Irish in the US - First Investment account advice needed!

Gags89

Registered User
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Hi All,

Just turned 23 and decided to start putting some of my income to work! Was wondering in people's experiences where is the best place to open my first investment account?

In the US?
In Ireland?
Is offshore Illegal?

To whom would I owe CGT?

What's the process around taxation etc.? Obviously looking to be smart about limited my liability but obviously not looking to break the law!

My current situation: On a H1b temporary work visa in the US.

Looking to buy a few shares, hold onto them and then also buy into a a mutual fund or two.


Any advice, insight greatly appreciated! Thanks in advance and kudos on a great forum - been a long time reader!

E.
 
Hi

I'm also in the US on a visa and have some investments here and overseas. Sounds like you would benefit from some financial advice as you're starting out. FWIW, I bank with one of the major US banks and they gave some solid general investment advice on building a portfolio of local shares, although in the end I decided to do things myself.

If you're earning USD suggest you keep it simple and invest with a US broker. It's not illegal to invest offshore but they do make it difficult and once you declare you are a "US person" most non-US doors will close anyway. Investment costs in the US are low and you can invest anywhere/anyhow you want.

Assuming you are resident in the US for tax purposes, local investment will also make the US tax return easier. There's lots of info on US taxation on the web.

Not sure about Irish tax liability as it's been a long time since I've lived there - Google "The Expatriate Financial Guide For Irish Expatriates". You may want to spend a few euro on an Irish accountant's time.

Good luck - it's a great age to start. My advice through bitter experience - diversify across good quality investments and don't punt!
 
Thanks so much for the reply!

I think since I'll be living and earning here and having checked brokers fees back in Ireland and the CGT rate, The US is the way to go. I'll need more time to learn the US tax return issues if I open an account abroad using my Irish citizenship like the Bahamas.

Right now, I'm just going to buy some stock in companies I know deeply, such as social media as I work in that industry and then put the rest in mutual funds and less risky areas.

Would you recommend a managed account approach or do you feel they're not worth it if you can spend the time doing your homework? I wouldn't be a daily trader, just want to be smarter than a basic savings account consumer and use my age to get a head-start and be a little more adventurous but do want to know where I'm putting my money.

Any links to some beginners guides to mutual funds/ bonds etc.?

Thanks again for the reply, really appreciate it!

E.
 
No harm kicking a few tyres and talking to some investment advisers - you may find one you like. I don't have any direct experience but fees were low (about 1%) for the ones I talked to.

One good impartial resource for info on US stocks and funds is the "American Assoc for Individual Investors" - costs about $30/yr to join. Lots of info on their website.

On mutual funds, there's a recent article on the WSJ called "How to Find a Fund Manager Who Can Beat the Market" which is sobering reading.
 
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