BOI Secure 32 or State Savings

S

stevieob

Registered User
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Have a half decent chunk of cash to stick away for a few years. I also have access to other funds and should not need this money for possibly up to 10 years so happy to tie it up for between 5 and 10 years. I want it to be secure and not to risky.

It is maturing from BOI Double your interest and they tried to sell me a deposit for 2 years at 2.1% so I told them to sling their hook and I was off to the post office to buy 5yr State Savings certificates tax free 2.83%. So they roped in the big guns and are now trying to sell me this Secure 32 fund, which guarantees my initial deposit and gets locked away for 6 years, with the potential growth capped @ 35%. Think he said AER is 5.somethin% but is subject to an exit tax of 36% (current rate).

I already have another fund which is based on equitys etc which I top up monthly. It went through a bad patch over the last few years, but is now in profit, so I consider this my gambling money as such and as far as I know they don't cap it, but I could loose my investment altogether! However I can get my hands on it at any point in time.

Would appreciate any ideas or suggestions with regard to my options here or if there is anywhere else you would recommend.
thanks
 
Stevie, perhaps you should check out this current link; http://www.askaboutmoney.com/showthread.php?t=179436. This really says it all as to how awake one has to be.

It is certainly not for me to advise where and how you should invest your money. But as a word of advice, from somebody that has been burnt, make sure you get everything (T&Cs) in writing. Have you considered using a stockbroker who might be able to advise you best, especially if they do not have a vested interest.
 
You should never start this process by playing the financial service industry’s game of product comparison.

A common theme runs through the investment advice we provide to clients: Focus on those things within your control. Too many investors focus on the markets, the economy, manager performance, or the performance of a given security or strategy instead of the core fundamentals that we believe should drive a successful portfolio. We believe a top-down approach, starting with a suitable asset allocation mix aligned with the investor’s goals and constraints (timeframe, willingness, need and capacity for risk etc), offers the best chance of success.

Because investing evokes emotion, even sophisticated investors should arm themselves with a long-term perspective and a disciplined approach. Abandoning a planned investment strategy can be costly, and research has shown that some of the most significant issues are behavioural: the failure to rebalance, the allure of market-timing, and the temptation to chase performance.

I have 20 years’ experience as a Financial Planner and I can assure you that if you put in place a structured plan which prudently diversifies your investments globally across thousands of different securities you will be less concerned about your savings and you will earn the right to a higher expected return than you currently receive.
We also believe that by having a clear plan and a documented investment policy statement which sets out how you will react to the inevitable bad news that will come along in the future you will be able to deal with short term bumps in the road.

Get a plan, not a product!
 
stevieob said:
why you say that and where does 120,000 come from?
Click to expand...


The Maximum purchase is €120,000 per individual for 5 Year Savings Certificates.


Tax Free to Irish Residents


No fees, charges or commission

15% return after 5 years (AER 2.83%)
 
Hi Stevie
I just had a look at the bank of ireland secure 32 product. Your money is locked away for 71 months - or 5 years 11 months as per the brochure. At the end of 5 years the only certainty you have is that you will get your deposit back. Thats a long time to wait and a lot can happen in 6 years (look at Cyprus!). Even though you can take a 10 year view - I would advise against putting a cent into this product. You would need to be a maths genius to work out what the expected return could be. They have set a maximum return of 35% - but the actual return could be 0%. And thats a negative return after inflation.

The Post office is simple and straightforward - and your money is accessible. If you want to take a bit of risk - ask the Bank of Ireland guys about their investment funds - but dont touch the Secure 32 product as the only guaranteed winners here are the Bank. Its a pity the Regulator doesnt ban these products before someone gets seriously hurt......
 
Just to update above info on 5 Year Savings Certificates 11% return after 5 years (AER 2.11%) - Issue 19 of this Product.
 
kateball said:
ask the Bank of Ireland guys about their investment funds - but dont touch the Secure 32 product as the only guaranteed winners here are the Bank. Its a pity the Regulator doesnt ban these products before someone gets seriously hurt......
Click to expand...

As was mentioned recently, why don't you (and others) advise the Regulator on the failings of this product. The more people that lodge a complaint the better it will be for everybody.

We really are a nation of sheep........ We put up with what the Financial institutions have done in the past, and continue to allow us being hood winked again and again. Strange but true.
 
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