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Buying Ryanair Shares/Stocks - I'm a beginner! Help

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  • 29-04-2020 10:44am
    #1
    ciaramcd227
    Registered Users Posts: 7 ✭


    Hi All,

    I am a complete beginner. I have never invested any of my money before but I really want to buy shares/stocks in Ryanair as their price is really good at the moment and they have a serious cash balance which I know they will recover, and will recover well.

    Should I invest with a traditional broker such as Davys, or should I look at one on line like TD Ameritrade?

    Any advice would be greatly appreciated.


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    #2
    Geuze
    Registered Users Posts: 13,108 ✭✭✭✭Geuze


    Traditional brokers have high fees.

    DeGiro is very popular, as their fees are very low.

    Search this forum about them, there are tons of posts/threads about them.


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    #3
    NickSantigo
    Registered Users Posts: 72 ✭✭NickSantigo


    I have to agree, Degiro is probably the cheapest path forward as an Irish investor.
    Can't say I'd recommend airline stock in the present climate. There is so much uncertainty that you could be waiting a long time for them to recover.

    As you are a complete beginner the safest way for you to invest would be to use a broad based etf that follows the S&P 500.
    There are plenty of vids on Youtube explaining what etfs are.
    You atomatically get a lot of diversity with your investment then.
    If you dollar (euro in our case) cost average(again Youtube is your friend here) every month you should do alright.
    Degiro offers one free trade on some etfs (e.g. Vanguard S&P 500 etf) each month too.


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    #4
    iAcesHigh
    Registered Users Posts: 447 ✭✭iAcesHigh


    NickSantigo wrote: »
    I have to agree, Degiro is probably the cheapest path forward as an Irish investor.
    Can't say I'd recommend airline stock in the present climate. There is so much uncertainty that you could be waiting a long time for them to recover.

    As you are a complete beginner the safest way for you to invest would be to use a broad based etf that follows the S&P 500.
    There are plenty of vids on Youtube explaining what etfs are.
    You atomatically get a lot of diversity with your investment then.
    If you dollar (euro in our case) cost average(again Youtube is your friend here) every month you should do alright.
    Degiro offers one free trade on some etfs (e.g. Vanguard S&P 500 etf) each month too.

    I would just highlight that bolded part is actually not something I would suggest to average Joe in Ireland as calculating tax for monthly ETF buy becomes quite a pain - you need to declare each time you bought any ETF shares and then when you're selling them (or after 8 years, whichever comes first) you are deducting against each buy separately... quite a paperwork


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    #5
    NickSantigo
    Registered Users Posts: 72 ✭✭NickSantigo


    iAcesHigh wrote: »
    I would just highlight that bolded part is actually not something I would suggest to average Joe in Ireland as calculating tax for monthly ETF buy becomes quite a pain - you need to declare each time you bought any ETF shares and then when you're selling them (or after 8 years, whichever comes first) you are deducting against each buy separately... quite a paperwork

    If it's an Irish domiciled etf like the Vanguard S&P500 etf UCITS on Degiro you don't have the eight year roll up. You pay 41% exit tax on profits and 41% tax on dividends.

    https://www.irishtimes.com/business/personal-finance/don-t-invest-in-an-etf-until-you-understand-the-tax-1.3421331

    You would have to keep a record of your purchases but that is no different to dollar cost averaging into a standard stock


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    #6
    iAcesHigh
    Registered Users Posts: 447 ✭✭iAcesHigh


    NickSantigo wrote: »
    If it's an Irish domiciled etf like the Vanguard S&P500 etf UCITS on Degiro you don't have the eight year roll up. You pay 41% exit tax on profits and 41% tax on dividends.

    https://www.irishtimes.com/business/personal-finance/don-t-invest-in-an-etf-until-you-understand-the-tax-1.3421331

    You would have to keep a record of your purchases but that is no different to dollar cost averaging into a standard stock

    I don't see where are they stating that Irish domiciled ETFs are excluded from either the 8-year roll-up in that article or on Revenue's policy? Exit tax of 41% is the same "rule" for both EU and Irish domiciled ETFs, if UCITS, and you still have the "issue" of calculating "gain" against all the purchases.,
    Example:
    you buy 10 shares in Jan for €10, 10 in Feb for €12 and 10 in Mar for €14. Let's assume you cashout 25 shares on June for €20 then your gain is 10*(€20-€10)+10*(€20-€12)+5*(€20-€14) >>> not the most complicated bit, but imagine doing monthly payments for 40 months and then selling in 3 iterations, quite a paperwork.....


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    #7
    phantom_lord
    Registered Users Posts: 10,894 ✭✭✭✭phantom_lord


    ciaramcd227 wrote: »
    Hi All,

    I am a complete beginner. I have never invested any of my money before but I really want to buy shares/stocks in Ryanair as their price is really good at the moment and they have a serious cash balance which I know they will recover, and will recover well.

    Should I invest with a traditional broker such as Davys, or should I look at one on line like TD Ameritrade?

    Any advice would be greatly appreciated.

    Is it?


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    #8
    NickSantigo
    Registered Users Posts: 72 ✭✭NickSantigo


    iAcesHigh wrote: »
    I don't see where are they stating that Irish domiciled ETFs are excluded from either the 8-year roll-up in that article or on Revenue's policy? Exit tax of 41% is the same "rule" for both EU and Irish domiciled ETFs, if UCITS, and you still have the "issue" of calculating "gain" against all the purchases.,
    Example:
    you buy 10 shares in Jan for €10, 10 in Feb for €12 and 10 in Mar for €14. Let's assume you cashout 25 shares on June for €20 then your gain is 10*(€20-€10)+10*(€20-€12)+5*(€20-€14) >>> not the most complicated bit, but imagine doing monthly payments for 40 months and then selling in 3 iterations, quite a paperwork.....

    Apologies you are correct regarding the taxation.
    Just had a read about it all there and F**k me, Revenue really aren't making it easy for Irish ppl to buy etfs. It's a shame as it' probably the best way for the "beginner" to start investing


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    #9
    iAcesHigh
    Registered Users Posts: 447 ✭✭iAcesHigh


    NickSantigo wrote: »
    Apologies you are correct regarding the taxation.
    Just had a read about it all there and F**k me, Revenue really aren't making it easy for Irish ppl to buy etfs. It's a shame as it' probably the best way for the "beginner" to start investing

    Exactly was my thinking. It's not impossible, of course, but this should be encouraged way to save money for average Joe, not discouraging him from it...


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