Beginning to Invest - All questions go here please

Taylor365

ACitizenErased wrote: »

And how do I go about paying CGT/IT? Would it be worth calling into the Revenue office if I'm completely clueless about that?

Online through myAccount.

spaceHopper

My Father passed away and left my two kids 32K each, they are 7 (twins) I want to invest the money for them until they turn 18. I going to invest it separately. Any suggestions, it doesn't all have to be in on pot either.

Government bond, Prize bond...

Also what would it cost professional advice?

Down the line I know my mothers will does the same (32 K after tax) but hopefully that is a good few years off.

funkey_monkey

Hello,

I've got approx 1200 shares in RR which I obtained when I was in England working for the company. I've got caught out with them as they spiralled downwards to yesterdays Rights Issue announcement.

They were bought in at avg of ~£6.

My question is, what should be be planning to do now? Do I sell up and take the loss, do I just hold on, do I partake in the RI?

All advice appreciated.

Bob24

spaceHopper wrote: »

My Father passed away and left my two kids 32K each, they are 7 (twins) I want to invest the money for them until they turn 18. I going to invest it separately. Any suggestions, it doesn't all have to be in on pot either.

Government bond, Prize bond...

Also what would it cost professional advice?

Down the line I know my mothers will does the same (32 K after tax) but hopefully that is a good few years off.

Irish government bonds are fine if you want your capital to be guaranteed in nominal term and to avoid volatility. But given the current situation with negative real interest rates which seems here to stay for a while, you are almost guaranteed that the purchasing power of your investment will be significantly reduced over the next 10 years (due to a combination of inflation and very low or negative interest rates).

IMO, to protect the purchasing power of the capital you need to park at least some of it into equities and gold (especially since your investment horizon is rather long so you can stomach some volatility). Or possibly other asset classes if you want to be more adventurous and sofisticated (farmland, bitcoin, fine art, etc), but with those you will need more homework to know and understand what you are doing.

You can look at different options but shares in this investment trust could be an easy way to do it without having to manage the diversification yourself: https://patplc.co.uk

Basically your money would be parked in a mix of US inflation protected bonds*, defensive company shares, gold (mostly physical and some mining shares), and a bit of cash.

* TIPS, which are treasury bonds with a value indexed on US consumer price inflation.

Timmaay

Farmland hmmm, average price in Ireland is in around 10k/acre, and the rental return is the likes of 200e/ac, or 2% per year. During the Celtic tiger the value of land ballooned to 30k/ac in some places, but that was crazy speculation and short lived. As a farmer and landowner myself I'd say there are a hell of alot better places to put your money.

Bob24

Timmaay wrote: »

Farmland hmmm, average price in Ireland is in around 10k/acre, and the rental return is the likes of 200e/ac, or 2% per year. During the Celtic tiger the value of land ballooned to 30k/ac in some places, but that was crazy speculation and short lived. As a farmer and landowner myself I'd say there are a hell of alot better places to put your money.

Not necessarily in Ireland.

There was a good episode of Macrovoices on the topic with a comparison to other asset classes: https://www.macrovoices.com/podcasts-collection/macrovoices-spotlight/869-spotlight-4-artem-milinchuck-farmland-investing-now-available-to-all-accredited-investors-the-future-of-investing

The goal isn't necessarily to get better returns than with the stock market, but rather to make a portfolio more anti-fragile by fragmenting it into asset classes which aren't too corelated (and when you calculate your return you also have to take capital appreciation into account, not just the rental yield).

But as I said this is for sophisticated investors who know what they are doing (although I believe we will have easily available securitised or tokenised farmland in a not too distant future).

funkey_monkey

Is there no passive investment fund that spaceHopper can use - an equivalent of the Vanguard Lifestrategy funds?

Mystery Egg

Complete noob here.

I'd like to start investing my son's children's allowance. 140 euro per month. He is two, so I'd like to have a lump sum for him when he turns 18.

Any advice?

edwardkiley

what kind of fees do you get hit with when investing
is there anyway to avoid these

Taylor365

edwardkiley wrote: »

what kind of fees do you get hit with when investing

Transaction fees
Exchange Fees
Dividend Fees

edwardkiley wrote: »

is there anyway to avoid these

Yes, don't invest.

Shedite27

edwardkiley wrote: »

what kind of fees do you get hit with when investing
is there anyway to avoid these

They’re relatively tiny with Degiro and other modern online brokers (less than a € per trade). Tax is the biggest impediment

Shedite27

Mystery Egg wrote: »

Complete noob here.

I'd like to start investing my son's children's allowance. 140 euro per month. He is two, so I'd like to have a lump sum for him when he turns 18.

Any advice?

Try to get the shares in his name, some online brokers allow custody accounts, it will mean the lump sum when they go to cash in is in their name so exempt from inheritance tax

Mystery Egg

Shedite27 wrote: »

Try to get the shares in his name, some online brokers allow custody accounts, it will mean the lump sum when they go to cash in is in their name so exempt from inheritance tax

Good tip, thank you.

Interested Observer

Is there any thoughts on funds like this please:

https://www.zurich.ie/funds/fund-products/multi-assets/prisma-funds/

I plan on saving at least 500 a month for about the next 10 years, but don't have much of a lump sum up front. These funds seem a better option than just putting it into a savings account. I don't really know anything about investing and tbh don't really want to put in a particular amount work, would rather just set something up and forget it. Thanks.

Shedite27

Interested Observer wrote: »

Is there any thoughts on funds like this please:

https://www.zurich.ie/funds/fund-products/multi-assets/prisma-funds/

I plan on saving at least 500 a month for about the next 10 years, but don't have much of a lump sum up front. These funds seem a better option than just putting it into a savings account. I don't really know anything about investing and tbh don't really want to put in a particular amount work, would rather just set something up and forget it. Thanks.

Yep, better returns that saving account, less work that buying/selling shares. Most on here prefer the work and get better returns, but funds like that are popular for a reason.

Taylor365

Interested Observer wrote: »

Is there any thoughts on funds like this please:

https://www.zurich.ie/funds/fund-products/multi-assets/prisma-funds/

I plan on saving at least 500 a month for about the next 10 years, but don't have much of a lump sum up front. These funds seem a better option than just putting it into a savings account. I don't really know anything about investing and tbh don't really want to put in a particular amount work, would rather just set something up and forget it. Thanks.

Before you jump, find out all the charges and fees. They like to leave that stuff out for some obtuse reason.

Interested Observer

Taylor365 wrote: »

Before you jump, find out all the charges and fees. They like to leave that stuff out for some obtuse reason.

I spoke to them on the phone and they told me up front to be fair, it's 1.2%-ish. I also spoke to KBC who were 1.6%.

Shedite27

Interested Observer wrote: »

I spoke to them on the phone and they told me up front to be fair, it's 1.2%-ish. I also spoke to KBC who were 1.6%.

There's a 1% government levy on that too.

funkey_monkey

Are the Vanguard Lifestrategy funds available in Ireland?

Atlantic Dawn

If a stock is listed on NYSE and FTSE, say for example Carnival Corporation, what would be the advantages and disadvantages of buying either? Does the NYSE opening price each day sync with what the FTSE price is at that time of the day, likewise when FTSE opens in the morning does it sync with closing price in NYSE, subject to FX rate changes etc?

Shedite27

Atlantic Dawn wrote: »

If a stock is listed on NYSE and FTSE, say for example Carnival Corporation, what would be the advantages and disadvantages of buying either? Does the NYSE opening price each day sync with what the FTSE price is at that time of the day, likewise when FTSE opens in the morning does it sync with closing price in NYSE, subject to FX rate changes etc?

Generally it's better to go for the one with the bigger volume (the amount of shares traded each day).

Also look for charges (eg Degiro charges more for FTSE transactions than NYSE).

And finally, there's the currency threat. An Irish person buying on those exchanges is subject to currency fluctuation (eg your share price could go up but if the currency goes down you're flat).

I'd always go for NYSE if it's listed there.

ExMachina1000

Might be helpful for some who are beginning. The 11 market sectors that make up the stock market as a whole. Quick info explaining things such a cyclical , market capitalization etc

Its basic but it paints a good picture and I found it a decent starting point. Short article. With pictures!


https://finance-yahoo-com.cdn.ampproject.org/v/s/finance.yahoo.com/amphtml/news/guide-11-market-sectors-142851510.html?amp_js_v=a6&amp_gsa=1&usqp=mq331AQFKAGwASA%3D#aoh=16059024939674&referrer=https%3A%2F%2Fwww.google.com&amp_tf=From%20%251%24s&ampshare=https%3A%2F%2Ffinance.yahoo.com%2Fnews%2Fguide-11-market-sectors-142851510.html

bungaro79

I'm looking to invest about 10k in ETFs through DeGiro. I know that I'll have to declare it with revenue but I'm just wondering if I should wait till 2021 or does it make any difference to leave it till the new year?
Thanks

tamova

Hi, first time paying capital gains, could someone let me know how to declare profit from trading stocks on Revenue? I don't wanna **** it up.

I imagine its Declare Income -> Trading profit or professional income? Is that right?

Also, I've made like 30 euro off dividends from US stocks this year... Do I really need to declare this? If so, when does this need to be done?

namloc1980

tamova wrote: »

Hi, first time paying capital gains, could someone let me know how to declare profit from trading stocks on Revenue? I don't wanna **** it up.

I imagine its Declare Income -> Trading profit or professional income? Is that right?

Also, I've made like 30 euro off dividends from US stocks this year... Do I really need to declare this? If so, when does this need to be done?

https://www.revenue.ie/en/gains-gifts-and-inheritance/transfering-an-asset/index.aspx

Yes you must declare dividend income. Are you a PAYE employee? If so you can do it online.

tamova

namloc1980 wrote: »

https://www.revenue.ie/en/gains-gifts-and-inheritance/transfering-an-asset/index.aspx

Yes you must declare dividend income. Are you a PAYE employee? If so you can do it online.

I am mate, what's the look-back period for that? The dividends are scattered across this year since May.

Do you know where in Revenue's site I would file capital gains for the money I've made on shares?

bfa1509

tamova wrote: »

I am mate, what's the look-back period for that? The dividends are scattered across this year since May.

Do you know where in Revenue's site I would file capital gains for the money I've made on shares?

I'm fairly sure you have to register for "myAccount" and do it through there (I file a form 11 tax return so can't remember how PAYE people do it)

If you are worried about f**ing things up, I find it's best to overpay and then submit an appeal afterwards once you are more clear on how the system works. You can appeal retrospectively up to 4 years.

Either that or hire an accountant (but only d!cks give this advice :pac:)

tamova

bfa1509 wrote: »

I'm fairly sure you have to register for "myAccount" and do it through there (I file a form 11 tax return so can't remember how PAYE people do it)

If you are worried about f**ing things up, I find it's best to overpay and then submit an appeal afterwards once you are more clear on how the system works. You can appeal retrospectively up to 4 years.

Either that or hire an accountant (but only d!cks give this advice :pac:)

Just cant figure out how I declare it on the MyRevenue portal

Bob24

tamova wrote: »

Just cant figure out how I declare it on the MyRevenue portal

You probably need to ask Revenue to be registered for CGT.

https://www.revenue.ie/en/gains-gifts-and-inheritance/transfering-an-asset/when-and-how-do-you-pay-and-file-cgt.aspx

TBH, they really should make it more clear and straight forward. Even for someone with good will to follow the law and pay the tax they owe, it is confusing to get started.

Shedite27

Bob24 wrote: »

You probably need to ask Revenue to be registered for CGT.

https://www.revenue.ie/en/gains-gifts-and-inheritance/transfering-an-asset/when-and-how-do-you-pay-and-file-cgt.aspx

TBH, they really should make it more clear and straight forward. Even for someone with good will to follow the law and pay the tax they owe, it is confusing to get started.

Correct, you have to ask them to be setup for it, then they send you a form. It'll be my first year doing it this year too so blind leading the blind.

The form seems to just ask for a total gain, is that right that you don't need to list the transactions (obviously keeping the record for 7 years yourself anyway)?