Search found 222 matches

by helloyou
Tue Mar 12, 2024 2:46 am
Forum: Personal Consumer Issues
Topic: Want to leave the California bay area. Where to live?
Replies: 63
Views: 5615

Re: Want to leave the California bay area. Where to live?

https://en.wikipedia.org/wiki/Global_Liveability_Ranking I would not give a single cent on these rankings. Sure, these are mostly nice cities but if you´ve been there for more than just a day of stopover you cannot possibly fathom cities like Vancouver (no offence, Canada, luv you) or Frankfurt on that list and you wonder who came up with it. Economist Intelligence Unit. The Economist knows nothing about the world it seems. /s Not sure what list you are looking at but Frankfurt is not on that list! I've been to all those cities and would live in any rather than SF or LA. Ah, it's fascinating to observe such unwavering faith in The Economist and their supposed "Intelligence Unit". :happy But let me burst that bubble for you — thes...
by helloyou
Mon Mar 11, 2024 10:39 pm
Forum: Personal Consumer Issues
Topic: Want to leave the California bay area. Where to live?
Replies: 63
Views: 5615

Re: Want to leave the California bay area. Where to live?

https://en.wikipedia.org/wiki/Global_Liveability_Ranking I would not give a single cent on these rankings. Sure, these are mostly nice cities but if you´ve been there for more than just a day of stopover you cannot possibly fathom cities like Vancouver (no offence, Canada, luv you) or Frankfurt on that list and you wonder who came up with it. Economist Intelligence Unit. The Economist knows nothing about the world it seems. /s Not sure what list you are looking at but Frankfurt is not on that list! I've been to all those cities and would live in any rather than SF or LA. Ah, it's fascinating to observe such unwavering faith in The Economist and their supposed "Intelligence Unit". :happy But let me burst that bubble for you — thes...
by helloyou
Mon Mar 11, 2024 10:03 pm
Forum: Personal Finance (Not Investing)
Topic: Credit Score: 805 - Should I close old Credit Cards?
Replies: 12
Views: 1931

Credit Score: 805 - Should I close old Credit Cards?

I am from Europe, and I lived in the US from 2014 to 2018. I still have 3 active credit cards: - BofA Nature Conservancy - $2,000 limit (my first credit card, in 2015), no annual fee - Amex Delta Blue - $9,000 limit - 2016, no annual fee - Chase Sapphire Reserve - $24,000 limit - 2017, $550 per year The only card (still to this day) that I use is the Chase one, given the highly attractive program. I do not use any other credit cards even in the country I am in now. As I do not use the first two cards (besides the sporadic coffee purchase when I receive a new card of when the Chase is rejected online), I was thinking of closing them both for the sake of simplicity. Even though they do not have annual fees, I feel uncomfortable having two lin...
by helloyou
Mon Feb 05, 2024 12:49 pm
Forum: Non-US Investing
Topic: Huge performance difference between EUR & USD ETFs.
Replies: 5
Views: 1409

Re: Huge performance difference between EUR & USD ETFs.

increment wrote: Mon Feb 05, 2024 12:34 pm
helloyou wrote: Mon Feb 05, 2024 12:17 pm We see that someone who owns the VWRA in USD has only had a 2.06% return, while someone who owns the EUR version sees a 4.22% return :!: :!:
But it looks like between January 1st and February 4th, the Euro has dropped about 2.5% relative to the dollar.
So if the S&P500 does +50%, but EUR goes down 50% against USD in the next 5 years, it actually eliminates all the gains?
by helloyou
Mon Feb 05, 2024 12:17 pm
Forum: Non-US Investing
Topic: Huge performance difference between EUR & USD ETFs.
Replies: 5
Views: 1409

Huge performance difference between EUR & USD ETFs.

If we compare the 2024 YTD performance of these ETFs: https://image.noelshack.com/fichiers/2024/06/1/1707156203-screenshot-2024-02-05-at-19-03-00.png We see that someone who owns the VWRA in USD has only had a 2.06% return, while someone who owns the EUR version sees a 4.22% return :!: :!: This means the USD version underperforms the EUR version by two times, in nominal value. This is huge. I do not understand why the S&P500 index has grown by 4.29%, and for the EUR version of this index - we see +6.21%. The performance is night and day between a globally diversified ETF in USD that barely yields 2% YTD, versus a S&P500 in EUR and which yields three times as much as the USD. As a USD investor, how do we make up for this huge FX disa...
by helloyou
Fri Jan 26, 2024 2:04 am
Forum: Non-US Investing
Topic: Best broker for Hong Kongers with small savings and contributions
Replies: 9
Views: 2447

Re: Best broker for Hong Kongers with small savings and contributions

I am a Hong Kong citizen, not expat. I want to invest my savings (less than $40,000 USD ) and also a portion of my income (around USD $1500) each month. I intend to go 80% VWRA and 20% bonds (I haven't decided whether to buy a bond ETF or government bonds). Most ppl recommend Interactive Brokers, but they charge USD $10 per month if you don't have more than USD $100,000 in their account), so its too expensive for me. Is Saxo my next best choice? They charge 0.08% (min. 3 GBP) with no custody fee. As a fellow HK resident, I warmly recommend you to use IB. I compared with Saxo but I didn't like that they charged a custody fee. Get Irish domiciled ETF like VWRA or ISAC in USD (use IB to convert from HKD at real spot price). For bonds, same as...
by helloyou
Thu Jan 25, 2024 12:28 pm
Forum: Non-US Investing
Topic: [Hong Kong] MPF choices that are in line with the Boglehead philosophy
Replies: 10
Views: 4861

Re: [Hong Kong] MPF choices that are in line with the Boglehead philosophy

I use Global Equity Fund with HSBC. It's not really actively managed, more passive. Probably the best you can get in HK in terms of MPF components. The fee is about 0.7-0.8% which is as low as you can get with these schemes. I do the same, and it's by far the best option of MPF funds. Also note that this fund is tracking an index and thus not actively managed. There are four reasons why MPF options have higher fees than you'd see elsewhere: (1) they capture all management fees, as there are no separate account management fees. In the US, fees related to 401(k)s are paid for by the employer and range from 0.5% to 2% of assets under management. (2) there are special reporting requirements on these funds that increase admin expenses. Your con...
by helloyou
Wed Jan 24, 2024 2:58 am
Forum: Non-US Investing
Topic: Best broker for Hong Kongers with small savings and contributions
Replies: 9
Views: 2447

Re: Best broker for Hong Kongers with small savings and contributions

I am a Hong Kong citizen, not expat. I want to invest my savings (less than $40,000 USD ) and also a portion of my income (around USD $1500) each month. I intend to go 80% VWRA and 20% bonds (I haven't decided whether to buy a bond ETF or government bonds). Most ppl recommend Interactive Brokers, but they charge USD $10 per month if you don't have more than USD $100,000 in their account), so its too expensive for me. Is Saxo my next best choice? They charge 0.08% (min. 3 GBP) with no custody fee. As a fellow HK resident, I warmly recommend you to use IB. I compared with Saxo but I didn't like that they charged a custody fee. Get Irish domiciled ETF like VWRA or ISAC in USD (use IB to convert from HKD at real spot price). For bonds, same as...
by helloyou
Wed Jan 24, 2024 2:54 am
Forum: Non-US Investing
Topic: [Hong Kong] MPF choices that are in line with the Boglehead philosophy
Replies: 10
Views: 4861

Re: [Hong Kong] MPF choices that are in line with the Boglehead philosophy

I use Global Equity Fund with HSBC. It's not really actively managed, more passive. Probably the best you can get in HK in terms of MPF components. The fee is about 0.7-0.8% which is as low as you can get with these schemes.

Don't select funds that cost more than 1%. Get the most diversified fund (global or at least developed markets).
by helloyou
Tue Jan 23, 2024 1:51 pm
Forum: Non-US Investing
Topic: Best broker for Hong Kongers with small savings and contributions
Replies: 9
Views: 2447

Re: Best broker for Hong Kongers with small savings and contributions

I am a Hong Kong citizen, not expat. I want to invest my savings (less than $40,000 USD ) and also a portion of my income (around USD $1500) each month. I intend to go 80% VWRA and 20% bonds (I haven't decided whether to buy a bond ETF or government bonds). Most ppl recommend Interactive Brokers, but they charge USD $10 per month if you don't have more than USD $100,000 in their account), so its too expensive for me. Is Saxo my next best choice? They charge 0.08% (min. 3 GBP) with no custody fee. As a fellow HK resident, I warmly recommend you to use IB. I compared with Saxo but I didn't like that they charged a custody fee. Get Irish domiciled ETF like VWRA or ISAC in USD (use IB to convert from HKD at real spot price). For bonds, same as...
by helloyou
Wed Jan 17, 2024 7:07 am
Forum: Non-US Investing
Topic: Liquidity in VHVE+VFEA vs VWRA
Replies: 4
Views: 1486

Re: Liquidity in VHVE+VFEA vs VWRA

Liquidity is huge for all 3 products, no worries there. Also, with a reputable fund provider like Vanguard I wouldn't worry around not being able to buy/sell, you should always find a buyer or seller. The bid ask spread is more a factor to consider, but over the long term it does not matter much with these AUMs. Anyhow, it's good enough for all 3 products you mentioned.

I prefer simplicity so I would go with VWRA if I were in your shoes (unless you invest a high 7 or 8 figure amount, where a 0.05% difference can represent $5000 per year in savings, on a 10M investment).
by helloyou
Mon Jan 15, 2024 8:25 am
Forum: Non-US Investing
Topic: Invest into Stocks versus Long Term bonds?
Replies: 19
Views: 3268

Re: Invest into Stocks versus Long Term bonds?

2-year treasuries yield over 4% now, and 10-year ones yield a little bit over 3.9%. Here are the very likely scenarios to happen in the next few years: 1) Soft landing: If the FED rate go down, selling the bond on the secondary market would result in its price increasing, which I would benefit from (no loss incurred). The FED rate has not been as high as it currently is, for 25 years). 2) Recession: If the economy tanks, the fed will cut rates further at one point, making the selling of treasuries on the secondary market beneficial too. It would be a great way to reinvest these treasuries into the stock market Therefore, should I buy intermediate/long term notes/bonds (e.g. 2-3-5 years)? I am planning to have a 50/50 allocation for the time...
by helloyou
Wed Jan 10, 2024 2:55 am
Forum: Non-US Investing
Topic: Invest into Stocks versus Long Term bonds?
Replies: 19
Views: 3268

Re: Invest into Stocks versus Long Term bonds?

Thanks for the insights First of all, I would like to mention that I find it very misleading that the personal finance community takes the stocks/bonds asset allocation as the golden standard to measure asset exposure and compare it between individuals. For example, someone who has a paid off house could easily represent 50% or more of someone's net worth, and yet it is generally unaccounted for on forums. This skews the analysis a LOT in my opinion. There are other asset classes that are not accounted for, but real estate is the one that is the most overlooked. If my net worth is 1M, and my house is 500k, I will not view a 50/50 stock-bond allocation the same as if my very net worth of 1M is 50/50 invested solely between stocks and divide...
by helloyou
Tue Jan 09, 2024 8:11 am
Forum: Non-US Investing
Topic: Invest into Stocks versus Long Term bonds?
Replies: 19
Views: 3268

Re: Invest into Stocks versus Long Term bonds?

Thanks for the insights First of all, I would like to mention that I find it very misleading that the personal finance community takes the stocks/bonds asset allocation as the golden standard to measure asset exposure and compare it between individuals. For example, someone who has a paid off house could easily represent 50% or more of someone's net worth, and yet it is generally unaccounted for on forums. This skews the analysis a LOT in my opinion. There are other asset classes that are not accounted for, but real estate is the one that is the most overlooked. If my net worth is 1M, and my house is 500k, I will not view a 50/50 stock-bond allocation the same as if my very net worth of 1M is 50/50 invested solely between stocks and divide...
by helloyou
Tue Jan 09, 2024 7:55 am
Forum: Non-US Investing
Topic: Invest into Stocks versus Long Term bonds?
Replies: 19
Views: 3268

Re: Invest into Stocks versus Long Term bonds?

My wife and I are late 30's and are all equities except a cushion of $25k we leave in a MM (and refill once it goes below that point for any reason). I think at our age we still have enough human capital to make up for stock market losses. We're also counting on a pension from the Army Reserves (me) and wife as a Teacher, so we're comfortable taking more risks. Also since we're still accumulating, I like it when the market goes down so I can dollar cost average in at lower prices. Asset Allocation is totally a personal decision. If 30/70 works for you, then stick with it - just understand the risks of inflation eating into your total returns. Also, as we saw last year, bonds can also get crushed. I would consider setting aside any money yo...
by helloyou
Tue Jan 09, 2024 6:29 am
Forum: Non-US Investing
Topic: Invest into Stocks versus Long Term bonds?
Replies: 19
Views: 3268

Re: Invest into Stocks versus Long Term bonds?

Thanks for the insights First of all, I would like to mention that I find it very misleading that the personal finance community takes the stocks/bonds asset allocation as the golden standard to measure asset exposure and compare it between individuals. For example, someone who has a paid off house could easily represent 50% or more of someone's net worth, and yet it is generally unaccounted for on forums. This skews the analysis a LOT in my opinion. There are other asset classes that are not accounted for, but real estate is the one that is the most overlooked. If my net worth is 1M, and my house is 500k, I will not view a 50/50 stock-bond allocation the same as if my very net worth of 1M is 50/50 invested solely between stocks and dividen...
by helloyou
Mon Jan 08, 2024 1:43 pm
Forum: Non-US Investing
Topic: Invest into Stocks versus Long Term bonds?
Replies: 19
Views: 3268

Re: Invest into Stocks versus Long Term bonds?

Unless you are planning to retire in the next 10 years you are really hampering your long term growth prospects. You can’t time the market period. Your attempt to do so now and in the future will result in subpar results in the decades to come. We are starting our 4th year of retirement at ages 63/65 and did nothing else but hold our 60/40 steady throughout the downturn. At your age your retirement accounts should hold equities in greater percentage than we do. Cheers Were you always holding a 60/40 asset allocation? Would be interested to know how your AA changed during your investing lifetime and as you moved towards and in retirement Thanks I have always been heavy on cash. Current exposure to stocks has never been this high. I am aware...
by helloyou
Mon Jan 08, 2024 12:18 pm
Forum: Non-US Investing
Topic: Invest into Stocks versus Long Term bonds?
Replies: 19
Views: 3268

Re: Invest into Stocks versus Long Term bonds?

muffins14 wrote: Mon Jan 08, 2024 12:02 pm What was your original motivation for having such a conservative 30/70 portfolio?

what are your goals?
I started to accumulate most of my "wealth"' just before COVID in 2019 through 2022, hence it was hard to have visibility into the future, especially amid COVID. This is my excuse. Now I am sitting with this much cash, and almost all my stock holdings were bought at a all time high in summer 2021...

In the end it's not a huge fortune but I worked hard for it and I would be able to live around 10 years with my current net worth.

My goals are having enough cash to finance the deposit on a home purchase in the future in maybe 5 years or more, and finance my retirement.
by helloyou
Mon Jan 08, 2024 11:23 am
Forum: Non-US Investing
Topic: Invest into Stocks versus Long Term bonds?
Replies: 19
Views: 3268

Invest into Stocks versus Long Term bonds?

Hi there, I am 32 and 70% of my net worth is currently in short term US treasuries (T Bills) and 30% in a globally diversified stock ETF. The bulk of my net worth was generated in the past 3 years and given current valuations and treasuries yields, I feel refrained from investing in stocks. I am thinking about buying more stocks now to have a 50% exposure into stocks. On the bond side (the remaining 50%), I am thinking of securing long term US individual treasuries at 4-4.5% (with duration of 2,3,4 or 5 or more years) for about 30% of my net worth, and the remaining 20% in short term US treasuries for emergencies/short term cash needs. During bear markets, I can sell long term treasuries and buy stocks. I do not see myself purchasing real e...
by helloyou
Thu Jan 04, 2024 4:25 am
Forum: Non-US Investing
Topic: Are US Treasuries Notes / Bonds subject to withholding?
Replies: 2
Views: 3619

Re: Are US Treasuries Notes / Bonds subject to withholding?

jimshaw wrote: Wed Jan 03, 2024 11:52 am It is not subject to withholding tax for non US investors. I learned that from Bogleheads, and verified via my own experience.
Thanks! I might start getting into longer term treasuries given current yields.
by helloyou
Tue Dec 19, 2023 3:41 am
Forum: Non-US Investing
Topic: Best US Treasuries Floating Rate Product in Europe?
Replies: 19
Views: 3324

Re: Best US Treasuries Floating Rate Product in Europe?

occambogle wrote: Tue Dec 19, 2023 3:14 am Hi... just curious, what did you decide to do in the end?
I settled for a US T-bills ladder and very happy about it :happy
by helloyou
Thu Dec 14, 2023 5:58 am
Forum: Personal Investments
Topic: Can anyone remember a comparable market to today?
Replies: 96
Views: 18597

Re: Can anyone remember a comparable market to today?

I’m always wondering how the stock market can go down in a capitalist country where public market access is growing. The fed prints money, incomes increase. Some of it at least is going into the stock market so how the indexes cannot grow, even in the event that the companies are literally selling or are less profitable. And this is without considering other countries with growing monetary supplies. This money needs to go somewhere. Ok they are different allocations such as bonds (but in the long term people always allocate towards stocks following economic cycles). Other sectors for allocation include real estate (limited supply), and private investments. What remains is commodities and crypto. I don’t see how the stock market can go down...
by helloyou
Thu Dec 14, 2023 5:45 am
Forum: Personal Investments
Topic: Can anyone remember a comparable market to today?
Replies: 96
Views: 18597

Re: Can anyone remember a comparable market to today?

I’m always wondering how the stock market can go down in a capitalist country where public market access is growing. The fed prints money, incomes increase. Some of it at least is going into the stock market so how the indexes cannot grow, even in the event that the companies are literally selling or are less profitable. And this is without considering other countries with growing monetary supplies. This money needs to go somewhere. Ok they are different allocations such as bonds (but in the long term people always allocate towards stocks following economic cycles). Other sectors for allocation include real estate (limited supply), and private investments. What remains is commodities and crypto. I don’t see how the stock market can go down ...
by helloyou
Wed Dec 13, 2023 10:33 pm
Forum: Non-US Investing
Topic: Are US Treasuries Notes / Bonds subject to withholding?
Replies: 2
Views: 3619

Are US Treasuries Notes / Bonds subject to withholding?

T-bills are for sure exempt from estate and interest tax withholding as non us resident.

How is it for notes and bonds?
by helloyou
Mon Dec 11, 2023 9:49 pm
Forum: Investing - Theory, News & General
Topic: Is it time to secure 5-10 year Treasuries?
Replies: 19
Views: 5232

Re: Is it time to secure 5-10 year Treasuries?

Sounds like you are trying to time the interest rate market which is not a good plan. I’d figure out an appropriate fixed income asset allocation and start there … I like some of the advantages of a 1-5 year treasury bond ladder to navigate the uncertainty of rising or declining rates. Good luck, You are right, but at the same time valuations feel high and it's hard to invest now when you can get >5.3% risk free. I don't know what allocation I should have. I see my stock allocation as 20+ years investments, and I don't plan to sell a single share for this very long period of time. I may need cash for a deposit or buy an apartment cash in 5 years but this is all hypothetical hence why I am refrained from going 80% and more in stocks. You ne...
by helloyou
Mon Dec 11, 2023 5:20 am
Forum: Investing - Theory, News & General
Topic: Is it time to secure 5-10 year Treasuries?
Replies: 19
Views: 5232

Re: Is it time to secure 5-10 year Treasuries?

Sounds like you are trying to time the interest rate market which is not a good plan. I’d figure out an appropriate fixed income asset allocation and start there … I like some of the advantages of a 1-5 year treasury bond ladder to navigate the uncertainty of rising or declining rates. Good luck, You are right, but at the same time valuations feel high and it's hard to invest now when you can get >5.3% risk free. I don't know what allocation I should have. I see my stock allocation as 20+ years investments, and I don't plan to sell a single share for this very long period of time. I may need cash for a deposit or buy an apartment cash in 5 years but this is all hypothetical hence why I am refrained from going 80% and more in stocks.
by helloyou
Mon Dec 11, 2023 2:50 am
Forum: Personal Consumer Issues
Topic: Favorite suitcase?
Replies: 56
Views: 7567

Re: Favorite suitcase?

I care less about the checked-in luggage. Honestly, it's the one that is the most likely to be mishandled during loading by airport staff. Also, you don't want to have a flashy suitcase, but one that is as stealth looking and as standard as possible, to avoid potential theft and whatnot. I have been taking close to 100+ flights in the past 13 years I have owned it. It saw 4 continents, irregular paved and bricks roads, dusty roads in third world countries and it has NEVER let me down. It does not roll as smooth anymore, and is starting to tilt. I don't travel light and I often load it with more than 65 pounds of stuff. I always charge it like a mule. Honestly, I treat it very poorly, it bangs against sidewalks, weels that slamming into poth...
by helloyou
Mon Dec 11, 2023 1:26 am
Forum: Investing - Theory, News & General
Topic: Is it time to secure 5-10 year Treasuries?
Replies: 19
Views: 5232

Re: Is it time to secure 5-10 year Treasuries?

The Fed could hold rates for a year and then start lowering. No one knows though. If you read the financial press or listen to financial radio, there is a cottage industry on predicting what the Fed will do and most of the predictions I have seen over the last two years have been wrong. You are right but the FED has never had (more or less) higher rates after 1992. Before 1992, the inflation rate was 10 to 20%. Statistically, it is very unlikely for the FED rates to climb higher. They could keep their rates as if for another year, but this should not affect the 2-5y rates much hence comparing the two it might makes more mathematical sense to secure some yield for 2-5 years rather than staying in short treasuries right? OP, what does your i...
by helloyou
Sun Dec 10, 2023 2:49 am
Forum: Investing - Theory, News & General
Topic: Is it time to secure 5-10 year Treasuries?
Replies: 19
Views: 5232

Re: Is it time to secure 5-10 year Treasuries?

gotoparks wrote: Sun Dec 10, 2023 2:43 am The Fed could hold rates for a year and then start lowering. No one knows though. If you read the financial press or listen to financial radio, there is a cottage industry on predicting what the Fed will do and most of the predictions I have seen over the last two years have been wrong.
You are right but the FED has never had (more or less) higher rates after 1992. Before 1992, the inflation rate was 10 to 20%. Statistically, it is very unlikely for the FED rates to climb higher. They could keep their rates as if for another year, but this should not affect the 2-5y rates much hence comparing the two it might makes more mathematical sense to secure some yield for 2-5 years rather than staying in short treasuries right?
by helloyou
Sun Dec 10, 2023 2:19 am
Forum: Investing - Theory, News & General
Topic: Is it time to secure 5-10 year Treasuries?
Replies: 19
Views: 5232

Is it time to secure 5-10 year Treasuries?

As yields are starting to go down upon anticipation that the FED might slowly decrease rates in 2024-2025.

I have only experience with T-Bills and keeping most of them to maturity. I have never risked myself in treasury funds or longer term individual treasuries. I can secure a 4.72% rate for a 2 year bond/note. I would be down to put most of my medium term cash into this, but I wonder what would happen if I had to sell early (would probably get a hit if rates increase again), but I should be fine if rates go down (as they they are obviously very likely to in the medium term).
by helloyou
Mon Nov 06, 2023 5:07 am
Forum: Non-US Investing
Topic: EU national but never worked in Eurozone: What % of EUR to hold?
Replies: 3
Views: 2249

Re: EU national but never worked in Eurozone: What % of EUR to hold?

daviddem wrote: Sun Nov 05, 2023 10:17 pm Well if you expect you will inherit a significant amount of Euros I guess you could have all you current wealth in USD/HKD.

Thanks. Should I sell 100% of EUR and just use Wise to send money to my family when needed?

The current exchange rate is 1.075, should I wait for it to grow higher? I know this is speculation ..
by helloyou
Sun Nov 05, 2023 3:37 am
Forum: Non-US Investing
Topic: EU national but never worked in Eurozone: What % of EUR to hold?
Replies: 3
Views: 2249

EU national but never worked in Eurozone: What % of EUR to hold?

I am in my early-mid thirties and I have never worked in Europe, only US and Hong Kong (HKD so pegged on USD). 25% of my assets (all liquid, no real estate) are in EUR, the rest in USD/HKD. I do not know if and when I would go back to my Western European country. All of my spendings are in USD/HKD or other local currencies (I travel and live in different countries throughout the year, my credit card is US and the bill is to be paid in USD). My only EUR spends are when I buy gifts for Christmas or send money for family’s birthdays etc. Should I sell more/most of EUR and buy USD (especially as I get 5.5% return on risk free USD versus 2.7% on EUR)? My family is not wealthy by any means but the current legacy value for me represents about twic...
by helloyou
Tue Oct 24, 2023 11:37 am
Forum: Non-US Investing
Topic: Interactive Brokers requires me to fill out W-8BEN form?
Replies: 7
Views: 3637

Re: Interactive Brokers requires me to fill out W-8BEN form?

They have never asked me this before. Is this because I just started to buy US T-bills this year (all my other investments are Irish ETFs)? Probably. As soon as you touch anything US, most brokers want confirmation that you are not a US person. This does not mean you will end up paying any US tax, just the broker covering their own situation with the IRS. IBKR is a US based brokerage. I live in Hong Kong and there is no capital gain tax here. I am also under the impression that no coupon treasuries (t-bills) and tax exempt for non US residents. That means I should not be taxed by Interactive Brokers (and I have not yet, I have received the full 1000 face value at maturation). Right. The US does not tax 'portfolio interest' paid to nonresid...
by helloyou
Tue Oct 24, 2023 7:47 am
Forum: Non-US Investing
Topic: Interactive Brokers requires me to fill out W-8BEN form?
Replies: 7
Views: 3637

Interactive Brokers requires me to fill out W-8BEN form?

They have never asked me this before. Is this because I just started to buy US T-bills this year (all my other investments are Irish ETFs)?

I live in Hong Kong and there is no capital gain tax here. I am also under the impression that no coupon treasuries (t-bills) and tax exempt for non US residents. That means I should not be taxed by Interactive Brokers (and I have not yet, I have received the full 1000 face value at maturation).

The form also asks if there is any joint treaty with the US.
by helloyou
Tue Oct 03, 2023 11:23 am
Forum: Non-US Investing
Topic: Ireland domiciled ETFs and IBKR Stock Yield Enhancement Program
Replies: 5
Views: 3825

Re: Ireland domiciled ETFs and IBKR Stock Yield Enhancement Program

hkung wrote: Thu Sep 21, 2023 7:56 am Do non-U.S. investors who hold Ireland-domiciled ETFs (e.g., VWRA, ISAC) and take part in the IBKR Stock Yield Enhancement Program notice any differences in tax treatment?

I am aware that Ireland-domiciled ETFs enjoy the U.S./Ireland tax treaty rate of 15% for dividends and 0% for interest. However, when you participate in the program, you receive a payment in lieu of dividends from the short seller if your ETFs distribute dividends. Is this payment also subject to taxation at the same 15% rate applicable to dividends?
What sort of yield are we looking at for such ETFs? What are the requirements? Last time I checked the yields for such products was very low (would buy you 2 or 3 Lattes even with a 6fig investment)
by helloyou
Tue Oct 03, 2023 10:57 am
Forum: Non-US Investing
Topic: Are global all cap higher fees worth it?
Replies: 5
Views: 3355

Re: Are global all cap higher fees worth it?

As suggested, you should probably look for a flat fee broker/platform so you only pay one-off trading fees. I own shares of iShares MSCI ACWI (all world fund) and the cost is only 0.2%, besides negligeable stock purchase fees. From my perspective, the expense ratio is very reasonable and I would still go with an all-world product versus multiple regional ones, even if I could save 10 or 15bp. Some people like in this thread prefer to manage multiple regional ETFs to reduce the expense ratio as low as possible. Other reasons can be to diversify away the custody and/or provider risk (yet most people would house their regional ETFs with the same provider - Blackrock/Vanguard so this argument is not often valid). I just prefer the simplicity of...
by helloyou
Tue Oct 03, 2023 10:37 am
Forum: Non-US Investing
Topic: Do you pay tax when a T-Bill matures (foreign investor)?
Replies: 7
Views: 3134

Re: Do you pay tax when a T-Bill matures (foreign investor)?

No tax withholding as far as I know (at the broker level, at least for IB and strictly t-bills, not sure about bonds or notes). You are supposed to report the capital gain on your tax return (varies by country).
by helloyou
Thu Aug 24, 2023 8:01 am
Forum: Personal Consumer Issues
Topic: Closing a bank account from overseas?
Replies: 17
Views: 1510

Re: Closing a bank account from overseas?

I closed my BoFa checking account two years ago living overseas. Took about 10 min with the customer agent on the phone. I have always had good experience with BoFa customer service.
by helloyou
Thu Jul 27, 2023 3:47 am
Forum: Personal Consumer Issues
Topic: If/when to fly business class? (Length of flight vs. cost)
Replies: 207
Views: 26620

Re: If/when to fly business class? (Length of flight vs. cost)

Of course the above likely doesn’t apply for someone worth 7-8 figures. Earlier in this thread, someone said that they would need a NW of at least $50M to even consider buying a business class ticket. I am curious: what would be your threshold comfort to be able to pay for an international business class ticket out of your own pocket . [This question aimed at everyone on this forum.] My threshold was when we hit $5M with fully paid off house, all children's college costs set aside and we were still adding substantially to our savings. This level of threshold is definitely a stretch, even if you fly twice a month over the Atlantic in first class . If you fly once per month with his level of wealth you can definitely go private, even though ...
by helloyou
Wed Jul 26, 2023 2:23 pm
Forum: Personal Consumer Issues
Topic: If/when to fly business class? (Length of flight vs. cost)
Replies: 207
Views: 26620

Re: If/when to fly business class? (Length of flight vs. cost)

Every single time before I book a flight I am debating it and almost always choose economy or get a preferred legroom seat. And every single time I land I am glad I did not book a business class ticket, effectively saving me $2000 to $3000. In the end we all land at the same place at the same time. I also always think of how much value these 2-3k can give me instead (nice restaurants, nicer hotels/airbnbs, more experience). Also I don’t want to get spoiled flying business and have a miserable time every time I fly economy afterwards. It took me quite a while to adapt back to it after my last business flight.

Of course the above likely doesn’t apply for someone worth 7-8 figures.
by helloyou
Thu Jul 20, 2023 4:05 am
Forum: Non-US Investing
Topic: Which cash-like investment to choose in IB (EU) for 6-12 months?
Replies: 92
Views: 18815

Re: Which cash-like investment to choose in IB (EU) for 6-12 months?

Are treasuries and US corporate bonds considered US situs? Revisiting a link posted by daviddem... https://www.mondaq.com/unitedstates/income-tax/161244/us-tax-planning-for-non-us-persons-and-trusts-an-introductory-outline Debts of U.S. obligors. Once again, however, publicly traded bonds issued after July 18, 1984 qualify as "portfolio debt" and therefore are not subject to U.S. estate taxation. (I.R.C. § 2105 (b)(3)) Previously, only bonds with a maturity of more than 6 months qualified for the estate tax portfolio debt exemption, so that short-term Treasury bills, for example, were U.S. situs assets. However, this distinction was eliminated by the Taxpayer Relief Act of 1997, and bonds now qualify for the portfolio debt exempt...
by helloyou
Wed Jul 19, 2023 11:34 am
Forum: Non-US Investing
Topic: Has anybody bought the SPDR MSCI World ETF
Replies: 7
Views: 1977

Re: Has anybody bought the SPDR MSCI World ETF

I prefer all world ETFs versus one that only tracks developed markets.
by helloyou
Wed Jul 19, 2023 5:43 am
Forum: Personal Investments
Topic: Why am I still in the bond index?
Replies: 97
Views: 8834

Re: Why am I still in the bond index?

If you were in your early 30s, would you still get into a bond fund? Or would you be mostly in stocks, with the rest of your "money" in short term treasuries?
by helloyou
Mon Jul 17, 2023 1:45 pm
Forum: Investing - Theory, News & General
Topic: where does cnbc get the treasury yield?
Replies: 12
Views: 630

Re: where does cnbc get the treasury yield?

toddthebod wrote: Mon Jul 17, 2023 1:37 pm
Jason279s3 wrote: Mon Jul 17, 2023 1:35 pm quantity 25000(1000)
How does the quantity affect the cnbc number?
The quantity affects your (the Fidelity) number. Larger quantities get better yields. Individuals with small orders get worse yields.
If we are talking about dozens of millions, maybe. I can generally get a 1 or 2bp "discount" on the lowest ask yield on a 5 or 6 figure trads, very rarely more. The difference between CBNC and current market rates is currently around 4 and 6bp for short term treasuries.
by helloyou
Mon Jul 17, 2023 1:38 pm
Forum: Investing - Theory, News & General
Topic: where does cnbc get the treasury yield?
Replies: 12
Views: 630

Re: where does cnbc get the treasury yield?

I have done extensive research on this in the past few weeks and after many comparisons with various brokers and market data sources over different points in time my conclusion is that CNBC might be more on the bid than ask side. I find Bloomberg to be the most accurate with real-time market rates (you can access the rates for free on their website).
by helloyou
Sun Jul 16, 2023 4:59 am
Forum: Personal Investments
Topic: Anyone buying Vanguard's BND Index Fund?
Replies: 19
Views: 3736

Re: Anyone buying Vanguard's BND Index Fund?

zero_coupon wrote: Sat Jul 15, 2023 10:21 pm
helloyou wrote: Thu Jul 13, 2023 12:51 pm If rates start to decline below 4%, I might consider intermediate (and maybe long) bond funds, but for now no point.
If you wait, haven't you already "missed the boat" (i.e. buy high)?
I am 32 and I don't plan to hold intermediate or long term funds. I like short term treasuries and cash at the moment.
by helloyou
Fri Jul 14, 2023 5:57 pm
Forum: Investing - Theory, News & General
Topic: Trading Treasuries (nominal and TIPS)
Replies: 4107
Views: 455666

Re: Trading Treasuries (nominal and TIPS)

Out or curiosity - what does your t bill ladder look like in terms of duration between your bills maturation dates, and number of weeks for the whole ladder?
by helloyou
Fri Jul 14, 2023 5:49 pm
Forum: Investing - Theory, News & General
Topic: Why are the minimum lot sizes on Treasuries so high today?
Replies: 62
Views: 8690

Re: Why are the minimum lot sizes on Treasuries so high today?

I bought 30 bills on the secondary market today and the order was fulfilled within 1 second at ask price.
by helloyou
Fri Jul 14, 2023 3:20 pm
Forum: Personal Finance (Not Investing)
Topic: What is your biggest financial regret?
Replies: 51
Views: 4033

Re: What is your biggest financial regret?

Beensabu wrote: Fri Jul 14, 2023 2:38 pm Paying for a graduate degree that I will never use and have to leave off my resume in order to get interviews.
Sorry, I laughed at that one :mrgreen:
by helloyou
Fri Jul 14, 2023 9:59 am
Forum: Personal Consumer Issues
Topic: Are my parents being scammed? Friend offered stay in their Cancun timeshare
Replies: 12
Views: 2212

Re: Are my parents being scammed? Friend offered stay in their Cancun timeshare

Cancun is a scam in itself. Even Costa Rica, which is another American tourist trap sounds more appealing.

Trust me, I was there just about two months ago and I traveled to 60+ countries. The only place I enjoyed in Yucatan was Cozumel Island. Everything else is made for American tourists who are paying 10-20 times the regular price. They even ask for tips. Food is also terrible and honestly I don't even know how this is possible when you have access to much superior meat, and produce sources than in the US.