From another thread -
I'm in a situation where I think it's reasonable for me to purchase an ETF (my pension contribs are maxed, no mortgage or upcoming big expenses and (fingers crossed) a couple of decades left in me. I've made a couple of purchases to date.
I buy just one ETF - iShares MSCI Core World UCITS, which is an accumulating fund. So no dividends coming back to me: they roll up into the fund. This means no exit tax to pay on dividends. I don't care about offsetting losses as there's nothing to offset against.
I do not trade, I have been buying chunks annually: just buys so far.
I need to log my purchases, report them to revenue for the tax year (pretty easy as there's just one purchase a year) and I am subject to 41% exit tax when I sell and a gross roll up every 8 years. The 41% tax is punitive but I would rather do this than expose myself to individual shares and CGT, as I don't trust myself to pick winners and diversify effectively (I really don't want to manage a basket of shares - no interest or time).
Anyway - all this to say, the accounting doesn't seem so onerous here, aside from a possible tax bill in 8 years with gross roll-up. Is there anything obvious I'm missing? Is this somehow trickier than managing individual shares? Just looking for feedback as AAM has made me pretty paranoid about my chosen strategy!
For an Irish tax-payer, ETFs should come with something of a caveat; the tax implications could be seen as onerous (there is a good deal of information on AAM about this).
I'm in a situation where I think it's reasonable for me to purchase an ETF (my pension contribs are maxed, no mortgage or upcoming big expenses and (fingers crossed) a couple of decades left in me. I've made a couple of purchases to date.
I buy just one ETF - iShares MSCI Core World UCITS, which is an accumulating fund. So no dividends coming back to me: they roll up into the fund. This means no exit tax to pay on dividends. I don't care about offsetting losses as there's nothing to offset against.
I do not trade, I have been buying chunks annually: just buys so far.
I need to log my purchases, report them to revenue for the tax year (pretty easy as there's just one purchase a year) and I am subject to 41% exit tax when I sell and a gross roll up every 8 years. The 41% tax is punitive but I would rather do this than expose myself to individual shares and CGT, as I don't trust myself to pick winners and diversify effectively (I really don't want to manage a basket of shares - no interest or time).
Anyway - all this to say, the accounting doesn't seem so onerous here, aside from a possible tax bill in 8 years with gross roll-up. Is there anything obvious I'm missing? Is this somehow trickier than managing individual shares? Just looking for feedback as AAM has made me pretty paranoid about my chosen strategy!