Investing Advice: Are Stocks better than ETFs in Ireland?

[startupchristian]

@emilyhall So you're not going to take any profit after 5-10x gains?

 

[startupchristian]

@emilyhall SM energy alone did nearly 14x in the past year. Oil is still very cheap compared to other sectors. This is financial advice.

 

[emilyhall]

@startupchristian

14x in the past year.

The chart shows 349% gain in the last year, not 14x. You are cherry picking their low point. Their 5 year return is negative.

How good was your market timing at predicting covid?

This is financial advice.

Bad advice. You don't know the future

 

[startupchristian]

@emilyhall Oil and natural gas prices were suppressed to abnormally low levels due to the pandemic. It was an opportunity.

 

[jesusdiva26]

@saachristian757 No, the odds of you out preforming an index like the S&P 500 are stacked against you.

VWCE - and a spreadsheet to track your buys is all you need.

 

[saachristian757]

@jesusdiva26 Even with the higher tax rate and having to sell every 7 years losing 41% of profits?

I understand that it's hard to beat the market and ideally I would like to invest (and have) in the S&P and VWCE already, I just don't know if investing 100 every week and having to file taxes is worth the headache.

 

[jesusdiva26]

@saachristian757 Save the €100 every month and then invest €1200 every January if the admin is too cumbersome doing it monthly.

The tax system around ETFs isnt going anytime soon and in ireland we need to make the best of a bad situation.

 

[saachristian757]

@jesusdiva26 Yeah it's tough alright, what admin is involved with monthly ETF buying what would have to be kept track of

 

[peter1000]

@saachristian757 The deemed disposal every 8 years is the equivalent of a 1% fee on the fund. Much better than trying to beat the market yourself

 

[startupchristian]

@jesusdiva26 Better off buying US domiciled ETFs as they're taxed as stocks.

 

[resjudicata]

@jesusdiva26 Can you take advantage of personal exemption of €1,270 each year with UTCIS ETFs?

 

[maddyiscool]

@resjudicata No, you can't use your exemption to offset gains in ETFs - only individual stocks

 

[maddyiscool]

@saachristian757 10-15 stocks each week?! Sounds excessive

 

[saachristian757]

@maddyiscool It could be but I'd like to DCA into them each month

 

[maddyiscool]

@saachristian757 Just so I understand correctly, you're going to be looking at holding 500+ individual companies by year end then right? In that scenario, I would argue that ETFs are 100% the way to go. Trying to rebalance your 500+ company portfolio as an individual investor is a monstrous task, let alone having to deal with dividend taxes, trading fees accumulated for each individual purchase, etc. Sure, you'll have to pay 41% tax, deemed disposal and so on - but your time has a price.

As a hypothetical alternative, why not aim for 15-20 of your highest conviction individual stocks (diversified), and then add some ETF holdings as a hedge.

 

[saachristian757]

@maddyiscool No the same 10-15 stocks each week and Dollar Cost Averaging into them.

 

[maddyiscool]

@saachristian757 Nice, well in that case - ride on amigo