How do Irish residents invest?

[rb35]

Not sure if anyone has experience with this, but I'm trying to help my in-laws who are Irish residents.

They want to invest some money and would be well served by a low cost mutual fund or a blend of ETFs composing of say 60% bonds and 40% equities.

Does anyone know of (1) brokerages and (2) funds that would accomplish this for Irish residents? It would need to be Euro denominated and not have any messy taxes involving other countries.

Thanks

 

[travelover]

Apple (AAPL) has a big presence in Ireland.

 

[Meadbh]

Start here at the Irish Financial Services Centre

Ireland's International Financial Services Centre

Also check out Vanguard UK, which has some Irish domiciled funds and a contact number

https://www.vanguard.co.uk/uk/portal/contact-us

Fidelity also seems to have a presence in a Ireland but their website indicates it is technical support.

 

[Totoro]

Vanguard FTSE All-World UCITS ETF (EUR) ETF | IE00B3RBWM25

Vanguard VWRL for the equity part will work well. It's denoted in EUR (not that it matters).

You need that one vs. the US-based ETFs (like VT / VTI) to reduce withholding taxes on dividends as much as possible.

For bond funds I have no idea. Probably IShares has a bond fund investing only in EUR.

I use CDs myself. Interest rates on them are actually higher for me and they are insured up to 100k per bank.

 

[rb35]

Thank you, Totoro. What broker do you use to buy VWRL?

 

[Totoro]

Two discount brokers (Binck & Keytrade). Neither are active in Ireland. Biggest item to look for is that whether they charge any sort of recurring fee - they shouldn't (just a transaction fee).

I actually live in the Netherlands myself and also manage my mother's finances in Belgium, so no idea about which on-line broker is best for you.

For my mother I want to use this one since it accumulates dividends (capital gains is not taxed in Belgium, but dividends are).

Vanguard Global Stock Index Plus EUR Accumulation|IE00BFPM9N11

As a non-US citizen it can be a serious pain figuring out the best solution, especially tax-wise .. and the EU keeps making it worse with rules upon rules designed to stabilize the financial system but making it all even more confusing ..

 

[Meadbh]

Here are a few online brokerages:

Goodbody.ie is the biggest online broker in Ireland.
http://www.goodbody.ie/individuals/trade-shares-online.html

TD Direct Investing is a subsidiary of a major Canadian bank which is high on the most stable banks list worldwide. Irish investors can buy UK ETFs. This one would be my choice.
http://www.tddirectinvesting.ie

Davy online
Share Trading and Dealing, Trade Shares, Funds and ETFs | Davy Select

Disclaimer: I am an Irish citizen with experience investing there. I am not currently resident in Ireland and do not currently hold any investments there.

 

[rb35]

Thanks all. Meadbh, that's very helpful.

Using TD to purchase the ETF Totora suggested seems like a good option.

Are there any tax considerations I should be aware of using that strategy? I wouldn't want them to have to file a separate UK tax return in addition to an Irish one. I grew up in the US so pardon my ignorance on these matters.

Thanks to everyone for the quick and helpful feedback!

 

[Meadbh]

No need for UK tax returns. Both countries are members of the EU. Furthermore, income from any source abroad (including the US) would be declared on an Irish tax return.

 

[rb35]

Does anyone know if Vanguard has a euro denominated world bond ETF to complement their world stock market ETF?

Also, I was looking at the Irish domiciled funds. What does accumulation vs income mean?

Is that a strategy style, like capital gains vs income? Or is it something completely different?

 

[Meadbh]

Accumulation is the first term defined in the glossary.

https://www.vanguard.co.uk/uk/portal/investor-resources/learning/glossary

 

[Totoro]

Also, I was looking at the Irish domiciled funds. What does accumulation vs income mean?

Is that a strategy style, like capital gains vs income? Or is it something completely different?

Not a style.

It simply indicates what happens with dividends. Either it is paid out, or it is used to buy additional shares of the fund.

Most funds pay out, and usually those have slightly lower fees too.

 

[nun]

Are your in-laws just Irish citizens and not US citizens. If they have US citizenship they MUST NOT invest in non-US based mutual funds or ETFs.

If they are just Irish citizens looking to invest some money they can use an irish brokerage libe Davy Select

Pensions, Investments and Financial Advice | Davy Select

watch out for fees though that will be far higher than in the US. You can buy Vanguard UK/Ireland's range of funds.

 

[Meadbh]

Are your in-laws just Irish citizens and not US citizens. If they have US citizenship they MUST NOT invest in non-US based mutual funds or ETFs.

Good point nun. I had assumed the inlays were Irish citizens, but of course if they are US citizens resident in Ireland that's a whole different ball game.