Which ETF for €100 a month?

franc82 said:

Nobody said that these products were free. They're just way cheaper than actively managed funds.
Morale and ethics don't pay bill or put bread on the table.

Life insurance companies should revamp their products in light of competition, that's the way they will get better and I will start to look at them but at the moment there is just no incentive or any reason to invest in them.

Given that there is no political appetite to reconsider aspects that can enhance investments (for instance lower exit tax, reconsider deemed disposal tax, etc.), I fear for those actively managed funds.

That's the reality at the moment. I am so sorry it's going against your daily job Steven but I have got to be honest with myself and our readers.

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If you think €100 a month savings plans make up anywhere near remotely a fraction of my annual turnover, you are very much mistaken. As Gordon said in the post above, the actual amount they make is very small and it is hassle free as they do all the admin.

I have said also that some people, like yourself, are quite happy to do the admin yourself. There are others who hate the idea of doing any admin and are happy to outsource it. Each to their own.

Fortune said:

Oh, and he has a disclaimer: "Any information I provide is purely for entertainment....."

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Sounds like that disclaimer is infringing Brendan's trademark.

Corola said:

Assuming you did sell after 10 years, this is what your spreadsheet will look like for the first year of monthly purchases. If you didn't sell you would have a column at Year 16, 24, etc.

In your annual tax return you will sum up the tax in the 12 rows. You will have one of these sheets for each calendar year of purchases.

	A	B	C	D = A * (C - B)	E = D * 41%	F	G = A * (F - B)	H = G * 41%	I = H - E
Purchase date	Nb of shares	Price @ Year 0	Price @ Year 8	Gain	Tax, where >0	Price @ Year 10	Gain	Tax, where >0	Net tax to pay
01/01/2024​
01/02/2024​
01/03/2024​
01/04/2024​
01/05/2024​
01/06/2024​
01/07/2024​
01/08/2024​
01/09/2024​
01/10/2024​
01/11/2024​
01/12/2024​

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Could you show us your template with the formulas like in this template for the scenario where a person didn't sell until year 20?
I believe the tax gets a little more complicated at the 2nd and subsequent deemed disposals.

Racrus said:

Could you show us your template with the formulas like in this template for the scenario where a person didn't sell until year 20?
I believe the tax gets a little more complicated at the 2nd and subsequent deemed disposals.

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The principle is the same, you replace the sale in Year 10 with a deemed disposal at Year 16, and the sale in Year 20 deducts the amounts paid at Year 8 and 16.

Much appreciated again! I thought that's the way it'd be done, but then when I read that other thread which was relating to the different tax calculation method for DD on insurance policy funds I got confused. I didn't realise there was 2 different methods depending on whether in relation to insurance fund and buying from trading platform.

Gordon Gekko said:

What is a fair fee for a small investment though, with tax managed at source, investment management, and regulation to give the investor greater protection?

If I want to lob €100 a month into an account for my kids, the life company makes €7.50 in Year 1 at 1.25%.

If it grows to €30k the life company is making €375 a year, hardly a king’s ransom.

Some people seem to know the cost of everything and the value of nothing.

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The product needs to be profitable for the provider, but also a reasonable investment option for the client. Sometimes there isn't a fair fee that meets both criteria.

6% per annum over a medium to long period would be a reasonable if unspectacular return for a medium risk equity fund.

If there's an AMC of 1.25% on that, and any other hidden fees or entry/exit fees, 1% levy, it's a lot closer to a 4% return - which currently (of course this will change) is close to higher yield deposit accounts which might be taxed at a lower rate.

It's not wise to be lobbing money into these type of funds without knowing the cost - it's not unusual to hear of of people being disappointed with the eventual value of these sort of high cost investments.