Low-cost, Low-tax, Long-term Investment

As a complete green-horn, I dont know enough about equities to even begin to fancy myself as a trader,....I dont plan to trade.

I'm not a fan of managed funds and their associated costs.

Although we all know death and taxes are inevitable, I wish to avoid/defer (legally!!) taxes as long as possible so that more of my funds are working for as long as possible for me.

Given these sentiments, I am interested in considering a long term investment (10 to 20 yrs) in a few broad based index trackers like S&P500, Eurostoxx etc..

Given my desire to preserve the core value of my investments by minimising charges and interim taxes how best should I proceed?

For example, how or through which channels can I make these investments at the minimum entry & ongoing costs and...how can taxes best be legally avoided/delayed given the timeframe above.

Are returns on spread-betting investments for example tax free or are there other tax-friendly solutions out there?

The amount involved is low six-figure, its all I'm ever likely to have and I need to maximise its return without taking stupid risks.

Many thanks in advance.......Frankie...

One thing I have learned is make sure to have proper diversification across key asset classes, ie equities, fixed interest (bonds & gilts), property. Eg, shares in BOI AND shares in AIB is zero diversification & very un-clever investing! Geographical balance/spread is also vital! Most pundits seem to feel about 10% cash reserve is also wise. Check costs of your own equity portfolio versus fund investments, you might be surprised! Cheers

Forget spead-betting. It is a scam. My estimate is that 98% of people who open spreadbetting accounts will lose thier money, all of it. The simple reason is that most end up using the facility to make short term trading decisions, which is exactly what the spread-betting company wants you to do.

Think of spread-betting as going to the bookies - and we know who wins that game. The only difference for most is that betting companies admit it.

Rory Gillen

Agree with Rory completely, good to hear someone saying it as it is!! it amazes me that spread-betting is often covered under "Investment" by "respectable" broadsheets!!! Couldn't be further from investing!

Thanks for these responses guys, appreciate your imputs. Given that spread betting is getting the red card from you both can you offer me any suggestions regarding the principal questions in the original post;....... essentially how or through which channels can I invest in whole-market indices in Europe America & Emerging economies at the minimum entry & ongoing costs and...how can taxes be minimised if I intend to buy & hold over a 10 to 20 yr timeframe?

Many thanks in advance

Hi, I'm trying to figure out the exact same problem.
I take it that you just what to follow the market average and forget about it for a while.
Anyhow, you should look at the thread I started just below yours for a few interesting ideas.
Low cost index funds (why are they expensive in Ireland)

Is making specific suggestions allowed here even if one doesn't have vested intereste? Not sure, comment?

frankie..i invest mostly in companies directly but i also use 'ishares' for buying indexes..e.g ishares ftse100 etf...the annual charge is 0.4% is low on that index and lots of their other indexes.

You buy them the same way you do with shares. The only charge was the bid-offer spread at entry which is standard.

Avoiding tax...i dont sell the index........but with etf's the tax rules are different V owning equities. You might have to sell the index after 8 years?