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Long term investment

  • 24-03-2021 10:27am
    #1
    Registered Users Posts: 472 ✭✭ dubstepper


    I have some inheritance that I want to invest. I am not someone that interested in the markets, so buying shares is out.



    Would it make sense to put it all into one ETF like iShares Core S&P 500 and just leave it there? Two questions on it:


    1) Is that diversification enough, or should I invest in more than one ETF?


    2) Is it worth taking to a management company? These guys seem to charge say 1% and probably are just investing in the same shares?


    I am skeptical of money manager, especially after the davy revelations.


Comments

  • Registered Users Posts: 473 ✭✭ stronglikebull


    If you're not interested in managing your own share portfolio then an ETF is probably not a bad idea. You need to be aware of the ongoing tax implications of an ETF though.
    https://www.moneyguideireland.com/buying-exchange-traded-funds-etfs-in-ireland.html
    Effectively, you'll have to value to the gains in the fund every 8 years (whether you're cashing out or not) and pay income tax on it at that point.

    I've only just started looking into this myself, but I believe what this means is that if your ETF gained say €10,000 after 8 years, you'd be liable to pay tax at 41% of that amount, so €4,100, even though you're not cashing out. You have to make this same assessment again every 8 years you remain in the fund. You may be forced to sell some of your fund just to pay the tax.


  • Registered Users Posts: 12,289 ✭✭✭✭ Mad_maxx


    dubstepper wrote: »
    I have some inheritance that I want to invest. I am not someone that interested in the markets, so buying shares is out.



    Would it make sense to put it all into one ETF like iShares Core S&P 500 and just leave it there? Two questions on it:


    1) Is that diversification enough, or should I invest in more than one ETF?


    2) Is it worth taking to a management company? These guys seem to charge say 1% and probably are just investing in the same shares?


    I am skeptical of money manager, especially after the davy revelations.


    1. the S+P is more than diversified enough

    2. yes , the money managers will stick it in the same product effectively but will send you a slick quarterly newsletter

    as long as you are able to be patient , its a sound idea


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