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Best investment for long term (20+ years)

  • 25-10-2018 12:28pm
    #1
    Registered Users Posts: 8,240 ✭✭✭ Pussyhands


    ETFs?

    Individual stocks?

    Property?

    Bonds?

    I would have thought typically ETFs would be the best but this deemed disposal after 8 years seems to make it less attractive.

    Individual stocks maybe? Buy 30 or so stocks?

    Bonds, or at least Irish ones don't seem that atrractive.


Comments

  • Registered Users Posts: 1,995 ✭✭✭ Sabre Man


    Individual stocks, if you can pick the right ones.


  • Registered Users Posts: 1,434 ✭✭✭ Austria!


    Sabre Man wrote: »
    Individual stocks, if you can pick the right ones.


    Actually it's lotto if you can pick the right numbers.


    I wouldn't advise trying either. The best/safest gross returns are given by diversified index funds, but the tax situation in Ireland makes that less appealing.



    I'm no expert, but here's my take.



    The best thing you could do is get rid of any short term debt. Probably after that own your own property to get out of renting/mortgage. If you feel comfortable with it, the rent a room scheme gives a great tax free income of up to 14000. After that make sure you maximise pension contribution of anything taxed at the higher rate, and you should take money out of non-pension investment funds rather than ignore the pension.
    After that I think it has to be low cost index funds from the US. In spite of the tax situation. Just invest with lump sums and not get caught with multiple disposals. There is a school of thought that says because US funds have been so much better than Euro ones maybe it's time we caught up, not convinced myself.

    Bonds are only appealing when you get old or really convinced of some downturn.
    If you feel like backing winners, then sure put a small portion of your funds into a few stocks, and maybe a (very!) small bit into gold and crypto too.


  • Registered Users Posts: 184 ✭✭ sacamano


    Austria! wrote: »
    After that make sure you maximise pension contribution of anything taxed at the higher rate, and you should take money out of non-pension investment funds rather than ignore the pension.

    Just a note on this. Even if you're taxed on the lower rate of 20%, should you not look to maximise your contributions? Obviously it's better for those in a position where they're being taxed at the higher rate of 40%, but when contributing at the lower rate you'll still be reducing your tax bill along with increasing your pension fund.


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