Q – Where can I get the best return on € 30,000 ( inheritance from an aunt )? I don’t need this sum for at least 5 years. What would you suggest – An Post, bank deposit or would I be better off sticking it in Prize Bonds and hope for the best ..perhaps the stock market ? Matt – Longford
A – Well done on the inheritance Matt – at least you have no tax liability on that windfall…the threshold from aunt to nephew is now € 32,500 before tax is payable at the 33% level ( aggregates count so if another aunt bequeaths a similar amount you will have tax to pay ). As regards what to do with it and for 5 years, interest rates are still low – the State Savings investments which are guaranteed by the government and managed by government body NTMA – the best return for your term is the 5 years National Saving Certificate yielding 9% tax free on maturity and the gross amount is 2.6% each year. The stock market is quite easily though the best return of any asset class over any long term period or as Warren Buffet stated it is a mechanism for transferring money from the impatient to the patient ! From 1991 to 2020, the average annual growth in the stock market was 10.72% ! If you do not need that money in the next 5 years, then you will also avoid any penalties for early withdrawals if you find a suitable stock market investment…managed funds with one of the insurance companies would fit the bill. Take expert advice or email me. Putting it into prize bonds might certainly be more fun than leaving it on a demand deposit account. Prize Bonds are government guaranteed and you only need 7 days’ notice to withdraw your money. Unlike the bookies, you never lose your stake but you could win ! Best wishes