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What would be the simplest (require the least management) way to get a return of 4 - 6% on savings over a 10 - 15 year period.

I would like the lowest risk possible, I do not need the 'potential' gains to be anything over 4 - 6% but need something that is likely to hit those figures.

I will not need the money as an 'Emergency Fund'.

I would naturally want to pay the least amount of tax possible and do not want to invest in rental properties as that is high maintenance.

I am in Europe and although I don't think this will affect the answer, my savings will be in the region of 1,200 - 1,500 euros per month.

Thanks for reading.

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    "way to get a return of 4 - 6% on savings over a 10 - 15 year period." in America, at least, lots of people would kill for guaranteed/secure returns like that over the long term. – RonJohn Nov 9 '17 at 18:30
  • @RonJohn there's no mention of "guaranteed/secure returns" in the question, merely "the lowest risk possible" – AakashM Nov 10 '17 at 10:13
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I'm assuming you mean 4-6% annually over 10-15 years. If you mean 4%-6% total return over 10 years then this question is easy just find your local country's 10Y bond and that should likely cover it (though barely if you are German).

So 4%-6% annually is not a big stretch but it does require some risk and at least a bit of work. A fire-and-forget good mix would include (using index mutual funds or etfs)

  • Broad European Stock fund
  • Broad ex-European stock fund
  • Broad European Bond fund
  • Maybe a bit of ex-European bonds and European real estate funds (not actual real estate as you mention it is way too much work)

Some internet research and a one-time meeting with a financial adviser who is paid by you (not paid on commission) should help you set the right balance of these index funds and be a good check on what I'm advising.

If you are willing to do a tiny bit more work it's well worth starting with a heavier weight on the riskier stocks and ex-European funds (more currency risk) and then every 2-3 years slowly move into safer stocks and Euro-based funds. With that tiny amount of extra work there you can make it much more likely that you will end within your 4-6% range while taking significantly less risk overall.

  • Some robo-advisors that work in index funds might actually be the easiest way to get the right mix over time (and the fees they charge can be reasonable), but I don't know the robo-advisor space in Europe very well. – rhaskett Nov 9 '17 at 18:47
  • Thanks for the useful answer, I have marked it as the answer. I did mean annually, so thanks for the correct assumption there! The comment against my question seems to disagree with you somewhat, but doesn't provide any evidence, so I will do some real research into Broad European / ex-European Stock funds, as I don't even know what that means at this stage! – Cloud Nov 10 '17 at 7:24
  • @Cloud I can only guess that that commenter thinks you are looking for a risk-free return of 4-6%, which I don't think you are, right? – AakashM Nov 10 '17 at 10:14
  • @AakashM Risk free? There is no such thing. But low risk, yes. – Cloud Nov 10 '17 at 10:23
  • @Cloud obviously we are none of us safe from an asteroid destroying human civilisation. Even so, 'risk-free' is a standard term in investing jargon. – AakashM Nov 10 '17 at 11:14

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