In a July episode of the Better with Money podcast, Kevin Elliott – a certified financial planner with experience in global finance – shared the checklist he uses when trying to select an exchange traded fund (ETF) from the vast array available on popular broker apps.
ETFs are particularly appealing to novice Irish investors because they offer a simple, low-cost way of spreading money across hundreds of companies.
This reduces risk by providing “instant diversification” rather than choosing individual stocks that will go up or down in value.
But despite their simplicity, ETFs still represent a significant tax-reporting headache for investors in the Republic.
It prompted listeners to Elliott’s episode to get in touch with several follow-up questions, including whether they should wait for Minister for Finance Simon Harris to announce his proposed personal investment account.
The details, which are being held back until Budget 2027 on October 6th, will set out a more simplified tax regime as a means of encouraging ordinary savers to move their money into the stock market.
“I get asked this by almost every client that I have,” says Elliott, founder of Kevin Elliott Wealth and who runs the popular YouTube channel of the same name.
In this conversation, the former director of quantitative finance at Bank of America gives his take on whether the new scheme will help “middle Ireland”.
He uses the equivalent United Kingdom ISA and Swedish ISK schemes as a reference point to compare the likely structure and flat tax rate.
The Donegal native also explains why he expects financial institutions will levy higher charges on operating the new account relative to those currently applied by the online trading platforms.
He offers practical tips for tracking exit tax, outlines why euro cost averaging might be better for peace of mind than lump sum investing, and notes United States citizens and green card holders generally can’t buy European Union domiciled ETFs due to rules set out by the US’s inland revenue service.
If all this talk of ETFs leaves you confused, fear not. For absolute beginners, we have explainer episodes here and here.
- Better with Money is for information purposes only and does not constitute financial advice.
