# Funds: Irish Life vs DeGiro



## ADUB79 (5 Feb 2019)

Hello,

I would like to move 15-20k of savings into an investment to get a better return over current deposit rate (1%). I am comfortable with the risk that it may fall in value. Medium to High Risk profile for this investment, (5/7 ESMA Risk Scale).

I am considering these options at present and would appreciate any advice or things I should consider;

A. Buying Irish Life Multi Asset Portfolios (which seem straightforward), split between MAPS 4 and 5

B. Buying Vanguard funds through DeGiro or other platform

C. Buying shares through DeGiro or other platform
(33% CGT rather than 41% Exit Tax of a fund, but will have less diverse basket of assets)

I have been thinking about investing part of savings over the last 2 years but never acted on it, so I would like to put something in place soon. 

Thanks, Anthony


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## Marc (5 Feb 2019)

For that size of investment you should definitely use a life wrapped contract.

Otherwise the cost of tax compliance will clean you out in a few years and if you try and do it yourself there’s a very high chance you’ll get it wrong.

Portfolio 4 is different from portfolio 5. Either buy 4 or 5 not both


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## thos (6 Feb 2019)

Marc said:


> For that size of investment you should definitely use a life wrapped contract.


Can you expand on that a little please?


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## InfoSeeker (6 Feb 2019)

Not sure which option Marc is referring to re cost of tax compliance. 

For item 3 in the original post there is little compliance work to complete assuming you are not buying/selling the shares on a regular basis. I would have assumed the only compliance work is the dividends received that need to be declared as income on an annual basis.


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## RobFer (6 Feb 2019)

ADUB79 said:


> Hello,
> 
> I would like to move 15-20k of savings into an investment to get a better return over current deposit rate (1%). I am comfortable with the risk that it may fall in value. Medium to High Risk profile for this investment, (5/7 ESMA Risk Scale).
> 
> ...


Use a wrapper if you can but avoid most of the funds out there. Look for ones with low expense ratios, unlike most of the Irish Life ones.


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## Steven Barrett (27 Feb 2019)

using an insurance company, they look after all the taxes for you. using a stockbroker, you do it yourself. If you are comfortable with the taxation obligations and doing it all yourself, then the DeGiro account is certainly a cheaper option. 

If you go the life company route, there are a lot better options than Irish Life MAPS (anyone I talk to who has spoken to Irish Life is always recommended a MAPS fund ), which consistently under perform their peers and are more expensive than a lot of other contracts. You can access Global Index funds by Blackrock, State Street and Vanguard with insurance companies. 

Unless you know what you are doing, I would avoid buying individual shares. 


Steven
www.bluewaterfp.ie


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## RobFer (25 Aug 2020)

I have a friend who invested in the Irish Life Balanced S/4 from 1989. After 30 years of contributing to about 270 euros monthly, it's now worth 100k. I guess its about a 3.5% return, not great. What's worse hard to figure out what tax applies as it doesn't come under the Deemed Disposal regime.


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## GSheehy (26 Aug 2020)

RobFer said:


> What's worse hard to figure out what tax applies as it doesn't come under the Deemed Disposal regime.



The current regime of Life Assurance Exit Tax applies to policies taken out after 01/01/2001. There is no tax due on your friends policy as it has been paid by ILAC at a rate of 20% over the duration of the policy. So, the current value that he/she is quoted is the net surrender/encashment value.

The charges would have been very hefty on a regular contribution savings plan in 1989 and that may explain some of the return.

Gerard

www.bond.ie


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## RobFer (31 Aug 2020)

Thanks a lot for that feedback. Do you mind me asking what tax is the 20%? Will have to recommend an investment trust for them.


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## tomo69 (31 Aug 2020)

I am looking to invest similar amount and am looking into New Ireland Assurance Smart fund, are there any good, newbie to all this need some advice


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## GSheehy (1 Sep 2020)

RobFer said:


> Do you mind me asking what tax is the 20%?



Have a read of Old (& New) Basis Business here 

Gerard

www.bond.ie


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