How do you buy shares?

i7yzfew9g6c428 · 04-12-2009 04:08PM

Hi guys...I'm just wondering if there are are any benefits for someone that is retired...i.e lower tax rates to be paid on dividends etc.

Can you list all the benefits (if any) please?

Just how much could be saved in this way? Can you give me some examples of calculations etc.

Thanks.

clarecoco · 04-12-2009 08:42PM

Yousef Round Monsoon wrote: »

Hi guys...I'm just wondering if there are are any benefits for someone that is retired...i.e lower tax rates to be paid on dividends etc.

Can you list all the benefits (if any) please?

Just how much could be saved in this way? Can you give me some examples of calculations etc.

Thanks.

[FONT=&quot]
Taxes and profits[/FONT][FONT=&quot]: If you make a profit above €1,270 in any tax year when you sell your shares you will have to pay capital gains tax (CGT). The rate of CGT changes from time to time (check annual Budget) but is currently at 25% and is the same for all taxpayers[/FONT].
Dividend: A dividend is the money paid out per share to each shareholder, dividends are usually paid twice a year to all shareholders. You have to pay taxes on any dividends you get. Dividend Withholding Tax (DWT) must be deducted by any Irish Resident company making a dividend payment.

There are normally no special benefits for a retired person. The tax rate applicable on a dividend depends on an individual's personal circumstances and the rate at which any other income is taxed at (e.g. a single person pays tax on income up to €36,400 @ 20% and the balance is taxed @ 41% tax rate).

The rate of DWT is the standard rate of Income Tax. If you pay higher tax rate - you declare the dividend on your annual return (Form 12 if you are a PAYE earner) - and you must also pay the additional tax due

Swiss31 · 07-12-2009 03:16PM

Someone was asking about Redmanye in Cork. I have used them over the past 9 months and to be honest I found them very bad to deal with. Yes, they have some of the lowest costs around but the quality of their service leaves a lot to be desired. I have had personal experience of them overcharging my account and having to challange them to get monies refunded. Some friends and colleagues of mine have had the same experience so it does not seem to be an isolated experience. It all seemed a bit underhand and left a very bad taste. In addition, phone calls are usually answered with "we're up the walls" and they seem more than happy to simply get you off the phone. I have since switched from them and would suggest to avoid unless you are willing to put up with sloppy service and potential overcharging. (I think GlobalReach have an online service which I have heard is good??).

Stevebyrne · 12-12-2009 10:31PM

Thanks Clarecoco your post helps a lot.. could I just ask if the personal exemption Tax starts from January 09 till the end of December because this would be better for me to sell from Jan. 2010 when the personal exemption is renewed or does it work that way.

Also do I just ring them up with my credit card number and ask them to charge me or is there a from I need to request from them which I think is most likely...

I know I should ring them but I just find it easer to talk to them when I know what I am doing this is why I’m asking for advice....Thanks...

clarecoco · 13-12-2009 02:14PM

Stevebyrne wrote: »

Thanks Clarecoco your post helps a lot.. could I just ask if the personal exemption Tax starts from January 09 till the end of December because this would be better for me to sell from Jan. 2010 when the personal exemption is renewed or does it work that way.
quote]

Yes, the exemption of €1270 is allowed annually and applies the same as your tax year (i.e. Jan to December of same year).

How to make a payment of CGT?
There is a leaflet on the Revenue website which summarises the main features of CGT: www.revenue.ie/en/tax/cgt/leaflets/cgt2.pdf -
In order to pay CGT you should complete the short form known as the CGT payslip and send it, with the correct amount of CGT due by cheque, postal order etc. (no credit card facility ), to the Collector-General’s Division, Sarsfield House, Francis Street, Limerick, by the appropriate date. in addition to the payment and payslip.

You are also required to send in a tax return as outlined in the Self-Assessment section in page 2 of the above leaflet.

Payslips are available on Revenue’s website www.revenue.ie, (in the site search facility input "CGT payslip" and you will get it) and from the Collector-General’s Division by phoning LoCall 1890 20 30 70 or from any Revenue office.
　
Tip on "Bed & Breakfast"

Sale and Repurchase of shares
If the person has a holding of shares that have gained in value he may dispose of a block of shares in each tax year in order to crystallise the profit [the benefit in this is that he sells an amount of shares that utilises the annual exemption of €1270]. Bed & Breakfast refers to this transaction, which enables a shareholder to realise a capital gain in a tax year to make use of his/her annual capital gains tax allowance without affecting the holding of shares. The shares are sold and repurchased at the current market price on 2 consecutive days, leading to the term "Bed & Breakfast"

Stevebyrne · 14-12-2009 01:29AM

Thanks a million Clarecoco I feel I owe you one....:D
I'm more up to date with this now..just hope the share price go back up soon.
Steve...

clarecoco · 14-12-2009 09:32PM

Stevebyrne wrote: »

Thanks a million Clarecoco I feel I owe you one....:D
I'm more up to date with this now..just hope the share price go back up soon.
Steve...

Glad the information helps you.
I hope it is clear that if before the 31 December you sell an amount of shares and make a profit of €1270 or less you will have no liabilty to Capital Gains Tax. Any profit under the annual exemption means there is no liability to tax.

dotsflan · 21-12-2009 06:01PM

just wondering whats the minimum you can invest with a stockbroker when buying shares?

blackrovers · 21-12-2009 10:55PM

Bytheway wrote: »

It is a waste of time and money investing in that amount of shares in BOI right now.
I guessing that you are choosing BOI as you don't know any other share to invest in.
If you were to choose a share that has a decent chance of going 500% to 800% in the next 3 -5 years I would say go for it but BOI won't. There are many shares that could well do that but not BOI.
I got 500% within 6 months and 100% in different shares in less time but I worked hard to get the info to come to the conclusion to invest in them. Amount of research you do more or less can = reward. Of course there is alway risk but there is risk in everything.
Best of luck with your decision

so how do u go about investing in these shares?! with what online crowd do u invest through etc.

clarecoco · 28-12-2009 06:29PM

It is still very difficult to identify which broker gives the best value but it can depend on the quantity of shares you are purchasing. Some may also charge extra to get shares certs issued in paper form in your own name so it may be more cost effective to open an account The electronic account allows you to buy and sell shares more easily by quoting your account reference number. The stockbroker will tell you whether it is:

a Nominee account (the stockbroker controls your shares, including dividends)

[font=&quot]a Crest personal member account (you legally own the shares}.[/font]

[font=&quot]When buying shares you will also pay stamp duty -you pay 1 per cent stamp duty when you buy Irish shares, and 0.5 per cent stamp duty on British shares[/font]

[font=&quot]The Sharewatch Small Trader Service offers the ability to buy or sell UK & Irish shares up to a maximum value of €15,000 for a fee of €50 or (or equivalent in Sterling) per trade without having to open an account or register. [/font]
[font=&quot]www.sharewatch.com : To open an on-line account with Sharewatch there is an annual fee of €60[/font]

[font=&quot]National Irish Bank (NIB) you can open a custody (share dealing account). There's a minimum charge for each transaction of 20 euro minimum per trade (.75% commission). Currently no annual fee with free banking but some literature mentions €40.[/font]

[font=&quot]AIB/Goodbody: Minimum Commission Per Trade Cost EUR 32.00 and Trades up to EUR 25,000 charged at 1.25%. annual online account fee charges is €26[/font]

[font=&quot]Davy Stockbrokers: Commission charges start at €25 per online trade. The online account carries an annual fee of €80 [/font]

[font=&quot]There is an article comparing Irish stockbrokers in the June 09 Consumer Choice magazine[/font]
[font=&quot]Download here http://www.megaupload.com/?d=2WW74CRC[/font]

clarecoco · 29-12-2009 12:55PM

Check thread on www.askaboutmoney.com which gives names and experiences of some on-line trading platforms which allows purchase of shares in home or foreign markets.
http://www.askaboutmoney.com/showthread.php?t=116295

When purchasing in non-Euro countries there will obviously be additional costs in exhange rates and risk with currency fluctations.

hblock21 · 30-12-2009 03:15PM

clarecoco wrote: »

　
CGT payment dates
The tax year is divided into two periods for payment purposes. For 2009 and subsequent years these are as follows:
'initial period' - 1 January to 30 November

later period' - 1 December to 31 December

The tax arising in respect of gains in the 'initial period' (Jan - Nov) must be paid on or before the 15 December in the same year and the tax due on gains in the 'later period' is payable on or or before 31 January following the end of the year of assessment

I bought and sold shares at the start of 2009. I haven't done anything about paying CGT yet, I tought I could do it in a year or so.

Am I going to have to pay more CGT now that its gone past the 15 Dec 09??

PunkFreud · 30-12-2009 07:51PM

hblock21 wrote: »

I bought and sold shares at the start of 2009. I haven't done anything about paying CGT yet, I tought I could do it in a year or so.

Am I going to have to pay more CGT now that its gone past the 15 Dec 09??

The CGT liability will not change. However, you will be liable to Interest on Late Payment (ILP) on a daily rate for each day after 15 December.

You should calculate the CGT amount and make the tax payment as soon as possible. Leave the Interest payment calculation to Revenue (ignore it in your return). By paying as soon as possible you will keep the ILP amount small and if it is minimal Revenue are less likely to pursue it.

wexhurdler · 03-01-2010 02:34PM

Hi,

Buying shares was something I've always wanted to do. Thing is I'm 19 and I've only 200Euro to throw, and was looking at buying shares in Irish Life and Permanent. Is there really much point in doing so with only 200Eur? Even if I only made 5Eur profit I'd be happy, just really want to give it a go and take it from there.. Any thoughts appreciated

Thanks in advance!

Kingdomkerry · 04-01-2010 02:29AM

wexhurdler wrote: »

Hi,

Buying shares was something I've always wanted to do. Thing is I'm 19 and I've only 200Euro to throw, and was looking at buying shares in Irish Life and Permanent. Is there really much point in doing so with only 200Eur? Even if I only made 5Eur profit I'd be happy, just really want to give it a go and take it from there.. Any thoughts appreciated

Thanks in advance!

Im sort of in the same boat. I want to start small and buy shares in a company for say €200. Would there be any point in investing in a figure like this when you have to pay €50 per transaction? What do people recommend the minimum investment should be? Could you buy 40 worth of shares in one company and 160 in another and have it as one transaction?

How do you open an account with sharewatch?

SerialComplaint · 05-01-2010 10:36AM

Little point in buying shares with anything less than €1k - the transaction fees are just too high, even with low-cost brokers.

corcaigh07 · 05-02-2010 03:00PM

wexhurdler wrote: »

Hi,

Buying shares was something I've always wanted to do. Thing is I'm 19 and I've only 200Euro to throw, and was looking at buying shares in Irish Life and Permanent. Is there really much point in doing so with only 200Eur? Even if I only made 5Eur profit I'd be happy, just really want to give it a go and take it from there.. Any thoughts appreciated

Thanks in advance!

im kinda the same, dont have a lot of cash to spend but would love to give it a go. 1k seems to be the minimum considering the fees involved.

joecc · 07-02-2010 09:53PM

jdivision wrote: »

You can do it in any AIB or Bank of Ireland branch or set up an online account with Davy Stockbrokers - I'm suggesting their online service cos recent survey suggested they have lowest commission on share purchases

Can you just fund the account there, for the time being, but not actually investing anything? if you know what I mean. Like just build up a stock pile of cash at Davey, then invest?

or am I talking rubbish? )

joecc · 07-02-2010 10:09PM

what are lifecycle funds? Funds that cover a range of stocks and shares?

is it true that the Irish Stock Market, has performed better, historically, than its counterparts - UK and US?

if that's the case wouldn't all serious intl investors concentrate their activities on Ireland's one?

joecc · 17-02-2010 09:37AM

What about ETF funds, they've lower fees than Tracker and follow an index more closely than the average index?

anybody with more knowledge?

ROMARHEATING · 23-02-2010 04:12PM

clarecoco, thanks a million for all the info and the article - very helpful.

Just though I'd share... I rang NIB to open an account (Custody Account) with them to start trading, just as few pps I want to start small. Anyway in order to trade through NIB u need to open a normal current account with them in order to open the custody account. Here is the list of documents they told me I will require to open both accounts:
photographic proof of ID (passport driving license)
Utility Bill - proof of address
Bank statements (covering 3-6months) from my current bank account with another bank
They also said it is best to call and make an appointment to make sure there is someone available to deal with me.
Keep in mind that with the current account u will be charged if u have a laser or pass card to that account, its €2.50 for the pass card, and will be a bit more for the laser. U also have an option of no card, but u will have to go into the branch each time you want to withdraw cash.
Anyway so far so good, hope this helps anyone who’s thinking of starting up. I will enquire about annual charges (and all other charges) for that custody account and update u on these.

Dude240502 · 07-03-2010 10:38PM

If you wanted to sell quickly after buying, within a day or so, what are the best ways to go?

joecc · 09-03-2010 11:51AM

investing in the The FTSE All-Share Index,
pointless considering currency conversion fees?

Dude240502 · 23-03-2010 09:04PM

So, you could buy E10,000 of shares from Sharewatch without having to open an Account? How do you go about it and how long does it all take?

hblock21 · 24-03-2010 12:42PM

Dude240502 wrote: »

So, you could buy E10,000 of shares from Sharewatch without having to open an Account? How do you go about it and how long does it all take?

Ring them up, get there bank account details.

Transfer the funds to that account.

One or two days later ring them up and tell them what shares you want to buy.

Dude240502 · 26-03-2010 03:51PM

How long does it take to open an online account with Sharewatch?

bonzos · 06-04-2010 10:53PM

Can you buy shares in oil ,copper etc... on sharewatch?

femur61 · 07-04-2010 08:07AM

Yeah.. there is a search button on the site so put in your relevant area of interest.

Manachan · 09-04-2010 02:30PM

You can buy funds/stocks with TD Ameritrade for $9.99 per trade.

no annual account fees

bestie · 12-04-2010 01:58AM

Manachan wrote: »

You can buy funds/stocks with TD Ameritrade for $9.99 per trade.

no annual account fees

what I gathered from Ameritrade's site is that for share dealings, you have to fund your account with a min of $2,000 and then you need another US bank to act as the middle man to transfer funds - bit messy

How do you buy shares?

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