Thanks. I like the sound of ETF's. Can you recommend a reputable cheap online stockbroker please?Just do it yourself through an online stockbroking account. ETFs are available on the market and using a cheap online stockbroking account will save you money and time and will be a lot more transparent compared to a Rabo or unit-linked funds in general.
The tax implications of owning ETFs are (mostly) similar to unit-linked funds, in Ireland at least, so they are not more onerous but less onerous to deal in and own.
Rory
Just do it yourself through an online stockbroking account. ETFs are available on the market and using a cheap online stockbroking account will save you money and time and will be a lot more transparent compared to a Rabo or unit-linked funds in general.
Rory
I haven't seen an alternative to Rabo for modest regular investments. 75c to invest 100 euro is pretty cheap.
Saving up and waiting 6 months is not quite the same. Anyone who follows the markets will know that 6 months is a long time, you could get unlucky and keep buying high. Regular investment means you buy at average prices - any element of market timing is removed. .
Yes, I'd agree selling costs are high. But it's somewhat academic in having competive selling costs if the buying costs put off customers.Don't forget its .75 each time you sell too. There is also the annual management fee which varies from .45 to 2.1%, meaning you could pay up to 3.6% in fees and charges if you bought and sold a fund within a year, not so cheap now.
I'm not talking about buying into funds and selling them in 6 months. I'm talking about buying into funds and holding them for a long time.Really, six months is a long time?! IMO that's gambling then, not investment. W Buffets strategy was that nobody could time the market, just that it'll be higher than now in say thirty years time, which its a more sensible investment timescale. At this length of yime, your six months is irrelevant.
As mentioned by Olivetti Irish life looks to be an option, the entry fee is a 1% government stamp duty, so comparable to Rabo's 0.75%.
If you can afford to pay in 1250 a month it seems they'll add a 1% bonus - presumably to compensate for the levy but giving them a 0% entry fee (?).
The fund costs seem higher around at around 1.65%. Also there's some penalties for withdrawing earlier than 5 years.
But the fund choice is reasonable. The tax is far easier than Rabo and you can move between funds without tax problems.
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They are raking a huge chunk of your money for simple indexing. If you work it out over time you would be shocked how much this influences your returns (see John Bogles "Little Book of Common Sense Investing"). As it happens I just faxed off a withdrawal form to cash in my Irish Life Index funds policy. I will put the proceeds into a Global Broadbased index tracking ETF with Vanguard or I-shares which will incur an upfront brokerage fee but after that the Total annual Mgmt charge is a very low 0.25% (some ETF index product amc's are even lower than that) . As Warren Buffet said "Rule No.1 is never lose money. Rule No.2 is never forget rule number one." It's such a pity Irish residents cannot avail of low cost drip feed investing plans to cost average their contributions for example: http://monevator.com/bestinvest-vanguard/Yes, I'm rather tempted by an Irish Life policy especially as they will sort out the tax part of it and all I've to do is bang in 100 Euro a month and as long as it is better than the deposit rate in the bank that's good. One thing though is that in addition to the 1.65% management fee there is also the intermediary/sales remuneration which from what I understand the payer must also cover as there seems to be expenses along with the charges. From reading their Clear Regular Invest booklet of 2012 on paying in 230 Euro per month at a 5.9% growth this is generally ~40/50 Euro a year apart from the first year when it is 718 Euro. These expenses seem to be spread over a couple of years. I thought that this was rather high myself and makes feel a little uncomfortable, then again they are doing all the administration and if it's better than a bank deposit rate...
Where will you buy your Global Broadbased index tracking ETF (with Vanguard)?
Also, you mentioned Warrant Buffet. He has recommended to his wife, after he dies, that she invest cash in S&P 500 Index fund (Vanguard). Why do you prefer the global broad based fund rather than the S&P?
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