Search found 1192 matches

by Karamatsu
Mon Feb 01, 2016 11:03 pm
Forum: Investing - Help with Personal Investments
Topic: Under-estimated my risk tolerance
Replies: 25
Views: 3211

Re: Under-estimated my risk tolerance

On the one hand, I can't help thinking that the urge to put more into stocks after a prolonged recover/bull market is just the flip side of selling stocks after a prolonged decline/bear market. The main difference is that people have a built-in reluctance to realize losses, so we're less likely to s...
by Karamatsu
Sun Jan 31, 2016 8:04 pm
Forum: Investing - Help with Personal Investments
Topic: Living abroad. Retirement savings options?
Replies: 3
Views: 657

Re: Living abroad. Retirement savings options?

I can confirm that (1) is correct: earned income that is covered by the FEIE won't be eligible for an IRA contribution. The only alternative while using the FEIE is to get some US-earned income (for example, salary earned while on a business trip to the US), or if your host country income exceeds th...
by Karamatsu
Fri Jan 29, 2016 6:56 am
Forum: Investing - Theory, News & General
Topic: Japan reduces interest rates below 0
Replies: 16
Views: 2752

Re: Japan reduces interest rates below 0

I think it's a sign of desperation.
by Karamatsu
Tue Jan 26, 2016 8:23 pm
Forum: Investing - Theory, News & General
Topic: Foreign ETF Trading - Best Practice
Replies: 41
Views: 1761

Re: Foreign ETF Trading - Best Practice

And then there is often some percentage of "weird stuff" in a fund's holdings: derivative positions, short-term bonds, currency swaps... the footnotes in the annual reports that managers hope nobody will read. I imagine Vanguard is pretty conservative about that sort of thing, though.
by Karamatsu
Mon Jan 25, 2016 7:26 pm
Forum: Investing - Theory, News & General
Topic: Foreign ETF Trading - Best Practice
Replies: 41
Views: 1761

Re: Foreign ETF Trading - Best Practice

Note that the indicative value "flat-lines" around 11:30 Eastern when the European markets are closing. Market values of the ETF itself after that time are trading on stale data. Depending on the investor they might also be trading on the basis of news, anticipating an up or down move whe...
by Karamatsu
Sun Jan 24, 2016 11:26 pm
Forum: Investing - Help with Personal Investments
Topic: Curreency risk and retiring overseas
Replies: 4
Views: 465

Re: Curreency risk and retiring overseas

Well, exchange rates can affect things quite a bit, so I think if I were you, I'd consider diversifying my portfolio to include a US-based European equity index fund (like Vanguard's VGK or the mutual fund equivalent). That way some percentage (of the underlying assets) will be in denominated in Eur...
by Karamatsu
Wed Jan 20, 2016 7:49 pm
Forum: Investing - Help with Personal Investments
Topic: Tips on Buy/Selling ETFs
Replies: 30
Views: 1771

Re: Tips on Buy/Selling ETFs

For what it's worth, I usually trade during the first half hour. It's often the most volatile time, because people are reacting to news and events that occurred after the previous day's close, and of course, international stocks will be repriced based both on their values at home and currency exchan...
by Karamatsu
Wed Jan 20, 2016 5:34 am
Forum: Investing - Help with Personal Investments
Topic: Tips on Buy/Selling ETFs
Replies: 30
Views: 1771

Re: Tips on Buy/Selling ETFs

So for those with some experience in buying/selling could you offer some suggestions on how it should be done? You really didn't do anything wrong. It's just that (unless you were selling right at the close) the market probably moved against you, the price fell, and nobody was willing to take the s...
by Karamatsu
Tue Jan 19, 2016 9:12 am
Forum: Investing - Help with Personal Investments
Topic: eyeing micro-cap stocks
Replies: 39
Views: 2646

Re: eyeing micro-cap stocks

The trouble with such ideas is that they always work great IF you pick the right stocks. And there's the rub. With micro-caps in particular, the kinds of ratios, etc, that you get from a regular screener can easily conceal all sorts of evil stuff going on under the hood. You'd really want to take a ...
by Karamatsu
Mon Jan 18, 2016 5:18 am
Forum: Investing - Help with Personal Investments
Topic: Newbie Investor - Japan
Replies: 3
Views: 379

Re: Newbie Investor - Japan

Taxes make everything tricky and cross-border taxation can be a nightmare, so generally I always think it's best to go for simplicity, say, by doing all your investment via a Japanese broker. But in your case even simplicity is hard, and you should probably consult with a tax advisor, particularly o...
by Karamatsu
Sun Jan 17, 2016 12:30 am
Forum: Investing - Help with Personal Investments
Topic: Individual Stock Help
Replies: 3
Views: 345

Re: Individual Stock Help

I suppose this is why we like index funds. Who really knows? The central question is why you bought each of them, and if those original reasons still hold. If they do, and you still feel confident about your reasoning, then unless you see something out there that looks better, chances are you should...
by Karamatsu
Sat Jan 16, 2016 6:29 am
Forum: Investing - Help with Personal Investments
Topic: [New Member] Picking a stock
Replies: 28
Views: 1490

Re: [New Member] Picking a stock

My goal is to eventually have similar portfolios to many of you I'm also unable to use mutual funds (because I'm not a US resident), so just duplicate the fund portfolio that I would otherwise want using ETFs. It's quite easy, but I second (third? fourth?) the recommendation that you use a broker t...
by Karamatsu
Fri Jan 08, 2016 6:35 am
Forum: Investing - Help with Personal Investments
Topic: Proper protocol for purchasing ETFs?
Replies: 17
Views: 1119

Re: Proper protocol for purchasing ETFs?

I agree, at least within the uncertainties of whether the market will take you up or down in the next five minutes. There's always a bottom, but of course we only know when it was in hindsight. All I was saying was that, in the absence of those tax law quirks, you really don't gain anything with lon...
by Karamatsu
Thu Jan 07, 2016 10:24 pm
Forum: Investing - Help with Personal Investments
Topic: Proper protocol for purchasing ETFs?
Replies: 17
Views: 1119

Re: Proper protocol for purchasing ETFs?

Interesting. End-of-year TLH is the only kind I've ever done. Otherwise it seems like you're just paying paying round-trip commissions+spread to own (more or less) the same thing. For example, say you had VWO and a $50K loss. You sell those shares and buy SCHE. You've booked the $50K realized loss, ...
by Karamatsu
Thu Jan 07, 2016 9:38 pm
Forum: Investing - Theory, News & General
Topic: How do you organize your finances? Do you use Mint.com?
Replies: 57
Views: 4041

Re: How do you organize your finances? Do you use Mint.com?

How does everyone here organize their finances? Just by hand. It's not that complicated. Or... if my personal finances were that complicated it would probably mean I'm doing something wrong. I don't trust services like mint.com (not that they're bad people -- I just don't trust the service model) s...
by Karamatsu
Thu Jan 07, 2016 9:30 pm
Forum: Investing - Help with Personal Investments
Topic: VCIT or VCSH
Replies: 4
Views: 404

Re: VCIT or VCSH

For what it's worth, I'm using VCIT. The yield on VCSH isn't that much better than a CD, so with all the usual caveats about rising interest rates, there doesn't seem to be much point if you're looking at a longterm investment. As for the mutual funds, you're right. US brokers typically won't allow ...
by Karamatsu
Thu Jan 07, 2016 9:13 pm
Forum: Investing - Help with Personal Investments
Topic: US-Japan Tax Treaty and W-8BEN
Replies: 5
Views: 1406

Re: US-Japan Tax Treaty and W-8BEN

It's always good to verify this sort of thing by writing or talking to the IRS or a tax accountant, but my impression is that there is no requirement for someone surrendering a green card to liquidate his IRA or other retirement accounts. He'll simply become a nonresident alien for tax purposes and ...
by Karamatsu
Thu Jan 07, 2016 8:50 pm
Forum: Investing - Help with Personal Investments
Topic: Proper protocol for purchasing ETFs?
Replies: 17
Views: 1119

Re: Proper protocol for purchasing ETFs?

Well, for $1.5M you'd be looking at about 82,000 shares of SCHE, which is a good 10% of average daily volume (yesterday was unusual, of course, because of the China thing). Given that the ETF normally trades in blocks of 500 or less you would definitely not want to place a market order! My first cho...
by Karamatsu
Sat Jan 02, 2016 9:39 pm
Forum: Investing - Help with Personal Investments
Topic: Hedging against the future of healthcare costs by buying healthcare equities index?
Replies: 24
Views: 1371

Re: Hedging against the future of healthcare costs by buying healthcare equities index?

There's no push to detail your portfolio. That's only really a recommendation when people are asking for portfolio advice, and it is best to be wary on the net. Once your information is out there, there's no getting it back. I will say it's inspiring, though, to see that someone can reach eight figu...
by Karamatsu
Sat Jan 02, 2016 7:50 am
Forum: Investing - Theory, News & General
Topic: Do you think Big Data technologies could aid active investing in the future?
Replies: 31
Views: 1555

Re: Do you think Big Data technologies could aid active investing in the future?

I think my main concern with the increased use of real-time analytics in the financial markets is that share prices will become increasingly unhinged and irrational. The markets are already at a point where no human being knows why they do what they do (no matter what the financial press may try to ...
by Karamatsu
Sat Jan 02, 2016 7:30 am
Forum: Investing - Help with Personal Investments
Topic: Roll Call for Tax-Loss Harvesting Class of 2015
Replies: 62
Views: 2376

Re: Roll Call for Tax-Loss Harvesting Class of 2015

So yeah... some TLH. It's particularly important here because capital gains are taxed at over 20%, and at the same time, there is no capital loss carry-forward for investments at foreign (non-Japanese) brokers, so I try to exactly offset the JPY value of gains during the year with equivalent JPY los...
by Karamatsu
Sat Jan 02, 2016 7:23 am
Forum: Investing - Help with Personal Investments
Topic: Hedging against the future of healthcare costs by buying healthcare equities index?
Replies: 24
Views: 1371

Re: Hedging against the future of healthcare costs by buying healthcare equities index?

I suspect that the only way to really protect against rises in health care costs is having adequate insurance. Investing in the health care index as a hedge against rising health care costs assumes that share prices will pace the cost of health care, but I'm not sure if that's actually seen in pract...
by Karamatsu
Mon Dec 28, 2015 5:19 am
Forum: Investing - Theory, News & General
Topic: Why do we call it "investing"?
Replies: 35
Views: 3167

Re: Why do we call it "investing"?

So shouldn't the term "investing" be applied only to the funds in the primary market and funds in the secondary and other markets be called something else? I agree with you in principle, but it's not so clear-cut, and much seems to depend on intention. For example, if you buy shares in th...
by Karamatsu
Mon Dec 28, 2015 4:48 am
Forum: Investing - Help with Personal Investments
Topic: Why same tickers for different products?
Replies: 2
Views: 315

Re: Why same tickers for different products?

I suppose there must be some underlying common standard to prevent problems like this but it seems like brokers and data aggregators use different schemes, and they're not always consistent even within the same company. But you could easily imagine a unification scheme similar to Internet domain nam...
by Karamatsu
Mon Dec 21, 2015 7:09 pm
Forum: Investing - Help with Personal Investments
Topic: Foreign Tax Credit - how use it before expiry in eight years
Replies: 22
Views: 1204

Re: Foreign Tax Credit - how use it before expiry in eight years

The devil in the details, of course, is that a capital loss and/or exchange rate losses from the foreign investment could wipe out the benefit of soaking up the outstanding foreign tax credit.
by Karamatsu
Wed Dec 16, 2015 9:15 pm
Forum: Investing - Help with Personal Investments
Topic: Convertible notes: are they stocks or bonds? (Aussie Boglehead)
Replies: 6
Views: 372

Re: Convertible notes: are they stocks or bonds? (Aussie Boglehead)

How I look at it would depend on my intentions and the terms... you mention that it's convertible in 2017 but not whether the conversion is mandatory or optional, whether the choice of cash or common is yours or theirs, whether the cash is face value or something else, whether you bought above/below...
by Karamatsu
Mon Dec 14, 2015 8:46 pm
Forum: Investing - Help with Personal Investments
Topic: preferred stocks
Replies: 5
Views: 516

Re: preferred stocks

Well, preferred stocks don't have a very good reputation around here because of their behavior and complexity: nearly all of the risks of equity but almost none of the upside, nearly all of the risks of bonds but almost none of that upside, either. The only things they have going for them is that th...
by Karamatsu
Mon Dec 14, 2015 7:25 pm
Forum: Investing - Help with Personal Investments
Topic: Foreign Tax Credit - how use it before expiry in eight years
Replies: 22
Views: 1204

Re: Foreign Tax Credit - how use it before expiry in eight years

If there were a clean way to soak up the credits it might be worthwhile but in general, to me, it seems like a bit of a fool's game. Trying to be clever with the IRS never seems to work out well. Of course, neither does being honest with the IRS, or following their own instructions! They seem to mak...
by Karamatsu
Sun Dec 06, 2015 10:56 pm
Forum: Investing - Theory, News & General
Topic: Statistics "R" [Programming language for portfolio analysis]
Replies: 25
Views: 2207

Re: Statistics "R" [Programming language for portfolio analysis]

For first steps in R I highly recommend Jared Lander's "R for Everyone" and RStudio. You'll need more books (or just documentation), especially once you start adding packages, but this combination is a good place to start.
by Karamatsu
Sun Nov 29, 2015 9:00 pm
Forum: Investing - Help with Personal Investments
Topic: "Sin stocks"
Replies: 42
Views: 5018

Re: "Sin stocks"

Although back when I was buying individual stocks I would avoid those that I felt made their money by doing evil (primarily because their annual reports were disgusting), once I began index investing I just let it go. The questions of share ownership, influence, and responsibility are too diffused. ...
by Karamatsu
Mon Oct 19, 2015 8:15 pm
Forum: Investing - Theory, News & General
Topic: Ex-US percentage for NON-US persons?
Replies: 5
Views: 444

Re: Ex-US percentage for NON-US persons?

That's a good strategy. What I did was start from the other end... of the two countries that concern me, how do I want to split assets between them? 50/50 is the natural thing to do since, if you maintain it, you become more or less immunized against exchange rate fluctuations. But concerns about th...
by Karamatsu
Sun Oct 18, 2015 8:32 pm
Forum: Investing - Theory, News & General
Topic: Prefered Stocks: Fixed Income or Equity?
Replies: 2
Views: 447

Re: Prefered Stocks: Fixed Income or Equity?

When these were part of my AA, I treated them as a third category. That let me set a limit for how much would be allocated to them, then diversify within the class. A few years ago, after mulling over some of the advice on this forum, I decided to move away from them, and as they were called, I shif...
by Karamatsu
Sat Oct 17, 2015 7:19 am
Forum: Investing - Theory, News & General
Topic: Sell at profit or keep for dividends
Replies: 7
Views: 712

Re: Sell at profit or keep for dividends

It's hard to say for sure without more context (other holdings, tax brackets, etc) but if I could go back in time to give myself one piece of investing advice, it would be to limit ESSP shares as a fraction of my total portfolio (maybe 10%) and put the rest in a simple, straightforward index fund po...
by Karamatsu
Sat Oct 17, 2015 7:09 am
Forum: Investing - Theory, News & General
Topic: Why is my stock ask "missed"?
Replies: 25
Views: 2663

Re: Why is my stock ask "missed"?

Even more, the buyers who bought shares at a higher price than they needed to should complain. Maybe the MM is doing something not-quite-right? That said, the process by which orders are filled is often peculiar. Back when I used to do a lot more trading (ah, confessions), I had real-time quotes and...
by Karamatsu
Wed Oct 07, 2015 10:29 pm
Forum: Investing - Help with Personal Investments
Topic: US tax implications of investing in Indian mutual funds
Replies: 4
Views: 575

Re: US tax implications of investing in Indian mutual funds

As far as I can tell, all foreign funds and fund-like entities (REITS) are PFICs, so unless they go to the trouble of doing all of the IRS reporting for you, you'd have to follow one of the PFIC taxation regimes described in the instructions for Form 8621 . This is not for the faint of heart. The on...
by Karamatsu
Sat Oct 03, 2015 7:57 am
Forum: Investing - Help with Personal Investments
Topic: American Expat Portfolio
Replies: 3
Views: 598

Re: American Expat Portfolio

At first glance that sounds like an interesting way to manage the residential/US split. Of course, over time, assuming your main source of income is locally-earned salary, you will end up with a stock/bond allocation that tilts further and further toward bonds. Not that that's a bad thing. It's just...
by Karamatsu
Tue Sep 08, 2015 7:25 am
Forum: Investing - Theory, News & General
Topic: All-world ex-US+ EM or Developed + EM
Replies: 6
Views: 785

Re: All-world ex-US+ EM or Developed + EM

Personally I use developed + EM because then they're two disjoint funds, rather than having overlap.
by Karamatsu
Tue Sep 08, 2015 7:18 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard Investing From Japan (Saison vs. Other Broker)
Replies: 9
Views: 826

Re: Vanguard Investing From Japan (Saison vs. Other Broker)

I'd go the direct route, primarily to know what you're getting, and to have more control at a lower cost. Before investing in any sort of fund here (and in the US, too) it's very important to read the prospectus carefully to make sure the managers aren't playing active management games behind the sc...
by Karamatsu
Tue Aug 25, 2015 8:14 pm
Forum: Investing - Theory, News & General
Topic: Case study Broker trade executions
Replies: 41
Views: 4071

Re: Case study: Broker trade executions

Something I've noticed at Schwab is that there's a delay between when the actual time of a trade and the moment when it becomes visible through the web interface. For example, China and associated fallout dropped my foreign stock allocations below the rebalancing line the other day, so I put in some...
by Karamatsu
Tue Aug 25, 2015 7:55 pm
Forum: Investing - Help with Personal Investments
Topic: British Citizen living in Japan for unknown term
Replies: 7
Views: 717

Re: British Citizen living in Japan for unknown term

I don't think there's any great investment necessity for opening a Japanese brokerage account. For index investors there are funds that track Japanese equities, or you could get exposure at market weight through any of the world stock funds. The other consideration in such cases is just taxes, but t...
by Karamatsu
Tue Aug 18, 2015 9:23 pm
Forum: Investing - Help with Personal Investments
Topic: Company Directors Acquiring Stock
Replies: 12
Views: 1085

Re: Company Directors Acquiring Stock

On the basis of what the OP has written, I'd avoid the stock.
by Karamatsu
Tue Aug 04, 2015 12:58 am
Forum: Investing - Help with Personal Investments
Topic: Spec ID and reinvestment [Specific shares ID, dividend reinvestment]
Replies: 5
Views: 423

Re: Spec ID and reinvestment [Specific shares ID, dividend reinvestment]

Is it a big deal to reinvest dividends in a taxable account since vanguard tracks all of the lots for you?


I've always felt that the benefits of reinvestment outweighed the problems. You just have to be a bit more careful when selling shares.
by Karamatsu
Mon Aug 03, 2015 8:03 am
Forum: Investing - Theory, News & General
Topic: Asset Class Returns and Climate Change, 2015-2050
Replies: 30
Views: 1742

Re: Asset Class Returns and Climate Change, 2015-2050

Just from a data science point of view I'm very sceptical of this sort of study so am not tempted to make any investment choices based on its results. There are too many unknowns.
by Karamatsu
Mon Aug 03, 2015 4:50 am
Forum: Investing - Help with Personal Investments
Topic: US citizen/expat living in Belgium - investment advice
Replies: 18
Views: 1646

Re: US citizen/expat living in Belgium - investment advice

That's good to know about the benefits of a permanent US address. It's not something I had the forethought to maintain, so it's not been an option for me. I do wonder, though, if the currency issue is such a big problem. Imagine there are two funds that hold shares of 800 Euro-denominated company is...
by Karamatsu
Sun Aug 02, 2015 7:21 pm
Forum: Investing - Help with Personal Investments
Topic: Investing as an American living in Japan
Replies: 6
Views: 810

Re: Investing as an American living in Japan

Welcome to the club! There are a bunch of Japan-based expats here so you should get some more input. I'm not really an allocation maven, but it seems to me you could simplify by eliminating BNDX and IGOV, and just use BND and JGB to modulate the balance between yen and dollar-denominated bond holdin...
by Karamatsu
Sun Aug 02, 2015 6:52 pm
Forum: Investing - Help with Personal Investments
Topic: US citizen/expat living in Belgium - investment advice
Replies: 18
Views: 1646

Re: US citizen/expat living in Belgium - investment advice

Hi there. So you're actually lucky that the Belgian banks wouldn't let you invest in Belgian mutual funds because that would have likely gotten you into considerable difficulties with US tax regulations governing treatment of "Passive Foreign Investment Companies." The best choice for US e...
by Karamatsu
Tue Jul 28, 2015 8:13 am
Forum: Investing - Help with Personal Investments
Topic: Moving from TIPs fund to TIPs ladder???
Replies: 49
Views: 3438

Re: Moving from TIPs fund to TIPs ladder???

It seems to me that using TIPS to fund specific, known future liabilities in a tax-advantaged account is pretty much the perfect use case for them, and since there's no rolling forward of the ladder, it really shouldn't be all that hard to deal with or explain. Cash will simply appear when it's need...
by Karamatsu
Wed Jul 01, 2015 7:12 pm
Forum: Investing - Help with Personal Investments
Topic: Open IRA before moving abroad (to Brazil)?
Replies: 6
Views: 920

Re: Open IRA before moving abroad (to Brazil)?

Is there any reason why we should not open the IRA? Although I'm not an expert, experience in Japan suggests that there is no reason to avoid contributing to an IRA as long you meet the IRS requirements for doing so. In fact, it seems only advantageous to contribute now, while you can. I'd sign up ...
by Karamatsu
Tue Jun 30, 2015 8:05 am
Forum: Investing - Theory, News & General
Topic: Has anyone noticed the Japanese stock market lately?
Replies: 15
Views: 2478

Re: Has anyone noticed the Japanese stock market lately?

The real story with Japan is president Abe committing to 'whatever it takes' to get the economy going again FWIW I think the real story is more that Japanese investors don't believe a word of it. For many years now, the driver of volatility in Japan's equity market has been foreign speculation, whi...
by Karamatsu
Tue Jun 30, 2015 12:29 am
Forum: Investing - Theory, News & General
Topic: Thoughts on Fixed-Maturity Bond Funds?
Replies: 29
Views: 3219

Re: Thoughts on Fixed-Maturity Bond Funds?

Thank you for both of those posts. They do help, and perhaps you are right that I'm intuitively applying a stock market mentality. There seem to be two aspects to that. One is the way in which selling equities at a loss to buy some other apparently better thing often becomes a race to see how quickl...

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