Search found 133 matches

by zarci
Mon Nov 30, 2020 8:36 am
Forum: Non-US Investing
Topic: Portfolio advice - 35 y/o Belgian
Replies: 2
Views: 172

Re: Portfolio advice - 35 y/o Belgian

Almost forgot, but many people tend to count social security pension benefits as "part of their bond allocation". Mor on that in this thread:

viewtopic.php?t=318488
by zarci
Mon Nov 30, 2020 8:34 am
Forum: Non-US Investing
Topic: Portfolio advice - 35 y/o Belgian
Replies: 2
Views: 172

Re: Portfolio advice - 35 y/o Belgian

Hello fellow Belgian! I believe Larry Swedroe offers some solid advice on the need, willingness and ability to take risk: https://www.bogleheads.org/wiki/Risk_tolerance. That's a good place to start thinking about asset allocation. Don't overcomplicate it. Another useful guide is to use real-world n...
by zarci
Sat Nov 28, 2020 2:20 pm
Forum: Investing - Theory, News & General
Topic: How does the stock market return 7%?
Replies: 62
Views: 5984

Re: How does the stock market return 7%?

Bogle had the best explanation of long term stock returns, I don’t remember the exact interview. Basically you take dividend yield and add in earnings growth, with a discount or premium based on valuations, and that becomes your expected long term returns. Note, that this is still just a best guess...
by zarci
Sat Nov 28, 2020 4:39 am
Forum: Investing - Theory, News & General
Topic: Are Vanguard's Factor Funds' days numbered?
Replies: 35
Views: 2625

Re: Are Vanguard's Factor Funds' days numbered?

As a European, i must confess it's rather hard to differentiate Vanguard's "individual investor" funds, from funds aimed at institutional clients. BlackRock actually does a better job of making that split clear. Vanguard has a UK site, a Netherlands based one and it's not always clear whic...
by zarci
Fri Nov 27, 2020 3:39 pm
Forum: Non-US Investing
Topic: Vanguard closing its European factor funds
Replies: 15
Views: 1599

Re: Vanguard closing its European factor funds

That's not too long after their inception, isn't it? I figured the factor funds were an odd move for the crowd Vanguard typically attracts.
by zarci
Fri Nov 27, 2020 12:49 pm
Forum: Investing - Theory, News & General
Topic: "4% rule" withdrawals from real mutual funds
Replies: 57
Views: 5352

Re: "4% rule" withdrawals from real mutual funds

Out of pure curiosity, are those Python plots?
by zarci
Fri Nov 27, 2020 10:40 am
Forum: Non-US Investing
Topic: [EU] Dissuade me from investing in 100% SP500 [VUAG]
Replies: 21
Views: 1669

Re: [EU] Dissuade me from investing in 100% SP500 [VUAG]

I can never understand people that are willing to place all their savings in one asset class. Since 1992 (I think) when Harry Markowitz won the Noble Prize, we all know that diversification is the only free lunch. If you are a long term investor, build a well diversified portfolio, This does not me...
by zarci
Fri Nov 27, 2020 9:29 am
Forum: Non-US Investing
Topic: Books on investing for European investors
Replies: 6
Views: 1075

Re: Books on investing for European investors

JustETF has a very decent explanation of currency risk. US Investors' have access to ~50% of the global equity market cap without introducing currency risk. As a European investor, Euro-based investments constitute a paltry ~16% of the global equity market cap. The US Dollar has also enjoyed the st...
by zarci
Fri Nov 27, 2020 8:22 am
Forum: Non-US Investing
Topic: Comparing VWRA with IWDA+EMIM combination
Replies: 35
Views: 9759

Re: Comparing VWRA with IWDA+EMIM combination

I would also add that Vanguard scores higher on the integrity and fiduciary scoreboards than BlackRock. But others may disagree. Can you elaborate please? Vanguard is the embodiment of Bogle's principle that a mutual fund company must act in the best interest of the investor. That translates to opt...
by zarci
Fri Nov 27, 2020 8:13 am
Forum: Non-US Investing
Topic: [EU] Dissuade me from investing in 100% SP500 [VUAG]
Replies: 21
Views: 1669

Re: [EU] Dissuade me from investing in 100% SP500 [VUAG]

You beat me using my own logic. I made the effort to do so :sharebeer But the Developed World fund tracking it's gross index better than both of the SP500 and FTSE all-world funds, even though the SP fund has a lower TER, does not make sense? What's going on here? Admittedly, I only checked the tra...
by zarci
Fri Nov 27, 2020 8:01 am
Forum: Non-US Investing
Topic: Tax Advantages Versus Fees
Replies: 3
Views: 415

Re: Tax Advantages Versus Fees

You need to provide some extra information if you want a quantifiable answer: How is the 20% tax on the final result applied? Is it a capital gains tax? You mention it converts to an annuity, could you be a bit more specific on that? My understanding of annuities is that it pays out a fixed rate unt...
by zarci
Fri Nov 27, 2020 7:14 am
Forum: Non-US Investing
Topic: Comparing VWRA with IWDA+EMIM combination
Replies: 35
Views: 9759

Re: Comparing VWRA with IWDA+EMIM combination

I would also add that Vanguard scores higher on the integrity and fiduciary scoreboards than BlackRock. But others may disagree.
by zarci
Fri Nov 27, 2020 7:11 am
Forum: Personal Investments
Topic: Is there such thing as too many index funds? And more Qs
Replies: 5
Views: 539

Re: Is there such thing as too many index funds? And more Qs

Since you list several financial goals that are competing, I would highly recommend you to write out an Investment Policy Statement ( wiki ). That would outline how exactly you would balance contributions to your investment portfolio versus putting aside capital needed to start a business etc. It's ...
by zarci
Fri Nov 27, 2020 6:37 am
Forum: Non-US Investing
Topic: Books on investing for European investors
Replies: 6
Views: 1075

Re: Books on investing for European investors

JustETF has a very decent explanation of currency risk. US Investors' have access to ~50% of the global equity market cap without introducing currency risk. As a European investor, Euro-based investments constitute a paltry ~16% of the global equity market cap. The US Dollar has also enjoyed the st...
by zarci
Fri Nov 27, 2020 3:41 am
Forum: Non-US Investing
Topic: [EU] The total cost of investing in UCITS funds
Replies: 26
Views: 1399

Re: [EU] The total cost of investing in UCITS funds

Krasnall, Let me make sure I understand this correctly. Let's assume a fund that tracks the SP500 and only contains US stock for the sake of simplicity. The US has a withholding tax on dividends (level 1). The Dutch tax man then taxes withholding on dividends received by the fund (level 2). And the ...
by zarci
Fri Nov 27, 2020 3:35 am
Forum: Non-US Investing
Topic: [EU] The total cost of investing in UCITS funds
Replies: 26
Views: 1399

Re: [EU] The total cost of investing in UCITS funds

My 2 cents would be that a 0.1 to 0.3% reduction in tax drag is likely not worth the effort of figuring out taxes. On a more useful note you may want to check and see if Poland's US tax treaty covers the estate tax. That would enable you to hold US domiciled distributing funds. I must admit i distru...
by zarci
Thu Nov 26, 2020 5:49 am
Forum: Non-US Investing
Topic: [EU] The total cost of investing in UCITS funds
Replies: 26
Views: 1399

Re: [EU] The total cost of investing in UCITS funds

manu wrote: Thu Nov 26, 2020 5:32 am Is the calculation for FTSE Developed Europe UCITS ETF correct? 0.10 + 0.02 + 0.31 = 0.43 not 0.76
I missed that in the edit, updated it. Thanks!
by zarci
Thu Nov 26, 2020 3:41 am
Forum: Non-US Investing
Topic: [EU] Dissuade me from investing in 100% SP500 [VUAG]
Replies: 21
Views: 1669

Re: [EU] Dissuade me from investing in 100% SP500 [VUAG]

I can never understand people that are willing to place all their savings in one asset class. Since 1992 (I think) when Harry Markowitz won the Noble Prize, we all know that diversification is the only free lunch. If you are a long term investor, build a well diversified portfolio, This does not me...
by zarci
Thu Nov 26, 2020 3:34 am
Forum: Non-US Investing
Topic: [EU] Dissuade me from investing in 100% SP500 [VUAG]
Replies: 21
Views: 1669

Re: [EU] Dissuade me from investing in 100% SP500 [VUAG]

I think I can win this one!!! VDEV, the developed world option which covers about 88% of the markets works out cheaper than the VUSD/VUAG subset that only includes the S&P 500, which maybe 50% of the world market. Obviously with VDEV being more diverse, it must be a better choice than VUSD/VUAG...
by zarci
Thu Nov 26, 2020 3:27 am
Forum: Non-US Investing
Topic: [EU] Dissuade me from investing in 100% SP500 [VUAG]
Replies: 21
Views: 1669

Re: [EU] Dissuade me from investing in 100% SP500 [VUAG]

According to the table on this page: https://americas.vanguard.com/institutional/articles/research-commentary/markets-economy/market-perspectives.htm You are expected to underperform. This is because of the current high valuations of the US market. I hold the total world market so that I never miss...
by zarci
Thu Nov 26, 2020 3:25 am
Forum: Non-US Investing
Topic: [EU] Dissuade me from investing in 100% SP500 [VUAG]
Replies: 21
Views: 1669

Re: [EU] Dissuade me from investing in 100% SP500 [VUAG]

the underlying stock's country-of-origin-withholding-tax that is. It's 15% for the SP500 fund under a tax treaty with Ireland (the fund's domicile). It's more than 15% almost anywhere else in the world. That's not correct as far as I know. The annual report (downloadable PDF e.g. here for Vanguard ...
by zarci
Wed Nov 25, 2020 1:57 pm
Forum: Non-US Investing
Topic: [EU] Dissuade me from investing in 100% SP500 [VUAG]
Replies: 21
Views: 1669

[EU] Dissuade me from investing in 100% SP500 [VUAG]

Hello Bogleheads, I discovered the Boglehead principles a few years back. And even though my portfolio currently is a simple three-fund all world market-cap weighted one, I have spent countless hours and lost many evenings to researching and optimising. It may sound crazy, but I wrote down what I le...
by zarci
Wed Nov 25, 2020 8:57 am
Forum: Non-US Investing
Topic: [EU] The total cost of investing in UCITS funds
Replies: 26
Views: 1399

Re: [EU] The total cost of investing in UCITS funds

It's totally fine to stay away from options, they are complex and one can easily get in trouble. However, since EU residents are blocked from buying US domiciled ETF, options provide a workaround to accomplish that. And selling options in order to have the underlying stock delivered is not that ris...
by zarci
Wed Nov 25, 2020 7:11 am
Forum: Non-US Investing
Topic: [EU] The total cost of investing in UCITS funds
Replies: 26
Views: 1399

Re: [EU] The total cost of investing in UCITS funds

I did a similar exercise for the FTSE Developed Europe fund (2019): Gross index return: 26.92% Net index return: 26.11% Fund return: 26.45%. (Ireland domiciled, so not the full 15% withholding tax is paid, resulting in negative tracking difference) So a 0.47% difference between the gross index retur...
by zarci
Wed Nov 25, 2020 6:54 am
Forum: Non-US Investing
Topic: [EU] The total cost of investing in UCITS funds
Replies: 26
Views: 1399

Re: [EU] The total cost of investing in UCITS funds

nice exercise. - don't understand the "lost dividend": the fund will pay a dividend witholding tax to the countries of the assets. For the US this is 15%; assuming that the US dividends are 1% of the fund asset value, you have a (internal) dividend tax of 0,15% assuming the other countrie...
by zarci
Wed Nov 25, 2020 6:38 am
Forum: Non-US Investing
Topic: [EU] The total cost of investing in UCITS funds
Replies: 26
Views: 1399

Re: [EU] The total cost of investing in UCITS funds

When you download the data series, there is a "definitions" sheet where it's stated: Max: FTSE’s standard net of tax indexes use declared dividends adjusted by the maximum withholding tax rates applicable to dividends received by institutional investors who are not resident in the same co...
by zarci
Wed Nov 25, 2020 4:03 am
Forum: Non-US Investing
Topic: [EU] The total cost of investing in UCITS funds
Replies: 26
Views: 1399

Re: [EU] The total cost of investing in UCITS funds

Thank you for the comprehensive reply! There's a lot to digest here... OK, back to the leakage calculation. If you look at Vanguard All-World (latest annual report, period ending 30 Jun 2020), the fund received $100,819,368 in dividends and paid $12,482,600 in foreign withholding taxes. That means 1...
by zarci
Tue Nov 24, 2020 3:59 pm
Forum: Non-US Investing
Topic: [EU] The total cost of investing in UCITS funds
Replies: 26
Views: 1399

[EU] The total cost of investing in UCITS funds

Hello Bogleheads, While doing some research for my IPS I found this useful PDF right here: Vanguard UK: what total fees and charges will I pay? and the original page: https://www.vanguardinvestor.co.uk/need-help/answer/what-total-fees-and-charges-will-i-pay Why is this useful? I was tallying up all ...
by zarci
Tue Nov 24, 2020 9:10 am
Forum: Investing - Theory, News & General
Topic: Silliest Investment Mistakes?
Replies: 125
Views: 9130

Re: Silliest Investment Mistakes?

Last year I saw a beautiful buying opportunity on an ETF of which the price at the time was way below the NAV. So I plunged ahead and purchased then and there. After the transaction I realised the ETF was priced in GBP on the brokerage platform, and the NAV to which I was comparing it was listed in ...
by zarci
Mon Nov 23, 2020 5:54 am
Forum: Personal Investments
Topic: What is your percentage of debt to NW?
Replies: 139
Views: 7408

Re: What is your percentage of debt to NW?

I think the two key variables are age and mindset. Age definitely will sway these numbers a lot, and I think you have a separate discussion with some younger Bogleheads regarding mindset. Also, your specific situation is a huge factor. The way DW and I reached the two comma club is not an optimal p...
by zarci
Sat Nov 21, 2020 8:25 pm
Forum: Personal Investments
Topic: What is your percentage of debt to NW?
Replies: 139
Views: 7408

Re: What is your percentage of debt to NW?

Good question zarci, I carried a lot of debt for many years...credit cards, mortgage, vehicle loans, a home equity loan, and college loans for my children. Around age 50, I said, "No more!" My wife and I focused on clearing all debt. When that was done, we agreed that if we wanted somethi...
by zarci
Sat Nov 21, 2020 8:18 pm
Forum: Personal Investments
Topic: What is your percentage of debt to NW?
Replies: 139
Views: 7408

Re: What is your percentage of debt to NW?

The key thing about building wealth: have zero debt (or as little as possible). I'm in early 30 and I already paid off my mortgage. Why? I buy much less house than I can afford. I make good money and I didn't buy the house that my colleagues would go for at my current comp. It allows me to supercha...
by zarci
Sat Nov 21, 2020 12:20 pm
Forum: Personal Investments
Topic: What is your percentage of debt to NW?
Replies: 139
Views: 7408

Re: What is your percentage of debt to NW?

Age: 28 NW: 200K Debt: 170K 85% I'm surprised by the low number of people that report a significant debt burden. Is this due to the older population of this board? Do people here simply pay of their home first? What's going on here? In my mind most people were paying down the mortage until their ear...
by zarci
Mon Nov 09, 2020 6:56 am
Forum: Investing - Theory, News & General
Topic: U.S. stocks continue to soar!
Replies: 10487
Views: 829423

Re: U.S. stocks continue to soar!

Sea of green. Europe and Asia so far. Up next, USA. :moneybag Now heading greener than green... seemingly in response to this. What a week it has been! https://www.nytimes.com/2020/11/09/health/covid-vaccine-pfizer.html Days like these really drive home the idea that "most growth happens durin...
by zarci
Mon Nov 09, 2020 6:52 am
Forum: Investing - Theory, News & General
Topic: U.S. stocks continue to soar!
Replies: 10487
Views: 829423

Re: U.S. stocks continue to soar!

I just wanted to check in and say I started investing with a lump sum of 4x annual expenses a little over a year ago. In that time i've seen an 11% melt-up, then a vicious 45%-ish drop while facing job insecurity, but followed by a swift recovery. And today i take a peek and we've hit a new record a...
by zarci
Sun Sep 27, 2020 10:28 am
Forum: Personal Finance (Not Investing)
Topic: How to separate personal and contracting LTDs budgets?
Replies: 2
Views: 237

Re: How to separate personal and contracting LTDs budgets?

Why are you paying yourself from your business only once a year? Can you pay yourself quarterly dividends, or a monthly draw? Good point. So far I did this annually, in cadence with the fiscal year. Probably a possibility to award quarterly (or even monthly) dividends. I'll take this up with my acc...
by zarci
Sun Sep 27, 2020 3:22 am
Forum: Personal Finance (Not Investing)
Topic: How to separate personal and contracting LTDs budgets?
Replies: 2
Views: 237

How to separate personal and contracting LTDs budgets?

Hello Bogleheads, Ever since my early twenties I feel I've had a very good grip on my household budget. What I mean to say is I've had a very clear mental picture of my monthly (and annual) income, spending, savings etc. That was when I was working as an employee making a stable income. Since a few ...
by zarci
Tue Sep 08, 2020 2:12 am
Forum: Investing - Theory, News & General
Topic: Are the days of 7% avg index returns over?
Replies: 81
Views: 13937

Re: Are the days of 7% avg index returns over?

In Jerome Powell's latest interview on NPR it was hinted that this may be the case since more and more people are investing. Moving forward would it be more realistic to expect returns of 3-4% on average now? I think even Bogle mentioned something like this in the past where he thought the average ...
by zarci
Mon Aug 31, 2020 2:48 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks continue to soar!
Replies: 10487
Views: 829423

Re: U.S. stocks continue to soar!

mrspock wrote: Mon Aug 31, 2020 10:22 am
occambogle wrote: Mon Aug 31, 2020 9:26 am Looks like the WSB guys just woke up... TSLA up more than 5% :-)
10% now... wow. Somebody should explain to TSLA shareholders how splits work :P .
Well if they split 'em in half you should buy twice as much right?
by zarci
Thu Aug 27, 2020 8:45 am
Forum: Non-US Investing
Topic: Why are Vanguard UCITS funds so expensive?
Replies: 14
Views: 1792

Re: Why are Vanguard UCITS funds so expensive?

I just wanted to point out one thing. 0.22% for an all world equity fund is not expensive at all. It is definitely a cheap cost to pay for such a quality fund. I would gladly shove millions of dollars managed at 0.22% Consider this. If you have a million dollar to invest, you are paying a team of q...
by zarci
Tue Aug 25, 2020 1:48 pm
Forum: Personal Investments
Topic: Currency hedged bond fund shares underperform?
Replies: 9
Views: 536

Re: Currency hedged bond fund shares underperform?

I'm currently looking for a bond fund as a part of my asset allocation, when I came across this fund: https://www.ishares.com/nl/particuliere-belegger/nl/producten/291770/ishares-global-aggregate-bond-ucits-etf-fund If the language of the site poses an issue, see this image of the annual returns fo...
by zarci
Tue Aug 25, 2020 1:47 pm
Forum: Personal Investments
Topic: Currency hedged bond fund shares underperform?
Replies: 9
Views: 536

Re: Currency hedged bond fund shares underperform?

Are you telling me that interest rates affect the exchange rates of currencies, and that this affects the hedging of bonds in exactly the same way? As per example; Applying a currency hedge to an USD-denominated bond would cause the yield to be similar to EUR-denominated bonds? I do not understand ...
by zarci
Mon Aug 24, 2020 10:35 am
Forum: Investing - Theory, News & General
Topic: Undervalued stock (BRK) and Efficient market
Replies: 21
Views: 1775

Re: Undervalued stock (BRK) and Efficient market

whodidntante wrote: Mon Aug 24, 2020 10:22 am
... is an anachronism from a time when good management built rocks that die in much less spectacular ways.
I believe you just may have solved the enigma that is Value investing.
by zarci
Mon Aug 24, 2020 7:13 am
Forum: Personal Investments
Topic: Currency hedged bond fund shares underperform?
Replies: 9
Views: 536

Re: Currency hedged bond fund shares underperform?

Are you telling me that interest rates affect the exchange rates of currencies, and that this affects the hedging of bonds in exactly the same way? As per example; Applying a currency hedge to an USD-denominated bond would cause the yield to be similar to EUR-denominated bonds? I do not understand ...
by zarci
Mon Aug 24, 2020 6:48 am
Forum: Personal Investments
Topic: Currency hedged bond fund shares underperform?
Replies: 9
Views: 536

Re: Currency hedged bond fund shares underperform?

It’s expected I think. Euro interest rates (short term) are low and any bonds in the fund with currencies that have higher (short term) interest rates will have a negative hedge yield. So go instance, some Emerging market bond with a 8% interest rate that is hedges into EUR is expected to have the ...
by zarci
Mon Aug 24, 2020 6:24 am
Forum: Personal Investments
Topic: Currency hedged bond fund shares underperform?
Replies: 9
Views: 536

Currency hedged bond fund shares underperform?

I'm currently looking for a bond fund as a part of my asset allocation, when I came across this fund: https://www.ishares.com/nl/particuliere-belegger/nl/producten/291770/ishares-global-aggregate-bond-ucits-etf-fund If the language of the site poses an issue, see this image of the annual returns for...
by zarci
Thu Aug 20, 2020 1:30 pm
Forum: Non-US Investing
Topic: Registering a company in Ireland
Replies: 13
Views: 582

Re: Registering a company in Ireland

Note that unless you have a legally sound tax domicile in Ireland, that's tax fraud Edit; What's your nationality? Many countries have a bi-lateral tax agreement with the US that significantly reduces the effects of estate tax Registering a company somewhere has nothing to do with tax fraud. You co...
by zarci
Thu Aug 20, 2020 1:27 pm
Forum: Non-US Investing
Topic: Registering a company in Ireland
Replies: 13
Views: 582

Re: Registering a company in Ireland

Zarci, In Russia. tax treaty regarding estate tax does not exist between us and us, as i understand. what does legally sound tax domicile means? Note that I am not up to date on Russian tax law. The EU tax laws state that a resident cannot open a company abroad for tax evasion purposes. The qualifi...
by zarci
Thu Aug 20, 2020 1:02 pm
Forum: Non-US Investing
Topic: Registering a company in Ireland
Replies: 13
Views: 582

Re: Registering a company in Ireland

Note that unless you have a legally sound tax domicile in Ireland, that's tax fraud

Edit; What's your nationality? Many countries have a bi-lateral tax agreement with the US that significantly reduces the effects of estate tax
by zarci
Wed Aug 19, 2020 11:30 am
Forum: Non-US Investing
Topic: Why are Vanguard UCITS funds so expensive?
Replies: 14
Views: 1792

Re: Why are Vanguard UCITS funds so expensive?

While/Because the indexes are not the same: - VXUS does not include US and has >7000 stocks. Medium market cap: $27.6 billion. - VWRL does include the US but has about 3000 stocks. Medium market cap: 69.6 B. one could expect the differences to even make the UCITS fund cheaper to run. Better compari...