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Re: [Updated, see new post] Looking for general portfolio ad

Basically, you will be asked to attach a note to Form 2555 explaining how you calculated the income earned while on business in the US. (Form 2555 doesn't ask for other supporting documentation -- that comes later, during the audit. :wink: ) Anything reasonable-sounding is likely to be accepted -- ...
by bpp
Wed Feb 18, 2015 4:58 am
 
Forum: Investing - Help with Personal Investments
Topic: [Updated, see new post] Looking for general portfolio advice
Replies: 16
Views: 1111

Re: [Updated, see new post] Looking for general portfolio ad

In my case I make less than the exclusion amount, however I did travel to (and work in) the US twice in 2014, each trip 14 days duration (still puts me over the 330-day threshold for living overseas). My regular pay during these two periods does not exceed $5500; however if my yearly bonus is inclu...
by bpp
Wed Feb 18, 2015 3:25 am
 
Forum: Investing - Help with Personal Investments
Topic: [Updated, see new post] Looking for general portfolio advice
Replies: 16
Views: 1111

Re: Japan, 1989

ginmqi wrote:More like a dark magenta to me though...


Hmm, on closer inspection... you're right!
by bpp
Wed Feb 18, 2015 3:03 am
 
Forum: Investing - Theory, News & General
Topic: Japan, 1989
Replies: 127
Views: 28339

Re: Japan, 1989

This ties in nicely with the recent thread discussing John Bogle's aversion to investing in foreign stocks. So if we are to try to hedge against the US becoming the next Japan...from the nice chart posted above...it seems the prudent lesson to take away here is: Split your equity 50/50 in US and fo...
by bpp
Tue Feb 17, 2015 9:58 pm
 
Forum: Investing - Theory, News & General
Topic: Japan, 1989
Replies: 127
Views: 28339

Re: Japan, 1989

Update through the end of 2014. We now have 25 years of data. Yearly portfolio values for 1 million yen invested at the end of 1989, in inflation-adjusted (using Japanese CPI) yen terms. No withdrawals, yearly re-balancing. http://s16.postimg.org/p8au4iqat/portfoliovals1989_2014.gif Sources: Japanes...
by bpp
Tue Feb 17, 2015 3:05 am
 
Forum: Investing - Theory, News & General
Topic: Japan, 1989
Replies: 127
Views: 28339

Re: An Individual Stock Question Or Two

Have you seen the wiki page on Passively managing individual stocks?
Not sure if they answer your question, but there are some studies addressing portfolio size summarized there.
by bpp
Mon Feb 16, 2015 4:46 am
 
Forum: Investing - Theory, News & General
Topic: An Individual Stock Question Or Two
Replies: 14
Views: 918

Re: Clarifications on Foreign Earned Income Exclusion

I believe France taxes all residents of France on their worldwide income. (You should check on this.)
If so, and if your wife is a resident for tax purposes in France, then her investment income, would be taxable in both France and the US.
by bpp
Wed Feb 11, 2015 6:58 am
 
Forum: Investing - Help with Personal Investments
Topic: Clarifications on Foreign Earned Income Exclusion
Replies: 13
Views: 700

Re: Clarifications on Foreign Earned Income Exclusion

Where does she have her investments? In a US brokerage, or a French one? And in what kind of vehicles? If she is using French mutual funds, there may be some US tax problems. For US taxes, it may make sense to gain harvest up to the limit of the standard deduction+personal exemption. This may trigge...
by bpp
Tue Feb 10, 2015 8:15 pm
 
Forum: Investing - Help with Personal Investments
Topic: Clarifications on Foreign Earned Income Exclusion
Replies: 13
Views: 700

Re: What Experts Say about Individual Stocks vs. Mutual Fund

I am of the opinion that the tax tail should not wag the investment dog. Certainly taxes are a consideration but really the returns are the reason you invest in the first place. Good tax planning can save you money but for heaven's sake, don't run your life by the tax law. One can turn themselves i...
by bpp
Sun Feb 08, 2015 7:18 pm
 
Forum: Investing - Theory, News & General
Topic: What Experts Say about Individual Stocks vs. Mutual Funds
Replies: 56
Views: 4836

Re: What Experts Say about Individual Stocks vs. Mutual Fund

One question is why bother with sampling and trying to achieve your own passive portfolio when there are index funds you can just buy right off the shelf for very little continuing expenses? The wiki page gives some reasons, mostly tax-related. In my case, I get to avoid PFIC issues (this alone is ...
by bpp
Sun Feb 08, 2015 6:16 pm
 
Forum: Investing - Theory, News & General
Topic: What Experts Say about Individual Stocks vs. Mutual Funds
Replies: 56
Views: 4836

Re: What Experts Say about Individual Stocks vs. Mutual Fund

Somehow, you still have to come up with the 70 stocks to put into your "index." Are you suggesting buying 70 darts and throwing them at a stock page? Will you not use any rational screening mechanism at all? Yes, you will use a very rational system to select your stocks...whether it is to...
by bpp
Sat Feb 07, 2015 9:23 pm
 
Forum: Investing - Theory, News & General
Topic: What Experts Say about Individual Stocks vs. Mutual Funds
Replies: 56
Views: 4836

Re: What Experts Say about Individual Stocks vs. Mutual Fund

Does anyone here allocate any part of their portfolio for Individual stocks? and have you had any succes? Just curious :happy Yes. I allocate all of my domestic stock portion to individual stocks, and have had good success in tracking the indices with better tax treatment than I would have had usin...
by bpp
Fri Feb 06, 2015 3:26 am
 
Forum: Investing - Theory, News & General
Topic: What Experts Say about Individual Stocks vs. Mutual Funds
Replies: 56
Views: 4836

Re: What Experts Say about Individual Stocks vs. Mutual Fund

heartandsoul wrote:There are not many studies looking at the kind of strategy I've adopted

Have you seen the wiki page on Passively managing individual stocks? Some such studies are summarized there.
by bpp
Thu Feb 05, 2015 8:28 am
 
Forum: Investing - Theory, News & General
Topic: What Experts Say about Individual Stocks vs. Mutual Funds
Replies: 56
Views: 4836

Re: Hedge fund loses 99.8% of all funds, $100m down to $200k

We'll have to see if he can duplicate this performance before we can determine whether it is luck or skill.
by bpp
Wed Jan 21, 2015 6:55 pm
 
Forum: Investing - Theory, News & General
Topic: Hedge fund loses 99.8% of all funds, $100m down to $200k.
Replies: 59
Views: 6871

Re: What will happen to international stocks if a Euro break

Presently, international developed market index funds have about 61% in Europe, and total international has about 45%. With the warning shot fired by the Swiss, can the breakup of the Euro be far behind? What is likely to happen to European stocks if (when) this happens, and is it maybe a good idea...
by bpp
Wed Jan 21, 2015 5:18 pm
 
Forum: Investing - Theory, News & General
Topic: What will happen to international stocks if a Euro breakup?
Replies: 23
Views: 1625

Re: Adjusted Livesoft Income (ALI)

So you want all (potentially) spendable income? So any legally-mandated spending (social security or health insurance, e.g.) should be excluded? For investment income, should pre- or post-tax income be considered? Actually, in general, should it be pre- or post-tax?
by bpp
Tue Jan 20, 2015 7:14 pm
 
Forum: Personal Finance (Not Investing)
Topic: Adjusted Livesoft Income (ALI)
Replies: 36
Views: 4003

Re: Adjusted Livesoft Income (ALI)

This seems a very US-centric list. Instead of basing it on specific Form 1040 entries, how about stating in general terms what kinds of income and compensation should be included?
by bpp
Tue Jan 20, 2015 5:40 pm
 
Forum: Personal Finance (Not Investing)
Topic: Adjusted Livesoft Income (ALI)
Replies: 36
Views: 4003

Re: Australian superannuation help

You can transfer to Vanguard Oz to get better expense ratios..... maybe high growth or alike. Vanguard Australia doesn't offer Superannuation accounts, but you can buy Vanguard Australia funds through Plum (and possibly others?). But those will be PFICs, right? Please read about and understand the ...
by bpp
Mon Jan 19, 2015 5:57 pm
 
Forum: Investing - Help with Personal Investments
Topic: Australian superannuation help
Replies: 8
Views: 635

Re: Australian superannuation help

Just to be on the overly safe side, but you guys living in the US with Australian superannuation accounts, are you aware of PFIC, FBAR and FATCA rules? The wiki page on Taxation as a US person living abroad has some info on those issues that may be applicable to your cases (even if the title might s...
by bpp
Mon Jan 19, 2015 5:23 pm
 
Forum: Investing - Help with Personal Investments
Topic: Australian superannuation help
Replies: 8
Views: 635

Re: What is the international portion of your portfolio and

The international portion of my portfolio consists of BND (Vanguard US total bond), EMLC (emerging markets local currency bond index), the non-Japanese bonds in IGOV (developed ex-US government bond index) and the non-Japanese stocks in VT (Vanguard Total World Stock Index). Stocks and bonds are bot...
by bpp
Sun Jan 18, 2015 12:47 am
 
Forum: Investing - Theory, News & General
Topic: What is the international portion of your portfolio and why?
Replies: 140
Views: 11983

Re: Why Is "Deflation" A Bad Thing??? How To Prepare/Profit

As with Japan, if people think prices are going to be lower next year, they will not spend this year. I hate to sound too persistent on this, but, are there any studies that show a reason for believing that this is the thought process that goes through Japanese consumers' minds? This is not true fo...
by bpp
Tue Jan 13, 2015 5:14 pm
 
Forum: Investing - Theory, News & General
Topic: Why Is "Deflation" A Bad Thing??? How To Prepare/Profit?
Replies: 87
Views: 6259

Re: Why Is "Deflation" A Bad Thing??? How To Prepare/Profit

As with Japan, if people think prices are going to be lower next year, they will not spend this year. I hate to sound too persistent on this, but, are there any studies that show a reason for believing that this is the thought process that goes through Japanese consumers' minds? This is not true fo...
by bpp
Tue Jan 13, 2015 9:45 am
 
Forum: Investing - Theory, News & General
Topic: Why Is "Deflation" A Bad Thing??? How To Prepare/Profit?
Replies: 87
Views: 6259

Re: cat water fountain

You can also try ice ... I have a cat that loves cold water. If I put an ice cube in a tray, he will pounce on it and lick half way down. Seems to work for him! My cat's the same. Loves ice water. She's a rescue cat with health issues, including oral inflammation, so I thought the ice helped ease t...
by bpp
Tue Jan 13, 2015 9:40 am
 
Forum: Personal Consumer Issues
Topic: cat water fountain
Replies: 75
Views: 4754

Re: Why Is "Deflation" A Bad Thing??? How To Prepare/Profit

There must be some behavioral economics studies published on the subject of how consumers respond to inflationary/deflationary expectations, no?
Anybody have any good links?
by bpp
Mon Jan 12, 2015 10:39 pm
 
Forum: Investing - Theory, News & General
Topic: Why Is "Deflation" A Bad Thing??? How To Prepare/Profit?
Replies: 87
Views: 6259

Re: Why Is "Deflation" A Bad Thing??? How To Prepare/Profit

Personally, I've never bought into the argument that deflation causes people to delay purchases. I agree with you. I have been a consumer in Japan during the deflation here. We have also had inflation starting a year or two ago, by force. My personal reaction to incipient inflation has been to pull...
by bpp
Mon Jan 12, 2015 6:01 pm
 
Forum: Investing - Theory, News & General
Topic: Why Is "Deflation" A Bad Thing??? How To Prepare/Profit?
Replies: 87
Views: 6259

Re: What will be the biggest investment surprises of 2015?

Vanguard will create a Total World Bond Index Fund, unhedged.

(I wish.)
by bpp
Sun Jan 11, 2015 9:41 pm
 
Forum: Investing - Theory, News & General
Topic: What will be the biggest investment surprises of 2015?
Replies: 82
Views: 8106

Re: Busting the "myth" of the small cap / size premium ?

But I am puzzled. Why would someone favor small stocks for putative absolute but not risk adjusted returns? This seems an inefficient approach as opposed to just increasing allocation to risky assets to get the desired variance. Small-cap stocks also tend to be more "local" stocks, so off...
by bpp
Thu Jan 08, 2015 10:40 am
 
Forum: Investing - Theory, News & General
Topic: Busting the "myth" of the small cap / size premium ?
Replies: 14
Views: 1766

Re: Busting the "myth" of the small cap / size premium ?

This article is claiming that small stocks do not hold a significant advantage in risk adjusted returns . That may be true. They do show an advantage in absolute returns, which is why I hold them. [Deleting what I wrote earlier] Looks like they are claiming that even the absolute return premium for...
by bpp
Wed Jan 07, 2015 6:08 pm
 
Forum: Investing - Theory, News & General
Topic: Busting the "myth" of the small cap / size premium ?
Replies: 14
Views: 1766

Re: Why a Boglehead doesn't invest in individual companies?

Multiple cost bases can be avoided by always directing new money to new companies, so there is only one cost basis per company. If you invest monthly, which is common, then your total number of stocks could get very high over an investing lifetime. (if you start at 22 and retire at 67, you could ha...
by bpp
Tue Jan 06, 2015 7:04 pm
 
Forum: Investing - Help with Personal Investments
Topic: Why a Boglehead doesn't invest in individual companies?
Replies: 142
Views: 16034

Re: Why a Boglehead doesn't invest in individual companies?

that doesn't take into account the downsides of this strategy: 1) Increased administrative overhead, especially later on as you end up with multiple cost basis 2) More complicated tax returns, which either means more work for yourself or more pay for your accountant 3) Fairly complicated portfolio ...
by bpp
Tue Jan 06, 2015 6:12 pm
 
Forum: Investing - Help with Personal Investments
Topic: Why a Boglehead doesn't invest in individual companies?
Replies: 142
Views: 16034

Re: Why a Boglehead doesn't invest in individual companies?

Do you have data or references regarding the skewness of returns of small cap stocks, by any chance? Don't have a link to skewness for really small caps off the top of my head, but Appendix B of Ikenberry, Shockley and Womack has skewness by decile within the S&P500. Average yearly skewness goe...
by bpp
Tue Jan 06, 2015 5:26 pm
 
Forum: Investing - Help with Personal Investments
Topic: Why a Boglehead doesn't invest in individual companies?
Replies: 142
Views: 16034

Re: Why a Boglehead doesn't invest in individual companies?

Your graph does not capture the saved fees vs. index fund products, so the higher expected returns of the individual stock buy-and-hold strategy discussed in this thread are not fully represented in the graph. I assume any tax management benefits are not included in your graph either. That is true,...
by bpp
Tue Jan 06, 2015 3:32 am
 
Forum: Investing - Help with Personal Investments
Topic: Why a Boglehead doesn't invest in individual companies?
Replies: 142
Views: 16034

Re: Why a Boglehead doesn't invest in individual companies?

New money going into an index fund when the market is rising may never be harvested, while you are certain to have some losers in a purchase of new individual stocks, even in a rising market. This is really the key point for tax loss harvesting. With an index fund, you can only harvest when the mar...
by bpp
Mon Jan 05, 2015 11:15 pm
 
Forum: Investing - Help with Personal Investments
Topic: Why a Boglehead doesn't invest in individual companies?
Replies: 142
Views: 16034

Re: Why a Boglehead doesn't invest in individual companies?

On the subject of factor exposure, I only track capitalization, but here are cumulative tracking errors for my individual stocks versus relevant indices: Blue line = (Large caps) - (Nikkei 225 index) Red line = (Small caps) - (Tokyo Stock Exchange Section 2 index) Yellow line = (Large+Small caps) - ...
by bpp
Mon Jan 05, 2015 11:03 pm
 
Forum: Investing - Help with Personal Investments
Topic: Why a Boglehead doesn't invest in individual companies?
Replies: 142
Views: 16034

Re: Why a Boglehead doesn't invest in individual companies?

New money going into an index fund when the market is rising may never be harvested, while you are certain to have some losers in a purchase of new individual stocks, even in a rising market. This is really the key point for tax loss harvesting. With an index fund, you can only harvest when the mar...
by bpp
Mon Jan 05, 2015 10:03 pm
 
Forum: Investing - Help with Personal Investments
Topic: Why a Boglehead doesn't invest in individual companies?
Replies: 142
Views: 16034

Re: Why a Boglehead doesn't invest in individual companies?

So at least 0.4% in expense ratio savings, and 0.3% in tax savings. Seems worth it to me. That's getting large enough to be significant. I have to ask though, why so many Japanese stocks, doesn't that leave you fairly undiversified? As comeinvest notes, Japanese stocks are domestic stocks for me, s...
by bpp
Mon Jan 05, 2015 6:48 pm
 
Forum: Investing - Help with Personal Investments
Topic: Why a Boglehead doesn't invest in individual companies?
Replies: 142
Views: 16034

Re: Why a Boglehead doesn't invest in individual companies?

Real-world numbers: I have 100+ individual Japanese stocks. Commissions under 1%, but say effective ER of about 0.1% for average holding time of 20 years. (1% buy + 1% sell / 20 years). The only US-domiciled index fund available here (and it only became available a few months ago) covering the Japan...
by bpp
Mon Jan 05, 2015 6:16 pm
 
Forum: Investing - Help with Personal Investments
Topic: Why a Boglehead doesn't invest in individual companies?
Replies: 142
Views: 16034

Re: Purchasing foreign currency for vacations (present/futur

Buying FX is like buying very short term bonds denominated in the host country. Does your current asset allocation have short term bonds in: - GB, - EU, - JP. If not, then you are making the decision to allow for such allocation now. This is a good point. Hedge by buying some IGOV? But it doesn't s...
by bpp
Sun Jan 04, 2015 7:13 am
 
Forum: Personal Consumer Issues
Topic: Purchasing foreign currency for vacations (present/future)
Replies: 21
Views: 1796

Re: Why a Boglehead doesn't invest in individual companies?

The yearly compensation is relatively small, but becomes quite significant over a number of years or an individual's investment life. I think the word "miniscule" would be more appropriate. Basically you're talking about saving a fraction of a percent in management fees, plus some very mi...
by bpp
Sun Jan 04, 2015 6:40 am
 
Forum: Investing - Help with Personal Investments
Topic: Why a Boglehead doesn't invest in individual companies?
Replies: 142
Views: 16034

Re: "The 15-Stock Diversification Myth"

and the outperformance will become larger when increasing the number of stocks, which arguably carries almost no administrative effort with today's technology. The bolded part is simply wrong. The more of the index stocks you have, the closer your performance is to that of the index. Put it this wa...
by bpp
Tue Dec 30, 2014 8:14 pm
 
Forum: Investing - Help with Personal Investments
Topic: Why a Boglehead doesn't invest in individual companies?
Replies: 142
Views: 16034

Re: "The 15-Stock Diversification Myth"

I would be glad to see any statistics similar to the one displayed in Bernstein's article, with a longer time frame and numbers that can be easily achieved with an individual stock strategy. There are some studies reviewed on the Wiki page on Passively managing individual stocks , a couple of which...
by bpp
Tue Dec 23, 2014 11:23 pm
 
Forum: Investing - Help with Personal Investments
Topic: Why a Boglehead doesn't invest in individual companies?
Replies: 142
Views: 16034

Re: Why a Boglehead doesn't invest in individual companies?

Is there any real reason to invest in individual companies? There can be: Passively managing individual stocks Wanting to take more risk is not a good one, though, since one is mostly going to get exposure to diversifiable (and therefore uncompensated) risk by using individual stocks, unless one ho...
by bpp
Wed Dec 17, 2014 11:33 pm
 
Forum: Investing - Help with Personal Investments
Topic: Why a Boglehead doesn't invest in individual companies?
Replies: 142
Views: 16034

Re: Retirement Location [US, Australia, or Elsewhere]

Some people here recommend having some home bias, for currency reasons. If you adopt this, you have two potential homes in retirement at this point, US and Australia. In your shoes, I might split 1/3 US, 1/3 Australia, 1/3 elsewhere for stocks, and either the same split for bonds, or else 1/2 US, 1/...
by bpp
Tue Dec 16, 2014 10:13 am
 
Forum: Personal Finance (Not Investing)
Topic: Retirement Location [US, Australia, or Elsewhere]
Replies: 4
Views: 957

Re: Does your work define you?

Dictionary.com: Define means to explain or identify the nature or essential qualities of... Bogleheads, Lately I've been feeling like my work defines me. I'm not sure if this is good or bad. I have hobbies, things I love to do outside of work, but I just feel like work defines me. It's where I have...
by bpp
Mon Dec 15, 2014 7:03 pm
 
Forum: Personal Consumer Issues
Topic: Does your work define you?
Replies: 30
Views: 2817

Re: You folks think the big one is coming?

jginseattle wrote:
Michael_Fisher1 wrote:
jginseattle wrote:Here in Seattle "the big one" means someting entirely different.



ooo tell me please :)



Earthquake!


The stock market is much like earthquakes, in that The Big One has already come, and will come again.
The big question is when.
by bpp
Fri Dec 12, 2014 10:43 pm
 
Forum: Investing - Theory, News & General
Topic: You folks think [a market crash] is coming?
Replies: 64
Views: 5799

Re: Different Experience With TSA Pre-Check

My preferred entry points to Europe are Frankfurt, Paris (just because I prefer Air France), and Amsterdam (for connections to Africa on KLM / Delta. I avoid Heathrow at any cost. I agree that Heathrow sucks in general, but I hear the same from Brits. Still, no worse than most US airports. Except C...
by bpp
Fri Dec 12, 2014 10:24 pm
 
Forum: Personal Consumer Issues
Topic: Different Experience With TSA Pre-Check
Replies: 35
Views: 2949

Re: Different Experience With TSA Pre-Check

The abuses that Europeans endure at their airports just amaze me. Interesting. I have always found European airports much more traveler-friendly than American ones. It may be that where you are defined as a "foreigner" matters. L. I am a US citizen resident of Japan. So am a foreigner in ...
by bpp
Fri Dec 12, 2014 10:10 pm
 
Forum: Personal Consumer Issues
Topic: Different Experience With TSA Pre-Check
Replies: 35
Views: 2949

Re: Different Experience With TSA Pre-Check

Leeraar wrote:The abuses that Europeans endure at their airports just amaze me.


Interesting. I have always found European airports much more traveler-friendly than American ones.
by bpp
Fri Dec 12, 2014 10:01 pm
 
Forum: Personal Consumer Issues
Topic: Different Experience With TSA Pre-Check
Replies: 35
Views: 2949

Re: Different Experience With TSA Pre-Check

I'm not about to pay for Global Entry ($100 non-refundable application fee regardless of acceptance? Heck with that, I'm signed up for the Japanese version for free -- just call me a Boglehead cheapskate.) But last time I visited the US via Chicago, they had kiosks in the peons lane that seemed to b...
by bpp
Fri Dec 12, 2014 9:35 pm
 
Forum: Personal Consumer Issues
Topic: Different Experience With TSA Pre-Check
Replies: 35
Views: 2949
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