Investing Your Child’s Gift: Long-term Investment Options for €3,000 Yearly

Saving for the long-term is a goal that many people strive for in order to secure their financial future. However, with so many investment options available, it can be difficult to determine where the best returns can be found. From stocks and bonds to real estate and cryptocurrencies, there are numerous avenues to explore. In this article, we’ll take a closer look at the different investment options available and which ones offer the most potential for long-term growth. Whether you’re a seasoned investor or just starting out, understanding the best places to invest your money can help you achieve your financial goals and secure a brighter future.


I have a child who receives a yearly gift of €3,000 from a grandparent, which has accumulated to €21,000 in a bank account with no interest. I am seeking advice on a long-term investment strategy for this money, as well as for another child who will also receive this gift annually. A joint account between parent and child is desired to ensure the money is used for its intended purpose. State savings rates are unattractive for long-term investment, and I am looking for a solution that allows an annual contribution of €3,000. The use of a bare trust is suggested, as it allows control over the investments without being discounted from the lifetime tax-free limit or having access to a lump sum at a later stage. Unit-linked funds are recommended for investment, and assistance from a financial advisor is required. A medium-to-high risk fund is suggested, preferably well-diversified across various assets classes, and passive funds are recommended with lower fees than actively managed funds. Compounding is the key to investment returns, and exit taxes should be factored in. In this scenario, I have assumed an 18-year time window with a €54,000 investment on behalf of the child.


In conclusion, saving for the long-term is an important aspect of financial planning. While there are various investment options available in the market, identifying the ones that offer the best returns requires careful research and analysis. It is crucial to consider your financial goals, time horizon, and risk tolerance before making any investment decisions. With a little bit of effort and patience, you can reap the benefits of compounding and build a substantial nest egg for the future. Remember, the key to successful long-term savings is consistency. So, start today and watch your savings grow over time.