Search found 721 matches

by andrew99999
Sun Sep 20, 2020 12:32 am
Forum: Non-US Investing
Topic: Australian portfolio review
Replies: 13
Views: 1460

Re: Australian portfolio review

I'd take into consideration what your expected proportion in retirement will be because it would be normal to have a lot more Australian assets earlier on when a main residence makes up a lot of your assets. If you're likely to have Australian investment property in retirement, I'd ditch the Austral...
by andrew99999
Mon Sep 14, 2020 6:10 am
Forum: Non-US Investing
Topic: Looking for advice on planning portfolio - Australia
Replies: 7
Views: 739

Re: Looking for advice on planning portfolio - Australia

Ahh right. Yes, that did become a point of confusion for me after seeing both 'Managed' and 'ETF' on Vanguard. Thanks for clarifying, it makes sense now. I was previously using Stockspot for my ETFs which I enjoyed as I was able to easily track my investment throught their phone app. Would I be bet...
by andrew99999
Sun Sep 13, 2020 9:05 pm
Forum: Non-US Investing
Topic: Looking for advice on planning portfolio - Australia
Replies: 7
Views: 739

Re: Looking for advice on planning portfolio - Australia

This sounds like sage advice. Can I ask though why did you specify an ETF over an index fund? Thank you Norton79, I appreciate it. You're mixing up 2 things there • The Stock selection style (index-tracking vs actively managed); and • The Investment vehicle/legal structure that can hold a basket of...
by andrew99999
Thu Sep 10, 2020 9:44 am
Forum: Non-US Investing
Topic: Bonds - Why do we hedge to local currency?
Replies: 21
Views: 1161

Re: Bonds - Why do we hedge to local currency?

But you should hedge back to your home currency. Many of costs of living such as housing and healthcare are basically locally set. PPP will not equalise the cost of a transit pass in London v Toronto v Sydney. You basically don't want that volatility in your standard of living (of unhedged bonds). ...
by andrew99999
Thu Sep 10, 2020 3:38 am
Forum: Non-US Investing
Topic: Bonds - Why do we hedge to local currency?
Replies: 21
Views: 1161

Re: Bonds - Why do we hedge to local currency?

But you should hedge back to your home currency. Many of costs of living such as housing and healthcare are basically locally set. PPP will not equalise the cost of a transit pass in London v Toronto v Sydney. You basically don't want that volatility in your standard of living (of unhedged bonds). ...
by andrew99999
Tue Sep 08, 2020 8:30 pm
Forum: Non-US Investing
Topic: Quantifying tax drag from US domiciled ETFs that hold non-US assets (eg VEU)
Replies: 12
Views: 1267

Re: Quantifying tax drag from US domiciled ETFs that hold non-US assets (eg VEU)

Great effort there, thank you.
Hockey Monkey wrote: Tue Sep 08, 2020 5:52 am I think I'm convinced to stop worrying about tax drag and prioritise ETF selection based on other factors like dividend reinvesting (DRP) availability and US estate issues.
+1
by andrew99999
Mon Sep 07, 2020 7:38 am
Forum: Non-US Investing
Topic: [Australia] Seeking input on Australian portfolio construction
Replies: 3
Views: 385

Re: [Australia] Seeking input on Australian portfolio construction

So you think due to my wealth concentration in Australian properties, there is a reduced benefit in buying something VAS or VGAD. Also hedging currency is not required? Yes you basically have 2 risks with currency - holding most/all of your assets outside your home currency, and having your home cu...
by andrew99999
Fri Sep 04, 2020 12:33 pm
Forum: Non-US Investing
Topic: [Australia] Seeking input on Australian portfolio construction
Replies: 3
Views: 385

Re: [Australia] Seeking input on Australian portfolio construction

Welcome to the forum. For someone with such a huge amount of wealth in Australian property, it doesn't make sense to me to use any Australian (or global AUD-hedged) equities and I would stick to a global index (unhedged) for your equities. There's an article on there for how to get worldwide index e...
by andrew99999
Wed Sep 02, 2020 5:55 am
Forum: Non-US Investing
Topic: [Australia] - Feedback on ETF portfolio for high-growth
Replies: 16
Views: 1205

Re: [Australia] - Feedback on ETF portfolio for high-growth

Thanks for clearing that up. So even though I'm still 30 odd years away from retirement, having the hedged allocation shouldn't affect me too much as there's a big enough window to compensate for any potential deviations like you mentioned? And as I've already got a hedged portion in my portfolio, ...
by andrew99999
Tue Sep 01, 2020 10:23 pm
Forum: Non-US Investing
Topic: [Australia] - Feedback on ETF portfolio for high-growth
Replies: 16
Views: 1205

Re: [Australia] - Feedback on ETF portfolio for high-growth

At your age you could even leave out VGAD and just put it into VGS and look to add VGAD later as you near retirement, but I don't want one more thing to remember that I would probably forget later, plus the cost of AUD-hedging is immaterial with VGAD so I don't really see a downside to just making ...
by andrew99999
Wed Aug 26, 2020 5:49 am
Forum: Non-US Investing
Topic: [Hong Kong] Vanguard AU ETFs tax implications
Replies: 6
Views: 511

Re: [Hong Kong] Vanguard AU ETFs tax implications

VTS/VEU are unique funds in Australia in that they are US domiciled and just cross listed on the ASX, as a result 1. The Australian shares held within it are inaccessible/ignored for franking, so essentially it is considered Non-Australian shares 2. The broker will treat it as US funds, so if Hong ...
by andrew99999
Tue Aug 25, 2020 9:57 pm
Forum: Non-US Investing
Topic: [Hong Kong] Vanguard AU ETFs tax implications
Replies: 6
Views: 511

Re: [Hong Kong] Vanguard AU ETFs tax implications

I'm not an accountant , so please check this with an accountant, but as I understand at the time of writing, as far as tax goes for shares in companies you own less than 10% of (concerning the Australian Tax Office) for non-residents. Capital gains tax None payable for both Australian and non-Austra...
by andrew99999
Tue Aug 25, 2020 9:33 pm
Forum: Non-US Investing
Topic: Correct ratio of VTS/VEU for a global market weighting
Replies: 7
Views: 475

Re: Correct ratio of VTS/VEU for a global market weighting

Purchase VTS and VEU at the correct current global weighting I would just use VT as linked above, so it would be VTS/VEU 57/43 (at this moment in time). I don't think there's anything wrong with a permanent static allocation though. It's might be a pain to have to update your targets each time you ...
by andrew99999
Tue Aug 25, 2020 9:21 pm
Forum: Non-US Investing
Topic: [Australia] - Feedback on ETF portfolio for high-growth
Replies: 16
Views: 1205

Re: [Australia] - Feedback on ETF portfolio for high-growth

As mentioned above, I'm happy to reduce my Australian shares to 20% as I agree with what both you and Valuethinker has mentioned, but the question now is where to allocate that extra 10%? I assume it would be either VGS, VGAD or VGE, so just a little unsure as to where this should go. My updated po...
by andrew99999
Thu Aug 20, 2020 10:36 pm
Forum: Non-US Investing
Topic: Quantifying tax drag from US domiciled ETFs that hold non-US assets (eg VEU)
Replies: 12
Views: 1267

Re: Quantifying tax drag from US domiciled ETFs that hold non-US assets (eg VEU)

Great link, and from PWL too! You probably know this, but just in case - the 15% dividend tax that the US takes from VEU is claimable for Australians, so if your marginal tax rate is over 15%, FWT level 1 would be zero (or 15% if your MTR was below the tax free threshold). Everything else you noted ...
by andrew99999
Thu Aug 20, 2020 8:35 pm
Forum: Non-US Investing
Topic: Quantifying tax drag from US domiciled ETFs that hold non-US assets (eg VEU)
Replies: 12
Views: 1267

Re: Quantifying tax drag from US domiciled ETFs that hold non-US assets (eg VEU)

Beyond my capabilities, but the one thing that may be missing is that the US likely has a bunch of tax treaties also, and I think the drag might would be the difference between the cost with Australian treaties less the cost with US treaties (don't forget that you can claim a tax deduction for the 1...
by andrew99999
Wed Aug 19, 2020 9:25 pm
Forum: Non-US Investing
Topic: Feedback on my portfolio - [Australia]
Replies: 3
Views: 382

Re: Feedback on my portfolio - [Australia]

CHESS sponsorship If you're buying ASX listed shares, I would go with CHESS sponsorship. With the custodian model, IB has a separate company holding the shares so that if IB goes under then your shares are safe, but by the same token, you now have a point of possible failure with that separate comp...
by andrew99999
Wed Aug 19, 2020 8:23 am
Forum: Non-US Investing
Topic: Feedback on my portfolio - [Australia]
Replies: 3
Views: 382

Re: Feedback on my portfolio - [Australia]

Welcome to the forum. Broker choice Why interactive brokers? It's the best non-Aussie broker, but ASX funds can be held under CHESS which means the shares are held directly in your own name and IB holds them under custodian. SelfWealth offers low cost trades but are CHESS sponsored (and no monthly i...
by andrew99999
Wed Aug 19, 2020 1:43 am
Forum: Non-US Investing
Topic: [Australia] - Feedback on ETF portfolio for high-growth
Replies: 16
Views: 1205

Re: [Australia] - Feedback on ETF portfolio for high-growth

Responding in order. -- I just don't think it's worth adding the complexity of an extra fund for 10% bonds. If it's in an all-in-one, then you are not actually doing any more work, so I don't think it makes enough difference to care either way, but to have an extra fund that (in my opinion) isn't do...
by andrew99999
Tue Aug 18, 2020 9:24 pm
Forum: Investing - Theory, News & General
Topic: Article: "Emerging Market Stocks Underperform When the US Dollar Strengthens…Here’s Why"
Replies: 2
Views: 332

Article: "Emerging Market Stocks Underperform When the US Dollar Strengthens…Here’s Why"

I found this article interesting and was wondering about the soundness of the reasoning or criticism of the idea. Emerging Market Stocks Underperform When the US Dollar Strengthens…Here’s Why The reason EM stocks and economies tend to struggle in the face of dollar strength is largely due to the qua...
by andrew99999
Tue Aug 18, 2020 5:44 am
Forum: Non-US Investing
Topic: [Australia] - Feedback on ETF portfolio for high-growth
Replies: 16
Views: 1205

Re: [Australia] - Feedback on ETF portfolio for high-growth

The argument for is largely dividend franking? Combination of things. Franking, currency, and the Australian market (at least over the last 20 years) has zigged when the rest of the world's equities zagged producing a nice diversification benefit, although that last one is obviously difficult to de...
by andrew99999
Mon Aug 17, 2020 12:55 pm
Forum: Non-US Investing
Topic: [Australia] - Feedback on ETF portfolio for high-growth
Replies: 16
Views: 1205

Re: [Australia] - Feedback on ETF portfolio for high-growth

Welcome to the forum. Reside in Australia _ until I retire _ stands out. What is your plan after you retire? Student loan - worth noting it is exactly CPI adjusted, so there is zero "real" (inflation adjusted) cost. PassiveInvestingAustralia is my site by the way, so by that you probably know that I...
by andrew99999
Mon Aug 17, 2020 12:33 pm
Forum: Non-US Investing
Topic: Australian portfolio review
Replies: 13
Views: 1460

Re: Australian portfolio review

The choice between A200, VAS, IOZ are immaterial, so whichever you like is fine. IVV vs VTS (S&p500 vs total US market) is not hugely different. Scroll down here to see how close they are. If you wanted small caps and wanted to avoid VTS, you could always add in IJR. A mix of small and large caps sh...
by andrew99999
Sun Aug 16, 2020 12:19 am
Forum: Non-US Investing
Topic: Australian portfolio review
Replies: 13
Views: 1460

Re: Australian portfolio review

It seems reasonable to me. There won't be much difference between 50/25/25, 50/20/30 and 50/30/20, so I wouldn't worry about that. The fact that at least 70% is global is what is important in minimising concentration risk. Congratulations on being in a great position financially. In case you haven't...
by andrew99999
Sat Aug 15, 2020 9:13 pm
Forum: Non-US Investing
Topic: [Australia] My portfolio
Replies: 4
Views: 407

Re: [Australia] My portfolio

Could you please explain what the benefit is of non-concessional contributions to super? The main benefit of super appears to be the low rate of contribution tax of 15%. However, on non-concessional contributions I have already paid income tax. I realise no contribution tax will be charged on this ...
by andrew99999
Sat Aug 15, 2020 9:39 am
Forum: Non-US Investing
Topic: [Australia] My portfolio
Replies: 4
Views: 407

Re: [Australia] My portfolio

You're in a good position overall, excellent with new contributions, and you asset allocation looks great (essentially cap weighted). Strongly agree with all your 8 points. Only addition I could put in is that there are very good tax concessions for owning a main residence, and even more so in retir...
by andrew99999
Fri Aug 14, 2020 9:32 am
Forum: Non-US Investing
Topic: Australian portfolio review
Replies: 13
Views: 1460

Re: Australian portfolio review

Welcome to the forum. I'd edit your original post and put at the top that: superannuation (abbreviated to 'super') is the Australian retirement account. First thing that stands out is 2.5m in debt 5 years before retirement. Is your 6M in assets after debt has been removed or before? I would definite...
by andrew99999
Fri Aug 07, 2020 8:51 am
Forum: Non-US Investing
Topic: Invest in AUD or USD? Short term investment.
Replies: 4
Views: 340

Re: Invest in AUD or USD? Short term investment.

Welcome to the forum.

Why are you going to wait for a few years before converting? It sounds like you are making a bet on the currency movement between now and then, which really is just gambling.

What is the use for those funds exactly.
by andrew99999
Wed Jul 29, 2020 3:19 am
Forum: Non-US Investing
Topic: Our FI Allocation: Help
Replies: 49
Views: 4210

Re: Our FI Allocation: Help

galeno wrote: Tue Jul 28, 2020 7:30 pm I completely understand why a Canadian would want to hold UNHEGED World Bonds.
Why is that?
by andrew99999
Thu Jul 23, 2020 6:38 pm
Forum: Non-US Investing
Topic: Our FI Allocation: Help
Replies: 49
Views: 4210

Re: Our FI Allocation: Help

I always post both yields. The YTM and the 12 month yield. Also called the distibution yield. Some people like one. Some people like the other. I look at both. Can you explain to me the use of 12 month yield? Last 18 month my country had 5 x 0.25% rate cuts from 1.5% down to 0.25%, so the past 12 m...
by andrew99999
Thu Jul 23, 2020 12:03 pm
Forum: Non-US Investing
Topic: Our FI Allocation: Help
Replies: 49
Views: 4210

Re: Our FI Allocation: Help

You can leave out the 12 month yield. It's meaningless. The YTM is what you want going forward.
Just had a look and noticed this fund. It looks to be 11 days old. Does that look suitable?
AGUG
by andrew99999
Thu Jul 23, 2020 7:25 am
Forum: Non-US Investing
Topic: Our FI Allocation: Help
Replies: 49
Views: 4210

Re: Our FI Allocation: Help

I believe the carry is nullified by covered interest rate parity and whatever differs will be the luck of currency movements, which is the "may" part of when the article say "Why hedging may pay". The question of US vs global bonds - if you're referring to government bonds, and if the global governm...
by andrew99999
Fri Jul 17, 2020 9:01 pm
Forum: Investing - Theory, News & General
Topic: Questions for Rick Ferri and Paul Merriman?
Replies: 62
Views: 6463

Re: Questions for Rick Ferri and Paul Merriman?

I'm curious on Rick Ferri's thoughts of whether REITs really can be considered an alternative/diversifier. Prior to the 2008 financial crisis, REITs were considered the go-to easy diversifier by many including plenty of authors respected on here. Since then just about everyone has turned around on i...
by andrew99999
Fri Jul 17, 2020 8:47 pm
Forum: Non-US Investing
Topic: Real Estate vs. Buying more index (Australia)
Replies: 26
Views: 2230

Re: Real Estate vs. Buying more index (Australia)

So does that mean if we take the negative gearing out of the equation, and just have someone effectively paying the mortgage for you it is considered better/ok? I am not trying to be a smart arse, just genuinely trying to understand. Thanks again all. It's really appreciated. You get a return via 2...
by andrew99999
Fri Jul 17, 2020 7:43 am
Forum: Non-US Investing
Topic: Real Estate vs. Buying more index (Australia)
Replies: 26
Views: 2230

Re: Real Estate vs. Buying more index (Australia)

Hi all, I am struggling a little with some logic expressed here. If you have a long term rental property and someone else ( the renter) is effectively paying off the mortgage on the property. Then also ( in Australia) you can negative gear with the interest etc isn't that a win? Sorry if this quest...
by andrew99999
Thu Jul 16, 2020 11:45 pm
Forum: Non-US Investing
Topic: MSCI World USD vs Local vs Hedged
Replies: 2
Views: 612

Re: MSCI World USD vs Local vs Hedged

For local indexes, Local will be priced in the currency of that market. For example - The Australian index will price it in AUD for "Local" - The Canadian index will price it in CAD for "local" For all world, I can only guess that it sums up the individual parts of the 23 countries and add them toge...
by andrew99999
Thu Jul 16, 2020 10:41 am
Forum: Non-US Investing
Topic: Correlation question
Replies: 9
Views: 854

Re: Correlation question

As a UK residentI have recently went from 100% equities to 60/40 My equity side of things are in Vanguards global ETF VWRP and the bond fund is Vanguards UK based ETF VGOV. As my equity fund is global would I have been better picking a global bond fund instead of a UK fund?, would the correlation w...
by andrew99999
Fri Jul 10, 2020 2:23 am
Forum: Non-US Investing
Topic: USD currency risk as a non-US investor
Replies: 49
Views: 3125

Re: USD currency risk as a non-US investor

This is just false as hedging costs aren't part of TER. Example: Ishares MSCI World CHF hedged: https://www.justetf.com/ch/etf-profile.html?isin=IE00B8BVCK12#overview Ishares MSCI World: https://www.justetf.com/ch/etf-profile.html?isin=IE00B4L5Y983#overview The unhedged fund had an annualized retur...
by andrew99999
Thu Jul 09, 2020 9:12 pm
Forum: Non-US Investing
Topic: USD currency risk as a non-US investor
Replies: 49
Views: 3125

Re: USD currency risk as a non-US investor

I see multiple issues that I think are completely missing or misunderstood from OP's comments. 1. Your CHF to non-CHF allocation is a "whole of assets" decision. When you retire, will you have a house? That will reduce our CHF liabilities. You will also have CHF based cash/bonds (who retires on 100%...
by andrew99999
Thu Jul 09, 2020 10:31 am
Forum: Non-US Investing
Topic: portfolio construction [Russia]
Replies: 15
Views: 976

Re: portfolio construction

Ivan199011 wrote: Thu Jul 09, 2020 9:06 am Maybe you are right, but ive always thought of US as a best country to invest your money, their economy is stronger the EU in my opinion
It depends on the time period.

Image
by andrew99999
Tue Jul 07, 2020 1:06 am
Forum: Non-US Investing
Topic: Owning rentals in the UK?
Replies: 10
Views: 844

Re: Owning rentals in the UK?

I still own my UK rental which I deal with from abroad. I pay full commissions+management fees to allow me to almost essentially close my eyes and let them deal with everything. Sounds nice. Over in Australia you have to chase them up for literally every single thing they do, which means you need t...
by andrew99999
Sat Jul 04, 2020 9:03 am
Forum: Non-US Investing
Topic: [Expat in Singapore] Seeking advice - buy ETF in AUD or USD?
Replies: 2
Views: 264

Re: [Expat in Singapore] Seeking advice - buy ETF in AUD or USD?

With funds tracking the same assets, the currency that the fund is denominated in doesn't matter. VGS and IWDA both track the same index (MSCI world index). If you bought sent AUD to the currency IWDA is bought/sold in, then at some point sold and converted back to AUD, you would have the same amoun...
by andrew99999
Thu Jul 02, 2020 9:36 am
Forum: Non-US Investing
Topic: Real Estate vs. Buying more index (Australia)
Replies: 26
Views: 2230

Re: Real Estate vs. Buying more index (Australia)

Australia does not have a secondary mortgage market like the US has where they are packaged off and sold and resold. That's 'why Australia doesn't have 15, 20, and 30 year fixed rate loans. I think the longest I've seen is 7 years and the rates aren't attractive.
by andrew99999
Wed Jul 01, 2020 9:57 pm
Forum: Investing - Theory, News & General
Topic: First 20% of bonds in long-term Treasuries
Replies: 927
Views: 67461

Re: First 20% of bonds in long-term Treasuries

vineviz wrote: Wed Jul 01, 2020 12:25 pm The end result is almost surely going to about the same, but some people mentioned having 40% stock portfolios so I wanted to show what that might look like.

Personally, I’d stick with stocks and sovereign bonds.
Ah right, cheers for the clarification.
by andrew99999
Wed Jul 01, 2020 10:57 am
Forum: Investing - Theory, News & General
Topic: First 20% of bonds in long-term Treasuries
Replies: 927
Views: 67461

Re: First 20% of bonds in long-term Treasuries

Just by way of example, the following might be entirely appropriate for a retiree in their early to mid 70s: 40% Vanguard Total World Stock Index Fund (VTWAX) 20% Vanguard Long-Term Treasury Index Fund (VLGSX) 20% Vanguard Inflation-Protected Securities Fund (VAIPX) 20% Vanguard Intermediate-Term C...
by andrew99999
Wed Jul 01, 2020 9:06 am
Forum: Non-US Investing
Topic: Real Estate vs. Buying more index (Australia)
Replies: 26
Views: 2230

Re: Real Estate vs. Buying more index (Australia)

Sorry to ask another questions, but could you stop paying your mortgage for awhile, if you lost your job say, and just let it use up the redraw? I believe so, but I can't confirm it's for all banks and non-bank lenders (and god knows you can't rely on your mortgage broker to have your best interest...
by andrew99999
Tue Jun 30, 2020 8:50 am
Forum: Non-US Investing
Topic: Real Estate vs. Buying more index (Australia)
Replies: 26
Views: 2230

Re: Real Estate vs. Buying more index (Australia)

I’m trying to use all my extra money to pay more into my mortgage, which has a redraw facility. This, I assume, reduces the interest I’m paying, while acting as my emergency fund. I have about $100k extra in there right now. A note on this. An offset account is legally a savings account. Any money ...
by andrew99999
Sat Jun 27, 2020 11:06 pm
Forum: Non-US Investing
Topic: Australian Sub Forum?
Replies: 5
Views: 503

Re: Australian Sub Forum?

maybe it should be an ANZAC sub-forum, for both Australia and New Zealand. That would cast it a bit wider. I believe the investments from NZ (tax, investment vehicles, etc) are very different to Australia. I had a quick skim over a couple of (what looked like fairly extensive) NZ financial independ...
by andrew99999
Thu Jun 25, 2020 12:34 pm
Forum: Investing - Theory, News & General
Topic: Which is the best "Die Broke" book?
Replies: 17
Views: 2252

Re: Which is the best "Die Broke" book?

Sell the properties and put it into annuities?
by andrew99999
Thu Jun 25, 2020 9:20 am
Forum: Non-US Investing
Topic: Australian Sub Forum?
Replies: 5
Views: 503

Re: Australian Sub Forum?

I didn't think there were many. My biggest concern with an Aussie specific subforum would be Aussies feeding off each other confirming each others biases. My greatest strides in knowledge came from reading books, websites, and forum posts from outside Australia and soaking up the concepts while disc...