AutoInvest - Join the BETA

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Well, as a Portuguese citizen I only have to pay taxes on the dividends you actually receive. If the dividends are paid to a company (i.e. IShares), you donā€™t have to pay taxes on that. Thatā€™s why everyone invests in ACC ETF in Portugal and not DIV ETF.

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@joaoviriatosantos

Indeed difference in Portugal then rest of EU it seems. :beer:

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@joaoviriatosantos seems to be saying that the tax system in Portugal is different to UK, Switzerland, and other countries. According to this article that is correct.

Lucky Portuguese investors!

For others, if dividend and capital gain tax rates are the same it should not make much differences since the dividend reinvested amount increases the cost basis. However in UK CG rate is the smaller so CG is preferred to dividends.

I think one way to avoid the dividend tax in an accumulating ETF, at least for a UK investor, would be to sell it just before the annual deemed payment date, say 31 December, and then rebuy shortly after. You are only liable to report the dividend if you hold the ETF on the payment date.

I will have to decide soon whether to do this with IITU whose payment date is 31/5. However, this ETF has such small dividend I would probably not save much tax.

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138

Same applies for Belgium

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And no capital gains tax either, so I read! Sounds like Belgium is a great place for an investor. But we have now strayed quite a way from the topic of this thread. We had been discussing whether pies and autoinvest could be used to bake ones own ETFs.

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140

Iā€™m planning to use it to streamline my Dividend portfolio, different pies for the different sectors, REITS, Industrial, Finance, Consumer, Tech, Telecom, Healthcare ect ect (eventually put all this under 1 large pie once the function is available) I have the list of companies I want to add, it includes JPMorgan, TD Bank, CAT, Pepsico, Apple, Reality Income, Johnson and Johnson ect ectā€¦ The overall plan is to keep adding to it every week from now until I retire in 30 years, as the contributions go in and the dividend payments increase and get re invest it will hopefully compound and provide me a reasonable passive income stream.

My target is Ā£1.5 Million which at 4% will pay me around Ā£50k to Ā£60kā€¦

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141

Thanks for the reply! Yes thats what I meant, I hope it will be implemented soon after.

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Will be possible to sell just one stock of the pie without have to rebalance the pie?

Letā€™s say that I have 40 different stocks in the pie and I want to sell one, if I have to rebalance the portfolio to sell one, it will trigger buys and sell in the others to rebalance the pie and the buys/sells will trigger taxable events what is bad.

Can we have a option to sell one company without having to rebalance the pie?

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Yes, easily. When you withdraw (sell) funds from your pie, you can switch the fund distribution option to ā€˜Customā€™.

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144

Nice, I sell and I can choose where I want to put the money from the sale. Great work guys now we just need it released :smiley: :smiley: :smiley:

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145

Hi @George,

Although Iā€™ve signed up for beta access, I havenā€™t been selected yet. I wanted to know when this functionality will be made available to everyone.

Thanks

Fabio

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Scroll up just a little bitā€¦ it was answered already multiple times :wink:

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When is this coming?

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I think this information should be in the title in ALL CAPS!

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150

Yes but they want to know the precise second, minute and day because end of May isnā€™t clear enough for them.

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Some questions:

  1. What happens if we need 1.2 shares of a non fractional share for our ā€œpieā€ (i.e MGM) does it buy one and then the next when it rolls to a whole number or are they unable to be added to the pie?

  2. Does the auto invest happen at the start of the day? Lots of Green days there is an initial rush and then a pull back, can we say auto-invest 2 hours into every Wednesday? Or would we be in the Manual Pie only?

  3. Can we edit / Add shares to the pie after the initial set up? I.E when a new share is added to the site that we are interested in?

  4. Can we have multiple pies?

Thanks for the hard work this seems to be a great time to start something like this given the current landscape.

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  1. It will only be fractional shares allowed in pies, however all shares should be fractional in Q3.
  2. Good point, not sure how the schedule works yet
  3. Absolutely. You can add any shares in easily, and edit the percentage of each. To remove a share you set it to 0%, then the whole pie can adjust instantly if you press rebalance. Not 100% sure how it would work if you wanted the share out of that particular pie, but didnā€™t want to sell the share completely or rebalance the pie.
  4. Absolutely. You can name them whatever you want and give them their own icon.

Hope that helps, would be great if the trading212 team could answer the points Iā€™ve put in italics.

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153

From what I read in original post, there is multiple options.

You can add free funds to your pie manual, thus avoid having invested start of day or not invest on green day.

Or there is option to auto deposit with schedule, I donā€™t see hours on the auto invest just date, so no clue how it actually worka, if it triggers midnight or opening 8 AM.

But I would guess you have multiple options to tweak how to add funds for the investment pieā€¦

I would advise to read:

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Thatā€™s a good one.

If the same pie has stocks from Germany, UK and US, all with different opening/closing hour, how it will work? :thinking: :face_with_monocle: :face_with_raised_eyebrow:

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