Best Bet for €150 K for 10 year Term

Discussion in 'Deposits' started by Logo, 14 Feb 2019.

  1. Logo

    Logo Frequent Poster

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    What is the financially best and most efficient way to invest a sum of approx. €150K for a relatively short term (approx. 10-20 years). IMHO, State Savings Certs & and Prize Bonds appear to be the safest option and stock markets look to be at their highest. In summery:

    Prize Bonds = Chance to win prizes every week, while able to recoup initial investment.
    State Savings = Probably safest, but relatively poor interest rates.
    Stock Market = Appears to be booming ATM so maybe not best time to invest.

    Apologies for repeating the same old chestnut, but it's probably a grand question for long term lurkers and fantasists to kick around.
     
  2. galway_blow_in

    galway_blow_in Frequent Poster

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    Did you mean to say 10 to 20 years ?

    That's not a short time.
     
  3. Logo

    Logo Frequent Poster

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    Last edited: 14 Feb 2019
    Apologies €150K for 10 years - possibly 20 years.
    20 years can be a life span for some depending on age.
     
    Last edited: 14 Feb 2019
  4. galway_blow_in

    galway_blow_in Frequent Poster

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    That's a very long term
     
  5. SBarrett

    SBarrett Frequent Poster

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    Asset allocation accounts for 90% of investment return, so I would concentrate more on where you put your money than the timing of it. Stocks are the best performing asset over the long term. While there are examples in history of equities not performing well over 10 year periods, they are the exception. But risk and return are related, so there are no guarantees and there will be ups and downs along the way.

    Of course, you don't have to invest all your money in the stock market, you could just invest some of it and invest some of it in safer options too. It really depends on what you are looking for and what level of investment risk you are comfortable with.


    Steven
    www.bluewaterfp.ie
     
  6. Gordon Gekko

    Gordon Gekko Frequent Poster

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    How about €50k in the 10 year State Savings product and €100k into an MCSI World ETF?
     
  7. username123

    username123 Frequent Poster

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    IMO at E150K you need to be giving waaay more information to get a sensible answer. There is no indication of house ownership, pension status, marital status, dependants, current debts, current investments, tax status, expected access to the money in emergency, expected return, appetite to risk, what actually you want back in 10 - 20 years or anything that I imagine a financial planner would ask when trying to answer this question. I am not in any way an advisor, but those are questions that I think of straight away when I see a "best investment for X", which are the questions you need to be asking yourself in my opinion. Without that and lots more information, the favourite in the 3.00 on Saturday at Leopardstown is a good recommendation at anything above.

    You've basically answered your own question with your bullet points to be honest...the EIIS scheme is the only other thing I can think of off the top of my head: https://www.harvestfinancial.ie/eiis-how-tax-relief-works/
     
    Sarenco, MugsGame, jpd and 1 other person like this.
  8. NoRegretsCoyote

    NoRegretsCoyote Frequent Poster

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    Avoid prize bonds.

    They don't give great returns, even if you have a portfolio large enough to win regularly.

    If you like gambling there are better odds available at your local bookmaker.
     
    2Clueless likes this.
  9. SBarrett

    SBarrett Frequent Poster

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    Large element of investment risk with the EII Schemes though, investing in small to medium size Irish business (a small in an Irish sense, not in a global sense, where Bank of Ireland is deemed a small company). The tax relief is attractive on investment but there is a good chance that some of the businesses will not be able to pay back the money borrowed. If going into one of these investments, it's always prudent to hedge your bets by investing in a fund rather than just one company.


    Steven
    www.bluewaterfp.ie
     
  10. Logo

    Logo Frequent Poster

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    I'm not too sure. For the safer option, State Savings (issue 22) 10K will only yield €500 after 5 years. The odds for prize bonds might not be great but there is always a slim chance of a weekly prize ranging from €50 to €50,000, with a €1m prize twice a year.
     
  11. jpd

    jpd Frequent Poster

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    The expected return on investing 150K in Prize bonds for 10 years would by 150K x 0.5% x 10 = 7,500 with a small, sorry, very, very small, chance of touching 1M
     
  12. Logo

    Logo Frequent Poster

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    Last edited: 10 Mar 2019
    Any thoughts on Exchange-traded receivables? For the cautious mid-50s investor, the Sindo advises "You can earn almost 4pc interest a year - if you invest in an ETR for about three years" but "You could lose money if the company or companies whose invoices you have bought don't settle their bills - however, such defaults are often covered by an insurer."
    Ref: https://www.independent.ie/business...st-100000-as-uncertainty-reigns-35246007.html
     
    Last edited: 10 Mar 2019
  13. RedOnion

    RedOnion Frequent Poster

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    Logo likes this.
  14. lledlledlled

    lledlledlled Frequent Poster

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    This ignores the fact that the bookmaker will not refund your investment. The fact that Prize Bonds do this (at any time, whether you win or lose) is one of their main features.
    Yes, the odds of winning are very low. But deposit interest rates are almost zero anyway so for some, PBs are an option.
    Although probably not the best 10-20 yr option for 150k.
     
  15. jpd

    jpd Frequent Poster

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    A non-profit company has € 35,000 of prize bonds and wins around € 175 every year ie they have 3 or 4 wins of € 50 per year - in line with the expected amount

    Obviously if you only have € 1,000 then you would expect to win € 5 every year or as the min prize is € 50 - once every 10 years
     
  16. username123

    username123 Frequent Poster

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    There are 336 pages and counting here on prize bonds: https://www.boards.ie/vbulletin//showthread.php?t=2056292513 :D

    IMO this quote from the original post
    is kinda important. Very different meaning to different people. All ideas on here are valid as its unclear if you are talking about aggressive growth or capital and "today's value" protection merely to beat inflation. I would imagine the answers to that would influence the most appropriate investment vehicle quite a bit.....
     
  17. Logo

    Logo Frequent Poster

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    I'm simply looking to maintain current savings by as secure means as possible rather than the "aggressive growth" strategy which could possibly compromise them.