Complete newbie to any kind of investing but have done a bit of reading.
Considering putting €50k away for 10 years. Have been in prize bonds for few yrs losing value.
Was about to invest in Zurich Prisma 5 bonds
Today I see State Savings are offering new 10 Year National Solidarity Bond return rates of 22% from October (tax free)
Obviously I know there is risk with Investing versus State bonds being guaranteed so I want to check I am understanding the bond investment correctly.
Prisma 5 has a level 6 risk but shows a cumulative performance 5 year return of "49.7%".
Please excuse my ignorance or innocence, but want to be sure I am not missing something:
Does this mean if I had invested €50k 5 years ago this fund would not have increased in value by 50% minus 41% tax = making it now worth €64,662 ?
(€50k + €24,850 minus €10,188 tax).
Comparitively an investment in the new 10 Year National Solidarity Bond would be worth €61,000 (€50k plus 22% tax free)
I know I am using past figures for the investment fund and these are not guaranteed but in theory am I correct in comparing my possible fund value in 10 years time being
€64K v €61K
Would really appreciate extra eyes on my basic calculations and early understandings, so can make an informed choice.
Thank you
Considering putting €50k away for 10 years. Have been in prize bonds for few yrs losing value.
Was about to invest in Zurich Prisma 5 bonds
Today I see State Savings are offering new 10 Year National Solidarity Bond return rates of 22% from October (tax free)
Obviously I know there is risk with Investing versus State bonds being guaranteed so I want to check I am understanding the bond investment correctly.
Prisma 5 has a level 6 risk but shows a cumulative performance 5 year return of "49.7%".
Please excuse my ignorance or innocence, but want to be sure I am not missing something:
Does this mean if I had invested €50k 5 years ago this fund would not have increased in value by 50% minus 41% tax = making it now worth €64,662 ?
(€50k + €24,850 minus €10,188 tax).
Comparitively an investment in the new 10 Year National Solidarity Bond would be worth €61,000 (€50k plus 22% tax free)
I know I am using past figures for the investment fund and these are not guaranteed but in theory am I correct in comparing my possible fund value in 10 years time being
€64K v €61K
Would really appreciate extra eyes on my basic calculations and early understandings, so can make an informed choice.
Thank you