With inflation skyrocketing, how are you diversifying your investments? Let's say you have 50 or 100k in the bank you aren't planning to use in the next 5 years. How do you invest and manage your cash?
I realise there is no one answer and it comes down to diversification, but here's how I see it:
These are all areas I am thinking about and find interesting, and so I'd love to hear your input :)
I think the most important question is what level of risk are you willing to take? What kind of return are you hoping for?
I'd be around a 5-6 on the risk scale I'd say. On the return, I'm happy to hold for the mid-long term and am looking for something that is notably better than keeping funds on deposit. So I'm not expecting huge returns but something I can see growing gradually but surely over the next 5-10 years at least.
Might be worth looking into investment trusts:
Stocks would be a flat rate 33% cgt tax. ETF's are 41% or thereabouts when they are to be sold after 8 years.
Dividend stocks another option but tax will be based upon your income bracket in addition to whatever gain there might be in stock value.
Government bonds seem to be a secure option especially when you have a stock market dip, but the returns are quite low and im not sure how they are taxed.
On Stock Market investments - You are entitled to an annual CGT allowance of €1,270 (€2,540 for a couple), so you can sell some/all your shares in a particular stock to avail of the annual CGT allowance and buy the stock back immediately at the same (or close to) price as you sold, thus reducing your overall CGT exposure but maintaining your holding - you may have selling/buying costs of course which might make this somewhat less attractive
Absorbing my covid winners into GOOG and AMZN before their splits.
How do you take advantage of the exemption as a couple? It's not transferable so does that mean if I was buying stocks there would need to be two brokerage accounts in my name and my wife's name?
One brokerage account, joint names