Individual Investment Account (IIA) - myths and reality
December is the best time to fund an Individual Investment Account (IIA). My clients are in the pleasant bustle of the New Year, and I help them invest their IIM money in bonds, stocks, mixed strategies using conservative instruments and futures. Moreover, these mixed strategies, due to the peculiarities of IIAs, provide not only for speculation, but also for long-term investment in our market, oil and gold.
Why would you lose 52 thousand rubles?
The work is boiling! It's beautiful! But the more I talk publicly about what I am passionate about now - the more often I come across the fact that a huge number of people, even those involved in stock trading, still do not have these accounts three years after the start of the IIM programs. It's a joke - among those who have accounts at the stock exchange, less than 10% own IIMs. Apparently, for everyone else. 52 thousand rublesThe amount of money that can at least be received from an IIS as a tax deduction is an insignificant amount of money that is lying around on the road.
When I tried to understand the situation, it turned out that the reasons were not a reluctance to get some money near the market, but in the myths that envelope the IIM.
As you can guess, I will list these myths for you and dispel them. But, looking ahead, if you are 14 years old, you must have an EIS. Only being under the age of 14 is an excuse for not participating in this program. If you are under 14, there will be certain difficulties with the guardianship authorities in opening, closing and operations on the IIM, which not everyone will undertake to solve.
Myths and prejudices about the individual investment account
It takes a long time to open an IIR
In fact, you don't even have to leave home to open an IIM. Our existing clients open it with one click in a special office. New clients can apply for opening an IIS on a special page on our website and sign the contract by confirming their identity via SMS or the public services website. No need to go, swim, walk, run anywhere!
The minimum amount to be deposited in the EIS
The benefits, namely the opportunity to return personal income tax or not pay tax on brokerage activities, appear after the EIII turns 3 years old. The three years start at the moment of opening the account, not the first deposit, i.e. by simply opening an account without depositing funds, you already secure the right to a tax deduction!
"I don't need EIS, because I'm not a resident of the Russian Federation"
I daresay that if you're reading this text, you could probably be a resident in three to five to ten years.
I don't need an EIS - I don't have personal income tax, I can't get it back
It is ideal when a person can choose between the two types of deductions on an IIM. But agree, not paying taxes and saving 13% of profits from securities transactions is also nice.
I don't need an IIS, I don't have personal income tax, I can't get it back. And I do not trade on the stock exchange, so the second type of deduction does not suit me!
And you're never going to? What are you doing on this resource then? Open an IIM if, or rather, when you finally decide to start trading, you will have it already "mature", and the deadline for receiving tax benefits will already have passed.
You will be able to manage your capital in a more mobile way. You can have an IIM for as many years as you like, and it won't automatically close after three years. Even after five years you will be able to use it.
I can't decide what type of deduction
I will personally decide on my type of deduction at the end of the third year, so that if it is more profitable for me to get my personal income tax refund, I can do it in the three-year period. But I hope to earn so much that it will be more profitable for me not to pay taxes on the brokerage activities carried out on the IIM.
I may need the money for three years
So take it away! And before you take it away, don't pay taxes on stock market activities. Earn and spin your profits on your earnings. There is, of course, a nuance: if you were returning personal income tax under the first type of deduction, you will run into fines and penalties, as you will have unpaid tax. But that's just a reason to look at the previous point!
I don't want to freeze capital for three years
You can trade on an IIM just like on a regular account. No one is forcing you to buy a block of paper and hold it indefinitely. "Shorts, foreign securities, your favorite dollars - everything is possible on an IIM. Who knows, maybe in a couple of years or even cryptocurrency will be allowed if it becomes an exchange-traded asset listed on our exchange.
I can't put money into the EIS every year
And don't! Only enter the years when you can hypothetically get a personal income tax refund. In December, it is usually already clear what your tax for 2017 will be. That's why I wrote in the first lines that December is the best month for EII.
It is necessary to deposit money into the EIS only in December
If you want to pay back personal income tax, yes. But I want to pay no taxes, because I want to earn "ophigilliard" on my IIS. And I won't get anything for it!
I open an account, and I get attacked by sales managers
Oh, yes! These "evil sharks" will call you, tell you about law changes, offer training on promotions, invite you to interesting events, give you gifts, do promotions. It's really disgusting 🙂
No one can properly explain what I should do with the EIS. There is no information!
Write afanaseva@corp.finam.ru - I'll go over the details from getting deductions to strategies. Let's have a code convention with you, with the subject line "EIS: New Year's Eve"!