Beginning to Invest - All questions go here please

Bob24

patsat wrote: »

I have been reading up with the idea of investing some money. I'd like to put away maybe €100-200 a fortnight as a long term thing.

ETFs seems to be a no brainer but the tax implications mean buying shares every couple of weeks will be a nightmare down the line.

What other strategy should I look into for this type of money/frequency? I have alot more reading to do before I put my money in but would like to be steered on the right direction!

If you haven’t read it yet, you might be interested in some of the posts in this thread: https://www.boards.ie/vbulletin/showthread.php?p=114381814

PS: and IMO you are right, while in theory putting a few hundred fortnightly on index funds is a good way to start for a beginner investor (and it is in most countries) ... it could turn into a tax reporting headache in 8 years time if you still have those shares and still are in ireland.

Taylor365

patsat wrote: »

I have been reading up with the idea of investing some money. I'd like to put away maybe €100-200 a fortnight as a long term thing.

ETFs seems to be a no brainer but the tax implications mean buying shares every couple of weeks will be a nightmare down the line.

What other strategy should I look into for this type of money/frequency? I have alot more reading to do before I put my money in but would like to be steered on the right direction!

Decide on what etfs you want, then find the stocks that make up their largest proportions. Separate into different industries and divide your stake between them.


Only tax implications are when selling (a one off) or receiving dividends (yearly).

Jim2007

Taylor365 wrote: »

Decide on what etfs you want, then find the stocks that make up their largest proportions. Separate into different industries and divide your stake between them.

You can't replicate the performance of an index that way. You need to continually adjust the waiting etc.... it would be an expensive operation. Better to find an investment trust or a similar vehicle.

kickmark19

I am new to investing but having trouble finding a suitable broker for my situation. I am Irish and have been living in Ireland for the past 6 months but before that I was working in the US for 2 years, so I will have to file as a US tax resident for the year 2020. This means I am unable to use Degiro as a 'US person'. I am OK to use Interactive Brokers but their fees are high for how I plan to invest. eToro i had issues with. Can anyone advise? Thanks

1123heavy

If I am on the COVID PUP and money from trading is detected as coming into my bank account, would this count as income and cause my PUP payments to stop? I tried to use my revolut account but it will only accept a Euro account

Shedite27

1123heavy wrote: »

If I am on the COVID PUP and money from trading is detected as coming into my bank account, would this count as income and cause my PUP payments to stop? I tried to use my revolut account but it will only accept a Euro account

Income from trading would be a Capital gain. I don't know how PUP works but doubt Capital Gains affect it.

s1ippy

What if you just keep letting the assets appreciate each year and don't withdraw the surplus money? Is the profit still taxable even though it's locked in the investment?

CertifiedSimp

Just wondering peoples thoughts on currency fluctuations especially USD-EUR

I am investing in US stocks and the dollar is weakening meaning my investments are losing value through currency loss.

It's obviously good for buying US stocks now but if it keeps going down you lose money on current investments.

Long term would it be expected for currencies to fluctuate back and forth? i.e long term the dollar will strengthen against EUR?

Shedite27

s1ippy wrote: »

What if you just keep letting the assets appreciate each year and don't withdraw the surplus money? Is the profit still taxable even though it's locked in the investment?

It's not a profit until you sell the shares. And that's how the taxman sees it too.

Cirrus Incus

How can you tell on Degiro what shares pay divedends?
Should they avoided if you don't want to deal with messy tax payments?

CertifiedSimp

Cirrus Incus wrote: »

How can you tell on Degiro what shares pay divedends?
Should they avoided if you don't want to deal with messy tax payments?

I personally try avoid them yes.

DIvident paying stocks drop the value of the stock by the dividend price when it's paid anyways.

You can google stocks to see what div they pay.

Bob24

Cirrus Incus wrote: »

How can you tell on Degiro what shares pay divedends?
Should they avoided if you don't want to deal with messy tax payments?

I don’t think DEGIRO shows the dividend yield, but if you just search the share on yahoo finance it will tell you.

Taxation isn’t messy though, it is just extra income you need to report once a year (DEGIRO should give you a statement). It is simpler to handle than the deemed disposal thing with ETFs.

1123heavy

Shedite27 wrote: »

Income from trading would be a Capital gain. I don't know how PUP works but doubt Capital Gains affect it.

Thanks, will try with my main account so

timetogo1

Cirrus Incus wrote: »

How can you tell on Degiro what shares pay divedends?
Should they avoided if you don't want to deal with messy tax payments?

If you follow that approach you'll miss out some big gainers. 3 of my biggest gainers in the last year pay dividends. Microsoft, Apple & Amd.
The dividends were small but the growth was enormous.

I use Seeking Alpha or Webull to see if stocks pay dividends.

ganmo

Bob24 wrote: »

I don’t think DEGIRO shows the dividend yield, but if you just search the share on yahoo finance it will tell you.

Taxation isn’t messy though, it is just extra income you need to report once a year (DEGIRO should give you a statement). It is simpler to handle than the deemed disposal thing with ETFs.

Go to the agenda heading and you'll find the upcoming dividends

Bob24

ganmo wrote: »

Go to the agenda heading and you'll find the upcoming dividends

But it’s just upcoming dividends for the next few days isn’t it? Or is there a way to find the dividend yield for a particular stock even if it doesn’t have an imminent dividend payment.

ganmo

Bob24 wrote: »

But it’s just upcoming dividends for the next few days isn’t it? Or is there a way to find the dividend yield for a particular stock even if it doesn’t have an imminent dividend payment.

You can go forward to the next week on the desktop webpage. The no way to find out what a dividend will be before it is announced, sometimes they are announced well in advance of their ex date.
I came across an announcement last week where a company were reinstating their suspended dividend from earlier in the year and annouced their final dividend for the year, combined the yield was about 7%.

My way of looking at shares is growth shares only payout when you get out, dividend shares pay out every year and when you get out.

I use dividendmax.com a fair bit to get info of ex dates and it has past payouts there too.

Saudades

Is there a UK Investment Trust that mirrors or relatively replicates the S&P500?

Bob24

Saudades wrote: »

Is there a UK Investment Trust that mirrors or relatively replicates the S&P500?

Not like an ETF would, they are actively managed.

But if you want exposure to US growth equity, that one has been a great performer (of course it doesn’t guarantee future performance): https://www.trustnet.com/factsheets/t/or5h/baillie-gifford-us-growth-trust-plc-ord-gbp0.01

It is managed by the same firm as Scottish Mortgage with a similar strategy except for the restriction to US companies, so I wouldn’t combine them as it would give a false sense of diversification. And actually unless you really want to stick to US stocks, between the 2 I would go for Scottish Mortgage.

1123heavy

After months of waiting i finally had my DEGIRO account opened today ... where to first!? :pac:

Bob Harris

1123heavy wrote: »

After months of waiting i finally had my DEGIRO account opened today ... where to first!? :pac:

Profit or loss...it's your choice.

CertifiedSimp

1123heavy wrote: »

After months of waiting i finally had my DEGIRO account opened today ... where to first!? :pac:

Tesla...all in!

GiftofGab

Looking to start small and invest in a S&P 500 Index with distributing dividends. How do I input the option to reinvest the dividends??

timetogo1

GiftofGab wrote: »

Looking to start small and invest in a S&P 500 Index with distributing dividends. How do I input the option to reinvest the dividends??

Who are you with? You can't on Degiro.

Timmaay

CertifiedSimp wrote: »

Tesla...all in!

Wouldn't of been a bad call them 4 hrs ago, up 50$ now!

GiftofGab

timetogo1 wrote: »

Who are you with? You can't on Degiro.

Thanks. Yeah with Degiro

ganmo

timetogo1 wrote: »

Who are you with? You can't on Degiro.

You can but its €7.50 a share, so its cheaper to buy them manually

timetogo1

ganmo wrote: »

You can but its €7.50 a share, so its cheaper to buy them manually

How? I can't see any option for it. Degiro don't do fractionals so how would you drip?

outonawing

timetogo1 wrote: »

How? I can't see any option for it. Degiro don't do fractionals so how would you drip?

Trading 212 do fractionals.

ganmo

timetogo1 wrote: »

How? I can't see any option for it. Degiro don't do fractionals so how would you drip?

Attached from their fees.
See the optional dividend. I haven't investigated it as it works out too costly imo