Search found 459 matches

by andrew99999
Sat Sep 14, 2019 10:43 pm
Forum: Non-US Investing
Topic: Australia - Raiz
Replies: 3
Views: 315

Re: Australia - Raiz

Commsec pocket is new competitor to riaz and the fees are extremely low, so you might like to look into that.
Here is a thread on it that might be useful.
by andrew99999
Tue Sep 03, 2019 3:10 am
Forum: Non-US Investing
Topic: risk tolerance - too much in bonds?
Replies: 34
Views: 2540

Re: risk tolerance - too much in bonds?

I don't necessarily think you are wrong, except for this comment. Also, even the big recessions were back on track in 2-4 years usually. There certainly have been much longer periods of down markets. Just because the last 2 were not like this does not mean that they will never occur again. Of course...
by andrew99999
Sun Sep 01, 2019 8:33 am
Forum: Non-US Investing
Topic: Four year review - Way forward or am I doing something wrong?
Replies: 19
Views: 2360

Re: Four year review - Way forward or am I doing something wrong?

If you saved 35k steadily over 4 years, then on average you would have had an equivalent of around 17.5k invested over the whole 4 years, so 7k return is actually a return of around 40% or around 10% a year. Compounding shows up at the end of your accumulation phase, but since you can't just start h...
by andrew99999
Sat Aug 31, 2019 9:25 pm
Forum: Non-US Investing
Topic: Full Mixed Asset Classes Portfolio - Diversification is the key
Replies: 12
Views: 1535

Re: Full Mixed Asset Classes Portfolio - Diversification is the key

As far as I'm aware growth and value tend to move up and down at different times in the economic cycle, providing a diversification benefit to have both. The same way that you include both large and small, would be the reason I would want both value and growth. Also that is a LOT of emerging markets...
by andrew99999
Mon Aug 26, 2019 7:48 pm
Forum: Investing - Theory, News & General
Topic: "The Best Diversifiers For Your Equity Portfolio"
Replies: 126
Views: 10504

Re: "The Best Diversifiers For Your Equity Portfolio"

Thanks CULater. DE-RISKING Asset de-risking also depends on correlation and relative volatilities, but in a different way from diversification. A perfectly de-risking asset would have a high positive correlation to stocks but lower volatility . That means that this asset moves up and down precisely ...
by andrew99999
Sun Aug 25, 2019 11:57 pm
Forum: Investing - Theory, News & General
Topic: "The Best Diversifiers For Your Equity Portfolio"
Replies: 126
Views: 10504

Re: "The Best Diversifiers For Your Equity Portfolio"

“De-risking” is most commonly defined as the process of reducing the variance of a portfolio. “Diversification” is most commonly defined as the process of balancing the risk exposures within a portfolio. It is possible to change a portfolio in ways that do both, do neither, or do one but not the ot...
by andrew99999
Sun Aug 25, 2019 5:01 am
Forum: Investing - Theory, News & General
Topic: "The Best Diversifiers For Your Equity Portfolio"
Replies: 126
Views: 10504

Re: "The Best Diversifiers For Your Equity Portfolio"

“De-risking” is most commonly defined as the process of reducing the variance of a portfolio. “Diversification” is most commonly defined as the process of balancing the risk exposures within a portfolio. It is possible to change a portfolio in ways that do both, do neither, or do one but not the ot...
by andrew99999
Sat Aug 24, 2019 10:55 pm
Forum: Non-US Investing
Topic: Vanguard Lifestrategy 20
Replies: 12
Views: 1700

Re: Vanguard Lifestrategy 20

If you look at the cumulative gains figures long term, it makes me seriously wonder if a 40/60 portfolio is sufficient equity for long term investing. I mean look at last 20 year figures - 80/20 5.64% 60/40 5.57 40/60 5.32 You are including two enormous drawdowns in a short period of time, and the ...
by andrew99999
Tue Aug 20, 2019 5:46 am
Forum: Investing - Theory, News & General
Topic: Finally appreciating diversification
Replies: 5
Views: 1026

Re: Finally appreciating diversification

When you diversify, you are always apologising for some part of your portfolio under performing. This is the cost of diversification. The cost of not diversifying is that your entire portfolio could perform so badly that you cannot recover. Long term performance is as much about loss mitigation as i...
by andrew99999
Mon Aug 19, 2019 8:20 pm
Forum: Non-US Investing
Topic: [wiki] Draft non-US 'My portfolio: seeking advice' template page
Replies: 22
Views: 1337

Re: [wiki] Draft non-US 'Asking portfolio questions' template page

Great idea.
Only comment is - might it be an idea to bold the otherwise highlight this so they absolutely can not miss it?

Please post fund names, not just fund or ETF ticker symbols
by andrew99999
Mon Aug 19, 2019 2:48 am
Forum: Non-US Investing
Topic: [Wiki] NEW explanatory page on Simple Portfolios for non-US investors
Replies: 10
Views: 497

Re: [Wiki] NEW explanatory page on Simple Portfolios for non-US investors

Thanks DJN, that article points out a lot of what is discussed on the theory part of the forum - splitting into sources of risk rather than by just by country - and that large/mid caps is highly correlated around the world offering less diversification that what many realise.
by andrew99999
Mon Aug 19, 2019 1:22 am
Forum: Non-US Investing
Topic: [Wiki] NEW explanatory page on Simple Portfolios for non-US investors
Replies: 10
Views: 497

Re: [Wiki] NEW explanatory page on Simple Portfolios for non-US investors

For the 5- and 6-fund, I would make SC same as EM, since (at least going by MSCI), SC is 15% and EM hovers around 10-15% Actually, for FTSE I think they define SC as around 6%, so not sure how to reconcile that, but since the funds I have access to use MSCI mstly, I tend to think in terms of even sp...
by andrew99999
Sun Aug 18, 2019 7:23 am
Forum: Non-US Investing
Topic: Australia - why do you have the savings account you have?
Replies: 5
Views: 698

Re: Australia - why do you have the savings account you have?

Forgot to mention, if you have more than the government guaranteed amount, you should split it it between different banks so that you don't have over the government guaranteed amount in any single bank. If you have more than can fit in multiple banks, that is a reason to use other methods. I'm not s...
by andrew99999
Sat Aug 17, 2019 5:09 am
Forum: Non-US Investing
Topic: Australia - why do you have the savings account you have?
Replies: 5
Views: 698

Re: Australia - why do you have the savings account you have?

RAMS bonus saver has 2.55%
ING savings maximiser 2.30%
UBank is 2.41%
by andrew99999
Fri Aug 16, 2019 1:12 am
Forum: Non-US Investing
Topic: Is small caps necessary ?
Replies: 13
Views: 1889

Re: Is small caps necessary ?

I am selling them all. They are garbage. About to TLH on all my small caps, and there are plenty of losses! In the red since 2016. Bail while you can. If anything can be gained from this comment, it's that if you include or exclude small caps, make it a permanent decision so that you don't decided ...
by andrew99999
Thu Aug 15, 2019 8:58 pm
Forum: Non-US Investing
Topic: Saving/investing to pay down mortgage for in 3 years time
Replies: 7
Views: 743

Re: Saving/investing to pay down mortgage for in 3 years time

the bank only gives you permission to rent out your house if the mortgage is less than half of the value of the house Weird rule. I could probably make it in 3 years if I stop investing and just pay the mortgage. Yes and then your money is no longer liquid (ie you don't have access to it if you nee...
by andrew99999
Thu Aug 15, 2019 10:16 am
Forum: Non-US Investing
Topic: Bonds vs High Interest Savings Accounts (Australia)
Replies: 2
Views: 223

Re: Bonds vs High Interest Savings Accounts (Australia)

During different parts of the economic cycle, returns of intermediate term bonds can come close to the returns of HISA, which appears to be the case now, so at this time HISA which offers no risk but a similar return seems fine. How long this will be the case can't be known until it is in the past, ...
by andrew99999
Wed Aug 14, 2019 7:59 pm
Forum: Investing - Theory, News & General
Topic: Switch AA 10-year to 2-year Treasuries?
Replies: 61
Views: 3967

Re: Switch AA 10-year to 2-year Treasuries?

Thank you me81 While waiting for a response, I actually came across an explanation for this elsewhere saying something similar - while the ETF price should fall in response to a rise in interest rates, the extra return from the higher interest rate bonds the ETF progressively acquires as old bonds ...
by andrew99999
Wed Aug 14, 2019 11:17 am
Forum: Non-US Investing
Topic: review of my portfolio
Replies: 11
Views: 799

Re: review of my portfolio

Just going by the allocation • A 95/5 allocation seems unfathomably high for a 55 year old. is there a whole lot of other cash separate to this that would make it not so aggressive overall? • The equity split looks good to me • The 0.8% fee is costing you $8,000 every year per million which I don't ...
by andrew99999
Wed Aug 14, 2019 6:19 am
Forum: Investing - Theory, News & General
Topic: Switch AA 10-year to 2-year Treasuries?
Replies: 61
Views: 3967

Re: Switch AA 10-year to 2-year Treasuries?

Thank you me81 While waiting for a response, I actually came across an explanation for this elsewhere saying something similar - while the ETF price should fall in response to a rise in interest rates, the extra return from the higher interest rate bonds the ETF progressively acquires as old bonds m...
by andrew99999
Wed Aug 14, 2019 12:51 am
Forum: Investing - Theory, News & General
Topic: Switch AA 10-year to 2-year Treasuries?
Replies: 61
Views: 3967

Re: Switch AA 10-year to 2-year Treasuries?

What you’re describing is half of interest rate risk: the portion usually referred to as “price risk”. The other half of interest rate risk is “reinvestment risk”, which is the risk that bond payments will be reinvested at a different (lower) rate if yields changed. When the investment horizon equa...
by andrew99999
Tue Aug 13, 2019 5:58 am
Forum: Non-US Investing
Topic: Can someone explain to me "currency risk" in case of EU investor? Does it apply to VWRA?
Replies: 29
Views: 1342

Re: Can someone explain to me "currency risk" in case of EU investor? Does it apply to VWRA?

Ok, I think I know what currency risk is now, but more important question - how do I prevent / hedge against it? Better if you did not make another thread since it is the same topic. Anyway, my thoughts are to consider what your assets will look like when you are retired. If by then you will be up ...
by andrew99999
Tue Aug 13, 2019 3:25 am
Forum: Non-US Investing
Topic: Can someone explain to me "currency risk" in case of EU investor? Does it apply to VWRA?
Replies: 29
Views: 1342

Re: Can someone explain to me "currency risk" in case of EU investor? Does it apply to VWRA?

The default recommendation is NOT to hedge the currency risk of your global equity portfolio. I don't think that just because something is the "default" is a good reason to follow. I have seen larege crowds of entire investment forums follow home bias, dividend investing, and a host of other nonsen...
by andrew99999
Fri Aug 09, 2019 8:59 pm
Forum: Investing - Theory, News & General
Topic: The reasons dry powder and tactical asset allocation doesn't work
Replies: 26
Views: 3141

Re: The reasons dry powder and tactical asset allocation doesn't work

Exactly. There should be a rule for this forum specifically banning discussing Tony Robbins financial perspectives. +1 Why? His advice sounds quite similar to the Boglehead philosophy and he often quotes Jack Bogle himself. And are we suppose to ban anyone who feels differently or even just present...
by andrew99999
Fri Aug 09, 2019 8:37 pm
Forum: Non-US Investing
Topic: Advice regarding portoflio [Australia]
Replies: 5
Views: 433

Re: Advice regarding portoflio [Australia]

Thanks for the info asset_chaos.
by andrew99999
Fri Aug 09, 2019 8:13 am
Forum: Non-US Investing
Topic: Advice regarding portoflio [Australia]
Replies: 5
Views: 433

Re: Advice regarding portoflio [Australia]

I am confused though how you can start investing in this vanguard fund with $100k, I understood the minimum to be $500k? Call them up and they will say you can get in with 100k. No idea why they don't just write that on their website instead of 500k. I am very interested in using this myself, the B...
by andrew99999
Fri Aug 09, 2019 8:05 am
Forum: Non-US Investing
Topic: Australia - Franking credits
Replies: 3
Views: 326

Re: Australia - Franking credits

Companies have earnings, and from those earnings, they retain some of it to grow the business so that future earnings grow, and they pay out the rest to shareholders as dividends. When a company makes a profit, they pay tax on that profit before the dividends are paid out to the shareholders. Then w...
by andrew99999
Thu Aug 08, 2019 2:21 am
Forum: Investing - Theory, News & General
Topic: The reasons dry powder and tactical asset allocation doesn't work
Replies: 26
Views: 3141

Re: The reasons dry powder and tactical asset allocation doesn't work

Lame. Does he mention how great you do if you miss the worst days? ;) A problem is that the best days and worst days are often temporally reasonably close together. So it is practically impossible to be out of the market on only the best days. Exactly. There should be a rule for this forum specific...
by andrew99999
Wed Jul 31, 2019 10:46 am
Forum: Non-US Investing
Topic: [EU-Belgium] Optimal portfolio to FIRE?
Replies: 14
Views: 1124

Re: [EU-Belgium] Optimal portfolio to FIRE?

If you're going to retire early, you'll likely need a higher equities allocation than the more common 40-50% of a regular aged retiree so that it can last you much longer, and if you don't use any home bias then you will be open to potential currency risks as in the article you mentioned. Also note ...
by andrew99999
Thu Jul 25, 2019 9:47 pm
Forum: Non-US Investing
Topic: Germany tax on ETFs
Replies: 4
Views: 444

Re: Germany tax on ETFs

- There are three levels of taxation: the country of the asset, of the fund and of the investor. Do a search on the wiki for this. Irish domiciled funds are good; Luxembourgish and French certainly less. Ireland does not tax dividends paid by funds, France for instance does. So for French funds you...
by andrew99999
Thu Jul 25, 2019 3:44 am
Forum: Non-US Investing
Topic: Overseas investor [Hong Kong]
Replies: 15
Views: 1023

Re: Overseas investor [Hong Kong]

issackayiu wrote:
Thu Jul 25, 2019 2:36 am
As I know, IB has a monthly charges for 10 USD for customer whoes asset value less than 100k USD. Is it correct?
Yes correct .. 10 US per month inactivity fee until your assets with them are over 100k USD equivalent.
You get free trades up to the 10 USD monthly activity fee though.
by andrew99999
Wed Jul 24, 2019 10:11 pm
Forum: Non-US Investing
Topic: Why as a EU person should I invest in EU stocks or international stocks?
Replies: 14
Views: 1168

Re: Why as a EU person should I invest in EU stocks or international stocks?

Vision wrote:
Wed Jul 24, 2019 7:06 pm
IF the whole point is to mimic the world index then why would I not buy a world total stock index like VT instead?
Do this.
But use a non US domiciled version.
by andrew99999
Tue Jul 23, 2019 10:18 pm
Forum: Investing - Theory, News & General
Topic: Yes, you can diversify a market portfolio
Replies: 228
Views: 16358

Re: Yes, you can diversify a market portfolio

@vineviz Novice question here. Can you tell me if it is right to say that since market beta (of the US) is an overwhelming result the returns of large cap US stocks, and that diversifying risk would essentially means diversifying into other risky assets outside of this "market" of mostly US large ca...
by andrew99999
Tue Jul 23, 2019 8:46 pm
Forum: Non-US Investing
Topic: UK bias in VG LifeStrategy and Retirement funds (UK)
Replies: 13
Views: 917

Re: UK bias in VG LifeStrategy and Retirement funds (UK)

I just had a quick look at VG Australia - you have a world (EX US) ETF fund - Vanguard All-World ex-U.S. Shares Index ETF (VEU) We have not got a world Ex US in UK. It is odd how VG round the world has different ideas. They are leftover from when Vanguard and iShares first opened and they simpliy c...
by andrew99999
Tue Jul 23, 2019 8:02 am
Forum: Non-US Investing
Topic: Thoughts on Australian portfolio construction (feedback from all nationalities welcome!)
Replies: 12
Views: 1805

Re: Thoughts on Australian portfolio construction (feedback from all nationalities welcome!)

Taking everyone's input into account, I'm now thinking along these lines for my portfolio: VGS: 40% VGAD: 20% VGE: 10% VAS: 20% VAF: 10% Does that seem reasonable? You're going to have to add in what they are for the non-Australian members VGS (developed LC/MC): 40% VGAD (developed LC/MC - hedged t...
by andrew99999
Tue Jul 23, 2019 6:03 am
Forum: Non-US Investing
Topic: Thoughts on Australian portfolio construction (feedback from all nationalities welcome!)
Replies: 12
Views: 1805

Re: Thoughts on Australian portfolio construction (feedback from all nationalities welcome!)

Small caps is mentioned as optional in the non-US wiki for reasons I don't want to confuse you with in your first response. Ah okay. Could you elaborate on this more? Are emerging markets more of a diversifier than small-caps? I certainly don't want to overweight small-caps, but excluding them feel...
by andrew99999
Tue Jul 23, 2019 12:14 am
Forum: Non-US Investing
Topic: Lazy 2-or-3 fund feedback
Replies: 11
Views: 2135

Re: Lazy 2-or-3 fund feedback

I did have a portion of the portfolio in VDEM until quite recently. However, performance over the past few years has been very lacklustre, so I cashed in and put it in to SWDA (which has been giving 10+%p.a.). I might go back there in the future, so well noted. This is exactly the reason why even a...
by andrew99999
Mon Jul 22, 2019 8:04 pm
Forum: Non-US Investing
Topic: Sell real estate, pay capital gains tax and buy index fund?
Replies: 11
Views: 899

Re: Sell real estate, pay capital gains tax and buy index fund?

shcnno wrote:
Mon Jul 22, 2019 4:47 pm
while the expected return is probably less than a global index funds
I would be surprised if the return of a property leveraged to double would really have a lower expected return than an unleveraged global stock index fund fund.
by andrew99999
Mon Jul 22, 2019 7:31 am
Forum: Non-US Investing
Topic: Thoughts on Australian portfolio construction (feedback from all nationalities welcome!)
Replies: 12
Views: 1805

Re: Thoughts on Australian portfolio construction (feedback from all nationalities welcome!)

Welcome. You're all over this and have understood it well enough to articulate it very clearly, so well done. The diversified funds are easy and you could then use it as a 2-fund portfolio of VDHG and bonds, and then adjust your bonds ratio as the moderator of your portfolio's risk, just have 10% le...
by andrew99999
Sat Jul 20, 2019 11:19 am
Forum: Non-US Investing
Topic: Advice regarding portoflio [Australia]
Replies: 5
Views: 433

Re: Advice regarding portoflio [Australia]

Welcome to the forum and well done saving up 100k by 25. Yes the wholesale managed fund is only barely above the ETF in MER, and the ability to just automate your BPAY into there is a plus. To your questions 1. You should look at your tax deferred (super) and taxable (outside super) as a single port...
by andrew99999
Wed Jul 17, 2019 11:28 pm
Forum: Non-US Investing
Topic: [Wiki] Bond basics for non-US investors - seeking feedback and contributions
Replies: 40
Views: 4556

Re: [Wiki] Bond basics for non-US investors - seeking feedback and contributions

The best practice if you are going to be a very advanced investor and choose your bond maturities is to time your maturities to match when you will actually sell out and spend the cash (e.g. across your retirement). If you do this precisely by lining up maturity and spending, you essentially remove...
by andrew99999
Wed Jul 17, 2019 10:05 pm
Forum: Non-US Investing
Topic: [Wiki] Bond basics for non-US investors - seeking feedback and contributions
Replies: 40
Views: 4556

Re: [Wiki] Bond basics for non-US investors - seeking feedback and contributions

Hi DJN, I have a question where it says that managing interest rate risk can be done by by creating a portfolio of bonds with maturities staggered over one, three, five and ten years. Once you weighted the maturities, would a combo of the above weighted at 7 years differ from just holding 7 year bon...
by andrew99999
Wed Jul 17, 2019 12:17 am
Forum: Investing - Theory, News & General
Topic: How correlated are interest rates and inflation?
Replies: 3
Views: 484

Re: How correlated are interest rates and inflation?

Which interest rate did you plot? It was just from here (clicked on max to go back to 1990). https://tradingeconomics.com/australia/interest-rate IF you mean the difference between the FED (or RBA for Australia) rate and what the banks use, that appears to be the FED (RBA for Aus) rate, so wouldn't...
by andrew99999
Tue Jul 16, 2019 11:11 pm
Forum: Investing - Theory, News & General
Topic: How correlated are interest rates and inflation?
Replies: 3
Views: 484

How correlated are interest rates and inflation?

I was under the impression that interest rates and inflation were fairly closely matched, which would indicate that short term instruments like cash deposits and short term treasuries would be fairly close to inflation, but looking at the past 30 years (of my home country Australia), it doesn't look...
by andrew99999
Mon Jul 15, 2019 12:07 am
Forum: Non-US Investing
Topic: Which Vanguard Bonds? (Australia)
Replies: 5
Views: 366

Re: Which Vanguard Bonds? (Australia)

Sorry I meant all time highs in price not yield ( looking at the chart) Yea the price moves with interest rates. The interest rate was cut twice in the last 2 months so a total of 0.5%. With a bond fund that is an average duration of 6 years, any existing bonds will continue to get the previous int...
by andrew99999
Sun Jul 14, 2019 11:50 pm
Forum: Non-US Investing
Topic: Which Vanguard Bonds? (Australia)
Replies: 5
Views: 366

Re: Which Vanguard Bonds? (Australia)

Thanks for your reply, VAF/ VGB are around their all time highs, which is one reason making me consider international bonds aswell It doesn't work like this unfortunately. Since bonds are fundamentally for safety, it doesn't make sense to have them face currency risk, and so all Australian bond fun...
by andrew99999
Sun Jul 14, 2019 10:04 pm
Forum: Non-US Investing
Topic: Which vanguard funds should I have? (Australia)
Replies: 12
Views: 1915

Re: Which vanguard funds should I have? (Australia)

What about VCF instead of or as well as VAF? Answered you in the other thread Which Vanguard Bonds? (Australia) I'd steer clear of them. The higher return comes with higher risk (credit risk) and that risk tends to show up when equities are falling which is when you need them to hold their value. A...