haroldsxxx
Registered User
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- 14
First up, a question: is there a likelihood of the 41% deduction on 'profits' from investment funds likely to be reduced any time soon? Or any other lightening of the load on those who invest in such funds. My impression was that there was a discussion in advance of recent budgets about the possibility of converging the funds exit rate with CGT, currently 33% (?).
I have regular savings over 14 yrs in some Irish Life funds (originally Quinn Life). Not unlike many boarders, I'd guess.
The level of expropriation by state (with some help from the investment funds themselves) is really quite ridiculous.
a/ The State takes 1% of all contributions straight off the top.
b/ Profits are calculated without any indexation / allowance for inflation - even with low inflation, this amounts to a significant extra penalty over a period of 10+ years.
c/ If selling, the State then levies 41% on this inflated estimate of profit.
d/ Gross roll up means that if you have managed to make some surplus above your gross nominal investment, 41% of this surplus is lopped off every eight years, smothering compound growth.
e/ There is no provision to cancel off gains on some funds against losses on others. Your losses are yours, your gains are 41% theirs.
f/ Meanwhile the investment funds themselves rely on customer inertia or stupidity (guilty!) charging 1-1.5% or higher rates (on total fund value, every year) - despite management charges for most ETFs or indexed funds having been reduced to a quarter or less of these percentages.
Investing in most ETFs is subject to similar taxation, so also actively discouraged .
So second question: Is there a recommended way of feeding regular money into equity based funds which avoids at least some of the above? Investment trusts? (what platform?). Tks for any suggestions, comments / observations.
I have regular savings over 14 yrs in some Irish Life funds (originally Quinn Life). Not unlike many boarders, I'd guess.
The level of expropriation by state (with some help from the investment funds themselves) is really quite ridiculous.
a/ The State takes 1% of all contributions straight off the top.
b/ Profits are calculated without any indexation / allowance for inflation - even with low inflation, this amounts to a significant extra penalty over a period of 10+ years.
c/ If selling, the State then levies 41% on this inflated estimate of profit.
d/ Gross roll up means that if you have managed to make some surplus above your gross nominal investment, 41% of this surplus is lopped off every eight years, smothering compound growth.
e/ There is no provision to cancel off gains on some funds against losses on others. Your losses are yours, your gains are 41% theirs.
f/ Meanwhile the investment funds themselves rely on customer inertia or stupidity (guilty!) charging 1-1.5% or higher rates (on total fund value, every year) - despite management charges for most ETFs or indexed funds having been reduced to a quarter or less of these percentages.
Investing in most ETFs is subject to similar taxation, so also actively discouraged .
So second question: Is there a recommended way of feeding regular money into equity based funds which avoids at least some of the above? Investment trusts? (what platform?). Tks for any suggestions, comments / observations.
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