New to trading

Hi, I’m new to investing and want to invest over the next 15-20 years as an early retirement fund. I was looking at US stocks and the S&P 500 but now realise there is a hefty 15-30% tax on dividends and capital gains, so is it really worth investing in or is there a way around this? Or would I be best of opening an isa and just sticking to UK stocks and ETFS?

Thanks!

There’s no investment advice here. Plus, it’s against the community rules.

Research through Googling stuff. Read books (most books are rubbish). Use your own head. Don’t trust the smiling banker (or a salesman). Check out the First Time Investing threads:

https://community.freetrade.io/c/first-time-investing/14

Personal fave :blue_book: + a good blog:

Another advice - everyone has an opinion, so learn to filter through noise.

These are my 2 cents.

2 Likes

Dividends are free up to 2000k per anno and capital gains up to 12000. Even outside of an isa. That’s the best tax on capital that I know of in Europe.

1 Like

Thank you for your input

I wouldn’t worry about US dividends. Most US companies pay a low rate often just 1% and a tax rate of 15% is not going to make much of a difference. Take Amazon for example - go and see how much they pay out in dividends.

If you had invested in any decade in the S&P500 you would have made more money than in the FTSE100 anyway.

So for me don’t not diversify because of tax or dividends. I don’t like dividends, they are a pain and appear to me that the company has no growth ambitions. I want to see capital growth. This is where the real money is made.

Thank you, that has been a great help. I’m new to all of this and trying to learn as much as I can before invest.