Comments on: How ETFs really compare to stocks https://mrsmoneyhacker.com/why-etfs-are-better-than-stocks/ Helping people view money differently while chronicling my own path to financial independence in Ireland and Canada Sun, 08 Nov 2020 21:43:53 +0000 hourly 1 https://wordpress.org/?v=6.9 By: Duncan M https://mrsmoneyhacker.com/why-etfs-are-better-than-stocks/#comment-277 Sat, 29 Aug 2020 08:55:33 +0000 https://mrsmoneyhacker.com/?p=1005#comment-277 thank you Meagen!

]]> By: Meagan https://mrsmoneyhacker.com/why-etfs-are-better-than-stocks/#comment-275 Wed, 26 Aug 2020 19:51:10 +0000 https://mrsmoneyhacker.com/?p=1005#comment-275 One reader commented that US shares do not have the 1% stamp duty, I didn’t piece that together but see now after a bit of digging that you can buy US shares on Degiro and no stamp duty applies but as the reader also suggested this may be wiped out by currency exchange risk. While I haven’t quite figured how to model that into analysis yet, just looking at the last 5 years fluctuations between EUR and USD the difference between highest and lowest is 16%. So if your entire portfolio was in USD and you needed 35k to live on in retirement in 2016 you would have had to withdraw 36k compared to 44k in 2018 – a difference of 7k. Not sure if that’s the right way to look at it and I’m surprised the fluctuation is that big. It’s double that of CAD to EUR which was only 8% difference for the same time frame.

]]> By: Meagan https://mrsmoneyhacker.com/why-etfs-are-better-than-stocks/#comment-274 Wed, 26 Aug 2020 19:47:01 +0000 https://mrsmoneyhacker.com/?p=1005#comment-274 In reply to Mise.

Interesting! I didn’t piece that together but see now after a bit of digging that you can buy US shares on Degiro and no stamp duty applies. In terms of currency exchange risk yes I haven’t quite figured how to model that into analysis yet but just looking at the last 5 years fluctuations between EUR and USD the difference between highest and lowest is 16%. So if your entire portfolio was in USD and you needed 35k to live on in retirement in 2016 you would have had to withdraw 36k compared to 44k in 2018 – a difference of 7k. Not sure if that’s the right way to look at it and I’m surprised the fluctuation is that big. It’s double that of CAD to EUR which was only 8% difference for the same time frame.

]]> By: Mise https://mrsmoneyhacker.com/why-etfs-are-better-than-stocks/#comment-252 Thu, 13 Aug 2020 23:36:54 +0000 https://mrsmoneyhacker.com/?p=1005#comment-252 In reply to Meagan.

Hi. What about the fact that no stamp duty is required on US shares? That gives you an additional 1%. I know there’s locations which do not require stamp duty but just saying US as it’s got the major markets. Or is that % offset by currency ?

]]> By: Meagan https://mrsmoneyhacker.com/why-etfs-are-better-than-stocks/#comment-214 Sun, 12 Jul 2020 08:53:45 +0000 https://mrsmoneyhacker.com/?p=1005#comment-214 In reply to Steve.

HI Steve, Yup I do have access to US-domiciled ETFs through Canadian brokerage but I think the cost of transferring money to and from Canada (currency exchange fluctuations/risk+currency exchange and transfer fees both on entry and exit) + currency exchange risk on growth etc would all negate any benefit not to mention the tax reporting issues/headache. Even though the tax treatment is slightly better I’m opting for simplicity over shaving a few months off my FI date.

]]> By: Steve https://mrsmoneyhacker.com/why-etfs-are-better-than-stocks/#comment-204 Sat, 04 Jul 2020 23:36:40 +0000 https://mrsmoneyhacker.com/?p=1005#comment-204 Hi Meagan,
Great blog, really useful information, thanks for sharing.
Would you not have access to US-domiciled ETFs through a Canadian brokerage? The reason I ask is that I’ll be moving to the US shortly for one year and will then be returning to Ireland. I was hoping to access US-domiciled ETFs once I moved, or is there something I’ve overlooked?
Thanks

]]> By: Meagan https://mrsmoneyhacker.com/why-etfs-are-better-than-stocks/#comment-182 Tue, 16 Jun 2020 19:36:04 +0000 https://mrsmoneyhacker.com/?p=1005#comment-182 In reply to Jay.

Aw glad to be of help. I know how daunting it all can be, I still can’t believe I am learning something new every week despite thousands of hours of reading into the topic! Only too glad to share.

]]> By: Meagan https://mrsmoneyhacker.com/why-etfs-are-better-than-stocks/#comment-181 Tue, 16 Jun 2020 19:34:52 +0000 https://mrsmoneyhacker.com/?p=1005#comment-181 In reply to Patrick.

Hey! Thanks – yes I have considered branching out into YouTube but I’m already spread thin in terms of writing blog posts, researching, analysing and providing consultations so adding video editing and posting there too would potentially water down all delivery vehicles rather than complimenting them. Maybe as I near FI, or as baby gets a little more independent and I have a bit more free time (wishing thinking?), I will branch out but for now I’m sticking to writing. Thanks for the vote of confidence!

]]> By: Jay https://mrsmoneyhacker.com/why-etfs-are-better-than-stocks/#comment-174 Sat, 13 Jun 2020 13:16:56 +0000 https://mrsmoneyhacker.com/?p=1005#comment-174 Just discovered your blog, very timely because i can relate in many ways to your experiences. As a US citizen who recently moved to IE and wants to start investing in the latter, your posts are a wealth of info on basically anything about finances on the eye of an expat. Thank you for all your writing. It definitely saves me a lot of research.

]]> By: Patrick https://mrsmoneyhacker.com/why-etfs-are-better-than-stocks/#comment-173 Sat, 13 Jun 2020 12:03:26 +0000 https://mrsmoneyhacker.com/?p=1005#comment-173 Great article Meagan. Really good to see something like this from an Irish point of view as there isn’t too much content like this out there. Have you ever thought of doing some more content like this on YouTube? Lots of North American’s are doing this and it can be really informative so would be great to have a Irish version.

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