Locking in investments

[SquirrelChaser]

Does anyone know of any investments which can be locked away for a set period, eg 5years.

I had an investment account with Zurich, but cashed this in earlier this year to get solar panels (I did the sums and nothing was going to beat or even come anywhere close to the return on investment for solar panels). It wasn't a huge fund after 2 and a half years, but the return was good and it allowed me to reduce the Green loan for the panels so I could pay it down in under 12 months instead of 5 years.

So the Green loan will be paid off in the New Year, freeing up the cashflow which I want to invest in an index fund (most likely a Nasdaq 100 tracker) as that approach has been good to me so far. It's only about €200 a month.

I'm thinking of going back to Zurich, but what I'd really like is a fund which is locked away from my greedy fingers for a set period, say 5 years. My thinking is that I'll dip into it to get nice things every couple of years if I can, but if I don't have the option of touching it then I'll be able to get myself something really shiny in 5 years. (Just to be clear, it's not going to be an emergency fund, it'll be a something shiny fund).

Does anyone know an investment option that would relieve me of the burden of self-discipline?

 

[ClubMan]

What class of investment? Cash/deposits/bonds, State Savings, equity based, etc.? It's more important to choose an investment based on its asset class(es) and suitability for your overall needs and plans rather than based on an administrative issue like how long it is locked away for. In any case, most or all "locked away" investments can still be cashed in earlier but this may involve paying some penalty or foregoing some return.

 

[Fortune]

I don't think there are many investments that are locked away, and any I can think of aren't something that I'd recommend

 

[SquirrelChaser]

What class of investment? Cash/deposits/bonds, State Savings, equity based, etc.? It's more important to choose an investment based on its asset class(es) and suitability for your overall needs and plans rather than based on an administrative issue like how long it is locked away for. In any case, most or all "locked away" investments can still be cashed in earlier but this may involve paying some penalty or foregoing some return.

Equity based.

You're right of course about asset class being more important than administrative convenience (or administrative inconvenience, which is what I'm actually looking for).

My thinking is that locking myself into the investment for a set period removes some of the emotion/temptation from the investment process, and help bridge the gap between the theoretical and the practical aspects of investing. I was able to sit on my hands during 2022 for example because my pension is locked away and I didn't actually know (I avoided knowing) the process for drawing down my investment fund.

So I guess what I'm looking for is probably an option for investing €200 a month which is easy to set up and is paid by direct debit or standing order, but is also a user unfriendly bureaucratic nightmare in terms of cashing in that investment. If cashing in the investment required me to attend in person an office in West Cork between 6.30am and 8am on the second Wednesday of even numbered months, that would be ideal!

 

[ClubMan]

Would it not be better to try to address your lack of self-disicpline than to restrict yourself to what may be a very niche/marginal set of products?

 

[SquirrelChaser]

Would it not be better to try to address your lack of self-disicpline than to restrict yourself to what may be a very niche/marginal set of products?

Clearly, yes. But I was hoping there was a product which would allow me to avoid that!

Apparently not. I'll go back to Plan A (Zurich or equivalent provider) so.

 

[ArthurMcB]

Im surprised that there isnt an appropriate investment that, per the OP, can be left alone for a set period before maturing!!

 

[ClubMan]

Im surprised that there isnt an appropriate investment that, per the OP, can be left alone for a set period before maturing!!

Fixed term savings and investment options do exist but most or all can be cashed in early with some penalty so they're no panacea for impatience or lack of self control. E.g.:

Best Buy - Term Deposits (Fixed Lump Sum Savings)

Rates are frequently updated. Information last changed: 19 November 2024. Highest Term Deposit Rates 3 Months - Easisave - 3.60% 6 Months - Easisave - 3.30% 1 Year - Reitumu via Raisin Bank - 3.20% 2 Years - Haitong via Raisin Bank - 3.14% 3 Years - Haitong via Raisin Bank - 3.10% 4 Years...

www.askaboutmoney.com

Ireland State Savings Products | Ireland State Savings

Ireland State Savings products include Fixed Term Products, Regular Savings Products, Deposit Accounts and Prize Bonds

www.statesavings.ie

Types of Investment - CCPC Consumers

The Competition and Consumer Protection Commission is an independent statutory body that enforces competition and consumer protection law in Ireland

www.ccpc.ie

Structured products are a type of fixed-term investment where you put your money away for a set period of time, such as between three and 10 years.