I have SSB that I got in 2019 and now I’m thinking of redeeming it so I can invest it in dividend paying UT, eg Allianz Income and Growth Fund.

Hi there, based on what you have written I think you can consider dollar cost averaging into ETFs (such as the S&P500 or a world index). This is because they are cost and time efficient and is as passive as investing gets!
​

More specifically, consider investing in irish domiciled ETFs such as CSPX (S&P500) or VWRA (all world index).

There are a few reasons for doing so

1. Investing in Irish domiciled ETFs means lower withholding tax of 15% (compared to 30%) when investing in US domiciled ETFs. This recurring fee compounds and will snowball to huge amounts over time.
2. Accumulating ETFs are available which means any dividends will be automatically reinvested, saving on commission fees and maximising compounding as you don't have to worry about buying full shares.
3. Finally, no estate taxes to worry about. Estate taxes are taxes on your US assets when you pass on.

While there is slightly higher fees and spreads on the London Stock Exchange, these are one-time fees, unlike commissions paid to fund managers. I personally use IBKR as their fees are very competitive.

​

For a full guide on irish domiciled ETFs, check out my article here (http://thedollarsapling.com/2021/09/17/irish-do...)

If you are interested to learn more, consider joining my telegram channel (https://t.me/thedollarsapling) where I talk about all things related to investing and personal finance

Yes SSB is very safe. Good to store some 2nd tier emergency fund.

​

I would put majority of my fund into growth funds/ETFs as I have a long runway before retirement (in my twenties). Dividend pot can build up slowly along the way or convert them from your growth funds into future.