# Best option to invest 10k in Ireland (no experience in trading)



## SClarke (22 Nov 2020)

I have a lump sum of €10k which I want to invest as it is currently lying in a deposit account doing nothing. I don't have any experience in online trading platforms so I'm looking at managed fund options, the likes of Irish Life Maps 5, Zurich alternatives etc. I'm happy for it to stay in for 7 plus years.

Looking at the Irish Life as I was speaking with a financial advisor there recently, their yearly fees are 1.71% (amc: 1.48% + .23% portfolio transaction fees) plus the gov levy of 1% equalling 2.71% pa if i'm correct and then obviously theres the 41% tax on withdrawal. 

*IL Maps 5 10k investment example *
Taking IL's own example of a 10k investment with 'moderate return' on maps 5 after 7 years on their brochure, i'd get back €15,348 in total (that takes into account all costs/fees deductions). So on withdrawal with the 41% tax on gains, i'd get €3155, this seems a pretty poor 'average' return for 7 years and of course taking into account I could probably get less than that.

I haven't investigated fees/returns with Zurich investments yet, but i'm guessing they would be somewhat similar? Would anybody know of any managed funds that have lower AMCs? There aren't any backdoors to access Zurich funds with low AMC's like there is with PRSA's for example?  Or would you have any other suggestions on how best to get a decent return for a 10k lump sum in Ireland without having trading knowledge? Thanks!


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## Live Well (22 Nov 2020)

If you are only going to invest 10K as a once off investment and leave it there for 7 years then I would simply sign up to Degiro and buy an accumulating EFT, such as VWCE, and then just leave it. It is that simple. I do not believe that you need to pay for a manged service.

If you do go ahead with the above, be careful and understand how you will be taxed on your returns in 8 years (deemed disposal). Do a search for an Irish Times article "Don’t invest in an ETF until you understand the tax". If you need more information follow up.


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## Sarenco (22 Nov 2020)

Do you have a mortgage?

Are you maximising your pension contributions?

How is your pension invested?


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## GSheehy (23 Nov 2020)

@SClarke Read all the posts on the  page


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## SClarke (23 Nov 2020)

Thanks all for the feedback. For reference, mortgage & pension are covered, I was just asking the question in relation to investment ops only for a 10k lumpsum. 

@Live Well I've read up a bit about ETF'S, would you consider the return from them better then say the Irish life multi-asset fund above, even with tax deductions? So with the likes of VWCE, I can just buy 10k worth of shares and sell-out/withdraw in 7 years? I take it I can avoid the double taxing with them if I withdraw the ETF before year 8, then it will only be 41% tax on gains up until that point if i'm correct? Thanks for the feedback!


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## jpd (24 Nov 2020)

There is no double tax - all gains are taxed at 41% - no matter whether you take them out before 8 years or leave them alone for longer


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## Sarenco (24 Nov 2020)

SClarke said:


> For reference, mortgage & pension are covered...


Do you mean you have already paid off your mortgage and are maximising your pension contributions?  If so, how is your pension invested?


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