Focusing on dividends is not the highest-yielding idea you can have as an investor anyway. 💔
And in general, accumulating ETFs have a built-in yield turbo compared to their distributing siblings. 🚀
Greetings
🥪
And in general, accumulating ETFs have a built-in yield turbo compared to their distributing siblings. 🚀
Greetings
🥪
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@Stullen-Portfolio I have an old post to read, apparently the fairy tale of the advantages of accumulation cannot be put to rest.
https://getqu.in/xOiGFw/ https://getqu.in/xOiGFw/
https://getqu.in/xOiGFw/ https://getqu.in/xOiGFw/
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•@TomTurboInvest
Hmmm, that creates a certain imbalance.
I can't say anything about the one link in the post because it's dead. And the linked video from Finanztip only focuses on the utilization of the tax-free amount - and in my opinion this is not the main aspect of the general question of the advantages and disadvantages of accumulators or distributors.
...and the idea that dividends received could be invested in a completely different way, as was commented on in the post, is probably not what you are getting at...
Greetings
🥪
Hmmm, that creates a certain imbalance.
I can't say anything about the one link in the post because it's dead. And the linked video from Finanztip only focuses on the utilization of the tax-free amount - and in my opinion this is not the main aspect of the general question of the advantages and disadvantages of accumulators or distributors.
...and the idea that dividends received could be invested in a completely different way, as was commented on in the post, is probably not what you are getting at...
Greetings
🥪
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@Stullen-Portfolio hmm, the link to the post works for me as well as watching the finanztip video 4 scenarios, distributors vs accumulators, and the whole thing once with/without allowance included.
Key messages - there is no difference in the net return between ACC and Dist, as long as you also reinvest the divi.
It is often written that accumulators are better in terms of total return, and this is not the case.
Key messages - there is no difference in the net return between ACC and Dist, as long as you also reinvest the divi.
It is often written that accumulators are better in terms of total return, and this is not the case.
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@TomTurboInvest
The return advantages of the accumulator compared to the distributor have decreased due to the change in tax legislation, but are still there.
A.
If interest rates are low, the advance tax for the accumulator is zero; tax is payable on the dividends distributed.
B.
If there is no price appreciation in a year, there is no advance tax for the accumulator; tax is due on the dividends distributed.
Greetings
🥪
The return advantages of the accumulator compared to the distributor have decreased due to the change in tax legislation, but are still there.
A.
If interest rates are low, the advance tax for the accumulator is zero; tax is payable on the dividends distributed.
B.
If there is no price appreciation in a year, there is no advance tax for the accumulator; tax is due on the dividends distributed.
Greetings
🥪
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@Stullen-Portfolio Be that as it may, this is precisely the question that Finanztip discussed in the video, and many were surprised by the result that there is hardly any difference in the net return. A long period of time was considered.
And the advance lump sum has little or no effect on the overall net return anyway, as it only takes away the tax deferral in advance, so you pay less tax afterwards. It's just a postponement of the period when you pay the tax. But that's why everyone can do what they want - ACC or Dist 🤷🏽♂️
And the advance lump sum has little or no effect on the overall net return anyway, as it only takes away the tax deferral in advance, so you pay less tax afterwards. It's just a postponement of the period when you pay the tax. But that's why everyone can do what they want - ACC or Dist 🤷🏽♂️
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