Financial planning


#21

or find a spouse :smiley:


#22

LOL. I appreciate the concern :slight_smile:
A four day week isn’t a runner professionally but I do have good work life balance overall. I think I took about 7 weeks leave in 2016 and I don’t do late nights or weekends as a rule.
And I’ve a partner that I’m not married to (actually, two of them, but that’s entirely another story…).


#23

:open_mouth: and an interesting one no doubt, well, more interesting than financial planning. Do share.

Visit Peru much? :wink:


#24

My strategy (maybe counterintutive) is to buy a bigger PPR in Dublin.

The tax treatment is by far and away better than any other asset class (no CGT or income tax, only LPT).

The return is good - more space for a growing family while they are young.

When the kids are grown up we can downsize and any surplus is tax free. The Dublin house market (even in the depths of 2011) was still liquid.

The risk is capital loss of course. And that risk is not small given what can happen to Irish house prices. My own view is that Dublin house prices between fairly valued and moderately overvalued though.


#25

The deemed disposal only applies to funds, and you don’t pay CGT on those. You pay an exit tax (which was the same as the top level rate of income tax, but I think has stayed at 41% while income tax has dropped to 40%. If I’m hazy on this it’s because I don’t have any income :smiley: ). And no, you don’t suffer from the deemed disposal other than having to have the tax money up front. The deemed disposal is just like an advance tax bill – if, say, after 15 years you are down on the 8 -year value, you get a refund. But if you have an overall loss it is not offsettable against anything else.

Yeah, it’s crap. Especially for someone like me with no income, the tax is prohibitive which makes ETFs a non-runner. :frowning:

Yes, these are known by Revenue as “bad ETFs”. I think the badness referred to the fact that the exit tax on UCITS was only 23% back in 2007 which, along with the gross roll up rules, made them attractive even compared to the lower CGT rate of 20%. But now the exit tax is 41% so the CGT rate of 33% on a bad ETF is now good. :wink:

There are other things to be wary of with US ETFs though, such as the US estate tax that must be paid on them by your inheritors if you die. It’s not refundable or offsettable against capital acquisitions tax in Ireland.

An ETF-like option closer to home that is taxed at CGT rates that might be worth considering is UK investment trusts.


#26

(Reviving a bit of a dead thread)

Would a no-deal Brexit influence that recommendation in any way?
Are there any equivalent non-UK based financial instruments that are accessible to the average Joe in Ireland and still advantageous from a tax POV?


#27

As you can imagine, as a holder of UK ITs it’s exercised my mind a bit. Honest answer is I haven’t a clue. Right now, the ITs are not down much (apart from the fall in Sterling). They tend to increase to compensate for a weakened pound as some of the investment is in export businesses. But what will happen with Brexit I have no idea.