If you think €100 a month savings plans make up anywhere near remotely a fraction of my annual turnover, you are very much mistaken. As Gordon said in the post above, the actual amount they make is very small and it is hassle free as they do all the admin.Nobody said that these products were free. They're just way cheaper than actively managed funds.
Morale and ethics don't pay bill or put bread on the table.
Life insurance companies should revamp their products in light of competition, that's the way they will get better and I will start to look at them but at the moment there is just no incentive or any reason to invest in them.
Given that there is no political appetite to reconsider aspects that can enhance investments (for instance lower exit tax, reconsider deemed disposal tax, etc.), I fear for those actively managed funds.
That's the reality at the moment. I am so sorry it's going against your daily job Steven but I have got to be honest with myself and our readers.
Sounds like that disclaimer is infringing Brendan's trademark.Oh, and he has a disclaimer: "Any information I provide is purely for entertainment....."
Assuming you did sell after 10 years, this is what your spreadsheet will look like for the first year of monthly purchases. If you didn't sell you would have a column at Year 16, 24, etc.
In your annual tax return you will sum up the tax in the 12 rows. You will have one of these sheets for each calendar year of purchases.
A B C D = A * (C - B) E = D * 41% F G = A * (F - B) H = G * 41% I = H - E Purchase date Nb of shares Price @ Year 0 Price @ Year 8 Gain Tax, where >0 Price @ Year 10 Gain Tax, where >0 Net tax to pay
The principle is the same, you replace the sale in Year 10 with a deemed disposal at Year 16, and the sale in Year 20 deducts the amounts paid at Year 8 and 16.Could you show us your template with the formulas like in this template for the scenario where a person didn't sell until year 20?
I believe the tax gets a little more complicated at the 2nd and subsequent deemed disposals.
| - | A | B | C | D = A * (C - B) | E = D * 41% | F | G = A * (F - B) | H = G * 41% | I = H - E | J | K = A * (J - B) | L = K * 41% | M = L - I - E |
| Purchase date | Nb of shares | Price @ Year 0 | Price @ Year 8 | Gain | Tax, where >0 | Price @ Year 16 | Gain | Tax, where >0 | Net tax to pay | Price @ Year 20 | Gain | Tax, where >0 | Net tax to pay |
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What is a fair fee for a small investment though, with tax managed at source, investment management, and regulation to give the investor greater protection?
If I want to lob €100 a month into an account for my kids, the life company makes €7.50 in Year 1 at 1.25%.
If it grows to €30k the life company is making €375 a year, hardly a king’s ransom.
Some people seem to know the cost of everything and the value of nothing.