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Re: US based brokerages and Estate Tax declaration for non

Before you set foot in the US -- literally, because even a 'house hunting' visit early in the year in which you relocate can trigger the start of US residency for tax purposes -- you want to be very clear on what stocks you own and how you own them. For example, non-US domiciled ETFs such as VWRL, a...
by TedSwippet
Mon Sep 22, 2014 6:48 am
 
Forum: Investing - Help with Personal Investments
Topic: US based brokerages and Estate Tax declaration for non-US
Replies: 2
Views: 214

Re: financial institution lowest exchange fees (GBP/USD)?

HiFX, Moneycorp, and Xetrade are all good bets. These are reputable specialist forex dealers that should beat bank rates on more or less any amount. No connection to any of them. My wife uses HiFX and is happy with them, I used Moneycorp in the past and was happy with them, and I've heard many good ...
by TedSwippet
Mon Sep 22, 2014 6:31 am
 
Forum: Investing - Help with Personal Investments
Topic: financial institution lowest exchange fees (GBP/USD)?
Replies: 6
Views: 392

Re: [from Euro country, use USD to invest in US index funds?

The simple value approach makes sense to me, I was just concerned that there might be some other currency convertion processes during the funds operations that i wasn't aware of. There is if you buy a 'currency hedged' fund. If you avoid those, though, your long term returns measured in EUR will eq...
by TedSwippet
Thu Sep 18, 2014 6:00 am
 
Forum: Investing - Help with Personal Investments
Topic: [from Euro country, use USD to invest in US index funds?]
Replies: 19
Views: 1194

Re: Advice for non-US citizen wanting to invest like a Bogle

I don't see a problem when you buy US-based ETF's within a Dutch broker account . Their is a tax treaty between The Netherlands and the US so the Estate tax doesn't apply. http://www.irs.gov/instructions/i706na/ch01.html#d0e224 Estate tax treaties are slippery. In particular the US/Netherlands one ...
by TedSwippet
Thu Sep 18, 2014 4:28 am
 
Forum: Investing - Help with Personal Investments
Topic: Advice for non-US citizen wanting to invest like a Boglehead
Replies: 14
Views: 930

Re: Advice for non-US citizen wanting to invest like a Bogle

Anyway, I'm not a tax expert, but I believe your American wife is eligible for the marital deduction which means assets from you to her under about $5 million are excluded from the estate tax. Yes. This only applies if the OP pre-deceases his wife and leaves her his entire estate, though. If she di...
by TedSwippet
Thu Sep 18, 2014 3:22 am
 
Forum: Investing - Help with Personal Investments
Topic: Advice for non-US citizen wanting to invest like a Boglehead
Replies: 14
Views: 930

Re: Is USD the best currency to choose for index fund invest

It doesn't matter what currency you invested in originally, only what currency you want to spend; if your expenses are in dollars, the dollar value of your investment determines its value. If the euro is worth $1.60, the same investment is worth $1600 or EUR 1000. If you invested in dollars and wan...
by TedSwippet
Wed Sep 17, 2014 7:18 pm
 
Forum: Investing - Help with Personal Investments
Topic: [from Euro country, use USD to invest in US index funds?]
Replies: 19
Views: 1194

Re: [from Euro country, use USD to invest in US index funds?

It's very difficult to get a straight answer. However, that an Ireland / UK domiciled equity ETF pays its dividends in GBP makes sense. VWRD and VT are essentially the same Total World Stock ETF with the same dividend yield. VWRD pays the dividends in GBP and VT pays its in USD. I hope you're right...
by TedSwippet
Tue Sep 16, 2014 6:21 pm
 
Forum: Investing - Help with Personal Investments
Topic: [from Euro country, use USD to invest in US index funds?]
Replies: 19
Views: 1194

Re: [from Euro country, use USD to invest in US index funds?

LOM Bermuda told me that VWRD and IUAG are denominated in USD but since they're Ireland/UK ETFs the dividends are paid in GBP. Murky indeed. This seems... odd, and they might be wrong. Vanguard UK's 2014 dividend schedule clearly shows VWRD's dividend currency as USD. IUAG looks a little less obvio...
by TedSwippet
Tue Sep 16, 2014 5:40 pm
 
Forum: Investing - Help with Personal Investments
Topic: [from Euro country, use USD to invest in US index funds?]
Replies: 19
Views: 1194

Re: Is USD the best currency to choose for index fund invest

https://www.interactivebrokers.com/en/index.php?f=tax&p=nonUS states All non-US persons and entities are required to complete IRS Form W-8 to certify your country of tax residence and to establish whether you qualify for a reduced rate of withholding when opening an account There is no mention ...
by TedSwippet
Sat Sep 13, 2014 7:56 am
 
Forum: Investing - Help with Personal Investments
Topic: [from Euro country, use USD to invest in US index funds?]
Replies: 19
Views: 1194

Re: Is USD the best currency to choose for index fund invest

It looks like you have access to funds on the London Stock Exchange (so you can get VWRL I think), but that interactive brokers requires a W-8 and you'd still have to pay tax on dividends. Eh? Interactive Brokers withholds US taxes on dividends from US stocks . VWRL, VUSA and other Vanguard UK ETFS...
by TedSwippet
Sat Sep 13, 2014 4:36 am
 
Forum: Investing - Help with Personal Investments
Topic: [from Euro country, use USD to invest in US index funds?]
Replies: 19
Views: 1194

Re: Non-USA persons: We need a non-USA broker

Why will Schwab not sell you these investments? Because they do not meet US regulatory requirements. Caveat emptor. OP is neither a US person nor a US resident. Why would meeting US regulatory requirements matter? VUSD and SUAG are both UCITS ETFs and regulated in Europe. US tax laws make them the ...
by TedSwippet
Sat Sep 06, 2014 12:37 pm
 
Forum: Investing - Help with Personal Investments
Topic: Non-USA persons: We need a non-USA broker
Replies: 11
Views: 866

Re: Investing in US from New Zealand

Does the fact that the girl is a dual citizen as opposed to being either a NZ or US citizen matter? No. The US's archaic system of citizenship-based taxation is such that as far as the US is concerned, her US citizenship takes precedence over any others she might have. Also, for him, US inheritance...
by TedSwippet
Fri Aug 15, 2014 12:48 pm
 
Forum: Investing - Help with Personal Investments
Topic: Investing in US from New Zealand
Replies: 21
Views: 1332

Re: Investing in US from New Zealand

There could also be tax issues? Yes. He should avoid investing in US-domiciled funds or ETFs and possible exposure to US estate taxes , because NZ has no no estate tax treaty with the US. Conversely, she should only invest in US-domiciled funds or ETFs thanks to PFIC rules and the US's archaic poli...
by TedSwippet
Wed Aug 13, 2014 1:13 pm
 
Forum: Investing - Help with Personal Investments
Topic: Investing in US from New Zealand
Replies: 21
Views: 1332

Re: Vanguard ETF's if I live in Sweden, good or bad?

I dont understand if this (the estate tax) matters at all if you dont invest in estates/reits? And just invest in Vangurads total stock market/international market ETFs? The US has no inheritance tax, but makes up for this with its 'estate tax', levied on the total value of everything a dead person...
by TedSwippet
Mon Aug 11, 2014 12:17 pm
 
Forum: Investing - Help with Personal Investments
Topic: Vanguard ETF's if I live in Sweden, good or bad?
Replies: 16
Views: 1244

Re: Estate Tax- Non resident- Advice Requested

... in USA using brokerage account... jointly with my wife... and maintain a 120K total balance in US account to avoid future estate tax issues. Still too much. From wikipedia : All property held jointly with a surviving noncitizen spouse is considered to belong entirely to the gross estate of the ...
by TedSwippet
Sun Aug 10, 2014 6:35 pm
 
Forum: Personal Finance (Not Investing)
Topic: Estate Tax- Non resident- Advice Requested
Replies: 19
Views: 1490

Re: Vanguard ETF's if I live in Sweden, good or bad?

Look at the bold part. It sounds to me that I should be safe regarding US estate tax? No. The treaty prevented both Sweden and the US taxing anything you held in the US. Now that both the Swedish estate tax and the treaty is gone the result is that only the US will tax it. In other words, the US cl...
by TedSwippet
Sun Aug 10, 2014 7:06 am
 
Forum: Investing - Help with Personal Investments
Topic: Vanguard ETF's if I live in Sweden, good or bad?
Replies: 16
Views: 1244

Re: Vanguard ETF's if I live in Sweden, good or bad?

The US tax treaty with Sweden specifies the (standard-ish) 15% US tax on interest, 0% on interest and capital gains. There is however no US/Sweden 'death tax convention' -- there was one, but it was terminated in 2007 -- so holding over $60k in aggregate could expose you to US estate tax at rates of...
by TedSwippet
Thu Aug 07, 2014 2:28 am
 
Forum: Investing - Help with Personal Investments
Topic: Vanguard ETF's if I live in Sweden, good or bad?
Replies: 16
Views: 1244

Re: Advice for US newcomer

Before plunging headlong into long-term retirement savings vehicles in the US, maybe take a moment to consider whether you intend to stay in the US forever or whether you might move on in future. If the latter, investigate the tax treaty (if any) between the US and your expected onward destination (...
by TedSwippet
Mon Aug 04, 2014 9:46 am
 
Forum: Investing - Help with Personal Investments
Topic: Advice for US newcomer
Replies: 9
Views: 746

Re: New investor [UK portfolio help]

magneto wrote:Just to add to what Ted has said, there is one short gilt tracker IGLS (0-5year gilts)

Thanks, I always forget that one. Mostly because, as you note, it's no real improvement over cash. Also IEGE (0-1year treasuries).
by TedSwippet
Fri Jul 25, 2014 6:27 am
 
Forum: Investing - Help with Personal Investments
Topic: New investor [UK portfolio help]
Replies: 7
Views: 492

Re: New investor [UK portfolio help]

Cons: Weight on US market too much IMO. Higher comission. I will have to pay more taxes doing it this way. You can certainly beat LifeStrategy commissions by slicing it yourself. The 'dilution levy' to cover UK stamp duty is a particular bugbear -- over time you should get that back in lower charge...
by TedSwippet
Fri Jul 25, 2014 3:51 am
 
Forum: Investing - Help with Personal Investments
Topic: New investor [UK portfolio help]
Replies: 7
Views: 492

Re: New investor [UK portfolio help]

Have you looked at the Vanguard LifeStrategy funds, held on a fixed fee platform like Interactive Investor? Simple, low cost and fully diversified portfolio in a single fund.

For more ideas and discussion specific to the UK, perhaps visit fool.co.uk or monevator.
by TedSwippet
Thu Jul 24, 2014 3:54 am
 
Forum: Investing - Help with Personal Investments
Topic: New investor [UK portfolio help]
Replies: 7
Views: 492

Re: Should non-US investors buy US-listed REITS?

It costs 0.3% more in expense ratio (0.1% ovs 0.4%), + possibly 0.1-0.2% in bid/offer due to lower liquidity. i.e. 0.5% more. When I buy non US domiciled, yes I do save 15% of the withholding (15% vs 30%). With long-term dividend yield at 2% I'm effectively saving 2%*0.15 = 0.3%. The 0.1-0.2% in bi...
by TedSwippet
Wed Jul 23, 2014 3:19 am
 
Forum: Investing - Theory, News & General
Topic: Should non-US investors buy US-listed REITS?
Replies: 41
Views: 2967

Re: Should non-US investors buy US-listed REITS?

...I struggle to find REITS listed elsewhere that offers similar diversified exposure to global real estate as the US', and VNQI I'm referring to in particular. Are you aware of any alternatives? iShares is usually a good place to look for these things. Off the top of my head, and not specifically ...
by TedSwippet
Tue Jul 22, 2014 3:05 am
 
Forum: Investing - Theory, News & General
Topic: Should non-US investors buy US-listed REITS?
Replies: 41
Views: 2967

Re: Should non-US investors buy US-listed REITS?

Does it still make sense for non-US investors to buy US-listed REITS? Are US real estate returns likely to outpace those of other global real estate markets by 18% annually and over the long haul ? I would say it is unlikely. So no, then. I think I might need to clarify my question here. I didn't s...
by TedSwippet
Mon Jul 21, 2014 3:17 am
 
Forum: Investing - Theory, News & General
Topic: Should non-US investors buy US-listed REITS?
Replies: 41
Views: 2967

Re: Should non-US investors buy US-listed REITS?

LadyGeek wrote:The wiki might provide some insight: Taxation as a US person living abroad, check the references under "External links."

OP is not a US person.
by TedSwippet
Mon Jul 21, 2014 3:06 am
 
Forum: Investing - Theory, News & General
Topic: Should non-US investors buy US-listed REITS?
Replies: 41
Views: 2967

Re: Should non-US investors buy US-listed REITS?

Withholding and taxes are NOT the same thing. Review if there is a tax treaties between your country of residence and the US before coming to a conclusion. Further, even if there is not, the taxes inflicted to you in the US can be less that the withholding. I suggest that you check with a CPA in yo...
by TedSwippet
Fri Jul 18, 2014 9:04 am
 
Forum: Investing - Theory, News & General
Topic: Should non-US investors buy US-listed REITS?
Replies: 41
Views: 2967

Re: Should non-US investors buy US-listed REITS?

If there is no tax treaty, then the W-8BEN is useless. If there is no tax treaty, then filing a US tax return is useless. Right. Hong Kong has no tax treaty with the US. China does, but HK is not covered by it. (Edit for clarity: Singapore also has no tax treaty with the US.) Trying to claim a fore...
by TedSwippet
Fri Jul 18, 2014 8:21 am
 
Forum: Investing - Theory, News & General
Topic: Should non-US investors buy US-listed REITS?
Replies: 41
Views: 2967

Re: Should non-US investors buy US-listed REITS?

chasiu209 wrote:Does it still make sense for non-US investors to buy US-listed REITS?

Are US real estate returns likely to outpace those of other global real estate markets by 18% annually and over the long haul? I would say it is unlikely. So no, then.
by TedSwippet
Thu Jul 17, 2014 6:17 am
 
Forum: Investing - Theory, News & General
Topic: Should non-US investors buy US-listed REITS?
Replies: 41
Views: 2967

Re: UK Foundation Portfolio

I've been thinking about this for the past day or so, but haven't yet really got a clear answer. I could take a FTSE All Share and then add emphasis to Mid and/or Small Cap stocks using an appropriate tracker. Alternatively I could get a FTSE 100, a FTSE 250, and a Small Cap. But the question is wh...
by TedSwippet
Sat Jul 05, 2014 8:06 am
 
Forum: Investing - Help with Personal Investments
Topic: UK Foundation Portfolio
Replies: 16
Views: 1570

Re: UK Foundation Portfolio

I live, and am tax resident, in Singapore. So before you act, make sure that holding EU-domiciled ETFs will not cause tax nightmares for you in Singapore. As far as I know Singapore may be pretty good in that respect, but you will want to check. A few thoughts on your specific questions. The FTSE a...
by TedSwippet
Fri Jul 04, 2014 12:37 pm
 
Forum: Investing - Help with Personal Investments
Topic: UK Foundation Portfolio
Replies: 16
Views: 1570

Re: UK Foundation Portfolio

I do not currently live in the UK, but have GBP funds that I'd rather keep in GBP, and have access to a brokerage for the LSE. Welcome to the forum. In which country do you live? Many have punitive tax rules for residents who hold 'offshore' funds, and the ETFs that you list will be 'offshore' in a...
by TedSwippet
Fri Jul 04, 2014 11:17 am
 
Forum: Investing - Help with Personal Investments
Topic: UK Foundation Portfolio
Replies: 16
Views: 1570

Re: Refund of withholding tax possible for foreigners?

Some have suggested a refund is possible if you file a Form 1042-S or Form W-8BEN (both has been mentioned. Anyone knows which should be correct?) Others have said the 30% withholding is simply unavoidable if we stick with US-listed ETFs. The W-8BEN is used to claim the 'treaty rate' on dividends. ...
by TedSwippet
Thu Jul 03, 2014 12:47 pm
 
Forum: Investing - Help with Personal Investments
Topic: Refund of withholding tax possible for foreigners?
Replies: 11
Views: 1062

Re: US citizens abroad cannot invest through a US brokerage

The UK, for instance, treats offshore mutual fund capital gains as income, which can lead to extremely high tax rates. Although nothing like as high as the US tax rates on offshore funds. The worst case in the UK would be 45%. US PFIC rules can take the federal tax liability on offshore funds to 10...
by TedSwippet
Wed Jul 02, 2014 7:15 pm
 
Forum: Investing - Theory, News & General
Topic: US citizens abroad cannot invest through [Fidelity]
Replies: 97
Views: 8291

Re: Investing from new zealand

Investing in the US subjects you to it's tax laws. Yes it does. And my point is that US tax laws (and in particular estate tax laws) for non-resident aliens -- the term the US uses for the 95% of the world's population that are not US citizens -- are by design worse than those the US affords to US ...
by TedSwippet
Sat Jun 28, 2014 6:08 am
 
Forum: Investing - Help with Personal Investments
Topic: Investing from new zealand
Replies: 28
Views: 1869

Re: Investing from new zealand

Ok thanks for that, so a little confused so should I not purchase efts on the Australian stock exchange. Perhaps the UK instead. Many of the NZ stocks have a higher dividend yield. Do you mean that an Australian CDI such as VTS shows a higher dividend yield than its approximate Vanguard EU equivale...
by TedSwippet
Sat Jun 28, 2014 3:41 am
 
Forum: Investing - Help with Personal Investments
Topic: Investing from new zealand
Replies: 28
Views: 1869

Re: Investing from new zealand

Beware of rapacious US estate taxes . Vanguard ETFs listed on the Australian exchange are CDIs, and appear to be 'in scope'. From the prospectus for VTS : US estate tax may apply to an individual who is neither a US citizen nor domiciled in the US and, at the time of death, is the beneficial owner o...
by TedSwippet
Fri Jun 27, 2014 12:13 pm
 
Forum: Investing - Help with Personal Investments
Topic: Investing from new zealand
Replies: 28
Views: 1869

Re: Home Country Bias

Chan_va wrote:My solution is to split the difference...

Around 75% of the revenue of UK FTSE-100 companies comes from outside the UK. Someone investing only in large cap UK stocks nevertheless has a lot of non-UK diversification, just hidden. I don't know what the equivalent figures are for Canada.
by TedSwippet
Thu Jun 26, 2014 6:43 am
 
Forum: Investing - Theory, News & General
Topic: Home Country Bias
Replies: 47
Views: 2747

Re: Home Country Bias

longinvest wrote:Should an investor have home country bias? If so, how much?

https://pressroom.vanguard.com/nonindexed/6.26.2012_The_Role_of_Home_Bias.pdf

30-60% if Canadian, 50-100% if Australian, and 80-100% if British?
by TedSwippet
Wed Jun 25, 2014 6:59 pm
 
Forum: Investing - Theory, News & General
Topic: Home Country Bias
Replies: 47
Views: 2747

Re: How much to save for college? - a UK twist

Valuethinker wrote:Have the money saved up. If they change the rules pay off the loan...

Unless the change in rules includes the introduction of an early repayment penalty.
by TedSwippet
Sat Jun 21, 2014 5:23 am
 
Forum: Investing - Help with Personal Investments
Topic: How much to save for college? - a UK twist
Replies: 7
Views: 589

Re: US Citizen with accounts in UK

From today's Times newspaper : " American citizens not welcome at NS&I " National Savings & Investments is closing the accounts of nearly 3,000 investors who are US nationals, citizens or residents. Among those who could be affected is Boris Johnson, Mayor of London, who is a US ci...
by TedSwippet
Thu Jun 19, 2014 6:51 pm
 
Forum: Investing - Help with Personal Investments
Topic: US Citizen with accounts in UK
Replies: 11
Views: 893

Re: Investing with H1B?

I have some savings, not quite sure If I can do some investment in stocks, bonds and mutual funds with my H1B visa... This has a lot of potential for future complications. A lot depends on your home country. Indeed. Can? Yes. Should ? More nuanced. Part of the answer may depend on spending quality ...
by TedSwippet
Mon Jun 16, 2014 7:02 am
 
Forum: Investing - Help with Personal Investments
Topic: Investing with H1B?
Replies: 8
Views: 775

Re: Investing options for American living abroad?

If you haven't already read it (or even if you have), this wiki page contains a good, if cursory, overview of the tax hassles that face expat US citizens who attempt to invest locally.
by TedSwippet
Wed Jun 11, 2014 2:42 am
 
Forum: Investing - Help with Personal Investments
Topic: Investing options for American living abroad?
Replies: 6
Views: 404

Re: Non-Resident Withholding Tax (Taiwan Resident)

... filing a non-resident tax return could get a lot of the withholdings back, but I honestly don't know enough about the non-resident tax situation to be definitive. It can't. The US tax rate on dividends from US stocks for non-resident aliens in non-treaty countries is 30% -- and US domiciled ETF...
by TedSwippet
Mon Jun 09, 2014 6:25 am
 
Forum: Investing - Help with Personal Investments
Topic: Non-Resident Withholding Tax (Taiwan Resident)
Replies: 3
Views: 244

Re: backdoor roth IRA for US and non-US expatriate (non-resi

I still need to figure out if I can do something similar myself, being a non resident alien. If someone sees something forbiden by the US Tax laws, about my idea to declare as my only source of US income my conversion from traditional to Roth IRA of $3900, and have it fully covered by my personal t...
by TedSwippet
Sat Jun 07, 2014 7:10 am
 
Forum: Personal Finance (Not Investing)
Topic: backdoor roth IRA for US and non-US expatriate (non-resident
Replies: 5
Views: 407

Re: US Citizen with accounts in UK

I've had no problems opening any accounts as a US citizen and UK resident, even an NS&I account. Perhaps not yet, but you will. NS&I added this global US person ban in April, pending FATCA implementation. Other financial institutions are now following suit. Alliance Trust Savings bans. And ...
by TedSwippet
Fri Jun 06, 2014 12:06 pm
 
Forum: Investing - Help with Personal Investments
Topic: US Citizen with accounts in UK
Replies: 11
Views: 893

Re: US Citizen with accounts in UK

Prepare for some rejection, for example:
17. General limitations. Accounts cannot be:
(a) opened by a person who is either a US citizen and/or a US resident for tax purposes;
by TedSwippet
Thu Jun 05, 2014 1:58 pm
 
Forum: Investing - Help with Personal Investments
Topic: US Citizen with accounts in UK
Replies: 11
Views: 893

Re: Investing in the NISA/Visa issues [Japan]

My assumption was that the OP is not a US taxpayer -- but as a US taxpayer myself, I am curious: are you saying that UK ISAs are themselves considered PFICs, regardless of the contents? Extensive discussion here . The bottom line is that an ISA -- almost certainly, notwithstanding that nothing abou...
by TedSwippet
Mon Jun 02, 2014 11:20 am
 
Forum: Investing - Help with Personal Investments
Topic: Investing in the NISA/Visa issues [Japan]
Replies: 14
Views: 915

Re: UK taxes on iShares ETF offered by Fidelity

Just curious...where does the "around 15% of the dividend rate (to US tax)" figure stem from? Does that depend on your tax bracket or is it fixed by treaty??? Treaty. From this article : Withholding tax inside a fund may be on income or capital gains. How these taxes are determined is bas...
by TedSwippet
Mon Jun 02, 2014 9:33 am
 
Forum: Investing - Help with Personal Investments
Topic: UK taxes on iShares ETF offered by Fidelity
Replies: 16
Views: 1099

Re: UK taxes on iShares ETF offered by Fidelity

Not Ted, but I think it would be a very poor idea to invest in EU domiciled ETFs which are going to likely end up costing you more than the US-based options. Right. OP asked specifically about ETFs so I didn't search for funds (should have, sorry). The critical thing though is to avoid PFIC. A hit ...
by TedSwippet
Sun Jun 01, 2014 4:22 am
 
Forum: Investing - Help with Personal Investments
Topic: UK taxes on iShares ETF offered by Fidelity
Replies: 16
Views: 1099

Re: UK taxes on iShares ETF offered by Fidelity

Ah, I think I see the problem. Are you looking for ETFs or funds that comply with Shariah investment principles? European exchanges offer a good selection of these, but they will almost certainly be domiciled in either Ireland or Luxembourg. I have had a good search around, and it seems that US exch...
by TedSwippet
Sat May 31, 2014 5:04 pm
 
Forum: Investing - Help with Personal Investments
Topic: UK taxes on iShares ETF offered by Fidelity
Replies: 16
Views: 1099
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