Search found 912 matches

by TedSwippet
Wed Feb 10, 2016 10:18 am
Forum: Investing - Theory, News & General
Topic: Buy US ETF as a non-US investor?
Replies: 5
Views: 321

Re: Buy US ETF as a non-US investor?

...Regarding the US estate taxes, I plan to invest less than $60 000 USD in US ETF so I should be fine. As a resident of France you would probably be okay even if over $60k. France is one of just a handful of countries with a decent US estate tax treaty . If the worst happens your heirs will have s...
by TedSwippet
Mon Feb 08, 2016 1:00 pm
Forum: Personal Finance (Not Investing)
Topic: Please share examples where earning an extra $1 can cost more in taxes than income.
Replies: 49
Views: 5673

Re: Please share examples where earning an extra $1 can cost more in taxes than income.

US ' expatriation tax ', applies to departing citizens and green-card holders when net worth exceeds $2m. At the threshold you can bounce in and out with stock market gyrations, home valuations, and so on. Going $1 over could cost you 39.6% of your retirement savings, in addition to possible MTM tax...
by TedSwippet
Sat Feb 06, 2016 4:23 am
Forum: Investing - Help with Personal Investments
Topic: Newly-retired Canada/US ctzn seeking feedback on invstmnt plan
Replies: 2
Views: 257

Re: Newly-retired Canada/US ctzn seeking feedback on invstmnt plan

Welcome. The following detail leapt out at me from your post: ...US citizen living in Canada; ... 20% Canada (VCE.TO) Because you are a US citizen, holding VCE.TO or any other non-US domiciled fund or ETF is a huge US tax sinkhole. For why see here and here . You should also avoid TFSAs and - - alth...
by TedSwippet
Wed Feb 03, 2016 11:24 am
Forum: Investing - Help with Personal Investments
Topic: What to do with Japanese wife's yen while living in the U.S.
Replies: 5
Views: 777

Re: What to do with Japanese wife's yen while living in the U.S.

...As an American (which your wife is also for tax purposes if you file jointly), ... Just to clarify this, OP's wife is a 'US person' for tax purposes both under the 'green card test' (has LPR) and very likely also under the 'substantial presence test' (lives in the US). Whether or not she is incl...
by TedSwippet
Fri Jan 29, 2016 3:28 am
Forum: Investing - Help with Personal Investments
Topic: Help with Newbie's asset allocation (Singapore)
Replies: 19
Views: 766

Re: Help with Newbie's asset allocation (Singapore)

Note that the US is not the only country that imposes taxes on dividends going abroad. Perhaps not. But the way that it extends this treatment to ETFs domiciled in the US, but which may themselves hold only non-US equities , make it a uniquely poor domicile for ETFs that non-resident aliens might w...
by TedSwippet
Thu Jan 28, 2016 3:18 am
Forum: Investing - Help with Personal Investments
Topic: Does anyone know this offer from a filipino bank?
Replies: 9
Views: 969

Re: Does anyone know this offer from a filipino bank?

hnzw rui wrote:From my research, there's no distributions coming from the funds so taxes will not be a problem until I sell.

http://thunfinancial.com/why-americans-should-never-ever-own-shares-in-a-non-us-incorporated-mutual-fund/
by TedSwippet
Mon Jan 25, 2016 8:11 am
Forum: Investing - Help with Personal Investments
Topic: Overwhelmed on what to do/invest - Dual citizen (US & EU)
Replies: 11
Views: 851

Re: Overwhelmed on what to do/invest - Dual citizen (US & EU)

It saddens me to no end that I have to do this in order to live a life where I can invest MY money that I earned in another country AND already payed taxes on. ACA has been promoting the idea of a ' same country exception ' to reporting for several years now, but with no visible progress. There is ...
by TedSwippet
Sun Jan 24, 2016 4:04 pm
Forum: Investing - Help with Personal Investments
Topic: Overwhelmed on what to do/invest - Dual citizen (US & EU)
Replies: 11
Views: 851

Re: Overwhelmed on what to do/invest - Dual citizen (US & EU)

Lots of points to note here. I'll try to pick off just a few. But, let's say I would give up my citizenship and want to move to the US for some reason. That would still be possible, even though it would be more hassle, right? You would be in the same situation as any other non-resident alien. Gainin...
by TedSwippet
Fri Jan 15, 2016 3:14 pm
Forum: Personal Finance (Not Investing)
Topic: Caught in a bind - transferring stocks from the UK to a US account.
Replies: 10
Views: 613

Re: Caught in a bind - transferring stocks from the UK to a US account.

Nosca wrote:...its purely for regulatory reasons they wont make a direct transfer from the UK to the US, ...

In all likelihood the culprit here is FATCA.
by TedSwippet
Wed Jan 13, 2016 12:02 pm
Forum: Investing - Help with Personal Investments
Topic: Help with my first investment [Non-resident alien]
Replies: 5
Views: 403

Re: Help with my first investment [Non-resident alien]

Thanks Ted, very valuable information. What if I registered a company and did all of my investments through that company? Will the danger of those taxes remain? It helps with some but not all. And unless you plan some exotic US investments I can't see it being a win for you overall. Examples: 1. Ho...
by TedSwippet
Wed Jan 13, 2016 4:09 am
Forum: Investing - Theory, News & General
Topic: New investor questions (UK, London)
Replies: 34
Views: 1668

Re: New investor questions (UK, London)

1/ Scenario 1: I buy today 50k in VWRL and 50k in IWRL. I paid 100 per share of VWRL and 200 per IWRL. March 1st of 2016 are both up 5%. 105 and 210. I sell all (50k) VWRL, and buy 50k IWRL at 210 per share. Do the shares that I had (200) get mixed with the ones that cost 210? In this way making al...
by TedSwippet
Tue Jan 12, 2016 4:54 pm
Forum: Investing - Theory, News & General
Topic: New investor questions (UK, London)
Replies: 34
Views: 1668

Re: New investor questions (UK, London)

1/ How can how much income you have impact your capital gains rate. Could you put an example please? 18% for UK basic rate taxpayers, 28% if you're in higher rate tax (or above). More here . 2/ Could I change VWRL for VUSA (the same day) to avoid the 30 days as well? (I ask this because both are st...
by TedSwippet
Tue Jan 12, 2016 11:13 am
Forum: Investing - Theory, News & General
Topic: New investor questions (UK, London)
Replies: 34
Views: 1668

Re: New investor questions (UK, London)

1/ Scenario 1: I dont work in a job. I get 21000GBPs from rent a year from London, 11000EUROs rent from Spain. I own 200kGBPs in stocks in VWRL and this went up a 5% this year (+10kGBPs). Should I cashout 200kGBPs and wait for 30 days to cash it in again? Since even with 200kGBPs I don't get to 11k...
by TedSwippet
Tue Jan 12, 2016 7:46 am
Forum: Investing - Theory, News & General
Topic: New investor questions (UK, London)
Replies: 34
Views: 1668

Re: New investor questions (UK, London)

1/ How does the "£10k capital gains allowance" work. Does it mean that each year you won't get taxed in up to 10kGBPs of your capital gains for stocks or bonds? (I never heard of this concept before sorry) More here . It's actually just over £11k for 2015/16. 2/ Also; Why do you have to w...
by TedSwippet
Mon Jan 11, 2016 7:03 pm
Forum: Investing - Theory, News & General
Topic: New investor questions (UK, London)
Replies: 34
Views: 1668

Re: New investor questions (UK, London)

1/ When I max my ISA (up to 15kGBPs). Should I fill it in bonds or stocks? I think Bogle recommends to fill the IRAs in Bonds because it is more profitable in the long run, but I am not sure. Not so much more profitable as more tax efficient (well okay, that's also more profitable in a sense). Bond...
by TedSwippet
Mon Jan 11, 2016 6:39 pm
Forum: Investing - Help with Personal Investments
Topic: Help with my first investment [Non-resident alien]
Replies: 5
Views: 403

Re: Help with my first investment [Non-resident alien]

Welcome to the forum. 1. Since I'm a non-resident alien, I understand that I should open an account with a non-US broker and stick to non-US domiciled funds , for tax purposes. Is this true? Yes. Sticking to non-US funds will sidestep the US's 30% withholding on all dividends paid to non-resident al...
by TedSwippet
Mon Jan 11, 2016 11:43 am
Forum: Investing - Theory, News & General
Topic: New investor questions (UK, London)
Replies: 34
Views: 1668

Re: New investor questions (UK, London)

1/ Is there any downside to using a platform like "Interactive Brokers" (which might be more focus on the US) vs "Hargreaves Landsdown" (which is focus on the UK)? Can I still use ISAs with online platforms such as Interactive brokers? Or do they need to be UK platforms? You can...
by TedSwippet
Mon Jan 11, 2016 7:36 am
Forum: Investing - Theory, News & General
Topic: New investor questions (UK, London)
Replies: 34
Views: 1668

Re: New investor questions (UK, London)

Can I still use tax-defered accounts like ISA, etc.? Assuming you are resident in the UK -- and also not a US citizen, green card holder, or other form of US tax payer -- then yes, you can hold investments inside an ISA. And to the extent that you can, you probably should hold them there. The best ...
by TedSwippet
Sat Jan 09, 2016 1:59 pm
Forum: Investing - Help with Personal Investments
Topic: Investing 120k$ [Living in UK]
Replies: 11
Views: 1413

Re: Investing 120k$ [Living in UK]

The articles referenced below might help. Interactive Brokers is US based, but UK brokers operate under similar ring-fencing rules. 1/ If I invest my money through an online platform such as "Interactive Brokers" and for whatever reason this company stops working, would I loose all my mone...
by TedSwippet
Sun Jan 03, 2016 12:48 pm
Forum: Investing - Help with Personal Investments
Topic: Beginner investing [US ex-pat, living in Israel]
Replies: 46
Views: 2179

Re: foreign investing

See also the wiki page on 'Taxation as a US person living abroad' (and be sure to pay particularly close attention to this section).
by TedSwippet
Thu Dec 24, 2015 10:36 am
Forum: Investing - Theory, News & General
Topic: Saving money in a 22% interest foreign bank account vs stocks
Replies: 61
Views: 5095

Re: Saving money in a 22% interest foreign bank account vs stocks

UK brokers don't track cost basis? Well, they show you a number. As far as I can tell it is just the sum of every trade you made to arrive at the number of units you hold. Maybe some do(?), but personally I have never seen a broker or platform update this cost basis number quarterly or semi-annuall...
by TedSwippet
Thu Dec 24, 2015 9:43 am
Forum: Investing - Theory, News & General
Topic: Saving money in a 22% interest foreign bank account vs stocks
Replies: 61
Views: 5095

Re: Saving money in a 22% interest foreign bank account vs stocks

I'm not familiar with the UK tax system. Is Accumulation Unit phantom income really that big of a paperwork issue? Or do UK investors just get an "annual tax certificate" that they can just plug into some software (TurboTax-equivalent)? I recall it being a bit of a thorny problem a few ye...
by TedSwippet
Thu Dec 24, 2015 9:09 am
Forum: Investing - Theory, News & General
Topic: Saving money in a 22% interest foreign bank account vs stocks
Replies: 61
Views: 5095

Re: Saving money in a 22% interest foreign bank account vs stocks

...you could do something like.. 20% Vanguard FTSE U.K. All Share Index Unit Trust Acc 60% Vanguard FTSE Developed World ex-U.K.Equity Index Fund Acc 20% Vanguard U.K. Government Bond Index Acc Or even just buy the portfolio-in-a-box in the form of the Vanguard 80% LifeStrategy fund . Because it's ...
by TedSwippet
Thu Dec 24, 2015 9:03 am
Forum: Investing - Theory, News & General
Topic: Saving money in a 22% interest foreign bank account vs stocks
Replies: 61
Views: 5095

Re: Saving money in a 22% interest foreign bank account vs stocks

Do I still have to pay US taxes for US accumulation funds domiciled in London/Ireland? What about UK tax? Does that mean I will get taxed double by both US and UK? In order -- no, see later, and no. No additional US tax entanglement. The fund itself may have to pay some withholding tax on US source...
by TedSwippet
Sun Dec 20, 2015 2:15 pm
Forum: Investing - Help with Personal Investments
Topic: Non resident (alien) investor
Replies: 10
Views: 846

Re: Non resident (alien) investor

Welcome to the forum. a)whether there is a law that prevents US advisors / managers from handling non-US residents?.... or are they just internal company guidelines relating to compliance No law as far as I know. As a former US resident and now non-resident alien (NRA) I still have my Vanguard accou...
by TedSwippet
Wed Nov 11, 2015 4:27 pm
Forum: Investing - Help with Personal Investments
Topic: European poker player wants to retire in a Bogleheads style
Replies: 6
Views: 1326

Re: European poker player wants to retire in a Bogleheads style

...According to the information above - there is no US estate tax for the US domiciled ETFs. I found many posts here on Bogleheads saying the opposite as well as other sources online. Unless I misunderstand something in the answer? I don't think you misunderstood IB's response. My reading of it is ...
by TedSwippet
Tue Nov 10, 2015 7:06 am
Forum: Investing - Help with Personal Investments
Topic: (US resident alien) US savings after move to UK
Replies: 10
Views: 779

Re: (US resident alien) US savings after move to UK

I don't think it's bad now, but I was looking here and it seems to have been slowly increasing since June, but at around 0.66,... What funds were you planning to buy in Vanguard US? If you were instead to transfer your cash to the UK and then buy UK funds that track the same index or indexes, the f...
by TedSwippet
Tue Nov 10, 2015 6:09 am
Forum: Investing - Help with Personal Investments
Topic: (US resident alien) US savings after move to UK
Replies: 10
Views: 779

Re: (US resident alien) US savings after move to UK

Hmm, would it change anything if I added that I am not a UK citizen? I am a EU citizen, but Eastern European. Maybe, but maybe not. If you're resident in the UK you pay tax to the UK on your worldwide income. It's possible you could avoid or delay this under the non-dom rules , but it's tricky and ...
by TedSwippet
Tue Nov 10, 2015 4:09 am
Forum: Investing - Help with Personal Investments
Topic: (US resident alien) US savings after move to UK
Replies: 10
Views: 779

Re: (US resident alien) US savings after move to UK

What epsilon_delta said.

Directly holding US investments as a UK resident has a number of tax complications (from both sides) that you don't need. For example, most Vanguard US funds would be non-reporting funds in the UK.
by TedSwippet
Mon Nov 09, 2015 11:18 am
Forum: Investing - Help with Personal Investments
Topic: Should I consider investing abroad?
Replies: 2
Views: 361

Re: Should I consider investing abroad?

Assuming you pass the substantial presence and/or green card tests -- that is, you are a ' US person for tax purposes ' -- then... You will owe tax annually on the interest paid (or perhaps accrued if not yet paid out). You will have to convert everything to USD at prevailing rates on the days inter...
by TedSwippet
Sat Nov 07, 2015 11:54 am
Forum: Investing - Help with Personal Investments
Topic: Risks of using US brokerage for NRAs?
Replies: 4
Views: 303

Re: Risks of using US brokerage for NRAs?

Also worth a read is this CNBC article from a couple of days ago: Look who's getting away with not paying this estate tax The article notably fails to mention that the estate tax exemption for NRAs is just a shade over 1/100th of the amount allowed for US citizens , making the US estate tax two orde...
by TedSwippet
Fri Nov 06, 2015 11:34 am
Forum: Investing - Help with Personal Investments
Topic: European poker player wants to retire in a Bogleheads style
Replies: 6
Views: 1326

Re: European poker player wants to retire in a Bogleheads style

Obviously it's your choice, but I'd at least quantify the risk/reward as hard cash. VOO 's TER is 0.05%. VUSA 's is 0.07%. Both are from Vanguard and equally trustworthy (in all likelihood VUSA is just a sub-fund or other 'facet' of VOO or whatever underlies it). At $20/year on a $100k investment th...
by TedSwippet
Fri Nov 06, 2015 3:19 am
Forum: Investing - Help with Personal Investments
Topic: Math help needed please - ERs and Div Taxes.
Replies: 13
Views: 1152

Re: Math help needed please - ERs and Div Taxes.

That's annoying. So either pay the higher US tax withholding or pay the broker transfer fees? Worth double-checking that sticking is better than moving, though. US dividend tax is annual, but broker transfer fees are only on buy or sell which long term buy-and-hold will minimize. I take it you're al...
by TedSwippet
Thu Nov 05, 2015 4:57 pm
Forum: Investing - Help with Personal Investments
Topic: ETF Portfolio Advice [Israel]
Replies: 11
Views: 680

Re: Portfolio Advice (UK born now living in Israel)

Interesting. Andrew Hallam also wrote The Global Expatriates Guide to Investing , potentially even more applicable to you as a globe-trotter. One other thought on your plan going forwards. If you invest £400/month in two ETFs you could find yourself paying between £10 - £20 total in trading fees eac...
by TedSwippet
Thu Nov 05, 2015 1:32 pm
Forum: Investing - Help with Personal Investments
Topic: ETF Portfolio Advice [Israel]
Replies: 11
Views: 680

Re: Portfolio Advice (UK born now living in Israel)

I'd happily live with your allocation and portfolio. It's very elegant and simple. Given where you live, it's worth avoiding US-domiciled ETFs, which I see you have done (either by luck or by judgement -- doesn't matter which!). On GBP versus Shekels, well, just because a fund is denominated in GBP,...
by TedSwippet
Thu Nov 05, 2015 12:28 pm
Forum: Investing - Help with Personal Investments
Topic: UK investment help (advisor recommendations + DIY questions)
Replies: 5
Views: 410

Re: UK advisor?

Maybe start here: https://www.unbiased.co.uk/.

At the level of assets you're talking about, you'd probably want to look for a flat fee or per-hour rather than percentage or other commission-based adviser.
by TedSwippet
Thu Nov 05, 2015 10:46 am
Forum: Investing - Help with Personal Investments
Topic: European poker player wants to retire in a Bogleheads style
Replies: 6
Views: 1326

Re: European poker player wants to retire in a Bogleheads style

Lithuania has no estate tax treaty with the US, leaving you at risk of US estate tax on holdings over $60k in aggregate on US-domiciled ETFs. I would swap out all US-domiciled ETFs -- VTI, VXUS, VWO, BND etc -- for Ireland domiciled ones. Vanguard's or iShares EU offerings fit the bill, and will ins...
by TedSwippet
Thu Nov 05, 2015 3:44 am
Forum: Investing - Help with Personal Investments
Topic: low cost index investing for Korean citizens in Korea
Replies: 2
Views: 342

Re: low cost index investing for Korean citizens in Korea

HurdyGurdy wrote:(since Korea has a tax treaty with the US, this would not apply).

But there is still the US estate tax on holdings above $60k to worry about. The US has no estate tax treaty with Korea. Best stick to Vanguard's EU domiciled ETFs and avoid the US ones, then.
by TedSwippet
Wed Nov 04, 2015 2:01 pm
Forum: Investing - Help with Personal Investments
Topic: Math help needed please - ERs and Div Taxes.
Replies: 13
Views: 1152

Re: Math help needed please - ERs and Div Taxes.

...the cost of having a broker that offers ETFs on exchanges in jurisdictions with a tax treaty with the US such as Ireland or Luxembourg works out more costly ... You do not need to buy on an exchange in a country with a US tax treaty. You only need to buy an ETF that is domiciled in a tax treaty ...
by TedSwippet
Wed Nov 04, 2015 12:45 pm
Forum: Investing - Help with Personal Investments
Topic: Robo-advisor user moving to Canada
Replies: 18
Views: 1204

Re: Robo-advisor user moving to Canada

So... you currently hold a green card, and will surrender it via form I-407 on leaving the US? (To be a 'resident alien' means to hold a green card -- form I-551 -- and you can only switch back to 'non-resident alien' by surrendering it.) I am actually not a green card holder. I am on J visa. My un...
by TedSwippet
Mon Nov 02, 2015 10:41 am
Forum: Investing - Help with Personal Investments
Topic: Robo-advisor user moving to Canada
Replies: 18
Views: 1204

Re: Robo-advisor user moving to Canada

I don't think I will be sending W8BEN to Betterment, as they say they don't support the account for those who live outside of US. Yeah, Betterment won't handle W-8BEN. But this might put you in breach of the terms and conditions of holding the account. Worst case, Betterment could forcibly close it...
by TedSwippet
Sun Nov 01, 2015 3:24 pm
Forum: Investing - Help with Personal Investments
Topic: Buying and selling index funds [UK]
Replies: 7
Views: 861

Re: Buying and selling index funds

At the moment I proceed with trade 3, will I be selling $10k of value from units purchased on trade 1 (price $100) or trade 2 (price $110)? Neither. UK rules on share identification differ from US ones. More in this helpsheet . In essence, the UK has average cost basis only. For your example, in De...
by TedSwippet
Sun Nov 01, 2015 4:37 am
Forum: Investing - Help with Personal Investments
Topic: Robo-advisor user moving to Canada
Replies: 18
Views: 1204

Re: Robo-advisor user moving to Canada

Once you are non-resident you pay 15% US tax (treaty rate) on your dividends. The payer is supposed to withhold this and report it to you on form 1042-s . Will Betterment know that you are an NRA, even if using a US forwarding address? Will you send them a W-8BEN? If not then you may find it hard to...
by TedSwippet
Mon Oct 26, 2015 3:33 am
Forum: Investing - Help with Personal Investments
Topic: Investing in Israel
Replies: 3
Views: 641

Re: Investing in Israel

bs010101 wrote:Is it recommended to invest through an American brokerage, or an Israeli one? Would he be looking at the same types of funds as in the US, or different?

American, and only through US-domiciled funds. More about why in this wiki page and this article.
by TedSwippet
Fri Oct 23, 2015 10:31 am
Forum: Investing - Help with Personal Investments
Topic: 401k allocation help to a newbie [Nonresident Alien, H-1B Visa]
Replies: 5
Views: 393

Re: 401k allocation help to a newbie [Nonresident Alien, H-1B Visa]

...There is a treaty to avoid double tax but there is nothing specific for retirement. Unless I miss something this is what it says. Pensions and Annuities 1. Subject to the provisions of paragraph 2 of Article 19 (Government Service), pensions and other similar remuneration paid to a resident of a...
by TedSwippet
Fri Oct 23, 2015 2:51 am
Forum: Investing - Help with Personal Investments
Topic: 401k allocation help to a newbie [Nonresident Alien, H-1B Visa]
Replies: 5
Views: 393

Re: 401k allocation help to a newbie [Nonresident Alien, H-1B Visa]

But IRA withholds 30% flat tax from non-resident aliens... Except if a tax treaty between the US and your country of residence specifies a lower rate. Many do. For example the US/UK treaty which says that traditional Roth IRAs are taxable only by your 'state of residence', and which also fully resp...
by TedSwippet
Thu Oct 22, 2015 5:57 pm
Forum: Investing - Help with Personal Investments
Topic: Merrill Lynch liquidating my dad's account
Replies: 19
Views: 2404

Re: Merrill Lynch liquidating my dad's account

Merely spending 'a significant amount of time' in France DOES NOT qualify dad as a non US resident. Perhaps, but it seems that it's French residency rather than (possible) US non-residency that is the issue here. ML does not want the expense, bother, hassle, and potential legal tangles that come wi...
by TedSwippet
Wed Oct 21, 2015 2:44 am
Forum: Investing - Help with Personal Investments
Topic: Platform to invest in Vanguard from Dubai??
Replies: 4
Views: 465

Re: Platform to invest in Vanguard from Dubai??

Thanks to anti-money laundering rules, many platforms, brokers and banks are refusing customers who live abroad. Maybe try Interactive Brokers . They are known to court expats and trans-nationals. No idea on how acceptable you will find the charges. They won't offer funds, only access to global stoc...
by TedSwippet
Tue Oct 20, 2015 3:14 am
Forum: Investing - Help with Personal Investments
Topic: PFIC funds sold BEFORE becoming US resident
Replies: 3
Views: 341

Re: PFIC funds sold BEFORE becoming US resident

Does she need to report the sale of the mutual funds? I think not because (1) they were in my father's name (2) they were sold before she became a US resident. Technically I don't think (1) protects you here. Your mother (presumably) became the owner of these funds on inheriting them. However, prov...
by TedSwippet
Sat Oct 17, 2015 5:25 pm
Forum: Investing - Help with Personal Investments
Topic: USA retirement investment for foreigner [UK ex-pat]
Replies: 7
Views: 584

Re: USA retirement investment for foreigner [UK ex-pat]

I don't know where I'll be in two years, but I'm fairly certain I won't be retiring in the US. It seems that if I was to withdraw the funds in a couple of years I'd be taxed and have a penalty, and the worse case scenario I can think of is that all the taxes and charges will equal or exceed the emp...

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