for the new purchase but never got a bond in the post for the January re-invested bond.
Would anyone know is this because I re-invested in January online using State Savings website and that's why they don't send out a bond.
The new bond was done in a local Post Office with a cheque and that's maybe why they posted me out a bond for that amount.
 
theresa1 said:
Back in January I had a small bond mature and I re-invested it for another 10 years. Recently I also purchased with new funds a new 10 year bond.
I was sent out recently a new bond for the new purchase but never got a bond in the post for the January re-invested bond.
Would anyone know is this because I re-invested in January online using State Savings website and that's why they don't send out a bond.
The new bond was done in a local Post Office with a cheque and that's maybe why they posted me out a bond for that amount.
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The reinvestment should definitely have been issued as a new bond. The new bond should appear in your online portfolio and you should have received the cert in the post. Suggest you get on to them about it straight away, quoting the details of the matured bond and the reinvestment date. Their service is pretty appalling and they will probably make all sorts of excuses.
 
The new bond is showing in my online portfolio and I also got a statement in February and it's on that as well. The only problem that I might have in future i.e. 2034 is if then they turned around and said I needed to send them the original bond which I never got.
They don't currently need a bond returned for payment or to re-invest.
 
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