Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Long term investment

Options
  • 24-03-2021 10:27am
    #1
    dubstepper
    Registered Users Posts: 592 ✭✭✭


    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

  • Options
    #2
    stronglikebull
    Registered Users Posts: 477 ✭✭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.


  • Options
    #3
    Mad_maxx
    Registered Users Posts: 13,505 ✭✭✭✭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


Advertisement