Investment Funds

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.

Siamsa Sessions wrote: »

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.

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).

caviardreams wrote: »

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.

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