No problem, he can come to Switzerland. Money is not a topic of conversation here, we don’t even disclose salary levels on job ads and some contracts even prohibit it.
No problem, he can come to Switzerland. Money is not a topic of conversation here, we don’t even disclose salary levels on job ads and some contracts even prohibit it.I've spoken with my son, and his goal is to have enough money to emigrate and as he says " in a country where money is not everything people talk about ".He'll have some difficulties finding one but it's his life.
Oh I understand you perfectly, I’ve has 30+ year hearing this story while people continue tI loose money on bonds, but you just don’t see the full risk profile of bonds.I don't think you are understanding me.
Capital is safe, plus a small interest premium. Plus the 40% tax relief.
The only way my capital is at risk, is if the state goes bust.
A return of 8% per year is not required for those investors over 50. The state can offer the same interest rate as state savings, which are still very popular. It doesn't need to compete with risky equity funds. It's a safe, capital guaranteed savings account, for your pension.
Sure I might lose out if equity markets perform like the last 10 years. But if they perform like the 10 years before that, I'm quids in. But,more importantly, I will preserve my capital investment and never go negative.
You are right pension funds are long term investments and consequently no government can give you a long term commitment to the rules. Pension and taxation rules change regularly all over Europe as does the state of economies and rates of return. But despite all of that you are still more likely to be better off if you invest in a pension than if you don’t.It doesn't really matter what sort of pension contributions method the government might introduce because at present no Irish government can be trusted. A previous government has raided the invested pension funds of its citizens. Until there is a law passed to guarantee that this will never be repeated, it is uncertain if investing in a pension in Ireland is a good idea. Pensions are a very long term investment and the rules should not be constantly changed by the government. Most recent changes made, have been to the disadvantage of the pension contributer.
Well that is the theory, but it ignores a crucial element: Irish issues are small and easy to manipulate and the biggest holder of Euro bonds is the SNB (Swiss National Bank), in fact they hold bonds equivalent to the deficit of the seven biggest Euro Group states as part of their capital reserve and Irish bonds are a big part of it. They have admitted they they have on at least three occasions conducted market operations in defense of Irish bonds. The SNB is the only central bank with both the depth of capital and the freedom to act in taking on the ECB, so I would not expect to see any long term impact on valuations for some time. There are also many medium sized player who have issued various derivatives on the back of Euro bonds and even several synthetics out there. That is why it is not recommended for small investors to buy individual bonds, especially those of small nations.Irish Govt Bonds are currently yielding less than 1% pa. But Bond values are only guaranteed if you hold the Bond to maturity. Otherwise the capital value rises when interest rates fall , BUT the capital value FALLS when interest rates rise.
So looking ahead, are interest are more likely to rise or fall? All the current evidence suggest interest rates are more likely to rise in the near future. So Irish Government Bond holders are getting a very low interest rate and may see capital values fall (if not held to maturity). Hardly an ideal investment strategy for retirees.
Believe it or not, its on his list, Sweden also and while he has little knowledge of Asia he has a yearning to see Japan.No problem, he can come to Switzerland. Money is not a topic of conversation here, we don’t even disclose salary levels on job ads and some contracts even prohibit it.
I'm proposing a Deposit savings scheme using the Irish State Savings Scheme.Oh I understand you perfectly, I’ve has 30+ year hearing this story while people continue tI loose money on bonds, but you just don’t see the full risk profile of bonds.
I'm proposing a Deposit savings scheme using the Irish State Savings Scheme.
It's not designed for international bond dealers, or fancy dan equity traders.
But, if people are happy for the current failure to continue , so be it.
Millions of people will still need a pension, housing, heating, healthcare, nursing home assistance, etc.
But we can do it the Communist way, by redistributing wealth via taxation. Suits me.
Pension contributions are given tax relief at the contribution stage and then taxed as income when they are drawn down.You are right pension funds are long term investments and consequently no government can give you a long term commitment to the rules. Pension and taxation rules change regularly all over Europe as does the state of economies and rates of return. But despite all of that you are still more likely to be better off if you invest in a pension than if you don’t.
Ah here your idea isn't that out there but this distribution of wealth is utter nonsense, the only distribution you want is from those who pay for everything anyway.I'm proposing a Deposit savings scheme using the Irish State Savings Scheme.
It's not designed for international bond dealers, or fancy dan equity traders.
But, if people are happy for the current failure to continue , so be it.
Millions of people will still need a pension, housing, heating, healthcare, nursing home assistance, etc.
But we can do it the Communist way, by redistributing wealth via taxation. Suits me.