Making my first investment in stock market

Nappy

Hi Guys,

I read a very similar thread but its been inactive for nearly a year now so i want to get a more current opinion.

I have done my research and i want to begin investing. Where should i buy my shares? I am looking to invest in an etf annually and also have an account to start building a portfolio. Where is the best place to shop with lowest fees?

I cant sort out the good , the bad or the ugly. I will be a buy and hold type investor and would have around 5k to invest in first year.

Any advice or good sources for advice would be much appreciated.

Cheers

Funtrepreneur

I posted a similar post and received a similar amount of feedback. This place is less than helpful to say the least.

mrolaf

buy shares in coffee

ballyharpat

Who said this place isn't helpful?? Mrolaf just gave you an answer to a question you didn't ask )

I was using TD directinvesting, there are pros and cons and also depends on how much you plan on having in your account. This link was posted in a similar thread and may be of help....... http://www.independent.ie/business/p...-30116471.html

ixus

The most passive with lowest management fees. Then just choose sector/country.

ballyharpat

ixus wrote: »

The most passive with lowest management fees. Then just choose sector/country.

I asked David McWilliams about this when I ran into him, he said to look into IG indexes? I am into specific stocks, and currently use an american trading company, so they are not of much use to me...


Actually, my trading company has started accepting non US residents I believe, Firstrade.com I cannot say enough good things about them......

FURET

ballyharpat wrote: »

I asked David McWilliams about this when I ran into him, he said to look into IG indexes? I am into specific stocks, and currently use an american trading company, so they are not of much use to me...


Actually, my trading company has started accepting non US residents I believe, Firstrade.com I cannot say enough good things about them......

Hi ballyharpat, are you aware of the risks of holding a large amount of cash and US-domiciled stocks in a US broker? I ask because I'm also with a US broker but have taken steps to minimize my US Estate Tax liability, which is the snake in the grass when it comes to US brokerages.

ballyharpat

FURET wrote: »

Ho ballyharpat, are you aware of the risks of holding a large amount of cash and US-domiciled stocks in a US broker? I ask because I'm also with a US broker but have taken steps to minimize my US Estate Tax liability, which is the snake in the grass when it comes to US brokerages.

I'm not aware of anything, would you mind filling me in? and perhaps letting me know which steps I should take? Thanks....

FURET

ballyharpat wrote: »

I'm not aware of anything, would you mind filling me in? and perhaps letting me know which steps I should take? Thanks....

Several points to consider:

A US-domiciled brokerage account is considered an in situs asset under US tax law. Specifically, the heirs of the a/c holder are liable to pay US Estate Tax upon the death of the account holder. The tax rate is 40% 35%.

Not everything held in the account is subject to the tax however, and this is where you can take precautionary steps:

Cash balances of over 60k USD are subject to the estate tax
Stock etfs, individual stocks, and bond ETFs are also subject to the estate tax provided that the ETFs / stocks are domiciled in the US.

So if you have over 60k of Coca-Cola stock (for example) it's liable for the tax. Same if you have VOO (Vanguard NYSE S&P 500 ETF. But if you had, say, 60k USD of Nestle stock bought from the Swiss exchange, it would not be liable, because Nestle is not domiciled in the US.

Heirs should be instructed to switch your positions to a non-US brokerage prior to liquidating assets upon your death.

***Verify this for yourself of course on sites like Bogleheads.

RobertKK

Thanks FURET, didn't know that.

Came across this: https://www.vontobel.com/INT/EN/Private-Clients-wealth-Planning-Regulatory-Changes-US-Estate-Tax-Liability-non-US-Persons

• The maximum US estate tax rate is currently 35%.

• Depending on the applicable double tax treaty between the US and the country of the decedent's last residence, the tax-exempt amount can be higher, or a complete tax exemption could apply.

http://www.independent.ie/business/personal-finance/uncle-sam-is-gearing-up-to-get-his-slice-of-americans-tax-pie-30354512.html

• "First, the tax-free transfer between spouses does not apply in the case of non-resident aliens, or NRAs, the term that is used in the United States. Normally, a US estate is tax-free up to a value of $5m. But in the case of a surviving NRA spouse who is living here in Ireland, and is not a US citizen, the tax-free threshold is just $60,000 and a tax of 35 per cent is liable on the balance.

Thanks FURET. One would want to know these things.

ballyharpat

Thank you Furet, definitely worth knowing, I have been selling over the last 2/3 years and investing in other areas though, so I am not far above the threshold......

linksrookie

Hi all, found this comparison very useful when choosing a discount brokerage house to go with. Obviously there's a couple of names to be added and removed to align with the Irish market, but it's a good start.

the-international-investor.com/comparison-tables/cheapest-uk-online-stockbrokers

dudara

@topper_harley2 No need to respond on thread. Report the post & leave it at that.

dudara

nikouy

Does anyone know a good on-line broker which operates in the NASDAQ?