1Semana
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1Semana
@SeidoPacero Of course, the dividend yield is not so exhilarating..🤔
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1Semana
@Radballer but if $O loses 4-6% and hovers around €48, you don't gain anything.
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@SeidoPacero Also true again. However, the original aim was to generate a regular cash flow through dividends..😕
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@Radballer Cash flow is cool, but certainly not the most important thing. Your ETF has better performance than your portfolio, and you are already above the tax-free amount with your dividends alone and have to pay tax...
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@wasi But surely I have to do this at some point anyway when I withdraw and sell units from the ETF?
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@Radballer at some point, but it's called tax optimization. you can run your specific example through chatgpt - here's an example with your approx. 100k at the beginning + 10k:
110,000 € initial capital,
6 % return p.a., 20-year holding period,
no interim taxation (accumulating),
and 26.375 % tax on the profit at the end.
Here are your results:
📊 1st development & final values
Category Amount
Initial capital € 110,000
Gross value after 20 years (before tax) ≈ € 352,000
Total profit € 242,000
Withholding tax + solidarity surcharge (26.375%) on profit -€ 63,800
Net final value (after tax) ≈ € 288,000
💡 2nd return after tax
Your effective after-tax return is around 5.1 % p.a.
This means that the tax deferral means you retain almost the full return.
⚖️ 3. Tax deferral advantage (for comparison)
If you were to pay tax on the profits every year (e.g. through distributions), the final value would only be around € 270,000.
👉 Tax deferral advantage: around €18,000 more final assets!
🪄 Conclusion
Accumulating ETFs are clearly advantageous for long-term investments.
You benefit from the compound interest effect on the deferred tax.
--- with 7% expected return (only 1% more) you will have 53k more instead of 18k surplus compared to the dividends
110,000 € initial capital,
6 % return p.a., 20-year holding period,
no interim taxation (accumulating),
and 26.375 % tax on the profit at the end.
Here are your results:
📊 1st development & final values
Category Amount
Initial capital € 110,000
Gross value after 20 years (before tax) ≈ € 352,000
Total profit € 242,000
Withholding tax + solidarity surcharge (26.375%) on profit -€ 63,800
Net final value (after tax) ≈ € 288,000
💡 2nd return after tax
Your effective after-tax return is around 5.1 % p.a.
This means that the tax deferral means you retain almost the full return.
⚖️ 3. Tax deferral advantage (for comparison)
If you were to pay tax on the profits every year (e.g. through distributions), the final value would only be around € 270,000.
👉 Tax deferral advantage: around €18,000 more final assets!
🪄 Conclusion
Accumulating ETFs are clearly advantageous for long-term investments.
You benefit from the compound interest effect on the deferred tax.
--- with 7% expected return (only 1% more) you will have 53k more instead of 18k surplus compared to the dividends
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1Semana
@wasi I currently "only" save the distributing variant with Scalable. Otherwise, your calculation definitely makes sense... 😉
So maybe I'll just invest in my ETF after all... 🤔
So maybe I'll just invest in my ETF after all... 🤔
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1Semana
@Radballer ah, the $VWRL is distributing... i didn't know that. according to getquin, your total dividends are €1,909.45, i.e. you already have to pay tax on over €900 (more every year). how old are you that you need regular cash flow? if you still have a few years or even decades left, i personally would definitely go into an accumulating ETF or something more risky (growth stocks). maybe also think about bitcoin and gold $EWG2
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1Semana
@wasi 37 years. I still have the ETF in accumulating form. However, with TR and only about 7k in it.
I'll probably go back into Bitcoin when the price has "calmed down" a bit...🫣
I'll probably go back into Bitcoin when the price has "calmed down" a bit...🫣
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1Semana
@Radballer I'm also 37 😊
as i said, go through the taxes. i also went for dividends at the beginning, in the meantime i still hold a few that have also performed well on the side, but some have already flown again against growth stocks. the mix makes the difference.
as i said, go through the taxes. i also went for dividends at the beginning, in the meantime i still hold a few that have also performed well on the side, but some have already flown again against growth stocks. the mix makes the difference.
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