Hi I'm Dan Malone! I'm a fully qualified accountant, tax advisor and financial advisor. I quit my job with one of the leading financial services firms in the world to share my knowledge about personal finance with those who need it most. On this channel we talk about investing, retirement planning, the latest financial news and much more. Subscribe if you'd like to see finance based content from someone you can trust.
Its a disgraçe that the government are preventing small irish investor building any sort of wealth with this taxation on etfs , REMIND YOUR LOCAL TD OF THIS WHEN THEY COME LOOKIMG FOR YOUR VOTE SOON!
Thanks for the video, the annual cgt allowance hasn't increaseed since we had the punt when it was £1000IR , it should be double or triple that now due to inflation This is another example of the Irish government screwing its own investor citizens with massive taxes , while letting foreign investors off with low / zero taxes- zero non domicile taxes unlimited time period, zero withholding taxes for foreign investors etc
I currently have 75% SCHD and 25% ROTH IRA. Brokerage account is 40% VOO, 35% SCHD, 25% XLK. Combine balance ~$650k. I am 37... I have about 100k in cash
Great video! I’d be interested to hear your thoughts on saving with the likes of Revolut and Bunq as they too have quite competitive rates on certain plans. Many thanks 😊
That tax system is a joke! What kind of a CU#T would come up with this! They want you to have no chance at all in that stupid little country! This stupidity is the very reason we left in the first place! I was thinking about coming back but fu<k it, I’m better off where I am.
This is almost identical to WealthSimple 👍 Looks like a good app, With the savings plans can you create your own for retirement aka no tax on ETFs or are they just normal accounts?
Great job man, Very clear and detailed! Do you have a video on the account offered within these apps? I’m looking for an app that provides a retirement account or a tax free account like WealthSimple in Canada.
I get the fact it’s Ireland and tax is like a way of life there! My current trading platform has zero fees!! On everything! With the exception of 10$ a month if you want to trade in a foreign currency( as many times as you like) I have a retirement account and a TRSA that I get dividends and capital gains in for zero fees! And if I withdraw my dividends is only 15% that can offset set against your income and you get a tax refund! So you see why I’m a bit bewildered at the Irish trading system. Canada wants you to succeed and Ireland just wants to tax you into the grave! Maybe I’m over reacting because I’m not educated on the system and there is a simple solution😊
Hey new sub, I’m looking at returning to Ireland from Canada and I was looking at continuing my investment plan…but the tax system is absolutely ridiculous! What rip off. I’m wondering if any of the apps offer a retirement account or something like it to avoid the 41% on my dividends and of course Capital Gains taxes & the Deemed Disposal aka “theft tax”! It seems to be all broker managed accounts with lots of hidden fees and limited returns like 5-7% annually! I’m looking for a self managed PRSA that I can pick theETFs and stocks that I know consistently return 15-16%. Is there anything you could suggest I check out? Thanks 👍
This is fantastic information, it’s astonishing to me how far behind Ireland is when it comes to retirement funds or investments in general and how high the taxes are on especially ETFs! 41% 😂 Do any of the platforms at home provide a retirement account? Im in Canada, thinking of moving home and honestly the taxes on dividends are making me reconsider! I can open a RRSP “retirement fund “ on an online trading platform in less than 5 min, I have done so on WealthSimple zero fees or 10$ a month to trade foreign exchanges, I can self manage and invest in whatever stocks or ETFs I want with zero commission or management fees, zero tax on dividends received or capital gains, no conversion fees on foreign currency into the RRSP, no time limit or restrictions on when I can take my money out it just becomes a taxable income at that point! Dividends are taxed at 15% so if like me you have a nice dividend income and you don’t touch the capital, you only pay 15% tax not the ridiculous 41%.
In the 70s a 3 bed semi in Dublin suburb was about 4,000 punt. Adjusted for inflation, thats 400,000 in todays currency. Unless there is a new currency, inflation will continue forever, thats the monetary system we are subject to. A tiny island government like Ireland isnt going to change the system, so watch the macros globally and be prepared to leave your area, your county and even your country if neccessary, but of course, try your best to succeed and do so without becoming a corporate sociopath
As non-domicile in Ireland if money earned outside of Ireland and not-remitted - no Irish tax to pay. How that may affect decision of choosing a bank account? Would any of raisin bank accounts or trade republic or anything else open a door not to pay tax (with no remittance)?
Also, would you consider making a video on how to file a tax return on Revenue? It can be complicated for people who aren’t aware of this sort of thing. How to declare extra income, how to claim tax credits etc… I really think a step-by-step guide would be shared widely and be very popular with new people! Up to you of course, just my opinion 🤙
I have a term deposit account with raisin and will be looking to utilise a demand deposit account soon. Cant fault their customer service when i was setting up. Irish banks are a complete rip off.
His brand is more important. It wouldnt be wise to go with any sponsor but smart to go with the one that you believes is smart. Besides its information. You take it as you wish.
I appreciate that perspective. However, regular viewers of my channel know that I always provide unbiased reviews of any savings options and/or investment platforms. I never allow 3rd party influence on my videos. You could equally say that I have a conflict of interest when talking about Trade Republic, T212, Bunq, Seeking Alpha or Lightyear, with all of whom I have an affiliate partnership. In theory, I do, but in practice, this does not come to fruition. You will find through your own independent research that the options I present as being the most competitive are indeed the most competitive. There are no catches here my friend. Stick around long enough and you'll see that!
Deemed disposal aka when a country gets abused by lobbies and nobody is able to stand up for its people as everyone is too busy working for a shitty abusive foreign corporation. Excellent planning 🎉
Might like a stewpid question, but how do revenue no how much interest u get on your savings, do they have access to your account? I just find it ridiculous paying dirt on savings considering inflation goes up 2 per cent year roughly
They don't, but it's your obligation to declare the interest earned and pay the tax owed. There is a possibility that you could get caught out on an audit.
Stupid Q:If I put money into Raisin to save my money and earn interest I don’t have to pay CGT on it do I? Or when I withdraw after a few years do I have to go to revenue to file something?
No catch, biggest thing to be aware of is that these are fixed term accounts for the most part. This means that you won’t be able to access your deposit for the duration of the fixed term that you choose. But the upside of that is that your interest rate is guaranteed for that fixed term.
On top of miserable interest rates in Ireland what kills us is the witholding Tax/ DIRT. In some countries you pay 15%-20% but here you pay 33% on savings that for the most part come from salaries that have already been taxed. I was doing some simple maths and without going too much into details, I was very disappointed to see the results: 1 - When an Irish Bank shows 2% interest after DIRT, in reality you get 1.34% net. 2 - When an Irish Bank shows 2.5%, after DIRT, you actually get 1.67% net 3 - When an Irish Bank shows 3%, after DIRT, you get 2.01% net I find it so miserable almost a rip off
@@malone_financial hey Dan, thank you so much for keeping us updated and covering different investments needs. Personally, I can't think of a EU country that charges 33% or more also on capital gains. If I remember correctly it used to be 20% in Ireland. It could be worse, 10 years ago banks offered 0.15%, but it could be even better 🙂 thanks again for sharing your expertise with us. All the best
In Canada if you hold your funds in an RRSP (retirement account) which you can open on a basis trading app (WealthSimple) I have them myself, you can withdraw at any time and just that amount becomes a taxable income! In Ireland…To me it looks like you are just making some provider rich for 6% a year! In my account, The withholding tax, capital gains and dividends earned is ZERO on all Canadian stocks/ETFs and zero on all Us stocks/ETFs in a RRSP. Than on dividends in a normal account are 15% but you can claim most of it back in your end of year returns. Ireland and Europe 30 years behind the US and Canada with this stuff!
Have a look at the other comment responses! Trade Republic remains the most competitive option for the first €50,000 worth of deposits that are intended for an instant access environment. However, for those with longer savings horizons (i.e. >6 months), there is a real case to be made for Raisin Bank with their fixed rates, higher deposit maximums for eligible interest and deposit guarantees. For longer term savers, locking in a high fixed rate now over an X year period could very well result in a better net return. It's all about being proactive and not hyper-focusing solely on the best advertised rate in the present day. The beautiful thing about all of this is that there's no "one size fits all" solution, it totally depends on the saver and what they want to achieve.
Correct, on a rate-versus-rate basis, Trade Republic continues to offer the best instant access return at 3.75%. However, couple of things to consider. Firstly, 3.75% on Trade Republic is only available on deposits up to €50,000. The vast majority of accounts on Raisin, including the instant access accounts, allow for interest generation up to €100,000 which, in turn, would result in higher net interest for those with larger deposit amounts. Technically, the optimal play would be to fully utilize your maximum interest-bearing deposit on Trade Republic and then divert your excess elsewhere. Secondly (and arguably most importantly), the value of Raisin Bank over Trade Republic comes from the fact that they offer fixed rate accounts. For example, while the BluOr Bank 1 year fixed account offers a slightly lower rate at 3.65%, that rate is guaranteed for a full 12 months. With the ECB set to further cut rates later this year, no such guarantee exists around Trade Republic's rate. Meaning, the net position over 12 months (or longer for longer fixed term durations) could very well work out better for those who fix at a slightly lower rate now. It's all about being proactive and anticipating future rate changes rather than being laser focused on what rates are today
I've just watched a bunch of your videos yesterday, so this is timely. Annoyingly already locked in month saver and another long term. But I've got another lump sum I'm planning to move. How do you compare trade republic now? Trade republic seem to cover 20k, is this different to the 100k the other services tend to offer? Bunq does seem handier, tempted to just go with them?
Trade Republic offers protection under the Deposit Guarantee Scheme up to €100,000, same as Raisin Bank. While Trade Republic currently offers the best instant access deposit return, it's a variable rate and is subject to change with ECB rates. Raisin Bank allows you to lock in guaranteed rates of return even if ECB rates subsequently fall. Bunq are good as an alternative to, say, Revolut or even the traditional Irish banks for banking services (check out my video before this one to hear more about them).
@@malone_financial Thanks for that! Main question now is raisin vs trade republic. What new sources or blogs would you recommend to speculate ECB changing rates this year? I guess I'm wondering would ecb rates go under 3.65, which is what raisin seems to offer.. (raisin's phone call sign up is a little intense haha)
I'll copy my response from another comment: "Correct, on a rate-versus-rate basis, Trade Republic continues to offer the best instant access return at 3.75%. However, couple of things to consider. Firstly, 3.75% on Trade Republic is only available on deposits up to €50,000. The vast majority of accounts on Raisin, including the instant access accounts, allow for interest generation up to €100,000 which, in turn, would result in higher net interest for those with larger deposit amounts. Technically, the optimal play would be to fully utilize your maximum interest-bearing deposit on Trade Republic and then divert your excess elsewhere. Secondly (and arguably most importantly), the value of Raisin Bank over Trade Republic comes from the fact that they offer fixed rate accounts. For example, while the BluOr Bank 1 year fixed account offers a slightly lower rate at 3.65%, that rate is guaranteed for a full 12 months. With the ECB set to further cut rates later this year, no such guarantee exists around Trade Republic's rate. Meaning, the net position over 12 months (or longer for longer fixed term durations) could very well work out better for those who fix at a slightly lower rate now. It's all about being proactive and anticipating future rate changes rather than being laser focused on what rates are today"
@@kilmeenabuck3134 correct, but liable to higher tax rate of 41% due to the fact that the interest is earned via a money market fund structure. Trade Republic, at least for the first €50,000 worth of deposits, remains slightly more optimal for instant access deposit returns
