ETF vs BKR.B?

[marlee12345678]

@startupchristian People keep repeating that line over and over. Past stock performance is no guarantee of future blah blah blah

If everybody followed that mantra, nobody would invest in anything.

Would you recommend investing in a stock that has gone down 99% over the past decade? Because past performance is no guarantee of continued decline. So I should invest all my money in it.

 

[startupchristian]

@marlee12345678 FCIT has hundreds of global companies, it's not a single stock. The US has had decades where it performed poorly.

 

[marlee12345678]

@startupchristian Ok, so are you saying I should *not* invest in FCIT because past performance is no guarantee of future performance?

 

[startupchristian]

@marlee12345678 You must be an investment genius so why ask for any advice?

 

[marlee12345678]

@startupchristian I'm just pointing out how ridiculous that statement is.

 

[startupchristian]

@marlee12345678 What is ridiculous is to expect the US to outperform other countries in perpetuity.

 

[musicbazzar]

@johanmichel It is an acceptable way to invest, as long as you are not taxed in the higher income tax band, which is 40% as far as I know and, since it applies to shares, nullifies any tax advantage. Do not invest over 60k, or you will be subject to equally bad estate tax laws.

In the case you are not taxed in the above tax band, another appropriate choice is to invest in non regulated investment trusts that are domiciled in UK, like F&C Trust. https://www.trustnet.com/factsheets/t/fj19/foreign--colonial-investment-trust-ord
Scottish Mortgage may also be another diversified option with good track record as well.
There is also the option to invest in the 100 bigger companies from the FTSE All-
World index manually, with the pie feature of Trading212 for example (you will need 2 pies for that). Keep it simple and use an equal weight weighting.

If you fall in the 40% tax band, then investing with priority in local government saving products seems more reasonable, since they are tax exempt. They have a cap of 120k. After that you cannot avoid the high taxation, so just roll with an etf portfolio.

https://www.statesavings.ie/our-products/10-year-national-solidarity-bond

In any case, you should prioritize investing through pension and buying your primary residence, since they are taxed much more favorably.

 

[krisamoah]

@musicbazzar I think you're talking about dividends being taxed as income, but brk doesn't give dividends so it is a moot point

 

[musicbazzar]

@krisamoah Indeed, although capital gains are also taxed with bigger than 30% rate. For the Irish Investor it is an acceptable rate though.

The us estate law still applies, so it should still be a complimentary way of investing and not the core strategy.