confused87
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Has anybody on here invested in VUAA using online brokerage per Persia's post or are ETF s too tax unfriendly for most?
thought you could put as much in as you liked but you just wouldn't get any more tax relief beyond the limit applicable to your age range?
This is the reason I’m not keen on the advice generally given on AAM to buy individual shares - it’s fine for the odd person who wants to dive in and learn to choose some shares, for the vast majority it just scares them off leading to procrastination and the money sitting in a bank account.Any bank investment funds here that is mostly equities? I Was meant to meet investment manager last year in aib but had to cancel and never rescheduled. Really not comfortable buying just a couple if stocks.
- it’s fine for the odd person who wants to dive in and learn to choose some shares, for the vast majority it just scares them off leading to procrastination and the money sitting in a bank account.
In my view a single accumulating ETF is the correct advice for the average person. Yes the taxation is a bit higher, but it’s not nearly as impactful on the final return as the rate suggests, as the analysis in this thread shows - https://www.askaboutmoney.com/threa...non-tax-relieved-pension-contribution.237580/
FWIW I previously outlined my experience with this sort of analysis paralysis and procrastination before in case it's of any use to anyone else.This is the reason I’m not keen on the advice generally given on AAM to buy individual shares - it’s fine for the odd person who wants to dive in and learn to choose some shares, for the vast majority it just scares them off leading to procrastination and the money sitting in a bank account.
Could I suggest you read that full thread and respond there instead, so we can try to keep that discussion from fragmenting across multiple threads, it's a really important one I think.I don’t know how you draw the conclusion it’s not nearly as impactful…. 10k at 5% over 20 years gives you ~12k in an ETF wrapper versus ~21k for directly held shares. Your gain is over five times more on the directly held shares.
If you mean the post starting "To create a comparative model of after-tax returns for various investment vehicles in the Republic of Ireland", I think it's just flat-out wrong. The figure for ETFs is based on accumulation over _8_ years (see the calculation); that for directly held shares is based on accumulation over 20 years. It also has some more oddities (a marginal income tax rate of 55%, for instance).I don’t know how you draw the conclusion it’s not nearly as impactful…. 10k at 5% over 20 years gives you ~12k in an ETF wrapper versus ~21k for directly held shares. Your gain is over five times more on the directly held shares.
That is not correct. I assume you're referring to post 5 by @galwegian44 . Read it again carefully. The calculation for the ETF stops after year 8. The calculation for directly held shares is for 20 years. So a completely invalid comparison.I don’t know how you draw the conclusion it’s not nearly as impactful…. 10k at 5% over 20 years gives you ~12k in an ETF wrapper versus ~21k for directly held shares. Your gain is over five times more on the directly held shares.
That post (now removed?) served a valuable lesson for people to read the full posts, and to apply some critical thought to what they are reading on the internet.And if you read the last line of the post it says that "this response was generated by AI". Completely irresponsible IMHO for @galwegian44 to post it in its current form. He should have highlighted that part and done at least some basic checking to see that the terms were completely different.
Thanks for pointing that out @Persius, I took the figures at face value. I withdraw my comment @Zenith63!That is not correct. I assume you're referring to post 5 by @galwegian44 . Read it again carefully. The calculation for the ETF stops after year 8. The calculation for directly held shares is for 20 years. So a completely invalid comparison.