Hi all. There's similar threads out there but I'm still a little bit lost when it comes to investing and the "best" approach to take. To give you some background, 35 y/o earning 35k and contributing 15% to my pension per month (started late so the fund value is only around the 8k mark). Don't have a whole lot to my name in savings either (20k). Currently renting and have no debts.
I try and save around 1000 p/m (not saving for anything in particular). Even though the rate is good (?!) at 2.5%, I'd like to switch things up a little and maybe reduce my regular savings down to 500 and look to put deposit 500 into my Degiro account each month.
Let's say that in the first year I invest a total of 6,000 (500 x 12) in the EFT VOO. And in this example, the value of the portfolio at the end of each year is:
Year 1: 6,500
Year 2: 12,570
Year 3: 20,560
Year 4: 32,380
Year 5: 43,240
Year 6: 50,000
Year 7: 61,520
Year 8: 79,360
So, total amount invested = 48,000
Portfolio value after 8 years = 79,360
Let's say I don't sell throughout that period and just continue to invest 500 p/m. After 8 years I understand that I will have to pay tax on any profit so am I right in saying that the tax to be paid would be (79,360 - 48,000) * 33% = 10,349?
Am I missing something? Is there a "better" way to approach the above?
Thanks!
I try and save around 1000 p/m (not saving for anything in particular). Even though the rate is good (?!) at 2.5%, I'd like to switch things up a little and maybe reduce my regular savings down to 500 and look to put deposit 500 into my Degiro account each month.
Let's say that in the first year I invest a total of 6,000 (500 x 12) in the EFT VOO. And in this example, the value of the portfolio at the end of each year is:
Year 1: 6,500
Year 2: 12,570
Year 3: 20,560
Year 4: 32,380
Year 5: 43,240
Year 6: 50,000
Year 7: 61,520
Year 8: 79,360
So, total amount invested = 48,000
Portfolio value after 8 years = 79,360
Let's say I don't sell throughout that period and just continue to invest 500 p/m. After 8 years I understand that I will have to pay tax on any profit so am I right in saying that the tax to be paid would be (79,360 - 48,000) * 33% = 10,349?
Am I missing something? Is there a "better" way to approach the above?
Thanks!