I think i'm seeing double !! You know it really doesn't make any difference how many times you put this Post on. You'll get the same amount of replies.
The maths is simple: for a 6% average return, it's €1000*(1.06)^21. That's about €3400.
The present rate of fall in house prices would need to continue for a long time if €3400 would serve as a worthwhile deposit.
The reason for 1000 is that i wont miss it now, and because of the length of investment it may grow into something worthwhile in years to come. Deposits are out as the return is no good. Premium bonds would be worth nothing in 21 years time, unless we get real lucky.
I like the sound of an emerging markets fund or another equity fund fo rthat matter. How would the investment returns/dividends be taxed each year, and at the end of the 21 years when it would be withdrawn?
Do not put a one way bet on any asset class - that is what got us into this mess.
Diversify properly into more defensive assets not dependent on economic growth.
the coming years will be about return of capital rather than return on capital.
best to remain somewhat defensive in short term until we get some visibility as to the severity of the likely global depression - thus best to look at some dividend paying equities, cash, bullion and AAA rated index linked bonds.
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