My desire to invest via an ETF started about 2 years ago when I started to research the idea. At first, my confidence grew as I got to know the basics but this was steadily displaced by confusion and fear as questions arose over tax treatment, domicile, the security of nominee accounts vs CREST personal vs share certs, which broker to use etc etc. I deliberated over this for quite a while but when no epiphany occurred, I became disillusioned and put the whole thing on the long finger.
And so I came back to the idea recently and did all the ground work again and arrived at pretty much the same place as before.
So this time, I think I'll just take the plunge rather than over-analyse everything to the point of paralysis.
So....., I intend to open a trading account with TD Direct Investing on which I expect to pay €15 - 20 per trade and nothing else. I expect the amount invested to exceed €5000 and so do not expect to pay the €15 quarterly inactive account fee. My shares will be held in a nominee account (I think - I need to ring and check this) and so will not be in my name and I understand that if TD go wallop, then I am exposed in this respect but I guess this is just a risk you have to take to invest. I know that Campbell O Connor do a CREST personal account but their charges are higher.
I intend to use this account to buy some iShare ETF's or similar. I have not decided which ones just yet but I understand that anything domiciled in Europe is better although I cannot figure out why. The ETF's I do buy will be chosen to rebalance the diversification of some other investments I already have (pension, ISA's from when I lived in the UK etc)
I still have not figured out the tax treatment but I understand that I need to include any shares/ETF's on my tax return each year. I am a paye taxpayer so I do not normally need to do a tax return but I have done so in the past and it is not the end of the world to have to do it again.
So, in summary, I have not figured it all out yet but I think it's better to press ahead than to let my savings languish in a savings account any longer.
If there is a classic novice fatal flaw in my plan, I would be very grateful to anyone who takes the time to point it out. Suggested improvements are also very welcome.
Thanks.
3CC.
And so I came back to the idea recently and did all the ground work again and arrived at pretty much the same place as before.
So this time, I think I'll just take the plunge rather than over-analyse everything to the point of paralysis.
So....., I intend to open a trading account with TD Direct Investing on which I expect to pay €15 - 20 per trade and nothing else. I expect the amount invested to exceed €5000 and so do not expect to pay the €15 quarterly inactive account fee. My shares will be held in a nominee account (I think - I need to ring and check this) and so will not be in my name and I understand that if TD go wallop, then I am exposed in this respect but I guess this is just a risk you have to take to invest. I know that Campbell O Connor do a CREST personal account but their charges are higher.
I intend to use this account to buy some iShare ETF's or similar. I have not decided which ones just yet but I understand that anything domiciled in Europe is better although I cannot figure out why. The ETF's I do buy will be chosen to rebalance the diversification of some other investments I already have (pension, ISA's from when I lived in the UK etc)
I still have not figured out the tax treatment but I understand that I need to include any shares/ETF's on my tax return each year. I am a paye taxpayer so I do not normally need to do a tax return but I have done so in the past and it is not the end of the world to have to do it again.
So, in summary, I have not figured it all out yet but I think it's better to press ahead than to let my savings languish in a savings account any longer.
If there is a classic novice fatal flaw in my plan, I would be very grateful to anyone who takes the time to point it out. Suggested improvements are also very welcome.
Thanks.
3CC.