Did one back in the summer and got some great feedback which I’ve now implemented.Maybe money makeover to get decent feedback?
Just to be clear, there hasn’t been a “tax rule change.” The position that applied prior to issue of Revenue Ebrief now applies again.Does anyone have any views on good investments for producing income (dividends, rents etc.)
Up until now my wife and I primarily invested in ETFs (pre tax rule changes). More recently it’s been a bunch of stocks, but predominantly Berkshire Hathaway (which pays no dividend).
My wife will be giving up work in the next while when we have kids, so looking to maximise her income bands @20% and also look for her to keep paying PRSI for state pension. So essentially we’re moving from wanting to maximize capital gains to maximising income instead.
We can probably pull together about €200k by the time she stops working.
Ideas thus far
• cheapish rental. This has highest yield by a mile but hassle and no diversification. I know everyone gives out here and says landlords are leaving, but strongly of the view this is because they’re all paying 50% tax and 7% interest on BTL mortgages, neither of which we’d have to do.
• some high paying dividend stocks. Seem to max out at 4-5% and generally not sectors I’d invest in normally.
• REITs. Pay decent yields and more diversified but have vastly underperformed direct property investment.
Rental does seem most attractive and my wife would be able to manage it on the side I guess.
Any ideas appreciated.
Wow, wasn’t aware and that could be game changing, thank you. Anything you can link to on this?Just to be clear, there hasn’t been a “tax rule change.” The position that applied prior issue of Revenue Ebrief now applies again.
Some non EU ETFs and some Investment trusts will still be taxed under general tax principles.
You can access non-EU ETFs via a discretionary portfolio service. I have developed one specifically for this purpose for Irish investorsWow, wasn’t aware and that could be game changing, thank you. Anything you can link to on this?
The only other issue I had encountered was the non EU domiciled ETFs which had the favourable tax treatment got removed from my investment platform (I think due to them not providing KIID). How do you access these?
She will get S class Prsi from investment or rental income of a minimum 5000 euro per year, provided that this is her only source of income. If she was to be employed and paying for an A class Prsi contribution in any year, then all her investment income for that year will be at K class Prsi. This will happen even if she has only one A class paid contribution. A class Prsi credits can be gained in any year without causing the investment or rental income to change to K class Prsi. K class Prsi is not reckonable for state pension.
I don't know anything about the Homemakers Scheme, but as below it seems that Prsi credits might only apply during the begining and ending years.If his wife is giving up work "in the next while when we have kids" then would she not eligible for the Homemaker Scheme PRSI credits?
So the year she continues to receive employment income = A class contribs.She will get S class Prsi from investment or rental income of a minimum 5000 euro per year, provided that this is her only source of income. If she was to be employed and paying for an A class Prsi contribution in any year, then all her investment income or rental income for that year will be at K class Prsi. This will happen even if she has only one A class paid contribution. A class Prsi credits can be gained in any year without causing the investment or rental income to change to K class Prsi. K class Prsi is not reckonable for state pension.
I don't know anything about the Homemakers Scheme,
You are mixing up the HomeCaring Periods Scheme with the Homemaker's Scheme Groucho.
Separately they are very straightforward.
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