There are so many investment options available nowadays, from deposit accounts to traditional investment funds, from structured investments offering differing levels of capital protection to private equity opportunities, from peer to peer lending sites to providing debt facilities to businesses.
Not only do you need to consider how soon you will need to access the fund, you need to know whether the fund you invest in will allow you take your monies out in the event your circumstances change. You need to know that the fund you are invested in is within your appetite for risk, and that the tax treatment of any investment growth suits your needs and circumstances.
For example, in 2020 DIRT tax which is applied to deposit interest is charged at 33%. Any growth in an investment in a life assurance wrapped product is subject to Exit Tax of 41%. This Exit Tax is applied on maturity or on every 8th anniversary, whichever is soonest. Other types of investments may be liable to Capital Gains Tax, currently 33% but with the benefit of an annual exemption for single individuals of €1,270 and €3,540 for married couples, and the potential to offset past losses against future gains.
*Figures correct as of 07/07/2020 as per revenue.ie
Obviously then, sound financial advice is important. MoneyCoach has qualified investment advisors who can assist you in making informed investment decisions with your money. Why not contact us here?