Beginning to Invest - All questions go here please

TheRacerboy5

Bob24 wrote: »

If you are filing the return yourself, the easiest way is to have a broker which uses the euro as a base currency and does a real time conversion every time you buy/sell financial instruments denominated in another currency. Even better if they give you an end of year report listing all the transactions and giving you the total amount.

I know there are websites doing the calculations automatically and dedicated to cryptocurrencies trading. There could well be the same thing for shares (it is the exact same maths) buy I haven’t looked into it.

Sorry, not sure about the cost of a tax accountant. Probably only worth it if you have 5 or 6 digits gains, but TBH I am not sure.

Yeah Etoro gives a full statement end of year as in all trades and gains - losses. But it’s in $ so will cause a lot of headache going back and finding the conversion as you said on the day I purchased and the day I sold the stock/crypto.

chabsey

Anyone know if there's a special trick to signing up with DeGiro? I've got the app, taken all the required photos but it's still asking me to scan my national ID card - which I don't have. The setup screen says you can use either a passport or national ID card but despite this, after scanning and confirming all passport details I get prompted to add my national ID card.

I have tried numerous times, once or twice getting by it somehow but getting refused for 'missing info' at the last stage.

Maybe there's a better alternative for a total newbie to trading though and DeGiro isn't the only option for a low cost intro to investing in the stock exchange?

firstquater

chabsey wrote: »

Maybe there's a better alternative for a total newbie to trading though and DeGiro isn't the only option for a low cost intro to investing in the stock exchange?

I have DeGiro and XTB. I am using XTB 99%, it is much more user friendly in my opinion and also all transactions done in euro, so less problem with CGT calculations. I think its cheaper too.

Bob24

firstquater wrote: »

I have DeGiro and XTB. I am using XTB 99%, it is much more user friendly in my opinion and also all transactions done in euro, so less problem with CGT calculations. I think its cheaper too.

Can I ask what you mean by “all transactions done in euro, so less problem with CGT calculations”.

If you are buying/selling a security listed in a foreign currency, DEGIRO converts from euros in real time and displays a euro value for the transaction which can be used directly for the purpose of CGT calculations. Is XTB doing something different?

firstquater

Bob24 wrote: »

Can I ask what you mean by “all transactions done in euro, so less problem with CGT calculations”.

If you are buying/selling a security listed in a foreign currency, DEGIRO converts from euros in real time and displays a euro value for the transaction which can be used directly for the purpose of CGT calculations. Is XTB doing something different?

No, actually it is done exactly the same way.

VonLuck

Bob24 wrote: »

You might want to be more specific as it really depends on what you mean by investment podcast. For example: teaching you general investment strategies, suggesting specific investment options, or reviewing markets and the macroeconomic landscape would be themes which could all be described as "investment" podcast, but are actually rather different topics.

But for regular market updates combined to in depth analysis of macroeconomic concepts and trends, I would wholeheartedly recommend "Macrovoices" from Erik Townsend.

The series called "The End Game" as part of the Grant Williams podcast is also great to get the perspective of brilliant macro and finance thinkers in terms of where finance and the economy are heading.

Just going back to this post, is there a good podcast for understanding the basics of investing?

I'd like to start investing but it all seems a bit daunting. Ideally I would like to put some money away monthly and not have to be worried about watching the daily markets, or even weekly.

I thought about managed funds, but the returns seem to be drained by fees. Although the benefit is that you don't have to worry about managing it at all.

chabsey

Signing up to XTB and it's insisting I provide a TIN (Tax identification number). Any ideas what I should put in there?

EDit: PPS number says google.

chabsey

Any recommendations for sites / books / guides for getting up to speed quickly with investing? I'm looking to invest in something like the S&P and am thinking long term. I've just set up the XTB account and the website looks very impressive and I feel like I'm on Wall Street with all the charts and numbers <--- see how little i know?

Ideally something with an Irish or at worst UK slant. Thanks

outonawing

chabsey wrote: »

Signing up to XTB and it's insisting I provide a TIN (Tax identification number). Any ideas what I should put in there?

EDit: PPS number says google.

I agree with Google.

Boots234

Hi, I'm a complete beginner and this may be a silly question but this thread looks to be the place to post this. I have approx 200 shares with Davy through the pharma company that I work for and would like to purchase shares in other companies just to spread them around. My question is how do I go about this? I would like to swap some shares to own another company's e.g Gamestop, is this possible or what would be involved? Thanks

Shedite27

Boots234 wrote: »

Hi, I'm a complete beginner and this may be a silly question but this thread looks to be the place to post this. I have approx 200 shares with Davy through the pharma company that I work for and would like to purchase shares in other companies just to spread them around. My question is how do I go about this? I would like to swap some shares to own another company's e.g Gamestop, is this possible or what would be involved? Thanks

Best bet is to just sell the shares with Davy, and use the money to buy the shares in Gamestop on a online broekrage account (something like Degiro). You have to pay CGT when you're selling the phara stocks if they've gone up in price.

Read up on Gamestop before you jump in, it's a baset case for a short squeeze (likely to pop at some point soon)

Bob Harris

Boots234 wrote: »

Hi, I'm a complete beginner and this may be a silly question but this thread looks to be the place to post this. I have approx 200 shares with Davy through the pharma company that I work for and would like to purchase shares in other companies just to spread them around. My question is how do I go about this? I would like to swap some shares to own another company's e.g Gamestop, is this possible or what would be involved? Thanks

You can transfer shares to an online broker once they are in a digital format. You'd have to check with Davy if you can do that and there would be costs involved however Pharma is looking very bullish for the next few years. If you have shares in one of the big ones you might be better off just sitting on them letting them grow and paying you a few quid in dividends. Why cash in and pay CGT to invest in GME which is anything but a beginners stock right now. Worst case scenario and probably not that unlikely is you pay CGT, lump it into GME and it drops like a stone taking your money with it.

If you want to open an account with an online broker think about doing it with new capital and maybe leave well enough alone.

ddarcy

Boots234 wrote: »

Hi, I'm a complete beginner and this may be a silly question but this thread looks to be the place to post this. I have approx 200 shares with Davy through the pharma company that I work for and would like to purchase shares in other companies just to spread them around. My question is how do I go about this? I would like to swap some shares to own another company's e.g Gamestop, is this possible or what would be involved? Thanks

Not with Davy, but the two companies that I worked for that gave shares had specific accounts for it. I would have to open up another account with the broker to buy other shares.

You can transfer shares, I’ve done this, but see the charges involved. It was free for me, but my companies had US brokers and the US is way cheaper to deal with.

The other option is to sell and pay CGT. Then reinvest the remainder wherever you want. I’d highly advise against GameStop, but do due diligence on whatever you buy. If GME makes sense and your happy with it, go ahead, if not stay far away.

But if you take the money from your shares you will have to pay CGT, so take that into account.

Taylor365

Boots234 wrote: »

Hi, I'm a complete beginner and this may be a silly question but this thread looks to be the place to post this. I have approx 200 shares with Davy through the pharma company that I work for and would like to purchase shares in other companies just to spread them around. My question is how do I go about this? I would like to swap some shares to own another company's e.g Gamestop, is this possible or what would be involved? Thanks

This explains the last 10 months really...

Timmaay

Incase its not been stated bluntly enough here, for any beginner traders, DO NOT casually buy GameStop across the next few days, its a highly volatile stock in a very precarious position, with a 50 50 chance of the likes of a 50% pullback.

ylwambulnce

My passport expired this month and due to covid the DFA arent accepting any new applications. Plus there is already a huge backlog apparently.

Tried signing up to degiro but they wont accept my expired passport.

I presume that there is pretty much no way to reliably sign up to any good investment site without an in date passport yeah?

Bob24

ylwambulnce wrote: »

I presume that there is pretty much no way to reliably sign up to any good investment site without an in date passport yeah?

It says here that Trading 212 accepts driving licences.

It doesn't offer access to as many markets/shares as Degiro and doesn't allow for security transfers though. So if you go for them you're stuck with them unless you are happy to liquidate and buy back.

Kilboor

Bob24 wrote: »

It says here that Trading 212 accepts driving licences.

It doesn't offer access to as many markets/shares as Degiro and doesn't allow for security transfers though. So if you go for them you're stuck with them unless you are happy to liquidate and buy back.

I couldn't use the driving license when I tried signing up with 212. They sent it back and I was only able to use Passport from then on I think

mickger844posts

My wife started trading stocks via Degiro last August and did make some profits last year.
CGT needs to be paid to Revenue. Does she need to register for CGT in order to add that function to their online service?? From reading online it seems she should have payed CGT for the period to the end of November. Can she include her entire profits for last year when declaring for the remainder of 2020??
Both of us are totally new to this so any help would be appreciated.

Bob Harris

mickger844posts wrote: »

My wife started trading stocks via Degiro last August and did make some profits last year.
CGT needs to be paid to Revenue. Does she need to register for CGT in order to add that function to their online service?? From reading online it seems she should have payed CGT for the period to the end of November. Can she include her entire profits for last year when declaring for the remainder of 2020??
Both of us are totally new to this so any help would be appreciated.

Should have paid before Dec 15 for net realised gains between Jan & Nov and paid by Jan 15 for gains in December.
On myrevenue send them a mail to get set up for CGT.
You have an allowance of 1270€ - only pay for realised gains in excess of this less any losses and declare before Oct 30 in 2021 whether you owed CGT or not.

mickger844posts

Bob Harris wrote: »

Should have paid before Dec 15 for net realised gains between Jan & Nov and paid by Jan 15 for gains in December.
On myrevenue send them a mail to get set up for CGT.
You have an allowance of 1270€ - only pay for realised gains in excess of this less any losses and declare before Oct 30 in 2021 whether you owed CGT or not.

Thanks for that. Can she still pay for last years even though its late? Whats the procedure for late payment??

Bob Harris

mickger844posts wrote: »

Thanks for that. Can she still pay for last years even though its late? Whats the procedure for late payment??

"For disposals made between 1 January and 30 November 2020, the payment date for any capital gains tax liability arising is Thursday, 15 December. Where a payment is late and an agreement is not in place with Revenue, interest applies at a rate of 0.0219 percent per day of late payment.

For disposals between 1 December and 31 December 2020, the payment deadline is 31 January 2021."

Colin B

Hi, few quick questions on Trading 212 platform and investing
1)are dividends paid out to app funds or externally??(how does tax work then as they are not normally taxed as capital gains)

2)Are holding companies (eg .Berkshire Hathaway) earnings regarded the same as individual companies in reference to CGT??
Any recommendations?? (trying to avoid EFTs)

Bob24

Colin B wrote: »

Hi, few quick questions on Trading 212 platform and investing
1)are dividends paid out to app funds or externally??(how does tax work then as they are not normally taxed as capital gains)

2)Are holding companies (eg .Berkshire Hathaway) earnings regarded the same as individual companies in reference to CGT??
Any recommendations?? (trying to avoid EFTs)

Dividends are income. You need to file a tax return each year and revenue will tax you at your marginal rate.

I believe Berkshire Hathaway does not pay any dividend, so as as long as you are holding without selling any shares there won't be any tax due. Once you are selling shares, then CGT is due one the gains (same as any company shares). UK investment trusts are something you might want to look at as well (some of them pay dividends, which will be taxed as explained above).

Colin B

Bob24 wrote: »

Dividends are income. You need to file a tax return each year and revenue will tax you at your marginal rate.

Berkshire Hathaway does not pay dividends as as long as you are holding without selling any shares there there won't be any tax due. Once you are selling shares, then CGT is due one the gains (same as any company shares). UK investment trusts are something you might want to look at as well (some of them pay dividends, which will be taxed as explained above).

Thanks Bob, trying to steer clear of dividend paying stocks(due to tax implications) but
Alot of the large cap stocks offer them,thought maybe I could reinvest them, instead of drawing them down.BH or similar seem a good substitute for EFT , for a decent portion of an investment portfolio

gtcarlos

Are multi-asset funds a good option to invest a lump sum of ~20k and a couple hundreds every month for the next 3 to 5 years?

Looking forward to save more money for a mortgage deposit

ACitizenErased

CGT Question:
Let's say I make 5/6 sales of stocks throughout the year.
Am I required to pay CGT after each sale or can I do a bulk CGT payment on net gain at the end of the period?

Kilboor

ACitizenErased wrote: »

CGT Question:
Let's say I make 5/6 sales of stocks throughout the year.
Am I required to pay CGT after each sale or can I do a bulk CGT payment on net gain at the end of the period?

Bulk payment by December 15th. Anything made in December is paid by January 31st.


File the tax return for the year by the next October then.

You can reinvest your profits at your own peril before tax is due but remember that you can't offset losses realised within 30 days of purchase on any other investments you make

Robson99

What do most small investors say 5 - 10k per annum do with regard to taking profits? Do the usually work of a percentage margin and if the share price reaches that margin sell and move on to another, sell some to cover initial outlay or just leave it there for say 5 years plus

Shedite27

Robson99 wrote: »

What do most small investors say 5 - 10k per annum do with regard to taking profits? Do the usually work of a percentage margin and if the share price reaches that margin sell and move on to another, sell some to cover initial outlay or just leave it there for say 5 years plus

Depends on the company, if you believe in the story (Square, Pinterest, Teledoc), leave it there 5/10 years. That's 90% of what I own.

If you're in a momentum stock that's just on a run because it's got a push, you have to take your money away when (a) you've made enough or (b) have a better opportunity