Where to put money as interest rates fall? Long Term ETF, etc.

[franc82]

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.

Thanks for the correction. This means that from a tax perspective it is actually better to invest in Gold ETC given that I can enjoy the 1270 euros exemption

 

[franc82]

Exchange traded gold products are actually debt instruments that fall under the normal income tax/CGT regime.

I wouldn’t advise anybody to “invest” a material proportion of their net wealth in a shiny rock.

Could you elaborate why you wouldn't advise someone to invest in Gold? Since the beginning of the year its returns are next to none beating even the SP500. Also from a tax perspective, it is much better.

I once read Warren Buffett advising against gold but the markets and central banks in particular seems to diverge on that particular subject.

 

[Corola]

This means that from a tax perspective it is actually better to invest in Gold ETC given that I can enjoy the 1270 euros exemption

The tax situation on Gold ETCs is better than ETFs. That doesn't mean Gold ETCs are better investments than ETFs.

 

[Sarenco]

Could you elaborate why you wouldn't advise someone to invest in Gold?

Because over the long-term the return on gold has been very unimpressive.

The return over any 9-month period is irrelevant to a long-term investor.

I’ve no issue with somebody holding >5% of their net assets in gold/precious metals.

Personally, I couldn’t be bothered.

 

[ClubMan]

Because over the long-term the return on gold has been very unimpressive.

The return over any 9-month period is irrelevant to a long-term investor.

Stocks vs. Gold and Silver - Updated Chart | Longtermtrends

Which was the best investment in the past 30, 50, 80, or 100 years? This chart compares the performance of the S&P 500, the Dow Jones, Gold, and Silver. Including dividends leads to a very different picture.

www.longtermtrends.net

 

[Zenith63]

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.

Just to correct this, Exit Tax is offset against CAT in the case of death so the net effect is the same as stocks in most cases.

 

[Racrus]

Thanks for the replies, some interesting feedback cropping up. I think I'll continue with my ETF plan for my non pension money.

How much is an annual average health insurance policy for someone in their 40's? Sort of a how long is a piece of string question I suppose. I never really thought of getting health insurance before and anytime I did think of it I just sort of thought of it as another expense you may not need and if you do the insurance company will probably try wriggle out of it. I think many people that have it, started it via their work which if that had of been an option to me I probably would have availed of it. Just something I never put too much heed into. But maybe I should!

When you start talking of Income protection then as well, it just starts to seem a bit crazy paying all these policies that you may not need. It starts to sound a bit like all the streaming subscriptions some folk have and are constantly cancelling and resigning up, etc.

If your family hasn't got a history of health issues and your currently healthy and personally wish to work even to a part time extent until you physically can't even after pension age, does health and income insurance still apply? I'm not saying I'm a workaholic but I don't think I ever wish to be 100% idle even during "retirement".

 

[Corola]

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?

The query specifically asks if it should be in VWCE which is a global equity ETF tracking the FTSE All-World index.