Monthly Investing?

[EvenStevens]

I am looking to start saving about €300 a month into a long term savings fund. I saw some advise from Eoin McGee that money that you think will be on hold for at least 5 years shouldn't be in a bank/cu account but should be working for you.

I wouldn't know where to start really in terms of investing money but if I did I'm just wondering in general can you invest monthly into something or do you need a lump sum to invest to begin with?

 

[Marc]

Depends if you have any mortgages or loans, or an underfunded pension.

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This actuary in the USA agrees with our conclusions. A case of don’t believe everything you see on TV

https://static1.squarespace.com/static/5f68c924ecd4bd5a411130d8/t/620bc4d5e9db1a2f2cc6f5b3/1644938453694/MortgageMath.pdf

 

[Steven Barrett]

I am looking to start saving about €300 a month into a long term savings fund. I saw some advise from Eoin McGee that money that you think will be on hold for at least 5 years shouldn't be in a bank/cu account but should be working for you.

I wouldn't know where to start really in terms of investing money but if I did I'm just wondering in general can you invest monthly into something or do you need a lump sum to invest to begin with?

It is no problem in contributing €300 a month with no lump sum.

We recommend using a life company for monthly savings plans for the pure reason that they do all the admin for you. You set up the plan, sign the direct debit and they do all the taxation etc for you. You pay for it of course, but it tends to be easier than doing all the admin yourself if using an online broker.

Steven
www.bluewaterfp.ie

 

[Dublin85]

Look into investment trusts. there is no deemed disposal with this as opposed to etf. most popular Investment Trusts are JAM and FCIT. Capital Gains Tax applicable at 33% on sale

 

[Steven Barrett]

Look into investment trusts. there is no deemed disposal with this as opposed to etf. most popular Investment Trusts are JAM and FCIT. Capital Gains Tax applicable at 33% on sale

There's still tax though. And making a monthly contribution to buy shares means a lot of admin.

Investment trusts are more expensive than index funds. They are actively managed and from my experience, more volatile. They certainly suit some people but not all people.

 

[Dublin85]

There's still tax though. And making a monthly contribution to buy shares means a lot of admin.

Investment trusts are more expensive than index funds. They are actively managed and from my experience, more volatile. They certainly suit some people but not all people.

Jam tracks s&p500 (.38%)and is low cost. fcit slightly more expensive for global exposure. the admin simply requires buying on degiro and holding. no exit tax. no amc, no hidden fund charges.

the lack of deemed disposal and enhanced compounding effects makes sense imo. then again, it's a matter of what people want.