Select Safe Investment

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eddie10

Registered User
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I took out a Lump Sum Select Safe investment with Irishlife afew months back. It was a six year plan, that worse case scenario at the end of the 6 years I would get the lump sum that I initially input. In the present climate how safe is this investment?? Would it be safer to put it in a deposit account?
 
eddie10 said:
I took out a Lump Sum Select Safe investment with Irishlife afew months back. It was a six year plan, that worse case scenario at the end of the 6 years I would get the lump sum that I initially input. In the present climate how safe is this investment??
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Well aren't you still guaranteed your lump sum back in 6 years? Of course just getting your nominal sum back in 6 years means a negative real return due to inflation. You would need to be earning at least c. 5% p.a. net for the real value of your money to be maintained.
Would it be safer to put it in a deposit account?
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Possibly. But if you cash in now what hit will you take on your original investment? And net deposit returns are generally just keeping pace with inflation at the moment.

Why did you choose this specific product in the first place and what percentage of your overall savings are invested in it?
 
Just to spell it out, assuming an inflation rate of 5% over the six years of your investment and starting with a €50k investment, your "lump sum guarantee" would return you the equivalent of €35k !!!
 
Yes, i know i may make nothing on it at the end of 6 years, and it would be classed as a loss due to inflation, but i wanted to ensure the minimum i would have is my initial investment. Its for my kids education fund which i wont need until 8-9 years time. My concern was with regardss to the current climate and how safe are Irishlife themselves?? Are they protected?
 
If the investment timeframe is c. 8-9 years then would it not be worth looking at a low charges open ended unit linked fund for at least some of the money?

For what it's worth in a worst case scenario 90% of your investment (presumably the original investment and not any growth?) up to a maximum payout of €20K is guaranteed under the IFSRA investor compensation scheme:

Compensation schemes
 
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