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S&P ETF and Goodbody Dividend Income Fund...

  • 15-01-2021 2:24pm
    #1
    rodneytrotter15
    Registered Users Posts: 418 ✭✭


    All thoughts and opinions welcome here. So we've about €15k sitting in the Credit Union effectively doing nothing. It's for the kids college fund and I'm thinking of taking it out and placing it with DeGiro and purchasing the Vanguard ETF that tracks the S&P ( reinvest one ) and leaving it there for at least 8 years and possibly 10 until hopefully it will be required. Appreciate I will have to pay the 41% tax at year 8 and would hope to cover this myself, assuming there is profit.

    For the regular monthly children's allowance, I would prefer to lump this in there as well but the tracking for tax purposes seems like it would be an absolute nightmare and one I would want to avoid I think. As much as I like the idea of continually purchasing every month.

    The other option I see it to pump the monthly payments x 2 into the Goodbody Dividend Income 3 or 4, one I suppose is for diversification and two for ease of management. It does bug me though that history has shown and it is likely the S&P ETF will outperform this over an extended period.

    Is there something else I should be considering here or am I missing a trick. We do have an accountant that looks after my wife's business. Maybe I could go all in on the S&P and let him manage the hassle of the ETF's and pay him whatever extra he will charge, assuming he will do it of course..


Comments

  • #2
    russtini
    Registered Users Posts: 36 ✭russtini


    rodneytrotter15,

    As Dell Boy would say - this time next year we'll be millionaires (not forgetting that the value of stocks can go down as well as up, and that past history is not a bearing on future performance)

    I'm no expert but sharing as I'm doing the same idea for past 2 years... I use degiro and buy 1k month of IE00B3XXRP09 - vanguard S&P ETF tracker (Non Accumulating so I flip the dividend in to the next purchase) - its on the degiro free to buy >€1k list.

    I doubled up in march when the market hit bad purely on the principle that you should buy when things are bad, and have kept buying every month no matter the ups or downs- and overall has paid off so far. €23k invested is now €30k. This has now got me interested in single shares and has been a good grounding on basic market mechanics.

    Not saying its for everyone and sure there are much better and much worse investments than this ... but so far so good. I'm a little concerns that S&P is at an all time high but sticking with this for next while...

    Hope that helps.


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