Investing via a pension for maximum gains


New Member
Hi folks,

I am looking for some advice and opinions please - during the last 12 months I have begun investing through a De Giro account. I intend to follow the value investing principles of Ben Graham/Warren Buffet/Mohnish Pabrai and purchase high quality business equities for the long term. However the Irish tax system does not appear to favour investing, with the high capital gains tax.

It is therefore my opinion that it may be more advantageous for me to pursue this investing through a self directed pension such as with Davy. The advantages would be that I could fully avail of my pension tax relief and periodically rebalance my portfolio without paying CGT. The fact that the portfolio would be tied up until I am 60 is also a positive due to my longterm outlook (I am 32). The disadvantage as I see it is the annual fee (0.75% with Davy). As it stands I am a member of the Single Public Sector Pension Scheme and only using approximately 6% of my pension tax relief.

Has anybody been in a similar situation or care to offer some advice to a relative newcomer?

Many thanks,