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Re: New to Investing, Based in Hong Kong

...am I right therefore in assuming if I open a brokerage account with IB here in Hong Kong and trade in the DB ETFs (domiciled in Luxembourg) that I will not be liable to pay a US dividend tax at all? To be pedantic, the ETF itself will internally(*) pay 15% US dividend tax on your behalf (only on...
by TedSwippet
Wed Oct 22, 2014 7:22 am
 
Forum: Investing - Help with Personal Investments
Topic: New to Investing, Based in Hong Kong
Replies: 51
Views: 2472

Re: New to Investing, Based in Hong Kong

... is my tax assessment in the previous post (comparing a US domiciled one to a Luxembourg domiciled all world ETF, based on $100k investment and average 2% dividend yield) correct? Probably close enough. The non-US components of the dividend might get different levels of withholding from their ow...
by TedSwippet
Tue Oct 21, 2014 4:54 pm
 
Forum: Investing - Help with Personal Investments
Topic: New to Investing, Based in Hong Kong
Replies: 51
Views: 2472

Re: New to Investing, Based in Hong Kong

I think the db x-trackers we have looked at are considered HK-domiciled, not Luxembourg. No, they are domiciled in Luxembourg . I think it is where it is listed that matters? Again, no. ETFs are very often listed on the exchanges of multiple countries but domiciled only in one (and sometimes domici...
by TedSwippet
Tue Oct 21, 2014 4:14 pm
 
Forum: Investing - Help with Personal Investments
Topic: New to Investing, Based in Hong Kong
Replies: 51
Views: 2472

Re: New to Investing, Based in Hong Kong

...Seems it doesn't really matter where you hold the account. Any investment in US companies will result in the withholding tax on dividends. I guess it is no big deal, and just part of the cost of diversifying into US companies. Not entirely. If a resident of HK holds a US domiciled ETF then they ...
by TedSwippet
Tue Oct 21, 2014 10:10 am
 
Forum: Investing - Help with Personal Investments
Topic: New to Investing, Based in Hong Kong
Replies: 51
Views: 2472

Re: At my age is it ever to late to invest?( UK)

It's hard to find a personal pension provider charging you less than 1.0%. I use one of the big insurance companies and pay 0.8% (because I have more than £50k in the account). You may have to hunt around a little, but it's not that hard to find good value personal pensions. All of the following ch...
by TedSwippet
Sat Oct 18, 2014 11:24 am
 
Forum: Investing - Help with Personal Investments
Topic: At my age is it ever to late to invest?( UK)
Replies: 13
Views: 1253

Re: Estonian citizen - 401K worth it?

If you stay in the US and retire there, then opening a 401k will have been the right decision. If you move out, it quite probably won't. I have an old 401k that is 'trapped' in the US now that I no longer work or live there. So far it has only provided a modicum of hassle, such as a W-8BEN requireme...
by TedSwippet
Fri Oct 17, 2014 8:06 am
 
Forum: Investing - Help with Personal Investments
Topic: Estonian citizen - 401K worth it?
Replies: 8
Views: 534

Re: New to Investing, Based in Hong Kong

Have you looked at Vanguard UK ETFs? For example VUSD.LN, an S&P500 tracker, 0.07% TER, physical replication, and not US domiciled so no undesirable US tax entanglements.
by TedSwippet
Fri Oct 17, 2014 6:19 am
 
Forum: Investing - Help with Personal Investments
Topic: New to Investing, Based in Hong Kong
Replies: 51
Views: 2472

Re: New to Investing, Based in Hong Kong

Just a quick note... the DB X-tracker ETFs mentioned above use 'synthetic replication' to track the indices. You might be okay with that, but it is useful to be aware of the fact. In Europe, DB has been slowly increasing its range of physical ETFs.
by TedSwippet
Wed Oct 15, 2014 6:13 am
 
Forum: Investing - Help with Personal Investments
Topic: New to Investing, Based in Hong Kong
Replies: 51
Views: 2472

Re: Help a newcomer to investing [UK]

If I were a UK person dealing with GBP instead of USD I'd choose this simple port: 60% VWRL + 40% VGOV. Both are UK/Ireland Vanguard ETFs. This certainly has much to recommend it, and ETFs dodge the ugly 'platform fees' that have sprouted on platforms since RDR. If one can dodge or mitigate these f...
by TedSwippet
Mon Oct 13, 2014 3:59 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help a newcomer to investing [UK]
Replies: 9
Views: 690

Re: Help a newcomer to investing [UK]

The UK investing wiki page needs a bit of an update. A lot of fund TERs have changed (reduced, which ordinarily would be good news, but in many cases the reductions have been more than negated by new 'platform' fees), and several new funds and ETFs are now available. Refreshing the page is on my tod...
by TedSwippet
Mon Oct 13, 2014 9:53 am
 
Forum: Investing - Help with Personal Investments
Topic: Help a newcomer to investing [UK]
Replies: 9
Views: 690

Re: UK Expat living in US looking for suitable broker/countr

...Most ETFs in the UK should be Dublin registered (eg the ishares ones are). Whether that gives you US tax problems I don't know, ... It will. Huge ones, with the capacity to consume 100% of the gains. As a 'US person for tax purposes', you have to avoid anything that is not US based. The US lays ...
by TedSwippet
Wed Oct 08, 2014 7:18 am
 
Forum: Investing - Help with Personal Investments
Topic: UK Expat living in US looking for suitable broker/country
Replies: 5
Views: 490

Re: Best broker for a European

My bad, I tried to sign up for IB again and there is an option to choose N/A in part II. IB it is, assuming my application is accepted. Thanks for the confirmation :-) By the way, sorry if my previous reply came off as a bit curt. I was in a hurry when I wrote it. On reviewing I can see how one mig...
by TedSwippet
Mon Oct 06, 2014 3:46 pm
 
Forum: Investing - Help with Personal Investments
Topic: Best broker for a European
Replies: 5
Views: 440

Re: Best broker for a European

... I'm not a tax resident of a country that has a tax treaty with USA and so cannot fill out the W-8BEN and cannot open an IB account. Huh? Part I of the W-8BEN identifies you as not a US citizen no matter where you live. Part II is where you claim treaty benefits, if eligible . If you're in a non...
by TedSwippet
Mon Oct 06, 2014 10:05 am
 
Forum: Investing - Help with Personal Investments
Topic: Best broker for a European
Replies: 5
Views: 440

Re: Help for Irish investors

VHYL is listed on three exchanges, one of which is Euronext and listed in EUR. If TD offers trading on Euronext -- and it seems like it does -- maybe you can buy direct in EUR?
by TedSwippet
Sun Oct 05, 2014 5:47 am
 
Forum: Investing - Help with Personal Investments
Topic: Help for Irish investors
Replies: 6
Views: 592

Re: Domicile of funds and tax leakage.

... my understanding is that a UK investor who has filed a W8BEN will be taxed 15% withholding tax against a US ETF's dividend income. For a higher rate taxpayer some of that might be offset against additional UK taxation. For a Ireland ETF that holds US holdings the same 15% withholding tax is pai...
by TedSwippet
Fri Sep 26, 2014 4:37 pm
 
Forum: Investing - Theory, News & General
Topic: Domicile of funds and tax leakage.
Replies: 17
Views: 1376

Re: Domicile of funds and tax leakage.

So the government won't tax anybody that's not a US based investor in these examples? I'm not a tax resident anywhere (no need to go into that on this thread) so I assume once I can invest in a fund that is domiciled in Ireland, I won't be taxed by the Irish government Ireland does have a 20% divid...
by TedSwippet
Fri Sep 26, 2014 9:22 am
 
Forum: Investing - Theory, News & General
Topic: Domicile of funds and tax leakage.
Replies: 17
Views: 1376

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

... my understanding is that if a USA brokers such as Interactive Brokers offers me an ETF full of USA companies but domiciled in Ireland, I am not subject to the estate tax but am subject to DWT of 15-30% depending on my tax treaty with the USA? No. The ETF internally pays the 15% US/Ireland treat...
by TedSwippet
Fri Sep 26, 2014 4:00 am
 
Forum: Investing - Help with Personal Investments
Topic: Advice for non-US citizen wanting to invest like a Boglehead
Replies: 16
Views: 1219

Re: Domicile of funds and tax leakage.

If you can take the time to understand it, this presentation is helpful in understanding how the ETF's domicile, the location of the underlying investments, and the location of the investor all interact. Particularly useful are the diagrams on slides 13 and 14 that show a few scenarios. Slide 14 sho...
by TedSwippet
Thu Sep 25, 2014 6:09 pm
 
Forum: Investing - Theory, News & General
Topic: Domicile of funds and tax leakage.
Replies: 17
Views: 1376

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: 237

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: 409

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: 1277

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: 16
Views: 1219

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: 16
Views: 1219

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: 1277

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: 1277

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: 1277

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: 1277

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: 1277

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: 880

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: 1399

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: 1399

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: 1306

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: 1527

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: 1306

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: 1306

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: 751

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: 502

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: 502

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: 502

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: 3052

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: 3052

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: 3052

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: 3052

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: 3052

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: 3052

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: 3052

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: 1632

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: 1632

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: 1632

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: 1081
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