Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie
Hi there,
There is an issue with role permissions that is being worked on at the moment.
If you are having trouble with access or permissions on regional forums please post here to get access: https://www.boards.ie/discussion/2058365403/you-do-not-have-permission-for-that#latest

An Post. Savings Cert v Solidarity Bond

  • 09-06-2014 9:51pm
    #1
    ExiledDub
    Registered Users, Registered Users 2 Posts: 38 ✭


    I want to save monthly.

    I don't trust shares & despise the banks.

    Any views on which is the better investment thorough An Post. Savings Certificates or Solidarity Bonds>


Comments

  • #2
    AngleseaStBull
    Registered Users, Registered Users 2 Posts: 13 ✭AngleseaStBull


    ExiledDub wrote: »
    I want to save monthly.

    I don't trust shares & despise the banks.

    Any views on which is the better investment thorough An Post. Savings Certificates or Solidarity Bonds>

    Neither. Both are a waste. Try an ETF, exchange traded fund. There are thousands available. They track and copy the performance of different indices. SPY is a popular one. It's linked to the S&P500, ot represents the 500 biggest companies on the US stock exchanges. S&P500 has delivered on average 10% per year for the last 80 years. Low risk, average returns.


  • #3
    Recondite49
    Closed Accounts Posts: 1,004 ✭✭✭Recondite49


    ExiledDub wrote: »
    I want to save monthly.

    I don't trust shares & despise the banks.

    Any views on which is the better investment thorough An Post. Savings Certificates or Solidarity Bonds>

    I admire your patriotism but AngleSeaStBull has it right I'm afraid, a broad ETF like SPY will grow your wealth much faster with very little risk. Long term the trend of the market is upwards.

    If you do want to salt a little away each month and don't want it to grow e.g a rainy day fund then by all means use the Post Office, just bear in mind that inflation might erode the value of your savings.


  • #4
    PauloConn
    Registered Users, Registered Users 2 Posts: 910 ✭✭✭PauloConn


    How does one go about setting up or purchasing an ETF? Would this be liable to DIRT or CGT?


  • #5
    Recondite49
    Closed Accounts Posts: 1,004 ✭✭✭Recondite49


    PauloConn wrote: »
    How does one go about setting up or purchasing an ETF? Would this be liable to DIRT or CGT?

    Hi Paulo,

    The ETF I mentioned is traded on the Stock Market so you'd need to sign up with a broker who deals in US stocks, there are plenty here in Ireland.

    DIRT isn't really applicable as there aren't any interest payment or dividends when you buy into an ETF, your shares simply go up in value (hopefully!).

    You would be liable for CGT when you sold them and would technically have to declare this on your tax return. This is why the "Buy and Hold" strategy is a good idea as you won't be liable for the tax until you sell.

    My current plan is to hold my shares until I retire then leave Ireland to return to the tax haven where I grew up. No CGT there so I can sell them with impunity. :-)


Advertisement