Search found 126 matches

by sean.mcgrath
Fri Apr 19, 2019 10:43 am
Forum: Non-US Investing
Topic: Currency risk when retiring abroad - Investing internationally in EUR?
Replies: 16
Views: 1194

Re: Currency risk when retiring abroad - Investing internationally in EUR?

Americans seem to keep 60%+ of their investment in USD, which seems a reasonable rule of thumb But isn't that simply representative of the US being ~50% of global stock valuation + some bias towards local market? With Europe being much smaller, I feel like the reasoning may or may not apply. I gues...
by sean.mcgrath
Mon Mar 18, 2019 7:16 am
Forum: Investing - Theory, News & General
Topic: What theory has changed, since you last took Economics/Finance courses in college?
Replies: 69
Views: 5009

Re: What theory has changed, since you last took Economics/Finance courses in college?

Having lived through Michigan's double digit unemployment in the 80s, the march of Japan, Inc., the (first) Chrysler bailout, and the early rounds of GM plant closures, I doubt anyone in Michigan would have agreed with the Econ instructor.... This was at a Michigan university on top of it. It just ...
by sean.mcgrath
Sun Mar 17, 2019 10:21 am
Forum: Investing - Theory, News & General
Topic: What theory has changed, since you last took Economics/Finance courses in college?
Replies: 69
Views: 5009

Re: What theory has changed, since you last took Economics/Finance courses in college?

My friend was a Finance major...graduated in 1992. His Econ instructor at the time said it was impossible that General Motors could ever go bankrupt. If the instructor said that then he was a fool, and I can say so without benefit of knowing what happened later. PJW Having lived through Michigan's ...
by sean.mcgrath
Fri Mar 15, 2019 7:24 am
Forum: Personal Investments
Topic: Most people wish they invested more and sooner. Any of you wish they invested less?
Replies: 38
Views: 4307

Re: Most people wish they invested more and sooner. Any of you wish they invested less?

So far I have never looked at my account balances and then looked around at my stuff and wished I had lower balances and more stuff. +1 No, not really. Certainly not with "stuff." With experiences, I do occasionally look at choices my brother (a truly prodigious saver) has made for once in a lifeti...
by sean.mcgrath
Fri Mar 15, 2019 5:45 am
Forum: Investing - Theory, News & General
Topic: What theory has changed, since you last took Economics/Finance courses in college?
Replies: 69
Views: 5009

Re: What theory has changed, since you last took Economics/Finance courses in college?

I remember the professor in Econ 101, back in the mid-1970's, assuring us that there would never be another Great Depression. There were just too many safeguards in place, he said, that would prevent that from happening. Of course we came pretty dang close to another Great Depression in 2007-09. So...
by sean.mcgrath
Thu Mar 14, 2019 4:36 am
Forum: Personal Consumer Issues
Topic: Vacation Home: Own vs. Rent??
Replies: 42
Views: 3377

Re: Vacation Home: Own vs. Rent??

It's a very personal decision, and fwiw here's our experience: we live in Europe, and after ten years of vague dreaming we bought a summer house back in Michigan in 2009. We love it: there is enormous psychic benefit to it being our own place, the kids have really come to see it as special, the rest...
by sean.mcgrath
Tue Mar 12, 2019 1:49 pm
Forum: Non-US Investing
Topic: Currency risk when retiring abroad - Investing internationally in EUR?
Replies: 16
Views: 1194

Re: Currency risk when retiring abroad - Investing internationally in EUR?

Hi undid, First, I agree with Ted's point that the denomination of the asset doesn't matter, only the currency of the underlying assets. I have been faced with a similar issue, and actually have concluded that the effect of currency on equity in multi-nationals is quite complex and not intuitive (i....
by sean.mcgrath
Tue Mar 12, 2019 12:34 pm
Forum: Non-US Investing
Topic: Buying individual stocks in Germany (US Expat)
Replies: 11
Views: 842

Re: Buying individual stocks in Germany (US Expat)

How did you convince IB? I actually managed to demonstrate that I qualify as a professional investor according to trading history and jobs I have had. I'm not an expert, but my understanding is that in the US and in Europe you cannot market to an investor without following certain laws. I do get th...
by sean.mcgrath
Tue Mar 12, 2019 12:25 pm
Forum: Non-US Investing
Topic: [EU] How to bypasses MIFID II, PRIPS and buy US ETFs
Replies: 10
Views: 1367

Re: [EU] How to bypasses MIFID II, PRIPS and buy US ETFs

Ok, thanks Ted. As far as I can tell, the US would let me claim it as a credit although I don't know how to do that at the same time that I claim a credit from a Tax Treaty (a question I am asking here).

Cheers,
Sean
by sean.mcgrath
Tue Mar 12, 2019 12:22 pm
Forum: Non-US Investing
Topic: Question for Dutch residents about ETF dividend taxes
Replies: 2
Views: 218

Re: Question for Dutch residents about ETF dividend taxes

Thanks. Yes, I can avoid double taxation between the US and the Netherlands (the US gets the first 15%, the Netherlands the extra up to their tax rate). If I could break out the countries, I believe I could get the other country taxes from the Netherlands as well. I do wonder whether anyone here has...
by sean.mcgrath
Mon Mar 11, 2019 7:09 pm
Forum: Non-US Investing
Topic: Question for Dutch residents about ETF dividend taxes
Replies: 2
Views: 218

Question for Dutch residents about ETF dividend taxes

Well, it's tax season and suddenly I am active again on the forum. :D I would like to know how other Dutch residents handle the Belastingdienst's credit for foreign dividend taxes from an ETF (where the taxes per individual country are not known). In my case, the issue is for a US-based ETF that inv...
by sean.mcgrath
Mon Mar 11, 2019 6:36 pm
Forum: Non-US Investing
Topic: [EU] How to bypasses MIFID II, PRIPS and buy US ETFs
Replies: 10
Views: 1367

Re: [EU] How to bypasses MIFID II, PRIPS and buy US ETFs

In contrast, this investor holding VUSA, Vanguard's UCITS S&P 500 tracker, would receive dividends after the ETF has paid 15% internally to the US under the US/Ireland treaty. The remaining 85% is however all subject to UK tax, with no credit or offset for the 15% lost within the ETF itself. So the...
by sean.mcgrath
Mon Mar 11, 2019 6:20 pm
Forum: Non-US Investing
Topic: Buying individual stocks in Germany (US Expat)
Replies: 11
Views: 842

Re: Buying individual stocks in Germany (US Expat)

Did you try the Schwab International One account? It gives access to ETFs at Schwab and seems available to German residents. I use it with no complaints. https://international.schwab.com/public/international/nn/acct_open_intro.html Hi Typical, Does Schwab deal with the MIFID PRIIPs issue? I use IB,...
by sean.mcgrath
Mon Mar 11, 2019 6:08 pm
Forum: Non-US Investing
Topic: Buying individual stocks in Germany (US Expat)
Replies: 11
Views: 842

Re: Buying individual stocks in Germany (US Expat)

Side note, has anyone seen US-Domiciled ETFs similar to VXUS/VTI with a EUR base currency? Hi Radioactive, The base currency of the ETF doesn't really matter if they are holding the same stocks. I use IB as well, and have the EUR as my functional currency. In practice, I believe that does what you ...
by sean.mcgrath
Mon Mar 11, 2019 5:59 pm
Forum: Non-US Investing
Topic: Taxes: Form 1116 income is both Passive and Treaty
Replies: 0
Views: 127

Taxes: Form 1116 income is both Passive and Treaty

@LadyGeek: apologies, this is a re-post from the Personal Investing section. I hadn't realized that it is now for US investors, and non-US PI goes here. Mostly valid for Americans living abroad. I have income that qualifies as both Passive and Treaty (triple taxation :annoyed ) and would appreciate ...
by sean.mcgrath
Sun Jul 15, 2018 7:50 am
Forum: Non-US Investing
Topic: American in the EU -- problems with IB acct
Replies: 14
Views: 1550

Re: American in the EU -- problems with IB acct

Fair enough. :(

I really hope post 9/11 is a speed bump, and not the end of the golden era of international institutions. I really wonder how complicated all of this multiple countries bit will be for my kids when they start filing...
by sean.mcgrath
Sat Jul 14, 2018 4:21 pm
Forum: Non-US Investing
Topic: American in the EU -- problems with IB acct
Replies: 14
Views: 1550

Re: American in the EU -- problems with IB acct

Thanks, Ted; very interesting. Just curious, as you are not American, why do you follow this topic?

Cheers,
Sean
by sean.mcgrath
Sat Jul 14, 2018 3:23 am
Forum: Non-US Investing
Topic: American in the EU -- problems with IB acct
Replies: 14
Views: 1550

Re: American in the EU -- problems with IB acct

Yes, meeting the criteria of a professional investor or having a US residence seem to be the most likely solutions. We actually own a house in the US that we live in for part of the year, so I could look into that. But it seems such a large, general problem, I'm a bit surprised that I don't see more...
by sean.mcgrath
Fri Jul 13, 2018 4:57 am
Forum: Non-US Investing
Topic: American in the EU -- problems with IB acct
Replies: 14
Views: 1550

Re: American in the EU -- problems with IB acct

Thanks, Ted -- I missed that one. Indeed, one option does seem to be to change classification as a professional investor. I'm giving it a try, and will let the forum know how it goes. Given the large number of Americans in Europe on this forum, I did want to open this thread also to gather any exper...
by sean.mcgrath
Thu Jul 12, 2018 7:32 pm
Forum: Non-US Investing
Topic: American in the EU -- problems with IB acct
Replies: 14
Views: 1550

Re: American in the EU -- problems with IB acct

Hi Be,

Yes, I am aware and have benefited from them. Unless I have missed it, I have not seen posts on this topic.

Any help appreciated!
Sean
by sean.mcgrath
Thu Jul 12, 2018 1:51 pm
Forum: Non-US Investing
Topic: American in the EU -- problems with IB acct
Replies: 14
Views: 1550

American in the EU -- problems with IB acct

Hi all, I'd like to hear other Americans' experiences with the new European investment regulation. I am an American in Europe with a US Interactive Brokers account. Today it blocked me from buying shares in a US ETF because "this product is currently unavailable to clients classified as 'retail clie...
by sean.mcgrath
Thu Jan 18, 2018 8:01 pm
Forum: Investing - Theory, News & General
Topic: US stock market vs USD
Replies: 9
Views: 1590

Re: US stock market vs USD

Why the 2017 $ decline? I would argue it's fairly simple: purchase price parity (PPP). I track the Euro/USD because both are important to me (both earnings and expenses). If you look since currency controls were dropped in the 80s, on average the two have been withing 1-2% of their PPP rate, albeit...
by sean.mcgrath
Mon Jul 24, 2017 3:27 am
Forum: Investing - Theory, News & General
Topic: Simba's backtesting spreadsheet [a Bogleheads community project]
Replies: 1137
Views: 654590

Re: Simba's backtesting spreadsheet [a Bogleheads community project]

Since many in this thread are interested in historical stock information, here's a new (July 2017) source. This paper presents new monthly capital gain, dividend yield, and total return indices for common equities quoted on British exchanges during 1869-1929. I construct indices for 25 domestic sec...
by sean.mcgrath
Sat Jul 15, 2017 4:58 pm
Forum: Investing - Theory, News & General
Topic: Is now time to move into international stocks?
Replies: 57
Views: 8758

Re: Is now time to move into international stocks?

I am waiting for the "What the heck do we need US Stocks for anyway?" threads to pop up as the International markets start to do better. Much of this has to do with the relative strength of the US Dollar to other major currencies such as the Yen, the Euro, and the Pound. The under-performance of th...
by sean.mcgrath
Sun Jul 09, 2017 3:44 pm
Forum: Non-US Investing
Topic: US citizens abroad - more on PFICs
Replies: 6
Views: 1783

Re: US citizens abroad - more on PFICs

Do you think it's better if I start a new thread with the same question? If so please let me know! You certainly got my attention with the PFICs header! -- an eternal point of interest for me. It's not clear to me: is your post related to PFICs? If not, I'd suggest you start a new thread. cheers, S...
by sean.mcgrath
Sun Jul 09, 2017 3:37 pm
Forum: Investing - Theory, News & General
Topic: Retirement is Risky Business
Replies: 41
Views: 8420

Re: Retirement is Risky Business

nisiprius wrote:"Fear is a much more effective motivator than greed."
Love the Screwtape Letters reference -- it's spot on.
by sean.mcgrath
Fri Jul 07, 2017 9:21 am
Forum: Investing - Theory, News & General
Topic: Should Indexers give up their voting rights? Bill McNabb says "No"
Replies: 8
Views: 1465

Re: Should Indexers give up their voting rights? Bill McNabb says "No"

Actions speak louder than words Vanguard's voting history is generally along the lines of the companies management (like a train :-) )..... How did you conclude that? I opened Total Stock Market, and in the first four companies listed Vanguard had three against votes. That's a lot. Personally, I'd ...
by sean.mcgrath
Fri Jun 30, 2017 1:39 pm
Forum: Investing - Theory, News & General
Topic: Recent factor loadings?
Replies: 4
Views: 1449

Re: Recent factor loadings?

I noticed something strange regarding factor loadings - when you go to portfoliovisualizer and check out lets say WisdomTree International SmallCap Fund (DLS) which should have nice size and value loadings, then you can see that for the date range 2006-2017 they are fine (size loading 0.34 value lo...
by sean.mcgrath
Mon Jun 19, 2017 4:39 pm
Forum: Investing - Theory, News & General
Topic: A bit more on Tontines
Replies: 10
Views: 2850

Re: A bit more on Tontines

I can't read the article as I don't subscribe to Economist and am getting blocked by its pay-wall (and didn't feel like taking the time for finding ways around it) Not sure why -- I got to the article on two computers where I wasn't subscribed. I think you get three views a week without subscribing...
by sean.mcgrath
Mon Jun 19, 2017 9:04 am
Forum: Investing - Theory, News & General
Topic: A bit more on Tontines
Replies: 10
Views: 2850

Re: A bit more on Tontines

anonenigma wrote:Note the episode of The Wild, Wild West: "The NIght of the Tottering Tontine"
That's what happens when you don't use blockchains. :wink:
by sean.mcgrath
Mon Jun 19, 2017 5:23 am
Forum: Investing - Theory, News & General
Topic: A bit more on Tontines
Replies: 10
Views: 2850

Re: A bit more on Tontines

Yep, the Simpsons were mentioned in the last thread as well :-) The basic idea that tontines served a purpose, but were flawed by conflicts of interest makes sense to me: it is risk pooling just like insurance. It also seems to make sense that you could anonymize the tontines with a big enough pool....
by sean.mcgrath
Sun Jun 18, 2017 12:16 pm
Forum: Investing - Theory, News & General
Topic: A bit more on Tontines
Replies: 10
Views: 2850

A bit more on Tontines

I remember a couple of forum topics on tontines (including one covering Milevsky -- who's quoted in this one), and thought I'd share this Economist article. Interesting idea for me that a tontine could turn DC plans back into DB. In any case a fun read: http://www.economist.com/news/finance-and-econ...
by sean.mcgrath
Thu Jun 15, 2017 5:50 am
Forum: Investing - Theory, News & General
Topic: A Current Perspective on Global Growth
Replies: 24
Views: 30683

Re: A Current Perspective on Global Growth

I'm a bit surprised by the difference in the two tables. Where is China's energy coming from -- I didn't think they were self-sufficient. The biggest source of energy for China is still coal. And it is still c. 80% reliant on domestically produced coal I checked, and you are right: 15% net external...
by sean.mcgrath
Wed Jun 14, 2017 10:54 am
Forum: Investing - Theory, News & General
Topic: A Current Perspective on Global Growth
Replies: 24
Views: 30683

Re: A Current Perspective on Global Growth

I'm a bit surprised by the difference in the two tables. Where is China's energy coming from -- I didn't think they were self-sufficient.
by sean.mcgrath
Wed Jun 14, 2017 10:50 am
Forum: Investing - Theory, News & General
Topic: The amount of mined gold is increasing fairly rapidly, IMO
Replies: 22
Views: 2598

Re: The amount of mined gold is increasing fairly rapidly, IMO

So, let's take a loose average of these numbers as about 175K available, 2,600/year added, for a growth rate of about (2600/175000=) ~1.5%/year. That's a fairly significant amount of new gold being mined, IMO. Actually, that seems like exactly the right amount of growth for a currency -- giving a n...
by sean.mcgrath
Wed May 31, 2017 8:40 am
Forum: Investing - Theory, News & General
Topic: "Four Timeless Lessons" by Mark Hulbert
Replies: 8
Views: 2987

Re: "Four Timeless Lessons" by Mark Hulbert

Can't really agree with no. 3. If one can beat the market in the long run by more then a few percentage points they should have a statue erected in their name or should be on the front of a cereal box or maybe a holiday named after them. It is probably as often as any of those situations happening ...
by sean.mcgrath
Sun May 14, 2017 3:08 pm
Forum: Investing - Theory, News & General
Topic: Home Country Bias...makes sense?
Replies: 235
Views: 15360

Re: Home Country Bias...makes sense?

willthrill81 wrote:Correlation does not equal causation.
Um, GDP per capita is a pretty well-recognized mechanism. You're going to have to do some impressive econometrics before you convince people that having more people doesn't tend to grow the GDP. :happy
by sean.mcgrath
Sun May 14, 2017 2:23 pm
Forum: Investing - Theory, News & General
Topic: Home Country Bias...makes sense?
Replies: 235
Views: 15360

Re: Home Country Bias...makes sense?

I'm about 95% U.S., though I would like to own more international SC. It isn't in my 401k, so I only access it currently through my IRA. Considering that over the last 45 years, the U.S. market has earned over 3% more than the rest of the world, I'm not interested in owning the global ex-U.S. marke...
by sean.mcgrath
Fri May 12, 2017 4:53 pm
Forum: Personal Investments
Topic: Buying vacation home
Replies: 29
Views: 4953

Re: Buying vacation home

Thanks Sean. I can really relate what you are saying here. Based on your experience, how frequent you have to use the vacation home to make it worth the cost? Um, this is where I think we have a fairly unique situation. We bought it to use three weeks per year :shock: (with the hope to use more whe...
by sean.mcgrath
Fri May 12, 2017 5:13 am
Forum: Personal Investments
Topic: Buying vacation home
Replies: 29
Views: 4953

Re: Buying vacation home

Hi BHs, I would like to get your opinion on buying vacation home? Here's some background. Age: 41, married with 2 kids Net worth: ~$2 millions Primary residence: worth $770k, mortgage: $335k at 2.5% Portfolio: ~$1.6 millions Vacation home: $250k - $300k range Questions: 1. Can I afford it? 2. I pla...
by sean.mcgrath
Thu May 11, 2017 8:52 am
Forum: Personal Investments
Topic: Maximum Gain,swinging for the fences
Replies: 65
Views: 6539

Re: Maximum Gain,swinging for the fences

I just want to say that I completely understand the OP's point of view on this. As an example...let's say you're well on your way to a comfortable retirement, and you suddenly get a $50,000 inheritance from a long-lost uncle. Well $50k could buy a nice car, or some other toys, but it isn't going to...
by sean.mcgrath
Wed May 10, 2017 2:43 pm
Forum: Personal Investments
Topic: Maximum Gain,swinging for the fences
Replies: 65
Views: 6539

Re: Maximum Gain,swinging for the fences

Hold $20 in your pocket while taking all the rest to the roulette wheel at your nearest Casino. Put it all on Red. If you win - repeat a 2nd and then a 3rd time before cashing out. If you lose - well - you said "Without regard for loss". Take the $20 from your pocket to grab dinner on your way home...
by sean.mcgrath
Wed May 10, 2017 2:19 pm
Forum: Personal Investments
Topic: When switch fund for lower ER?
Replies: 14
Views: 1873

Re: When switch fund for lower ER?

I would not bother to switch for $100 per year. I wouldn't waste time thinking about it. Also the effect of a few hundredths of a percent in expense ratio is likely to be less important than the index used, tracking error, skill in running the funds, and policy on security lending. A tenth of a per...
by sean.mcgrath
Wed May 10, 2017 10:04 am
Forum: Personal Investments
Topic: When switch fund for lower ER?
Replies: 14
Views: 1873

Re: When switch fund for lower ER?

I'd switch for, say, > $100/year if I though the difference in cost seemed likely to persist. Thanks, that's an interesting perspective. Yes, the "likely to persist" is part of the question -- don't really want to be frantically shifting from fund to fund each time there's a 0.01% drop, but I do th...
by sean.mcgrath
Wed May 10, 2017 3:54 am
Forum: Personal Investments
Topic: When switch fund for lower ER?
Replies: 14
Views: 1873

When switch fund for lower ER?

As I happily watch ERs drop between the big index funds, I'm starting to wonder what drop is enough to make me switch funds. I'm curious what others do: assuming a non-taxable account and two funds from big names (e.g., Schwab, iShares, Vanguard) who track the same or extremely similar indexes, what...
by sean.mcgrath
Tue May 02, 2017 7:11 am
Forum: Personal Investments
Topic: Do you count lock-up shares part of your AA?
Replies: 18
Views: 1543

Re: Do you count lock-up shares part of your AA?

I don't count them toward my AA, but they definitely influence my desire and need to take risk; hence, they affect my target AA. If I understand your meaning, I would say that mathematically those two things are the same. When I have had significant amount locked up for a longer period I have at le...
by sean.mcgrath
Tue May 02, 2017 7:05 am
Forum: Personal Finance (Not Investing)
Topic: Convince me that I'm holding too much cash
Replies: 62
Views: 10400

Re: Convince me that I'm holding too much cash

Nothing hidden here. I have extra money here from the sale of my home and am on the fence about investing it or keeping it safe....am inclined to leave it alone. Ah, I see. As I said, in the past I have held large amounts in cash, for various "soft" reasons. Tough to give advice unless you can arti...
by sean.mcgrath
Mon May 01, 2017 4:35 pm
Forum: Investing - Theory, News & General
Topic: Asset allocation tools for investors around the world
Replies: 4
Views: 915

Re: Asset allocation tools for investors around the world

Tyler, I'm off to bed because we also have different time zones in other parts of the world :P , but this looks very nice. I've enjoyed your graphical representations, but indeed worked them into a spreadsheet to see what it means for the Euro zone -- looking forward to checking it out. Regards, Sean
by sean.mcgrath
Mon May 01, 2017 4:25 pm
Forum: Personal Finance (Not Investing)
Topic: Convince me that I'm holding too much cash
Replies: 62
Views: 10400

Re: Convince me that I'm holding too much cash

Tennis, There is something behind your question that you are not sharing -- smacks of a hidden agenda, or a conflict between spouses. My advice to you: either be open with yourself and us about your real question, or deal with it yourself. I personally kept about four years' expenses in "cash" (a sa...
by sean.mcgrath
Thu Apr 27, 2017 10:54 am
Forum: Investing - Theory, News & General
Topic: Simba's backtesting spreadsheet [a Bogleheads community project]
Replies: 1137
Views: 654590

Re: Simba's backtesting spreadsheet [a Bogleheads community project]

Hi siamond,

I believe cells C105 and C106 of the "Compare Portfolios" tab should read "real," rather than "nominal." This is what the comments state, and looks to be the case.

cheers,
Sean