Beginner in need of investment advice

[lightanddark]

Im 23 y/o who began entry level civil service job last year on a decent salary and the associated pension.

I’ve got a significant amount of cash left over every month after necessary expenses are accounted for. Currently have 1k p/m going into a BOI deposit a/c at 3% AER. I’m fully aware this isn’t the most efficient savings vehicle but I’m put off investing significant amounts into ETFs because of the onerous tax obligations. I’ve looked into setting up my own portfolio with investment trusts etc on platforms like T212 but again the CGT tax reporting obligations for someone like me who wants to drip in x amount every month rather than a lump seem daunting (having to account for each individual transaction). It appears that revenue make things deliberately vague and jargon-filled to scare people off.

I’m new to the whole investment scene so any advice on how to get the most out of medium-term savings/investments or how to simplify associated tax returns would be appreciated.

 

[lizmoshes]

@lightanddark There is a flow chart in pins that’s a good guide. But Perhaps save for travel etc if you feel like might be something you wish to do.

 

[lyn02]

@lightanddark Just interns of the CGT. You'll only pay the tax once you realise your gains.. so if you're putting 1kpm into efts you won't have to pay tax until you sell over the CGT limit

 

[kinzie]

@lyn02

so if you're putting 1kpm into efts you won't have to pay tax until you sell over the CGT limit

This is not the case for ETFs (hence why OP called it out).

I'd suggest googling "deemed disposal" to learn more about it (and then search this sub too)

 

[lightanddark]

@kinzie Yeah when I did my research into our tax legislation on ETFs I became disillusioned with the whole thing. I’d love an option like the UK ISAs where you can invest in these funds with a significant tax exemption. Feel like we’re at a serious disadvantage here and not enough Irish are financially literate enough to care or even notice.

 

[lyn02]

@kinzie Ah I see my bad

 

[rosyy57]

@lightanddark What are you saving for?

Have you a pension in place and maxed out?

 

[lightanddark]

@rosyy57 To your first question - I guess for a house deposit one day. Living in Dublin so market is insane atm.
I’m lucky to have relatively low rent and other fixed costs and still have plenty to enjoy myself at the end of each month.

I have the occupational pension scheme associated with CS jobs and contribute the max I can to that. I know that’s the most tax efficient investment available. Just hard to get excited about paying into a pension pot when you’re 40+ years away from seeing it! Think I’ll keep plugging away as I am for the moment and reassess when/if my priorities change

 

[rosyy57]

@lightanddark You’re doing well maxing out the pension at your age.

Next step would be investing in the market so to get the house deposit, lots of ways of doing this but look at Trading 212 and Degiro. Then I’d choose a range of accumulating ETFs.

Buy the house as soon as you can and rent a room while you’re still young enough not to mind sharing.