Search found 95 matches

by Hallman
Tue Jul 19, 2016 7:31 pm
Forum: Personal Finance (Not Investing)
Topic: Home sale tax exclusion for non-primary reidence abroad. Gifting 1/2 to son and selling other 1/2 to nonUS-citizen.
Replies: 1
Views: 220

Home sale tax exclusion for non-primary reidence abroad. Gifting 1/2 to son and selling other 1/2 to nonUS-citizen.

This is a hypothetical situation, if that matters. I want to sell a rental property located in Europe (no capital gains exclusion for the seller. Not primary residence). I would like to gift half the home to my son and sell the other half for $200,000 to his non US citizen girlfriend. Both the son a...
by Hallman
Sat Jun 25, 2016 6:48 am
Forum: Investing - Theory, News & General
Topic: Dividend and Buyback Yields, S&P 500, 1982-2015
Replies: 86
Views: 5373

Re: Dividend and Buyback Yields, S&P 500, 1982-2015

Out of curiosity, is the net buyback yield typically lower for value stocks? This has been my (anecdotal) experience.
by Hallman
Thu Apr 28, 2016 10:36 am
Forum: Investing - Theory, News & General
Topic: McKinsey report on diminishing returns
Replies: 91
Views: 7588

Re: McKinsey report on diminishing returns

I'd be very happy with the returns projected for equities, even for the slow growth scenario. Reports like this usually say that saving rates need to go up, but they might very well might have the opposite effect. People are hardly saving when they think equities return a fairly steady 12% annualize...
by Hallman
Thu Mar 17, 2016 9:58 am
Forum: Investing - Theory, News & General
Topic: Is the market sentiment always in "bubble mode"?
Replies: 12
Views: 935

Is the market sentiment always in "bubble mode"?

This might just be my experience, but it seems as though people always think the market is overvalued/expensive. I started investing in 1995 and I pretty much knew nothing. I invested in mutual funds at random. 1995-2000 I remember constantly feeling bad about my investments even though they were go...
by Hallman
Sun Mar 13, 2016 2:16 pm
Forum: Investing - Theory, News & General
Topic: Bogle - "Since 1990, US stocks grew 10%, Intl grew 6%"
Replies: 56
Views: 6637

Re: Bogle - "Since 1990, US stocks grew 10%, Intl grew 6%"

The currency risk argument is fair enough, even though I don't agree. The US advantage argument is already priced in. There is a reason US is half of the stock market and valuations are higher than most of the developed world. Besides, the argument would hold true for everyone, not just americans. U...
by Hallman
Fri Mar 04, 2016 2:04 pm
Forum: Investing - Theory, News & General
Topic: 100% US Equities argument: "We spend in Dollars"
Replies: 49
Views: 5011

Re: 100% US Equities argument: "We spend in Dollars"

My problem with deviating from the market (global) is that I find it tremendously hard to justify my position when I'm the only one left standing. Assume 20 years from now that the US isn't half of the global stock market, returns have been bellow global, no one like Buffett or Bogle is saying 100% ...
by Hallman
Thu Mar 03, 2016 10:35 am
Forum: Personal Finance (Not Investing)
Topic: Does everyone really need to save $1 million for retirement?
Replies: 225
Views: 31436

Re: Does everyone really need to save $1 million for retirement?

I can't take people who talk about one million dollars not being a lot of money seriously, especially when their reasoning seems to be that it's not enough to retire on @ 50, with little risk (low withdrawal rate) and a top 5% lifestyle.
by Hallman
Tue Mar 01, 2016 12:55 pm
Forum: Investing - Theory, News & General
Topic: International Investing - Does it actually work?
Replies: 19
Views: 1602

Re: International Investing - Does it actually work?

I've lived in the UK, Sweden and Norway (I'm Norwegian). Threads like these are funny, because it seems to be the same everywhere.. people are scared of investing outside of their own country, albeit it's much better now than 10+ years ago. Haven't you heard that the US is a prime example of capital...
by Hallman
Fri Feb 26, 2016 7:24 pm
Forum: Investing - Theory, News & General
Topic: Ranking Global Stock Markets On Valuation
Replies: 11
Views: 1302

Re: Ranking Global Stock Markets On Valuation

A large portion, if not most, of individual country indices are dominated by a few stocks. I don't see how the shiller P/E ratio could hold much meaning here.. As for historical valuations in single countries.. Off the top of my head, Nokia was 70-80% of Finland 15 years ago. Norsk Hydro was almost ...
by Hallman
Sat Jan 16, 2016 7:16 pm
Forum: Investing - Theory, News & General
Topic: I'm Calling an Emerging Markets Bottom
Replies: 201
Views: 29613

Re: I'm Calling an Emerging Markets Bottom

I think this thread has too many optimists and/or wishful thinkers. I hope people are writing here in jest, the carnage in emerging markets is nowhere close to being done yet. I generally prefer EM to DM ex-US but would agree with you here. As long as China is 35% of the index we have clearly not s...
by Hallman
Sat Nov 21, 2015 6:56 pm
Forum: Investing - Help with Personal Investments
Topic: Are individual stocks really a bad idea?
Replies: 55
Views: 7703

Re: Are individual stocks really a bad idea?

I think buying and holding a good number of diversified blue chip stocks is good investing. I also think investing through index funds is good investing.

Indexed investing is easier.. so it wins, barring special circumstances.
by Hallman
Sat Nov 21, 2015 6:40 pm
Forum: Investing - Theory, News & General
Topic: How do you explain investing to friends?
Replies: 30
Views: 2950

Re: How do you explain investing to friends?

My experience is that most people believe that the stock market is expected to return 10-12% annualized, but still choose to hardly invest. Most investing discussions with friends leave them less interested in the stock market, due to my belief that aforementioned returns are unlikely, or them going...
by Hallman
Tue Oct 20, 2015 7:01 am
Forum: Investing - Theory, News & General
Topic: How to know if an individual stock is a passive foreign investment company (PFIC)
Replies: 3
Views: 517

How to know if an individual stock is a passive foreign investment company (PFIC)

I'm having a hard time figuring out whether or not non-US individual stocks are PFIC or not. Especially conglomerates or companies with many subsidiaries. Would, for example, Orkla Group or A.P. Moller–Maersk Group be considered as PFIC?
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: 1081

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: 1881

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: 1881

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: 1881

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: 1647

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: 1647

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: 1529

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: 1881

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: 1881

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: 1881

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: 27890

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: 4298

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: 1251

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: 1441

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: 1441

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: 1441

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: 1326

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: 1326

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: 6365

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: 1326

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: 455

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: 540

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: 1881

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: 1881

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: 1881

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: 1881

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: 1881

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: 471

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: 451

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: 5574

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: 9064

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: 611

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: 611

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: 2857

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...

Go to advanced search