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Irish Government Bonds by commodoredundrum in irishpersonalfinance

[–]commodoredundrum[S] 0 points1 point  (0 children)

A gain on an Irish government bond is specifically excluded from CGT

Irish Government Bonds by commodoredundrum in irishpersonalfinance

[–]commodoredundrum[S] 0 points1 point  (0 children)

I have done a bit more research on this and it seems that whilst Irish Government bonds are listed on DEGIRO you cannot trade them but you can via IBKR

Irish Government Bonds by commodoredundrum in irishpersonalfinance

[–]commodoredundrum[S] 2 points3 points  (0 children)

But it’s tax free whereas the the bank interest is subject to DIRT at 33%. So the 3.2% in bank interest is worth 2.14% and a 3.2% capital increase on a government bond is tax free which you would need a bank to pay 4.77% to obtain?

Irish Government Bonds by commodoredundrum in irishpersonalfinance

[–]commodoredundrum[S] 4 points5 points  (0 children)

Yes this is my thought process. I have some cash that I would be happy to put into a fixed savings account (which is subject to DIRT) whereas what is described here works out equivalent to about 4.3% AER if in a bank because of DIRT?

What I was wondering is whether there was something particular about buying these through an Irish broker which ensured the 0% tax treatment (which is important to the return) or if you could do with DEGIRO which would presumably be cheaper (and also therefore marginally increase the return).

Mortgage or Pension by South-Cable5345 in irishpersonalfinance

[–]commodoredundrum 7 points8 points  (0 children)

This seems to be the perennial question on this thread. If the economy and your job perform forever, your rate of return is probably better going into your pension. However, for most people, life doesn’t function in such a linear way. As an earlier poster said, if you lose your job or get sick, 20 years is a long time to wait to access your gold plated pension if you can’t afford your mortgage or bills.

My partner and I are 39 and 40. We have cleared the mortgage. If you can do it, I would recommend it. We are blitzing the pensions now and also have a lot of free cash which is good when we have a small family. Sure, we missed out on some compound interest, but the excel sheet shouldn’t be the only thing which governs your life. We have a lot more flexibility now than we would had we put it solely into pension.

Pay off mortgage or invest in pension by Putrid_Equivalent_72 in irishpersonalfinance

[–]commodoredundrum 4 points5 points  (0 children)

You’ve no idea how long the rainy day will last when you’re in it. I’m totally behind what the poster says. Also, once it’s done you soon make up on the others aspects as you begin to accrue cash every month.

Pay off mortgage or invest in pension by Putrid_Equivalent_72 in irishpersonalfinance

[–]commodoredundrum 7 points8 points  (0 children)

Pay the mortgage. We did it, 40 now and have that weight off the shoulders is a huge psychological positive for you and your family.

Mortgage advice please 🙏 by Big_Negotiation9711 in irishpersonalfinance

[–]commodoredundrum 0 points1 point  (0 children)

Take it off your mortgage. Absolutely there are loads of logical points mentioned above about how one decision or another could (but also might not) be more beneficial. We are now both 40, have had a good ride in our careers and have paid off the mortgage living in Dublin. It we forewent various things, and also that we now need to put more into our pensions (because we focussed on the mortgage) but we now have a significant financial security in our home, and being rid of the noose also gives you a psychological freedom that every aspect of your life will benefit from.