Probably not but we need more context.I think what I'm really asking is, Is it wreckless to go from having it nearly all on safe high deposits to nearly all into an ETF?
Hear hear. I also worry about the way in which people seem to think that an ETF is an asset class. The query in this thread seems to be along the lines of whether cash should be on deposit or in an ETF. But what kind of ETF? And why an ETF? The queries raised by Sarenco above are hugely relevant.Probably not but we need more context.
How is your pension invested?
Do you have a mortgage or any other debts?
Where are you in your career (ie is retirement hovering into view)?
What are the inheritance tax issues I would have to worry about. Do you know of any resource that could be used to file deemed disposal yourself in off shore funds part of form 11?I don't think it's reckless, given your long term horizon.
I am on the same boat, also aiming for the long term. Roughly 50% VWCE and 50% cash here.
I suppose you are aware of the many pitfalls of ETFs - crippled compounding, no offsetting losses, inheritance tax issues, etc. Still, I tend to accept the drawbacks in face of the many positives, also taking into account that maybe ETF taxation will be lowered or simplified over time.
Here is what I am considering, by order of preference:
* Invesco's alternative to VWCE going forward, for the lower 0.15% expense ratio (ISIN IE000716YHJ7)
* Allocating maybe 15-20% to conglomerate stocks for the more favourable CGT and long term compounding, mainly Berkshire Hathaway (even though it's 30% Apple) and potentially Merkel.
* Investments trusts also for CGT
ETF gains are not exempt from tax on death, compared to stocks which are exempt from CGT, so less money to your estate in case of ETFs.What are the inheritance tax issues I would have to worry about. Do you know of any resource that could be used to file deemed disposal yourself in off shore funds part of form 11?
Thank you, but stocks only exempt from cgt for spouses or civil partners ?ETF gains are not exempt from tax on death, compared to stocks which are exempt from CGT, so less money to your estate in case of ETFs.
As to filing disposals, you'll need access to the ROS income tax system (which is different than MyAccount) in order to file and submit a form 11. You can register for income tax via Revenue MyAccount -> Tax Registrations.
I am not sure. I recommend sending Revenue a message if you are concerned about these specifics.Thank you, but stocks only exempt from cgt for spouses or civil partners ?
I am not sure. I recommend sending Revenue a message if you are concerned about these specifics.
After a death
There is no Capital Gains Tax on assets that are passed on death. The assets are treated as if the person who died got the assets at the same value they have on the date of death.
If a personal representative disposes of the assets, they are responsible for any gains between the date of the person’s death and the date of disposal.
Probably not but we need more context.
How is your pension invested?
Do you have a mortgage or any other debts?
Where are you in your career (ie is retirement hovering into view)?
In early 40's,
I think you should really have health insurance at this stage. It’s expensive but it’s not really an optional extra, IMO.
Berkshire Hathaway is not 30% Apple.Berkshire Hathaway (even though it's 30% Apple)
Gold whether physical or traded on an exchange is not subject to exit tax or deemed disposal. It is very likely your ETF is actually an ETC (commodity) and subject to CGT.As it is an ETF you will be subject to the harsh tax rule but it is still worth it.
Exchange traded gold products are actually debt instruments that fall under the normal income tax/CGT regime.As it is an ETF you will be subject to the harsh tax rule but it is still worth it.
Fair point - I was incorrectly focused only on BH's equity holdings and forgetting about their core/owned businesses.Berkshire Hathaway is not 30% Apple.
Apple is 30% of its holdings in publicly listed companies. Berkshire Hathaway is also made up of many fully owned private companies.
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