Iām Irish too and the taxman only knows what you tell em.
Iām all for fair taxation, but the Irish system is not fair whatsoever.
Not to mention 52pc on regular income over 35k euros. So about 28k gbp for our British friends. Let that sink in.
Anyway, to the topic, if I lob 1k a month in, for 15 years or so at a compounding 11pc or so, this should net over 1million.
Retire at 50ā¦yes please. 
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Are you accounting for inflation in your 11%, and where are you getting 11% from - we all want to know!
Literally every month I am shocked at the tax deducted from my salary. Iāve never gotten used to it.
Youād be looking at about 18% interest to reach a million pre-tax in 15 years unfortunately. With the right investment choices that is viable though.
About 18 years then with 15% interest per year.
Still - not bad at all should either of those scenarios happen.
Edit: neither of those account for inflation. This site here has a feature to account for inflation which is pretty handy.
Is that perhaps the Irish way to encourage people to put more into their pension pot from the get go?
@obrienciaran , @GaryS , yesterday I was reading about corporate tax heavens, and Ireland constantly pop up (not to mention the UK and his numerous territories), isnāt better to create a company and use it as a vehicle to invest, instead of investing as person?
The same question also for UK fiscal residents, did you thought in creating a company for investments?
You could even put your home and their expenses (and perhaps personal expenses) in your company financial accounts.
Note: In blue, UK and territories linked to it (made by the authors)
Source: Tax Justice Network - Corporate Tax Haven Index (CTHI) 2019
It could be, but youāre taxed up the wazoo when you draw down your pension too.
@RLX Isnāt this how Jimmy Carr got caught by the tax man? Iāve no idea the legality of this in any country! Does it fall under tax avoidance or tax evasion?
I donāt think that creating a company and do investments through it, is a tax avoidance/evasion scheme.
It is more like tax optimization, I know some people that created companies with that purpose in my country, for example, related to real estate, some have created a company because they rent apartments (e.g. AirBnB) or buy and flip real estate (after doing some house improvements). Or people that are working with Uber, they create a company, bought or lease cars, and work as Uber drivers.
In financial investments, I also know some people that created a company, but are less than the above examples.
They all paid taxes, their companies arenāt registered in offshore countries, they are registered in my country, Portugal, one of most taxed countries in Europe.
I know some foreign people that created companies in Estonia, all created online. Because itās very easy to create one, and mainly because Estonia is very tax-friendly in corporate taxes. Most of that Estonian companies are related to IT freelancers and digital nomads.
Note: Corporate taxes in most countries are less that personal taxes. And in corporate taxes, exist more expenses tax-deductible, that lower the taxable income.
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So to help us with FI or to RE, we should all create our own companies or trusts? Interesting view.
Trustsā vehicles are very specific to UK, and I donāt know too much about the legal behind it. I know some Brit families, including middle-class ones create family trusts to handle the succession complications and to manage the family wealth.
I know a case of a British expat that have some kind of investment vehicle, created under British legislation to invest his million quids in P2P Lending platforms, mostly in Baltic countries. He created that vehicle with purpose of better tax handling. (He lives and works in China, and invests in European P2P Lending platforms through that British corporate structure.)
He and a friend have a blog about their FIRE travel:
There are/were also some examples of people creating companies (many Estonian e-companies) to mine cryptos.
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Cant say I would touch p2p, not now. I used to be in Zopa though for a good few years.
Right now my plans are to maximise my GIA returns and work out if/where to put my ISA.
āSterlingā, the millionaire that invest >1million in P2P, according to his blog have more than that, but is outside P2P (~50%): Interesting to see, is their āFinancial Goalsā.
As of January 2019 he has a net worth of ā¬3m and a P2P portfolio of ā¬1.5m.
https://p2p-millionaire.com/about-us/
I have invested in P2P (EUR platforms only) and I suggested people interested in that, to invest 5-10% maximum of their wealth, due to their intrinsic risk.
UK is very innovator in that matter, you have an IFISA, for tax optimization in P2P investments.
Your ISA allowance includes all types of ISA or it is for each type of ISA?
You can contribute into one of each type of ISA each year, and the ISA allowance is collective yes.
Similarly, 12,300 of CGT free allowance each year, so you can switch between similar ETFs each year or something to crystallise gains each year, and a 2k dividend allowance as well.
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I had the same idea (probably everyone did) before this F.I.R.E became a thing for the new generation. But I always disliked ETFs in any form, shape or risk factor.
Dividend growth model, (dividend growth engine) is the best strategy you can follow in my honest opinion and I highly recommend at least reading about it (e.g The Single Best Investment by Lowell Miller) This approach will become even more successful the younger you start.
I am closer to my 50s than my 40s 
and if I really wanted to I could retire on my dividends. I have at the moment about Ā£1100 p/m dividend income but I also hold many companies in large quantities that does not pay any dividends (e.g StoneCo, AMD etc.) If I retire, Iāll likely need to convert these to dividend paying companies. I believe I can retire in a comparatively cheaper country even with Ā£1100 p/m
my current actively managed SIPP in II looks like this at the mo. I got another one in HL that only has dividend companies.
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yet another side side note from myself, Iām playing with just a bit of money in lendermarket(<- referral link) just to try how it works.
Sending money via Revolut even using SEPA takes about an hour, I did try withdrawing as well, which took roughly a day. Iād say there is at least a 30% of the loans are usually overdue. Overall it looks āokā for now. But Iām not sure if Iād invest a āsignificantā amount in them, simply because there is not a āphone numberā contact, or even a ācontact usā form on the website. All you have is an address in Dublin and an email address.
I had invested in Lendermarket (LM) for at least a year, almost since inception, I wind down and emptied my positions in all P2P Lending platforms since March/2020 due to COVID, so I wouldnāt be subjected to the credit moratoriums and possible rise of NPL, that could make platforms and loan originators (LO) bankrupt. And also to rotate to stocks.
In multiple P2P platforms the late loans are around 20-30% in ācalmā times. So itās ānormalā for subprime loans. If the loans had Buyback Guarantee AND LO respect that, the late loans will be repaid at most in the 61st day it is late (including interest income for the late period).
The few times I contacted LM, the customer service was always very fast and helpful. The same I couldnāt say about other P2P Lending platforms or brokers or neo-banks, that sometimes take several days or weeks just to give a ābotā answer.
Btw, you forget to say that your link to Lendermarket is a referral link that tracks the activity of the people who clicks in it.
ā Maybe you should take out your referral link or at least mention that your link tracks the activity of the people who use it and if they invest in Lendermarket you will receive financial compensation. I think our community deserve honesty and transparency.
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bit of a dramatic, BUT YES IT IS A REFERRAL LINK (was gonno go for bold caps and spaces just cba) and may track people as much as anything on webā¦ but updated the post.
on a more serious note thanks for the tips on p2p lenders. As I mentioned I have little to no experience with these and if 20-30% is normal in calm times that means this 30% could be considered acceptable in current climate.
I guess it was a bit of a blind referral link that Iām not even sure has any benefit to anyone signing up.
Anyhow, I cant see p2p being useful for FI or RE. You only have to look at the success of P2P GI as an example.
To then slightly contradict myself, HONY on the other hand seems to be doing ok - dont think anyone has requested it be added to 212 however. 52% return in 5 years is not bad.
https://www.theaic.co.uk/companydata/0P000177OI/performance
To the point with an 8% yield and current 6% discount is tempting. I am however slightly surprised that its NAV performance has been relatively flat, all things considered. I would have expected some bad debt fair value be added into its NAV, so needs further investigation before anyone jumps in.
Also makes me think, we need to request all missing investment trusts on 212.
In funds with assets out of the markets (especially fixed income), the NAV seems straight up and flawless, due to the lack of (regular) valuation, the valuation is made mainly by adding the daily accrued interest income. Even the NAV index, Morningstar uses in your link isnāt so regular accruing daily interest and valuation as that trust.
The lack of bad fair value you mention, maybe is due to the credit moratoriums and/or the lack of will from the management to acknowledge that, so it doesnāt have worst performance (and continue to charge the performance fee).
Do you know a good source of research/knowledge about IT? (Morningstar only gives performance, we see it only after we discover the IT.)
The AIC/Morningstar is about as good as any. The NAVās have to be calculated using standard accounting practices, so need to take them as they are.
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