Whilst this has been asked before (I have read so many boards and AAM threads at this stage....), I would again like to discuss investing smaller amounts on a regular basis. By small I mean circumstances 1 or 2 grand per month.
What are the requirements?
A wish list would be (not all concurrently, as some are mutuallying exclusive):
What are the options?
From what I have read over last few weeks:
e.g. UCITS ETFs sound great until you realise the have to be reported to revenue every eight years, so if you invest once a month then you'll have have a taxable event every single month from year eight onwards, which is surely a pain. Not to mention if you invest in more than one.
Life funds are so opaque with charges, they would be rules out. Also even with seemingly small AMC of 1-2% over time this really really adds up.
Rabo funds seem decent but they charge .75% entry/exit plus the AMC plus any hidden charges and after that you have the issue of tax, same as UCITS ETF.
I just want to invest 1.5k per month, preferably DIY, so not in managed fund. Id like it so that it can accumulate tax free (aka gross roll up I believe) and be somehow tax efficient so I don't have a mess on my hands in eight years.
Can anyone help?! At this point Im veering towards buying (each month) three vanguard ETFs that are accumulating and worry about tax in eight years. Is this setting myself up for a serious headache down the line?
Thanks
What are the requirements?
A wish list would be (not all concurrently, as some are mutuallying exclusive):
- Low cost trading fees
- Low TER of funds
- Transparent fees, if relevant
- Simple tax treatment, now and down the line
- Sheltered from tax, now and down the line by accumulating fund as opposed to dividend payment
- CGT as opposed to exit tax
- Loss offsetting
What are the options?
From what I have read over last few weeks:
- UCITS ETFs
- EEA/OECD ETFs
- US ETFs
- Various funds from Quinn, Friends First etc.
- Rabo funds
e.g. UCITS ETFs sound great until you realise the have to be reported to revenue every eight years, so if you invest once a month then you'll have have a taxable event every single month from year eight onwards, which is surely a pain. Not to mention if you invest in more than one.
Life funds are so opaque with charges, they would be rules out. Also even with seemingly small AMC of 1-2% over time this really really adds up.
Rabo funds seem decent but they charge .75% entry/exit plus the AMC plus any hidden charges and after that you have the issue of tax, same as UCITS ETF.
I just want to invest 1.5k per month, preferably DIY, so not in managed fund. Id like it so that it can accumulate tax free (aka gross roll up I believe) and be somehow tax efficient so I don't have a mess on my hands in eight years.
Can anyone help?! At this point Im veering towards buying (each month) three vanguard ETFs that are accumulating and worry about tax in eight years. Is this setting myself up for a serious headache down the line?
Thanks
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