[QUOTE=“ProjectX, post: 1118113, member: 1742”]Regular savings accounts will not make you much return on your capital. Good approach of you are educated and informed is to open a spread trading account with someone like ETX or IG.
30k is good account capital to start a very enjoyable profitable business.
*spread trading is a leveraged product and you can lose more than your original stake.[/QUOTE]
Very few people make money spread betting long term.
[QUOTE=“Kinvara’s Passion, post: 1119144, member: 686”]The exit tax from ETF’s is a huge area of confusion from what I gather. Plus it appears you cannot offset losses in ETFs against other gains **. Therefore buying straight shares appears to be a far more attractive option.
Be careful mate.
** I wonder is Brendan Burgess related to Georgie Burgess?[/QUOTE]
Buying straight shares is more attractive in terms of capital gains treatment alright, not much else though.
Getting the gains in the first place is the tricky part.
[QUOTE=“Bandage, post: 1119561, member: 9”]Bumped for @Rocko.
I’m advised that the tax implications of investing in the fund are as follows:
The fund grows “tax free” until its 8th anniversary, or withdrawal, at which point tax is payable on the growth element at the prevailing rate at the time. This rate is currently 41% (same as DIRT rate).
The chap I’m dealing with is adamant that this is WAAAAYYYY more favourable from an investment perspective because you can get exponential growth rather than being taxed each term/yearly, like deposits.
Discuss.[/QUOTE]
All of the above is correct. Worth noting that similar to ETF’s you cannot offset losses against gains. You’d hope that by the time you were coming out the tax rate might have fallen some what.
[QUOTE=“Juhniallio, post: 1119584, member: 53”]Lads, i’m cashing in shares that made a small profit. Do i have to ring revenue, tell them about it and pay them?
Even if the profit is small (under 3000)[/QUOTE]
I don’t think revenue would get much done if people kept ringing telling them every time they sold a share.
You are off the top of my head entitled €1270 per year in CGT without paying tax. Put it through with your tax return at the end of the year. You can offset previous losses against gains so long as they are within 5 years or some such.
[QUOTE=“Bandage, post: 1122862, member: 9”]Well, are you going to answer my focused query?
As an aside, bumped for @Rocko.[/QUOTE]
What focused query mate?
Correct, so you just need to be consistent over the longer term. It takes discipline.
A passively managed ETF bandage might suit you. Less mgt fees and risk. Read somewhere that they have been outperforming a decent percentage of actively managed funds over the last few years.
Nearly 90%. Nearly all those studies are based on funds vs the s&p though which isn’t the natural home for a Euro investor. In general though etfs all the way
[QUOTE=“Bandage, post: 1119561, member: 9”]Bumped for @Rocko.
I’m advised that the tax implications of investing in the fund are as follows:
The fund grows “tax free” until its 8th anniversary, or withdrawal, at which point tax is payable on the growth element at the prevailing rate at the time. This rate is currently 41% (same as DIRT rate).
The chap I’m dealing with is adamant that this is WAAAAYYYY more favourable from an investment perspective because you can get exponential growth rather than being taxed each term/yearly, like deposits.
Discuss.[/QUOTE]
Well your wedge is getting re-invested “tax free” from the first years so the compounding effect means that the investment will grow nicely. But then you get hit with a big wodge of tax at year 8. And paying on a growth element rather than a cashed in amount seems dodgy. What if the investment tanks in year 9?
By the way a 41% tax rate is outrageous. I only pay about 19% for stuff like that.
This is an interesting fund
https://www.fundsmith.co.uk/Home.aspx
It’s managed/owned by Terry Smith, the man who some of the older CA’s on here might remember wrote “Accounting for Growth” back in the 90s.
Sorry mate, I outsourced my responses to @Julio Geordio for a while.
Not sure much of the discussion is relevant to regular saving by the way. The ETF would have much the same tax treatment as the fund offered by the advisor/ your girlfriend. The advantage of your fund from a tax perspective would be intern fund trading not crystalizing a gain but that’s a small enough distinction. Getting an ETF that accumulates dividends might be slightly preferable but all the tax impacts on all these options are fairly sickening.
It’s extremely boring, but if you’re preferred to leave your money untouched foe that 8 year period then you could go 10 years and get a National Solidarity Bond for 10 years. 25% tax free after 10 years. It’s not spectacular but the high tax elsewhere makes the 0% rate very attractive.
Right. Money types, I have a friend who has some financial questions. How much would he spend in total on a mortgage of say 350,000 at current rates?
If he’s currently renting but own another property should he sell up the cheaper mortgage to help him out with a deposit or is that crazy? He’d be losing a decent rate of interest and presumably taking whatever wanker rate is on the go at the moment.
Should he hold off entirely at the moment and wait a couple of years if his income is going to take a decent rise over the next couple of yeaars?
Finally, is there any international financier types out there who would like to finance a smaller, more personal project?
All ideas welcome, says my friend.
Anyone use or advicate any budgeting apps or tools for managing finances? Beyond the basic setting up a standing order any techniques to max monthly savings?
One of these.
Traditional. Ok, thanks for your input Horsey mate.
A diet of bread and tomatos can help.
Pay yourself first i.e. lodge to your savings account first and then plan what to do with the rest of it. Not sure if you own a house or not but Flatty mentioned it above that if you have spare cash monthly overpaying the mortgage is a no brainer.
Also should look closely at your pension fund through work if lucky to have one. Make sure you maximise your own contribution to at least the level your employer will match. And stick it into a riskier fund if you have plenty time to retirement.
On a more micro level if you looking for tips I have a standing order for 25 quid a week into my electricity account. After a while you will end up in credit and never have a big bill again. It’s the out of course expenditure that kills you when planning.
BTW. The procrastination from @Bandage throughout this thread is v funny! Did you ever get the savings up and going?
The envelope system is widely advocated
Put cash in envelopes based on weekly or monthly budget for
Groceries
Socialising etc
Use cash for activity or purchase
When it is gone then it is gone