Search found 81 matches

by Hallman
Tue Aug 25, 2015 11:51 am
Forum: Investing - Help with Personal Investments
Topic: Small caps worth it at double the expenses?
Replies: 12
Views: 920

Re: Small caps worth it at double the expenses?

I don't know how this works in Finland, but in Norway... Companies and mutual funds don't pay dividend taxes or capital gain taxes on stock investments. The reasoning is exactly the opposite of what's been mentioned in this thread - if corporations, and therefore mutual funds that are set up as corp...
by Hallman
Sat May 16, 2015 6:53 am
Forum: Investing - Help with Personal Investments
Topic: foreign passive investment companies
Replies: 20
Views: 1637

Re: foreign passive investment companies

"Special rules apply for sourcing capital gains from sales of stock or securities or other personal property. For a US citizen or resident, a gain will be considered foreign source provided the individual's tax home is in a foreign country and a foreign income tax of at least 10% of the gain i...
by Hallman
Fri May 15, 2015 3:36 pm
Forum: Investing - Help with Personal Investments
Topic: foreign passive investment companies
Replies: 20
Views: 1637

Re: foreign passive investment companies

"Special rules apply for sourcing capital gains from sales of stock or securities or other personal property. For a US citizen or resident, a gain will be considered foreign source provided the individual's tax home is in a foreign country and a foreign income tax of at least 10% of the gain is...
by Hallman
Fri May 15, 2015 9:39 am
Forum: Investing - Help with Personal Investments
Topic: foreign passive investment companies
Replies: 20
Views: 1637

Re: foreign passive investment companies

I'll try this again. In calculating the allowed foreign tax credit, the credit is limited by: (Foreign Source Taxable Income/ Worldwide Taxable Income) X U.S. Income Tax before Credit = FTC Limitation. Would gains from selling an "international" mutual fund/ETF registered in the US, such a...
by Hallman
Thu May 14, 2015 12:20 pm
Forum: Investing - Theory, News & General
Topic: At what point would you want "capped" indices?
Replies: 17
Views: 1423

Re: At what point would you want "capped" indices?

There isn't a need for capped indices in the US atm due to the fact that no company is dominating the total index. If Apple was 40% of the total US stock market.. Would you be Ok with that?
by Hallman
Thu May 14, 2015 11:58 am
Forum: Investing - Theory, News & General
Topic: At what point would you want "capped" indices?
Replies: 17
Views: 1423

At what point would you want "capped" indices?

At the moment, at least for US investors, this isn't a problem. No single stock significantly dominates an index, nor does a single country dominates an international index. If this were to change, i.e a company were to dominate the total US index or a country dominate international indices, would y...
by Hallman
Wed May 13, 2015 3:15 pm
Forum: Investing - Theory, News & General
Topic: The Capitalism Distribution
Replies: 8
Views: 1366

Re: The Capitalism Distribution

I've seen this article a few times the last few years and have always thought the numbers were nominal, because the article doesn't state that they're real. But now I noticed..1983-2007 the index returned a little less than 10% compounded and adjusted for inflation. One place the article states that...
by Hallman
Sun May 10, 2015 12:19 pm
Forum: Investing - Help with Personal Investments
Topic: foreign passive investment companies
Replies: 20
Views: 1637

Re: foreign passive investment companies

I see. For a US citizen, when you receive non-US source dividends is that you may be able to claim a foreign tax credit against US tax, based on whatever non-US taxes the fund paid internally before paying you its dividend (form 1116, not for the faint hearted). You still have to pay US tax on the ...
by Hallman
Sun May 10, 2015 11:52 am
Forum: Investing - Help with Personal Investments
Topic: foreign passive investment companies
Replies: 20
Views: 1637

Re: foreign passive investment companies

... US registered funds that invest internationally, such as VXUS - Vanguard Total International ... are capital gains considered foreign or US sourced? Both dividends and any capital gain from this are US sourced, because the fund is 'US domiciled'. The location of assets held within the fund is i...
by Hallman
Sun May 10, 2015 11:05 am
Forum: Investing - Help with Personal Investments
Topic: foreign passive investment companies
Replies: 20
Views: 1637

Re: foreign passive investment companies

We've understood that it's beneficial to limit the amount of US source income. Distributions from US registered funds that invest internationally, such as VXUS - Vanguard Total International, will mostly be foreign sourced. If aforementioned type funds are sold, are capital gains considered foreign ...
by Hallman
Wed Apr 22, 2015 4:41 pm
Forum: Investing - Theory, News & General
Topic: Bernstein: A Decade of Super-Low Returns [1.4% for 60/40]
Replies: 232
Views: 25217

Re: Bernstein: A Decade of Super-Low Returns [1.4% for 60/40

It seems silly to call a book "Rational Expectations" and then not discuss the effects of buybacks, lowered dividend payouts, not using up to date numbers for dividend growth (he uses 1900-2000, while the 1900-2014 numbers are significantly different, especially for developed ex US. Consid...
by Hallman
Sun Apr 19, 2015 4:41 pm
Forum: Investing - Theory, News & General
Topic: What Guaranteed Return Would You Require to Move All Assets
Replies: 54
Views: 3702

Re: What Guaranteed Return Would You Require to Move All Ass

3% real. Globally stocks have "only" returned a little over 5% long term and with today's equity valuations it looks like it'll be lower going forward. The answers in this thread so far are 5-6%. You really wouldn't lock in 4% real returns, 100% guaranteed in today's market?
by Hallman
Thu Apr 16, 2015 7:30 am
Forum: Investing - Help with Personal Investments
Topic: Accumulating/Capiltalizing EU domiciled ETFs?
Replies: 12
Views: 895

Re: Accumulating/Capiltalizing EU domiciled ETFs?

Why would you assume a Luxembourg domiciled ETF would not be able to get the treaty rate of 15%?. An ETF domiciled almost anywhere would get the 15% rate. As an example, the db x-trackers S&P 500 UCITS ETF is domiciled in Luxembourg and has 15% of its dividends withheld in the US. A few links c...
by Hallman
Fri Mar 20, 2015 3:48 pm
Forum: Investing - Help with Personal Investments
Topic: MSCI Europe (0.33% ER) vs STOXX 50 (0.10% ER) ETFs
Replies: 7
Views: 873

Re: MSCI Europe (0.33% ER) vs STOXX 50 (0.10% ER) ETFs

"The correlation between the two indexes seems to be very high when I plot two graphs of the ETFs on top of each other on marketwatch.com."

For the period 29.12.2000 - 20.03.2015 the STOXX Europe 600 index returned 104.55% in USD (including dividends), STOXX Europe 50 returned 46.73%.
by Hallman
Fri Mar 20, 2015 4:58 am
Forum: Investing - Help with Personal Investments
Topic: MSCI Europe (0.33% ER) vs STOXX 50 (0.10% ER) ETFs
Replies: 7
Views: 873

Re: MSCI Europe (0.33% ER) vs STOXX 50 (0.10% ER) ETFs

BTW, can you show how you arrived at 0.4% higher expected return?
by Hallman
Fri Mar 20, 2015 4:55 am
Forum: Investing - Help with Personal Investments
Topic: MSCI Europe (0.33% ER) vs STOXX 50 (0.10% ER) ETFs
Replies: 7
Views: 873

Re: MSCI Europe (0.33% ER) vs STOXX 50 (0.10% ER) ETFs

db x-trackers Stoxx® Europe 600 UCITS ETF has 0.2% ER, I'd choose this or MSCI Europe. I don't like the STOXX 50 fund.
by Hallman
Fri Mar 20, 2015 4:53 am
Forum: Investing - Help with Personal Investments
Topic: Interactive Brokers portfolio analyst benchmarks
Replies: 7
Views: 850

Re: Interactive Brokers portfolio analyst benchmarks

What value does comparing my portfolio against benchmarks that don't adjust for dividends? IB's portfolioanalyst seems almost useless now.. Why would you say that? Did you even read the online description of the things you were looking at? Sheesh. https://www.interactivebrokers.com/en/software/repo...
by Hallman
Wed Mar 18, 2015 7:55 am
Forum: Investing - Help with Personal Investments
Topic: Interactive Brokers portfolio analyst benchmarks
Replies: 7
Views: 850

Re: Interactive Brokers portfolio analyst benchmarks

Thanks everyone. What value does comparing my portfolio against benchmarks that don't adjust for dividends? IB's portfolioanalyst seems almost useless now..
by Hallman
Wed Mar 18, 2015 6:27 am
Forum: Investing - Help with Personal Investments
Topic: how often do you check performance?
Replies: 70
Views: 5601

Re: how often do you check performance?

Bull market - pretty much every day.
Bear market - Never, I lose interest. I don't think about the markets/my portfolio at all.
by Hallman
Mon Mar 16, 2015 6:04 pm
Forum: Investing - Help with Personal Investments
Topic: Interactive Brokers portfolio analyst benchmarks
Replies: 7
Views: 850

Interactive Brokers portfolio analyst benchmarks

The benchmarks used are SPX, EFA and VT. Anyone know what these are?
by Hallman
Sun Mar 15, 2015 6:16 pm
Forum: Investing - Help with Personal Investments
Topic: Benefit of tilting towrds Nordic minus Norway for Norwegian?
Replies: 2
Views: 393

Benefit of tilting towrds Nordic minus Norway for Norwegian?

I keep seeing portfolio recommendations with an allocation to "Nordic minus Norway". In the paper today a mutual fund company recommended 20% Norway 30% Nordic minus Norway and 50% global. They recommended their own funds, but since they don't have any Nordic - Norway funds, they recommend...
by Hallman
Thu Dec 11, 2014 6:57 pm
Forum: Investing - Help with Personal Investments
Topic: Interactive Brokers, foreign dividends & withholding rates
Replies: 2
Views: 471

Interactive Brokers, foreign dividends & withholding rates

I couldn't find an answer online. When a non-US client at IB receives a US-source dividend, the withholding tax is equal to the treaty rate, usually 15%. When a US client receives a dividend from somewhere else, say France, is the treaty rate used (15%) or the domestic/pre treaty rate (30%)? Thanks ...
by Hallman
Thu Dec 11, 2014 6:45 pm
Forum: Investing - Help with Personal Investments
Topic: foreign passive investment companies
Replies: 20
Views: 1637

Re: foreign passive investment companies

Thank you. I think he's going to invest in individual stocks for now. When he gets a spouse they can hold their investments in her name.
by Hallman
Mon Dec 08, 2014 6:00 pm
Forum: Investing - Help with Personal Investments
Topic: foreign passive investment companies
Replies: 20
Views: 1637

Re: foreign passive investment companies

Thanks again for the help. Would it be able to use the foreign tax credit against the gains? Many people here set up corporations and invest through them. If all you do is invest in equities and funds, it's cheap and extremely easy to set up and maintain. Corporations also have very favorable tax ru...
by Hallman
Mon Dec 08, 2014 1:15 pm
Forum: Investing - Help with Personal Investments
Topic: foreign passive investment companies
Replies: 20
Views: 1637

Re: foreign passive investment companies

The PFIC rules were enacted in the late 80's to punish the holders of foreign mutual funds. They are called the anti-deferral rules and their job is to take away the tax advantage of holding onto investments long term. If you can elect QEF treatment of the mutual funds then you can eliminate the pu...
by Hallman
Mon Dec 08, 2014 9:30 am
Forum: Investing - Help with Personal Investments
Topic: foreign passive investment companies
Replies: 20
Views: 1637

Re: foreign passive investment companies

Thank you for the link. I contacted the accountant again and "forced" him to give me an answer. He didn't think it was a problem, it takes him about 20 minutes to fill out the form for one mutual fund and it shouldn't result in any taxes to the US. .. Then I do a google search and it seems...
by Hallman
Sun Dec 07, 2014 12:33 pm
Forum: Investing - Help with Personal Investments
Topic: foreign passive investment companies
Replies: 20
Views: 1637

foreign passive investment companies

My stepson is an American citizen (his dad was American). He gets his tax return done by an American accountant who works with the Embassy in Oslo. He's nowhere close to paying US taxes - he has more foreign tax credit than he can use. As long as his US source income is 0, he'll pay 0 to the US. He'...
by Hallman
Sat Dec 06, 2014 8:55 pm
Forum: Investing - Theory, News & General
Topic: Life expectancy of ETFs (Europe)?
Replies: 3
Views: 425

Life expectancy of ETFs (Europe)?

I hold a few Ishares and db X-trackers accumulating ETFs, domiciled in Ireland, in a taxable account. The're pretty big, 1 billion USD and up. Db X MSCI World Index and Ishares's equivalent are ones I have invested in, for example. My question is, is it unreasonable to expect these to be here 20-30-...
by Hallman
Sat Dec 06, 2014 4:47 pm
Forum: Investing - Help with Personal Investments
Topic: When home market isn't cheapest?
Replies: 2
Views: 408

When home market isn't cheapest?

I know that for you Americans, the USA is usually a cheaper place to invest than "the rest". I live in Norway and the cheapest place to invest in my pension account is definitely Great Britain. Cheaper than the next cheapest by about 0.5%. What do you think, does this mean I should overwei...
by Hallman
Mon Dec 01, 2014 1:37 pm
Forum: Personal Consumer Issues
Topic: Bah Humbug [managing Christmas spending]
Replies: 52
Views: 5069

Re: Bah Humbug [managing Christmas spending]

I don't give gifts to anyone besides wife & kids. Gifts to my wife are usually relatively cheap, but with very pricey things every couple of years (pricey gifts when she wants something really bad, but thinks it's too expensive). My kids get one gift each - one big item each. This year it's 1 Pl...
by Hallman
Sun Nov 30, 2014 2:38 pm
Forum: Investing - Theory, News & General
Topic: How did you handle the 2008 bear market ?
Replies: 79
Views: 8274

Re: How did you handle the 2008 bear market ?

I was recently in the US for work. I knew beforehand that America is "stock fixated", but I wasn't prepared for how much so. TV-Commercials, news, billboards, stock TV-shows (some were crazy :shock:), newspapers, people constantly talking about the market - what's going up, what's going to...
by Hallman
Sun Nov 30, 2014 1:29 pm
Forum: Investing - Theory, News & General
Topic: Total distributions in annual report vs actual distribution
Replies: 3
Views: 565

Re: Total distributions in annual report vs actual distribut

Vanguard fund is on fiscal year ending October 31 and your calculation is based on a calendar year. 0.636 Dec 2012 0.125 Mar 2013 0.599 Jun 2013 0.230 Sep 2013 1.590 Aha! Thank you. Another question. Why is the dividend higher than the Net Investment Income? What besides the Net Investment Income i...
by Hallman
Sun Nov 30, 2014 10:53 am
Forum: Investing - Theory, News & General
Topic: Total distributions in annual report vs actual distribution
Replies: 3
Views: 565

Total distributions in annual report vs actual distribution

Looking Total International's annual report, I see that "total distributions" for the ETF was $1.59/share for 2013 and $2.048/share for 2012. When I check what the ETF actually distributed, it was $1.412/share for 2013 and $1.393/share for 2012. This disparity seems to exist with all inter...
by Hallman
Mon Nov 24, 2014 4:58 pm
Forum: Investing - Help with Personal Investments
Topic: International and Emerging Markets Small Cap Value
Replies: 13
Views: 2342

Re: International and Emerging Markets Small Cap Value

I use EEMS in my taxable account. I used to hold EWX, but it distributed a lot of taxable capital gains, which made it a poor choice for the taxable account. EEMS has never distributed a gain. Yes, it has low volume, but that doesn't matter as much for a long-term holding. ETF.com says that the ave...
by Hallman
Sun Nov 23, 2014 8:15 pm
Forum: Investing - Help with Personal Investments
Topic: Tax efficiency for Norwegian investor
Replies: 3
Views: 500

Re: Tax efficiency for Norwegian investor

First of all. Sorry for my English, it's probably not as good as it could have been. I'm new to the Bogleheads community and investing strategy, but not that new to indexing. What is new to me is the focus on taxes are also expenses . So here I am trying to optimize taxes with a portfolio with US s...
by Hallman
Wed Nov 12, 2014 9:08 pm
Forum: Investing - Help with Personal Investments
Topic: How can I convince my wife to accept investing??
Replies: 54
Views: 5750

Re: How can I convince my wife to accept investing??

Do you have the same goal for your savings? Here in Norway the stock market is often thought of as a place for crazy gamblers. Most people don't partake, and frankly, most people don't need to. Pensions, free healthcare, ridiculous unemployment /disability benefits, etc etc. Most people simply don't...
by Hallman
Fri Oct 24, 2014 7:23 pm
Forum: Investing - Help with Personal Investments
Topic: front-running, MSCI USA vs Total market fund
Replies: 1
Views: 454

front-running, MSCI USA vs Total market fund

In this thread http://www.bogleheads.org/forum/viewtopic.php?t=71979 , it is suggested that the S&P 500 fund loses ~ 0.25% per year due to front-running. I need to choose between a total US fund and a MSCI USA fund (this one doesn't include small-caps). Should I expect the MSCI USA fund to lose ...
by Hallman
Thu Oct 23, 2014 9:28 am
Forum: Investing - Theory, News & General
Topic: Long term return forecast [Research Affil. Expected returns]
Replies: 33
Views: 2972

Re: Long term return forecast

Hallman wrote:What exactly is the FX return? I assume it's currency. For Russia, they estimate a 3.8% real FX return. Why would I expect a 3.8% real return for holding a foreign currency? I don't get it.


Still don't get it. Someone help me out?
by Hallman
Sat Oct 18, 2014 9:44 am
Forum: Investing - Theory, News & General
Topic: Long term return forecast [Research Affil. Expected returns]
Replies: 33
Views: 2972

Re: Long term return forecast

What exactly is the FX return? I assume it's currency. For Russia, they estimate a 3.8% real FX return. Why would I expect a 3.8% real return for holding a foreign currency? I don't get it.
by Hallman
Sat Oct 04, 2014 10:54 am
Forum: Investing - Theory, News & General
Topic: Estimating Future Investment Returns — On a Napkin
Replies: 79
Views: 7030

Re: Estimating Future Investment Returns — On a Napkin

Of the mentioned authors, I've only read Bernstein's work. From what I remember, he used 1.32% real dividend growth rate in the formula. You use 3% (5% nominal minus 2% inflation). Why the large difference? Referring to my copy of Bernstein's The Four Pillars of Investing , he wrote in 2002 (page 5...
by Hallman
Fri Oct 03, 2014 6:31 pm
Forum: Investing - Theory, News & General
Topic: Estimating Future Investment Returns — On a Napkin
Replies: 79
Views: 7030

Re: Estimating Future Investment Returns — On a Napkin

STOCKS: FUTURE EARNINGS/DIVIDENDS PREDICT FUTURE RETURNS What are we buying when we buy shares in a stock or stock index fund? Essentially we are buying a stream of future money over the next, say, 30 or 40 years. That money is returned to us in the form of earnings (which increase the share price)...
by Hallman
Fri Sep 12, 2014 9:24 pm
Forum: Investing - Theory, News & General
Topic: 100% Small and Value Tilting
Replies: 72
Views: 5485

Re: 100% Small and Value Tilting

Serious question, what cheaper funds are you referring to? VSS would be my pick. PDN's 0.15 value factor loading, or w/e it is, isn't worth the 0.3% extra ER. Well I just disagree, as I find the multifactor sort, and smaller company focus of PDN worth it over VSS. Neither are bad choices though. VS...
by Hallman
Fri Sep 12, 2014 7:35 pm
Forum: Investing - Theory, News & General
Topic: 100% Small and Value Tilting
Replies: 72
Views: 5485

Re: 100% Small and Value Tilting

I would look at PXSV on the SV side, PDN on the ISV side and also consider having a emerging markets fund, DGS would fill the bill there. PDN doesn't seem valuey. Why wouldn't I just go with a cheaper fund here? Here is a recent thread on the ISV options: International Small Cap Value Serious quest...
by Hallman
Fri Sep 12, 2014 5:40 pm
Forum: Investing - Theory, News & General
Topic: 100% Small and Value Tilting
Replies: 72
Views: 5485

Re: 100% Small and Value Tilting

I would look at PXSV on the SV side, PDN on the ISV side and also consider having a emerging markets fund, DGS would fill the bill there. DGS seems expensive. Trailed its index by about 1.1% per year + .45% lost to foreign withholding taxes, adding up to ~1.5% total cost in a tax deferred account. ...
by Hallman
Wed May 21, 2014 5:17 pm
Forum: Investing - Help with Personal Investments
Topic: Is now a bad time to invest?
Replies: 100
Views: 10476

Re: Is now a bad time to invest?

The stock market isn't expensive, i.e total world is neither cheap nor expensive in historical terms. I'd just buy that :)
by Hallman
Thu May 15, 2014 9:59 am
Forum: Investing - Theory, News & General
Topic: How much of the value premium do vanguard ETFs pick up?
Replies: 17
Views: 1142

Re: How much of the value premium do vanguard ETFs pick up?

I thought the Fama-French indexes were supposed to be very stronly loaded on value? If the Fama-French small value index only bested Fama-French small blend by 0.6% per year for the 80 years between 1927-2007, and the value premium in this period was pretty high, 5.11%, why are so many people willin...
by Hallman
Thu May 15, 2014 7:39 am
Forum: Investing - Theory, News & General
Topic: How much of the value premium do vanguard ETFs pick up?
Replies: 17
Views: 1142

Re: How much of the value premium do vanguard ETFs pick up?

http://books.google.no/books?id=rNY1rZE_sl8C&pg=PA150&lpg=PA150&dq=estimated+average+expected+return+over+market+return+for+ifa+index+portfolio&source=bl&ots=IWSZpgpx5j&sig=WMyBVvZgwwfdY4TTVan6bfLaY_c&hl=no&sa=X&ei=dKh0U9SxFqOayAPG2YFo&ved=0CEMQ6AEwAw#v=onepa...

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