Prize Bonds,

D

deco87

Registered User
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Have 70K to invest. Work Payoff , leaving. Is there ANY risk to putting it into Prize Bonds?

Just to keep try get a bit of "interest" no immediate plans to use it.

Adverse to any risk.

Deco
 
If you don't need it then go ahead. There's no risk and you just might get lucky You'll get nothing in the banks for it
 
There is no such thing as a no risk investment.

Prize Bonds are a low risk investment.

But they are a loan to the Irish state which had to be rescued from bankruptcy in 2008 and is heading that way again now.

Brendan
 
noproblem said:
If you don't need it then go ahead. There's no risk and you just might get lucky You'll get nothing in the banks for it
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Thanks I wont now I'm nervous see Brendan's comment ...have to think about it ,thks
 
It is but sure if the Government/Country went wallop what good would any guarantee be! :)
 
Putting people off buying Prize Bonds by saying the Goverment might go belly up is in my opinion scaremongering. I say that with respect to others, it's just not going to happen. Am I certain? No, that's because we could all die in the next hour.
 
noproblem said:
Putting people off buying Prize Bonds by saying the Goverment might go belly up is in my opinion scaremongering.
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Countering the widespread myth that there are risk-free investments in not scaremongering. It really is important that people understand this.

I do not expect the Irish government to go bust but it's a real risk that people should be wary of.

For example, anyone relying on a government pension , should absolutely not have their assets subject to the same risk.

Brendan
 
I don't expect it either but as Brendan says it's not risk free and any guarantee is only as good as who is giving it! I hold a lot of Prize Bonds myself as it's as handy as anywhere else when there is no return on interest to be made. Mind you it seems like that 'myth' that new bonds always win a couple of prizes initially might be true. I have some oldish bonds on which I won a couple of 50s and maybe a 75, nothing then for years until I bought some more back in April and low and behold as soon as they are eligible for a draw after 3 months I win 50.

Cheque sent out with very helpful forms to convert future winnings into more bonds :) or lodge to bank. Lodging is fair enough but if that win is a carrot given to all new bond holders to encourage more purchases then it's a bit irritating. Someone did tell me at one stage you should be continually cashing them in and taking out new ones to get these new bond wins!
 
Did you consider the 10 year solidarity bond? 1.5% interest instead of the average 0.5% of prize bonds. Similar level of risk; both safe unless the government defaults. As easy to buy as prize bonds.
 
Why not split it in two, get 35k prize bonds and 35k something low to medium risk
 
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They are not zero risk, they are extremely low risk.

Greece went bankrupt and reached two settlements with bondholders in 2012 and 2015. This was the largest default by a government ever. In both cases retail investors were not touched. A prize bond is a retail product.

Several posts are just scaremongering. There is a much greater risk of loss of theft or loss from keeping it home in safe.

The bank is basically the same. Everything up to €100k is just guaranteed by the same government which issues prize bonds.
 
I don't think that anyone has suggested keeping one's savings under the bed.

We are agreed that there is no such thing as no risk. That is important for everyone to understand.

While they are low risk, the outcome would be catastrophic for someone who also depends on the state for their pension, so they should not be investing all their assets in things dependent on the continued solvency of the Irish state.

Very few people seem to appreciate the parlous state of the Irish national finances.

Brendan
 
Brendan Burgess said:
We are agreed that there is no such thing as no risk. That is important for everyone to understand.

While they are low risk, the outcome would be catastrophic for someone who also depends on the state for their pension, so they should not be investing all their assets in things dependent on the continued solvency of the Irish state.

Very few people seem to appreciate the parlous state of the Irish national finances.

Brendan
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I don't think it's wise to say that prize bonds carry a risk while not pointing out that the alternatives for a retail investor (bank deposits, state savings) rely on exactly the same state backing and are not any lower in risk.

For someone resident in Ireland with €70k who wants to preserve their nominal value then prize bonds are as low risk as is possible.

The Irish sovereign never defaulted on a creditor btw. All the stuff about pension liabilities is a distraction from the question posed by the OP.
 
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