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Investment Funds

  • 28-11-2020 7:39pm
    #1
    Registered Users Posts: 2,068 ✭✭✭ hunter164


    Just looking for a bit of advice.

    I'm considering of putting away €40 a week into an investment fund. This will be a long term investment c.20 years, with the money invested on a weekly basis increasing as my wages do. I don't see the point in letting it sit in the bank doing nothing.


    Is it worth my while putting it into an investment fund? If so, any suggestions on who's best for the amounts I'm planning on putting in?

    Or, is there a better option for the money?

    Thanks


Comments

  • Registered Users Posts: 3,054 ✭✭✭ Static M.e.


    I think your problem will be that purchasing the shares \ efts will magnificently eat in your €40 if you purchase weekly. You should consider saving the money in a bank account and then when it reaches €1000 (or more) then use it to purchase the shares\etf. If you are planning on going down the ETF route then you should read up on the how they are taxed (Deemed disposal) and importantly how you calculate that tax. IMO you are better off making 1 or 2 big purchases every year to keep it simple. Degiro is a good platform for buying.

    I think it is worth doing if you have all of your other debts paid off in full, have an fully funded emergency fund and do not see yourself with any big expenses in the next few years.

    Read this Irish Times article.


  • Registered Users Posts: 2,340 ✭✭✭ Siamsa Sessions


    Piggybacking on this thread as I’m in a somewhat similar position.

    I’m putting €110 a month into a pension since 2011 but took out a personal loan last year to finish off our house. The interest rate on the loan is 7.9%.

    I need to check the T&Cs but I think I can take a holiday from the pension. If I can, would it make sense to plough the €110 into the personal loan instead to get that paid off quicker since the interest rate is so high?

    The pension won’t mature for another 20 years so I’ve time to build it up after the holiday.

    Thanks


  • Registered Users Posts: 2,217 ✭✭✭ robman60


    Piggybacking on this thread as I’m in a somewhat similar position.

    I’m putting €110 a month into a pension since 2011 but took out a personal loan last year to finish off our house. The interest rate on the loan is 7.9%.

    I need to check the T&Cs but I think I can take a holiday from the pension. If I can, would it make sense to plough the €110 into the personal loan instead to get that paid off quicker since the interest rate is so high?

    The pension won’t mature for another 20 years so I’ve time to build it up after the holiday.

    Thanks
    It could be better, but considering how much of the €110 you will lose in income tax, it is unlikely to be I would think.


  • Registered Users Posts: 1,948 ✭✭✭ VonLuck


    Instead of starting a new thread, thought it would be best to piggyback this one.

    I invested a single lump sum in a managed investment fund a few years ago. This year is the first year it has actually increase in value due to unfortunate timing when I invested.

    Do I have any tax liability at the end of the year, or am I only liable to declare profits from investments when I withdraw the funds?


  • Registered Users Posts: 4,956 ✭✭✭ caviardreams


    VonLuck wrote: »
    Instead of starting a new thread, thought it would be best to piggyback this one.

    I invested a single lump sum in a managed investment fund a few years ago. This year is the first year it has actually increase in value due to unfortunate timing when I invested.

    Do I have any tax liability at the end of the year, or am I only liable to declare profits from investments when I withdraw the funds?

    Is it an Irish Life, Aviva managed fund etc? Then they will deduct the tax every 8 years for you automatically (or sooner if you sell it).


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  • Registered Users Posts: 248 ✭✭ RaggyDays


    hunter164 wrote: »
    Just looking for a bit of advice.

    I'm considering of putting away €40 a week into an investment fund. This will be a long term investment c.20 years, with the money invested on a weekly basis increasing as my wages do. I don't see the point in letting it sit in the bank doing nothing.


    Is it worth my while putting it into an investment fund? If so, any suggestions on who's best for the amounts I'm planning on putting in?

    Or, is there a better option for the money?

    Thanks

    Best option is to buy monthly. Get a Degiro account, they offer you a chance to make one purchase of an ETF for free every month.
    Look into funds that offer growth long into the future. Funds that invest in Cloud computing, Artificial intelligence etc


  • Registered Users Posts: 1,948 ✭✭✭ VonLuck


    Is it an Irish Life, Aviva managed fund etc? Then they will deduct the tax every 8 years for you automatically (or sooner if you sell it).

    Yeah something similar. I thought it was all left to the individual, but seeing as you're saying they deduct it every 8 years I might just give them a ring to be sure. Thanks.


  • Registered Users Posts: 14,544 ✭✭✭✭ Supercell


    Why not go for Investment trusts?, also known as CEF's and are not taxed like ETF's here.
    Some of the better ones (my opinion) include SMT, ATT, HGT, IEM and PCT.

    A useful forum with discussions about them - https://www.lemonfool.co.uk/viewforum.php?f=54

    Have a weather station?, why not join the Ireland Weather Network - http://irelandweather.eu/



  • Registered Users Posts: 11,251 ✭✭✭✭ Ush1


    A pension is a better use? You'll pay far less tax.


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