Search found 214 matches

by assyadh
Thu Jul 02, 2020 12:55 am
Forum: Non-US Investing
Topic: Moving back to europe - disposal of ETFs
Replies: 5
Views: 517

Re: Moving back to europe - disposal of ETFs

Belgium (transaction tax of 0.12% on most etfs)
Luxembourg (if held > 6 months)
Switzerland (dividends are taxable).
by assyadh
Wed Jun 24, 2020 9:29 pm
Forum: Non-US Investing
Topic: Leaving US - how to switch from US to Irish-domiciled ETFs in most tax-efficient manner
Replies: 9
Views: 665

Re: Leaving US - how to switch from US to Irish-domiciled ETFs in most tax-efficient manner

Thank you for your response and my apologies for omitting these details in my original post. Current tax status: H1B visa, will be leaving the US before getting a green card so I believe the exit tax should not be an issue Next country of residence: Singapore, so there is no capital gains tax Amoun...
by assyadh
Wed Jun 24, 2020 8:40 pm
Forum: Non-US Investing
Topic: [Georgia] Investing from tax haven
Replies: 12
Views: 1361

Re: [Georgia] Investing from tax haven

So after being around this forum for 2 months now, I think I've finally embraced the Boglehead principles. Which means I'm going to invest in FTSE All World index fund rather than just S&P 500 for my equity portfolio. It was very tough to come to this conclusion, changed my mind couple of times, bu...
by assyadh
Wed Jun 24, 2020 8:38 pm
Forum: Non-US Investing
Topic: Leaving US - how to switch from US to Irish-domiciled ETFs in most tax-efficient manner
Replies: 9
Views: 665

Re: Leaving US - how to switch from US to Irish-domiciled ETFs in most tax-efficient manner

Thank you for your response and my apologies for omitting these details in my original post. Current tax status: H1B visa, will be leaving the US before getting a green card so I believe the exit tax should not be an issue Next country of residence: Singapore, so there is no capital gains tax Amoun...
by assyadh
Wed Jun 24, 2020 7:52 pm
Forum: Non-US Investing
Topic: Leaving US - how to switch from US to Irish-domiciled ETFs in most tax-efficient manner
Replies: 9
Views: 665

Re: Leaving US - how to switch from US to Irish-domiciled ETFs in most tax-efficient manner

You are highlighting some good questions. my tentative to answer them is below. You failed to mention what is your next country of residence and how much we are talking about. This matters because if let's say you move to a zero capital gains tax country then it would be better to transfer the share...
by assyadh
Wed Jun 24, 2020 6:49 pm
Forum: Non-US Investing
Topic: [France] First time investor lazy/permanent portfolio advice
Replies: 22
Views: 1730

Re: [France] First time investor lazy/permanent portfolio advice

I thought you are only allowed to have 1 AV, no? Please don't forget that with an Assurance Vie, you get 4600 euros of abatement per year for withdrawal (9200 euros for a couple), starting from the 8th year onwards. This means that if you handle it well, you can withdraw cash from the AV without pa...
by assyadh
Wed Jun 24, 2020 12:35 am
Forum: Non-US Investing
Topic: Irish alternatives to US domiciled ETFs
Replies: 15
Views: 931

Re: Irish alternatives to US domiciled ETFs

borbekk wrote:
Tue Jun 23, 2020 6:06 pm
Ted and what do you think an appropriate allocation? how much in us and how much in other regions?
Why threat the US as an exception. Use global etfs.
by assyadh
Tue Jun 16, 2020 2:02 pm
Forum: Investing - Theory, News & General
Topic: Economy vs Markets
Replies: 25
Views: 1348

Re: Economy vs Markets

Why do you think a rising debt is a problem? Debt as been rising for a century now. What is different than 40 years ago? 50 years ago? 20 years go?

MMT
by assyadh
Mon Jun 15, 2020 11:36 pm
Forum: Non-US Investing
Topic: [Belgium] US estate tax for foreigners
Replies: 6
Views: 353

Re: [Belgium] US estate tax for foreigners

... The fact that you hold it in a US brokerage account does not magically transform it into a 'US situs' asset. No US estate tax liability, though you may face having to file a form 706NA with the IRS, and then a subsequent lengthy wait, to get IB to release these assets to your estate. Have there...
by assyadh
Tue Jun 09, 2020 3:13 pm
Forum: Non-US Investing
Topic: Vanguard vs Schwab moving abroad [Moving from US to France]
Replies: 5
Views: 484

Re: Vanguard vs Schwab moving abroad [Moving from US to France]

Schwab is OK, Interactive Brokers is better. I suggest you do not update your address with the broker or you might not be able to buy US based ETFs anymore.

You won't be able/don't want to invest in a PEA/Assurance Vie as those are treated as PFIC by the IRS.
by assyadh
Tue Jun 09, 2020 12:59 pm
Forum: Non-US Investing
Topic: Vanguard vs Schwab moving abroad [Moving from US to France]
Replies: 5
Views: 484

Re: Vanguard vs Schwab moving abroad [Moving from US to France]

Are you a US citizen? A green card holder? Do you intend to keep your green card? Your future US Person status matters
by assyadh
Tue Jun 09, 2020 11:35 am
Forum: Non-US Investing
Topic: Making sense of the US/France estate tax treaty
Replies: 3
Views: 352

Re: Making sense of the US/France estate tax treaty

HOWEVER, given that the IRA is not taxable to France (it only bumps your marginal bracket, but not your tax due), it seems that the " and if taxable by that State under its laws " would make a US based pension effectively estate tax free in France if you die there. Assuming you're asking from the p...
by assyadh
Mon Jun 08, 2020 8:30 pm
Forum: Non-US Investing
Topic: Making sense of the US/France estate tax treaty
Replies: 3
Views: 352

Making sense of the US/France estate tax treaty

Hi everyone, So France has this income tax treaty with the US, which basically says the following with regards to IRAs and 401(k)s: All French source pensions are only taxable in France and at the State level. They are not taxed at the federal level. All US source pensions are only taxable in the Un...
by assyadh
Thu Jun 04, 2020 10:36 am
Forum: Non-US Investing
Topic: How to invest for Indian living in USA on H1 visa?
Replies: 27
Views: 4200

Re: How to invest for Indian living in USA on H1 visa?

getting a 1 million term life insurance for you and your wife and name your children as beneficiary That's perfect solution for me. Never in my thoughts(ved poster also gave the same tip) associated that life insurance can help offset estate taxes. That's awesome. Thanks everyone. Were you able to ...
by assyadh
Wed Jun 03, 2020 8:58 am
Forum: Non-US Investing
Topic: H1B Exit Strategy 401K vs Roth vs Brokerage
Replies: 67
Views: 3719

Re: H1B Exit Strategy 401K vs Roth vs Brokerage

If you expatriate early in the year (let's say 2020), how does it work? They won't withold 30% because they assume that on 2020 you are a US person? Don't you have to file taxes on 2021 for year 2020? When you mention estate tax, you mean in the case you plan to die early, right? You can insurance ...
by assyadh
Tue Jun 02, 2020 9:50 pm
Forum: Non-US Investing
Topic: H1B Exit Strategy 401K vs Roth vs Brokerage
Replies: 67
Views: 3719

Re: H1B Exit Strategy 401K vs Roth vs Brokerage

If you expatriate early in the year (let's say 2020), how does it work? They won't withold 30% because they assume that on 2020 you are a US person? Don't you have to file taxes on 2021 for year 2020? When you mention estate tax, you mean in the case you plan to die early, right? You can insurance ...
by assyadh
Mon Jun 01, 2020 11:22 am
Forum: Non-US Investing
Topic: H1B Exit Strategy 401K vs Roth vs Brokerage
Replies: 67
Views: 3719

Re: H1B Exit Strategy 401K vs Roth vs Brokerage

If you are a high earner on retirement (37% tax bracket), you may want to become a NRA earner to cash everything out at lower rate. Am I reading it right? Yes potentially. Another thing you could do is expatriate early in the year and fill lower tax brackets with your gains in 401k while still bein...
by assyadh
Mon Jun 01, 2020 11:20 am
Forum: Non-US Investing
Topic: H1B Exit Strategy 401K vs Roth vs Brokerage
Replies: 67
Views: 3719

Re: H1B Exit Strategy 401K vs Roth vs Brokerage

The best analysis of this I've seen of this is the following, from the ever-reliable Phil Hodgen: IRA Distributions for Noncovered Expatriates Thanks Tedswippet. This analysis says it all. All of the findings we compiled over multiple posts regarding the eci/non eci taxation of form 1040nr The one ...
by assyadh
Mon Jun 01, 2020 10:34 am
Forum: Non-US Investing
Topic: H1B Exit Strategy 401K vs Roth vs Brokerage
Replies: 67
Views: 3719

Re: H1B Exit Strategy 401K vs Roth vs Brokerage

I want to understand relevant tax code for above 30% flat rate on gains. The best analysis of this I've seen of this is the following, from the ever-reliable Phil Hodgen: IRA Distributions for Noncovered Expatriates Thanks Tedswippet. This analysis says it all. All of the findings we compiled over ...
by assyadh
Mon Jun 01, 2020 10:30 am
Forum: Non-US Investing
Topic: H1B Exit Strategy 401K vs Roth vs Brokerage
Replies: 67
Views: 3719

Re: H1B Exit Strategy 401K vs Roth vs Brokerage

OP. You may be able to withdraw $100k penalty free from your 401k due to covid-19. I haven’t read up on it but it may solve most of your problem. Taxes are still due, but no penalty. This option is only available in 2020. Be sure you’re leaving. The tax consequences are significant even without the...
by assyadh
Sun May 31, 2020 7:38 pm
Forum: Non-US Investing
Topic: H1B Exit Strategy 401K vs Roth vs Brokerage
Replies: 67
Views: 3719

Re: H1B Exit Strategy 401K vs Roth vs Brokerage

Bookmarked this thread. The information here is a bit overwhelming and I had no idea about estate tax. Will have to read through this. Thanks! I think we should really start on a wiki as to what a bogleheads on non immigrant visa or GC should be careful about. Especially Indians citizens who are ba...
by assyadh
Sun May 31, 2020 7:00 pm
Forum: Non-US Investing
Topic: H1B Exit Strategy 401K vs Roth vs Brokerage
Replies: 67
Views: 3719

Re: H1B Exit Strategy 401K vs Roth vs Brokerage

Bookmarked this thread. The information here is a bit overwhelming and I had no idea about estate tax. Will have to read through this. Thanks! I think we should really start on a wiki as to what a bogleheads on non immigrant visa or GC should be careful about. Especially Indians citizens who are ba...
by assyadh
Sun May 31, 2020 10:20 am
Forum: Non-US Investing
Topic: New investor with a couple ETF tax-related questions [Canada ex-pat in Philippines]
Replies: 8
Views: 520

Re: New investor with a couple ETF tax-related questions [Canada ex-pat in Philippines]

Thanks to both. Yes, I also understand that section 871(m) has this implication for some synthetic ETFs tracking the US market, though I've understood from marketing materials from both Invesco and Lyxor , at least, that their synthetic S&P 500 index ETFs are "out of scope" (because the index is la...
by assyadh
Sun May 31, 2020 12:11 am
Forum: Non-US Investing
Topic: New investor with a couple ETF tax-related questions [Canada ex-pat in Philippines]
Replies: 8
Views: 520

Re: New investor with a couple ETF tax-related questions [Canada ex-pat in Philippines]

This document is dense, but nestled within it is a statement that there is no Luxembourg withholding -- that is, 0% L2TW -- for Luxembourg domiciled UCITS funds/ETFs (emphasis is mine): https://www.ibfd.org/sites/ibfd.org/files/content/pdf/eth_gtha_luxembourg.pdf Thanks very much - just what I need...
by assyadh
Sat May 30, 2020 1:02 pm
Forum: Non-US Investing
Topic: Cheaper ETFs?
Replies: 7
Views: 857

Re: Cheaper ETFs?

galeno wrote:
Sat May 30, 2020 10:38 am
Our port is in my signature. We use two expensive Ireland domiciled iShares ETFs:

WSML (World SCs) has an ER = 0.35%
IDTP (TIPs) with an ER = 0.25%.

Any replacements that have lower ERs?
No luck on the small caps:

https://www.justetf.com/en/find-etf.htm ... small++cap
by assyadh
Fri May 29, 2020 11:10 am
Forum: Non-US Investing
Topic: H1B Exit Strategy 401K vs Roth vs Brokerage
Replies: 67
Views: 3719

Re: H1B Exit Strategy 401K vs Roth vs Brokerage

- If you withdraw from 401k/IRA (assume after 59.5): tax you pay to US is normal bracket on contributions + 30% on earnings. Broker will withhold 30%; I obtained the below information from here, which does not align with your statement above. https://myrawealth.com/insights/what-to-do-with-your-401...
by assyadh
Fri May 29, 2020 9:29 am
Forum: Non-US Investing
Topic: Portfolio, Tax and Expenses Risks
Replies: 7
Views: 820

Re: Portfolio, Tax and Expenses Risks

KISS. 80% VWRD + 20% VDTY. Anything else is just mental masturbation. Swap the treasuries with a global aggregate bond etf hedge to your local currency and I agree :D Agreed on the global agg bond. About the Hedge, I'm actually doing in reverse, meaning I'm holding my assets in USD as it's much mor...
by assyadh
Fri May 29, 2020 9:28 am
Forum: Non-US Investing
Topic: Only tax-advantaged option is a Roth?
Replies: 14
Views: 1095

Re: Only tax-advantaged option is a Roth?

Thank you all so much. I am all squared away on the FEIE and the Roth rules. EE bonds are interesting -- will explore. IRAs, 401Ks, 457s, etc are American accounts for those who pay American taxes, to encourage the worker to save for his/her own retirement. If you aren't paying taxes like the resid...
by assyadh
Thu May 28, 2020 3:37 pm
Forum: Non-US Investing
Topic: H1B Exit Strategy 401K vs Roth vs Brokerage
Replies: 67
Views: 3719

Re: H1B Exit Strategy 401K vs Roth vs Brokerage

assyadh, do not misjudge the advantage of tax deduction ahead. Let me show with an example: Margin bracket(state+fed): 30% Savings per year: 15,000 NUmber of years before withdrawal: 10. Investment return: 8% Tax drag in taxable: 0.5% Estate tax out: 40% Taxable: 15%/25%(If one is selling while res...
by assyadh
Thu May 28, 2020 11:31 am
Forum: Non-US Investing
Topic: H1B Exit Strategy 401K vs Roth vs Brokerage
Replies: 67
Views: 3719

Re: H1B Exit Strategy 401K vs Roth vs Brokerage

Imagine you have an ETFs that pays 2% a year, with a 24% marginal tax bracket. The difference between a Roth and non roth is 2%*24% so far from 1%. If the dividends are qualified it's even less. It compounds but you have the benefit of the money always accessible. With no penalty. Assume your retur...
by assyadh
Thu May 28, 2020 10:32 am
Forum: Non-US Investing
Topic: H1B Exit Strategy 401K vs Roth vs Brokerage
Replies: 67
Views: 3719

Re: H1B Exit Strategy 401K vs Roth vs Brokerage

[I can only emphasize that if you KNOW you will be a NRA, avoid US accounts as much as possible. My order of operations is (and I think yours should be similar): 1- HSA if you think you will be able to empty it using your medical bills while in the US. 2- Roth 401k up to the match. 3- Brokerage acc...
by assyadh
Thu May 28, 2020 4:17 am
Forum: Non-US Investing
Topic: Portfolio, Tax and Expenses Risks
Replies: 7
Views: 820

Re: Portfolio, Tax and Expenses Risks

galeno wrote:
Thu Mar 12, 2020 1:02 pm
KISS. 80% VWRD + 20% VDTY. Anything else is just mental masturbation.
Swap the treasuries with a global aggregate bond etf hedge to your local currency and I agree :D
by assyadh
Wed May 27, 2020 10:49 pm
Forum: Investing - Theory, News & General
Topic: Taxable Account - a Swiss Army Knife for Savers
Replies: 42
Views: 5850

Re: Taxable Account - a Swiss Army Knife for Savers

Everything in a ROTH is mine , tax free. Don't underestimate the power of changing laws. Especially when considering decades. The account is still a government sponsored one, endorsed by a section in the tax code, which you have 0 control over. Surely if the law changed it would be for all contribu...
by assyadh
Wed May 27, 2020 10:45 pm
Forum: Non-US Investing
Topic: H1B Exit Strategy 401K vs Roth vs Brokerage
Replies: 67
Views: 3719

Re: H1B Exit Strategy 401K vs Roth vs Brokerage

I think using only Roth is a knee jerk reaction to the estate tax clauses. Let see the probability of this happening: 1) If OP is in USA or acquires citizenship, he does not need to worry about NRA. 2) If OP moves to home country and has few years, he can convert to Roth or SEPP or withdraw. 3) 40%...
by assyadh
Wed May 27, 2020 1:12 am
Forum: Non-US Investing
Topic: H1B Exit Strategy 401K vs Roth vs Brokerage
Replies: 67
Views: 3719

Re: H1B Exit Strategy 401K vs Roth vs Brokerage

saver007 wrote:
Wed May 27, 2020 12:44 am
I am not an expert but once you left the us firm, can't you rollover 401k to traditional IRA with IBKR and convert your investment to Irish domaciled funds traded on London stock exchange?
The IRA is always considered as US based and subject to the estate taxes regardless of what it contains.
by assyadh
Tue May 26, 2020 11:08 pm
Forum: Non-US Investing
Topic: H1B Exit Strategy 401K vs Roth vs Brokerage
Replies: 67
Views: 3719

Re: H1B Exit Strategy 401K vs Roth vs Brokerage

Hi OP, You are smart to be running into this issue and educating yourself. Most people on non immigrant visa don't do it and fall into the US tax traps. I myself was on L1B and switched to GC. You are right that you should 'lower' your US investment footprint as much as possible. You would be indeed...
by assyadh
Sun May 24, 2020 11:05 pm
Forum: Investing - Theory, News & General
Topic: Taxable Account - a Swiss Army Knife for Savers
Replies: 42
Views: 5850

Re: Taxable Account - a Swiss Army Knife for Savers

Everything in a ROTH is mine , tax free. Don't underestimate the power of changing laws. Especially when considering decades. The account is still a government sponsored one, endorsed by a section in the tax code, which you have 0 control over. Surely if the law changed it would be for all contribu...
by assyadh
Sun May 24, 2020 5:10 pm
Forum: Investing - Theory, News & General
Topic: Taxable Account - a Swiss Army Knife for Savers
Replies: 42
Views: 5850

Re: Taxable Account - a Swiss Army Knife for Savers

bertilak wrote:
Sun May 24, 2020 9:50 am
Everything in a ROTH is mine, tax free.
Don't underestimate the power of changing laws. Especially when considering decades. The account is still a government sponsored one, endorsed by a section in the tax code, which you have 0 control over.
by assyadh
Tue May 19, 2020 4:21 pm
Forum: Non-US Investing
Topic: IRA vs Non Tax Advantaged Account for Expats in the US
Replies: 36
Views: 1309

Re: IRA vs Non Tax Advantaged Account for Expats in the US

I was wondering the same. For investments have built-in capital gains, if moving from the US to a higher tax country then liquidating before leaving makes sense. Otherwise, it's generally better to wait until after terminating US residency. My bad, thought OP was specifically mentioning a Roth IRA....
by assyadh
Tue May 19, 2020 1:13 pm
Forum: Non-US Investing
Topic: IRA vs Non Tax Advantaged Account for Expats in the US
Replies: 36
Views: 1309

Re: IRA vs Non Tax Advantaged Account for Expats in the US

I've been reviewing this once again to decide on the best strategy. If I were to liquidate after I return to Singapore and get taxed as a non-resident alien, wouldn't I then in this case get hit by the 30% withholding tax, even if there aren't any capital gains taxes?! Given the above, isnt it bett...
by assyadh
Mon May 18, 2020 3:49 pm
Forum: Non-US Investing
Topic: IRA vs Non Tax Advantaged Account for Expats in the US
Replies: 36
Views: 1309

Re: IRA vs Non Tax Advantaged Account for Expats in the US

Ah, thank you! Okay so in this scenario, given I’d have to liquidate my positions when I leave the US anyway, I don’t see a specific reason to keep my investments in an IB account. I can just use the Schwab brokerage account I currently and as part of the transition, I’d liquidate the schwab a/c (w...
by assyadh
Mon May 18, 2020 12:49 am
Forum: Non-US Investing
Topic: Non resident alien Roth distributions
Replies: 3
Views: 319

Re: Non resident alien Roth distributions

@core4portfolio that's what I thought too until I read this thread which said that Roth distributions to non-resident aliens are subject to 30% tax withholding and it was unclear if a tax refund could be obtained successfully on the withholding. https://www.bogleheads.org/forum/viewtopic.php?t=1410...
by assyadh
Sat May 16, 2020 12:12 pm
Forum: Non-US Investing
Topic: [France] First time investor lazy/permanent portfolio advice
Replies: 22
Views: 1730

Re: [France] First time investor lazy/permanent portfolio advice

Please don't forget that with an Assurance Vie, you get 4600 euros of abatement per year for withdrawal (9200 euros for a couple), starting from the 8th year onwards. This means that if you handle it well, you can withdraw cash from the AV without paying anything, except the 17.2% of social taxes. ...
by assyadh
Fri May 15, 2020 10:42 pm
Forum: Non-US Investing
Topic: The Mighty USD
Replies: 58
Views: 4496

Re: The Mighty USD

It doesn't really matter if you invest in tangible assets.
by assyadh
Fri May 15, 2020 5:13 pm
Forum: Non-US Investing
Topic: [France] First time investor lazy/permanent portfolio advice
Replies: 22
Views: 1730

Re: [France] First time investor lazy/permanent portfolio advice

BTW, the PEA is less restrictive if you move from France because it will just basically behave as a brokerage account. You will have to tell your broker you are no longer a resident and they will waive the witholding.
by assyadh
Fri May 15, 2020 1:31 pm
Forum: Non-US Investing
Topic: IRA vs Non Tax Advantaged Account for Expats in the US
Replies: 36
Views: 1309

Re: IRA vs Non Tax Advantaged Account for Expats in the US

Yes you wouldn't get taxed on capital gains (unless you are liable for an exit tax, rules are complex so you can Google them). You would be liable for dividends taxes. Interactive brokers is way cheaper, better fx rates. Imagine you sell USD etfs and want to buy EUR etfs. Being able to do everythin...
by assyadh
Fri May 15, 2020 12:42 pm
Forum: Non-US Investing
Topic: IRA vs Non Tax Advantaged Account for Expats in the US
Replies: 36
Views: 1309

Re: IRA vs Non Tax Advantaged Account for Expats in the US

You set it up with interactive brokers as a US resident. Once you become a non resident (either by ending your non immigrant work visa, relinquishing your green card or renunciating us citizenship) you tell interactive brokers, file a W8-BEN form with them. Now you can go and sell your US based ETF...
by assyadh
Fri May 15, 2020 11:16 am
Forum: Non-US Investing
Topic: IRA vs Non Tax Advantaged Account for Expats in the US
Replies: 36
Views: 1309

Re: IRA vs Non Tax Advantaged Account for Expats in the US

OP really has no reason to use a Roth. Because he can achieve a better outcome using a regular brokerage and leveraging his singapore citizenship. People try to convince other to use roth because you can avoid capital gains tax in some situations after a certain age. This is useless for OP because ...
by assyadh
Fri May 15, 2020 10:36 am
Forum: Non-US Investing
Topic: [France] First time investor lazy/permanent portfolio advice
Replies: 22
Views: 1730

Re: [France] First time investor lazy/permanent portfolio advice

Do I understand it correctly that it only makes sense to open a regular brokerage account once I reach the PEA limit? Better to open a great assurance vie providing World ETF in this case (Lyxor for instance). Best assurance vie are : - Placement Direct with Darjeeling (Swiss Life) - Linxea Avenir ...