# Best Bet for €150 K for 10 year Term



## Logo (14 Feb 2019)

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.


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## galway_blow_in (14 Feb 2019)

Logo said:


> 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.
> ...



Did you mean to say 10 to 20 years ?

That's not a short time.


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## Logo (14 Feb 2019)

Apologies €150K for 10 years - possibly 20 years. 
20 years can be a life span for some depending on age.


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## galway_blow_in (14 Feb 2019)

Logo said:


> Apologies €150K for 10 years - possibly 20 years.
> 20 years can be a life span for some depending on age.



That's a very long term


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## Steven Barrett (14 Feb 2019)

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


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## Gordon Gekko (14 Feb 2019)

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


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## Boyd (14 Feb 2019)

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/


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## NoRegretsCoyote (15 Feb 2019)

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.


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## Steven Barrett (15 Feb 2019)

username123 said:


> 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/



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


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## Logo (10 Mar 2019)

NoRegretsCoyote said:


> 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.



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.


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## jpd (10 Mar 2019)

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


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## Logo (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:


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## RedOnion (10 Mar 2019)

Logo said:


> Any thoughts on Exchange-traded receivables?


This thread is worth a read...

https://www.askaboutmoney.com/threa...s-an-alternative-to-low-deposit-rates.196404/


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## lledlledlled (11 Mar 2019)

NoRegretsCoyote said:


> 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.



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.


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## jpd (11 Mar 2019)

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


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## Boyd (11 Mar 2019)

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

IMO this quote from the original post 





> financially best and most efficient way to invest a sum


 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.....


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## Logo (11 Mar 2019)

username123 said:


> if you are talking about aggressive growth or capital and "today's value" protection merely to beat inflation.


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.


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## maxiimuss (20 Mar 2019)

thank yo man.


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## cremeegg (20 Mar 2019)

NoRegretsCoyote said:


> Inflation erodes the return of _every _asset class*.
> 
> 
> *except inflation-protected bonds, but these are not particularly mainstream.



While real assets are affected by inflation it is very different from the effect on fixed interest investments.


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## NoRegretsCoyote (21 Mar 2019)

cremeegg said:


> While real assets are affected by inflation it is very different from the effect on fixed interest investments.



How so?

Inflation is a generalised increase in the price of goods and services.

It reduces the purchasing power of a given stream of income in the future.


This applies the same to all asset classes.


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## cremeegg (21 Mar 2019)

Inflation does not apply in the same way to all asset classes. 

Companies can raise prices in an inflationary environment, property owners can (broadly speaking) raise rents. 

Bondholders income is fixed in nominal terms.


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