Search found 2767 matches

by TedSwippet
Sun May 24, 2020 2:51 am
Forum: Non-US Investing
Topic: Should I remortgage?
Replies: 2
Views: 416

Re: Should I remortgage?

I'm looking for some advise as my mortgage deal is ending in the next few months. To give you some background, I'm a UK/US citizen living in the UK. I bought a flat in 2016 in London and don't own any assets in the US (have only lived there approx one year in my life). I'm thinking about renovating...
by TedSwippet
Tue May 19, 2020 6:21 pm
Forum: Non-US Investing
Topic: IRA vs Non Tax Advantaged Account for Expats in the US
Replies: 36
Views: 1206

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

So if I were to follow the principles laid out by Phil Hodgen in reporting distributions from traditional pre-tax retirement accounts (i.e. contributions = effectively connected income; growth = not effectively connected income), would the following calculations be correct or am I missing something...
by TedSwippet
Tue May 19, 2020 1:54 pm
Forum: Non-US Investing
Topic: IRA vs Non Tax Advantaged Account for Expats in the US
Replies: 36
Views: 1206

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 TedSwippet
Tue May 19, 2020 6:53 am
Forum: Non-US Investing
Topic: IRA vs Non Tax Advantaged Account for Expats in the US
Replies: 36
Views: 1206

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 TedSwippet
Mon May 18, 2020 8:04 am
Forum: Non-US Investing
Topic: IRA vs Non Tax Advantaged Account for Expats in the US
Replies: 36
Views: 1206

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

I read the example above from Hodgen Law and it seems like their interpretation is that the dollar amount of contributions are considered effectively connected income, whereas any growth on the contributions is considered not effectively connected income. I am curious if you (or any others) know of...
by TedSwippet
Sun May 17, 2020 5:20 pm
Forum: United Arab Emirates
Topic: UAE Resident Questions - ETFs, estate tax and the like
Replies: 8
Views: 404

Re: UAE Resident Questions - ETFs, estate tax and the like

1. ESTATE TAX - If holding at a US broker, avoided by investing in non-US stocks, or non-US domiciled ETFs. In this case even if they are valued above $60,000, no taxes apply. - A CASH balance at at US BANK is exempt from the $60,000+ threshold. But if you die with $100K in un-invested cash at your...
by TedSwippet
Sun May 17, 2020 4:46 pm
Forum: Non-US Investing
Topic: Not UCITS ETF
Replies: 2
Views: 251

Re: Not UCITS ETF

DJN wrote:
Sun May 17, 2020 1:21 pm
What do you mean by harmonised?
Described here, I think: Investing from Italy - Bogleheads

Not an Italian investor, so no idea of the implications of this in practice. Shrug.
by TedSwippet
Sun May 17, 2020 11:25 am
Forum: Non-US Investing
Topic: IRA vs Non Tax Advantaged Account for Expats in the US
Replies: 36
Views: 1206

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

It seems that the key would be whether said non-resident alien can claim that such a distribution is effectively connected income (tax at graduated tax rates) versus non-effectively connected income (taxed at a flat 30% tax rate). You can find a worked example of this here: https://hodgen.com/ira-d...
by TedSwippet
Sun May 17, 2020 8:30 am
Forum: United Arab Emirates
Topic: UAE Resident Questions - ETFs, estate tax and the like
Replies: 8
Views: 404

Re: UAE Resident Questions - ETFs, estate tax and the like

1. I have only looked into US-based brokers mainly because in general when I first started educating myself about investing etc, my searches brought up the most recommended brokers which for obvious reasons were US based. Do you have a recommendation of a non-US based broker which competes with the...
by TedSwippet
Sat May 16, 2020 4:42 pm
Forum: United Arab Emirates
Topic: UAE Resident Questions - ETFs, estate tax and the like
Replies: 8
Views: 404

Re: UAE Resident Questions - ETFs, estate tax and the like

1. More than $60K in US assets, does that mean my whole portfolio will be taxed? I read in some forums a discussion about cash vs equities. Just so I’m clear if you are invest in let’s say $100K in a US stock, that $100K would be taxed upon death or any cash sitting at the broker is taxed? Wouldn’t...
by TedSwippet
Sat May 16, 2020 8:18 am
Forum: Non-US Investing
Topic: Accumulated vs distributed taxation
Replies: 5
Views: 396

Re: Accumulated vs distributed taxation

So I get full dividends from VUSD, ... Yes. (Where "full" is defined as what's left after the ETF has internally paid US tax on dividends it received from its underlying US stocks.) ... and must pay my country standard dividend tax on that, right? Only you can answer that; I don't know any details ...
by TedSwippet
Sat May 16, 2020 3:46 am
Forum: Non-US Investing
Topic: Accumulated vs distributed taxation
Replies: 5
Views: 396

Re: Accumulated vs distributed taxation

So, for both of these funds, there's already 15% tax on dividends paid to US, ... Right. - Accumulating (CSPX) doesn't pay me dividends, so I only have capital gains when sell, It depends. Some countries tax residents annually on 'notional' dividends that are accumulated inside a fund but not paid ...
by TedSwippet
Sat May 16, 2020 3:37 am
Forum: Non-US Investing
Topic: IRA vs Non Tax Advantaged Account for Expats in the US
Replies: 36
Views: 1206

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

TedSwippet, this is my concern as well - that we would be issued a 1042-S instead of a 1099-R. Do you know for sure that we will get a 1042-S instead of a 1099-R for an IRA distribution? This text from the IRS very strongly suggests 1042-S: Pensions and Annuities U.S. source income from pensions an...
by TedSwippet
Sat May 16, 2020 3:00 am
Forum: Non-US Investing
Topic: Accumulated vs distributed taxation
Replies: 5
Views: 396

Re: Accumulated vs distributed taxation

P.S. It looks like VUSD is better, as the dividends tax is 10% compared to 15% Ireland/USA tax for CSPX? Is that correct? No. Your local tax rate on dividends, and whether or not your own country annually taxes dividends not paid out to you but instead held inside accumulation funds, will determine...
by TedSwippet
Fri May 15, 2020 2:37 pm
Forum: Non-US Investing
Topic: IRA vs Non Tax Advantaged Account for Expats in the US
Replies: 36
Views: 1206

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

The negative I can see here is that I'd have lost out on tax-free gains on all Roth earnings during that timespan. But I suppose that's a price I'm paying for the uncertainty of not knowing where I'll likely retire. Mostly just that. Tax shelters can prove very valuable over time, though. Also, the...
by TedSwippet
Fri May 15, 2020 1:48 pm
Forum: Non-US Investing
Topic: IRA vs Non Tax Advantaged Account for Expats in the US
Replies: 36
Views: 1206

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

The thing is OP may have to pay 30% on roth earnings depending on where he ends up. 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 capit...
by TedSwippet
Fri May 15, 2020 8:36 am
Forum: Non-US Investing
Topic: IRA vs Non Tax Advantaged Account for Expats in the US
Replies: 36
Views: 1206

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

Yes, I believe you can. https://www.irs.gov/pub/irs-pdf/f1040nr.pdf Line 16a (enter distribution amount) Line 16b (enter zero as ROTH is not taxed) Line 62d (enter the amount withheld on the 1042-S form you receive from the broker) Yeah, I think that's right, and it's certainly what I would do firs...
by TedSwippet
Tue May 12, 2020 10:53 am
Forum: Non-US Investing
Topic: Broker and inheritance [Lithuania]
Replies: 4
Views: 382

Re: Broker and inheritance [Lithuania]

Welcome. What we want is to be able to save as a family i.e. inheritance should be NOT like this: sell all ETFs, take money, pay taxes instead it would like that assets stay as it is just owned by my wife and kids. Later the same inheritance for kids. Can you just confirm that your current three-fun...
by TedSwippet
Thu May 07, 2020 3:03 am
Forum: Non-US Investing
Topic: US/NO Dual Citizen Investments?
Replies: 53
Views: 2795

Re: US/NO Dual Citizen Investments?

If I am paying that amount or more in another country I should be able to avoid double taxation (https://www.investopedia.com/terms/f/foreign-tax-credit.asp ). That is correct when the other country has a tax treaty with the USA, if it doesn't then you will likely be double taxed (but not always). ...
by TedSwippet
Wed May 06, 2020 2:58 am
Forum: Non-US Investing
Topic: Keeping Vanguard account as Non resident Alien
Replies: 28
Views: 2152

Re: Keeping Vanguard account as Non resident Alien

Withholding >>> Typically, a foreign person with U.S. income is subject to U.S. taxes on the U.S. generated income. The default nonresident alien withholding rate is 30%; however, some foreign persons are eligible for a reduced tax rate. For nonretirement accounts, this applies to dividends and cap...
by TedSwippet
Tue May 05, 2020 2:27 pm
Forum: Non-US Investing
Topic: Trading from Italy, is it more profitable to invest in a distributing (VUSA) or an accumulating (VUUA) ETF?
Replies: 24
Views: 1253

Re: Trading from Italy, is it more profitable to invest in a distributing (VUSA) or an accumulating (VUUA) ETF?

I have added the conclusion to the wiki page Confused. The page's addition is: Italy taxes ETF in two ways: 1/ when an etf gives you a dividend, it is taxed 26% by italian government 2/ when you sell an etf the capital gain is taxed 26% by the italian government It is therefore always better for an...
by TedSwippet
Mon May 04, 2020 4:17 pm
Forum: Non-US Investing
Topic: Do Accumulating ETF's compound more or less effectively than a distributing ETF with the dividends re-invested?
Replies: 4
Views: 299

Re: Do Accumulating ETF's compound more or less effectively than a distributing ETF with the dividends re-invested?

Welcome. Sorry if this is a dumb question but Im relatively new to this. Aside from the fact that you're comparing apples to oranges a little here, the answer to the question posed by your thread title is, perhaps yes, but maybe only slightly. But it's not a dumb question. Suppose an ETF distributes...
by TedSwippet
Mon May 04, 2020 2:04 pm
Forum: Personal Consumer Issues
Topic: Vanguard website - hack or ? [Website page displays source code]
Replies: 15
Views: 1084

Re: Vanguard website - hack or ?

My friend's page starts out with a "are you ready to make a trade?" I see this one. Chrome browser on a Chromebook (Linux under the hood). From looking at the page source, 99.99% probability that it's a Vanguard issue. (Either that, or extremely poor marketing placement.) Verbatim: Ready to place a...
by TedSwippet
Mon May 04, 2020 11:12 am
Forum: United Arab Emirates
Topic: Practical advice for first time investor (best structure etc.) [Germany ex-pat]
Replies: 13
Views: 647

Re: Practical advice for first time investor (best structure etc.) [Germany ex-pat]

What would be such a “suitable structure” to hold the US assets and avoid problems with withholding and estate tax? Is there a solution that doesn’t cost a leg and an arm? It would I think be some sort of a trust or corporate structure, probably non-US based. Perhaps even two, one US and one non-US...
by TedSwippet
Mon May 04, 2020 9:15 am
Forum: United Arab Emirates
Topic: Practical advice for first time investor (best structure etc.) [Germany ex-pat]
Replies: 13
Views: 647

Re: Practical advice for first time investor (best structure etc.) [Germany ex-pat]

You can only avoid the issues with withholding and estate tax for ETFs, right? Not if you hold individual stocks? Right. Putting a suitable structure between you and US assets will remove the US estate tax risk, and may also reduce the US tax on dividends. An Ireland domiciled ETF is one such struc...
by TedSwippet
Mon May 04, 2020 7:54 am
Forum: Non-US Investing
Topic: [Non-US] Selling and repurchasing US stocks to avoid Dividend Withholding Taxes (DWT)?
Replies: 1
Views: 201

Re: [Non-US] Selling and repurchasing US stocks to avoid Dividend Withholding Taxes (DWT)?

Welcome. For us, we lose 30% which means that we effectively lost an additional $1.50 and our adjusted price is $98.50 instead of $100 ($95+$5). As an aside, if you can find an Ireland domiciled ETF that meets your requirements, you can reduce that 30% US tax loss down to 15%. Also, if you hold more...
by TedSwippet
Sun May 03, 2020 5:19 am
Forum: Non-US Investing
Topic: Vanguard three fund strategy advice for UK residence
Replies: 9
Views: 709

Re: Vanguard three fund strategy advice for UK residence

Welcome. I wish to adjust to a three fund strategy but I need advice as to which funds to choose. All my reading is US centric and the same funds are not available in the UK. If you haven't already found it, there are wiki pages specifically for UK investors, offering pointers to several funds or ET...
by TedSwippet
Sat May 02, 2020 3:09 pm
Forum: Non-US Investing
Topic: Keeping Vanguard account as Non resident Alien
Replies: 28
Views: 2152

Re: Keeping Vanguard account as Non resident Alien

1. Vanguard agrees to keep my account as an NRA (with a W-8 BEN form) and I can hold on to my mutual funds and pay US taxes on the dividends. I would be fine with that. I guess the only problem is that I wouldn't be allowed to buy more mutual funds as an NRA. Is that right? Is it a good idea to con...
by TedSwippet
Sat May 02, 2020 3:26 am
Forum: Non-US Investing
Topic: Keeping a US vanguard account for a non-resident alien.
Replies: 8
Views: 1545

Re: Keeping a US vanguard account for a non-resident alien.

I'm in a similar situation. May I ask how will you file your US tax return while overseas? Is it going to be as a resident or nonresident? I guess we need to find a way to inform Vanguard about our new status (and file a W8-BEN) without letting them close our accounts. Duplicated question. Answered...
by TedSwippet
Sat May 02, 2020 3:22 am
Forum: Non-US Investing
Topic: Keeping Vanguard account as Non resident Alien
Replies: 28
Views: 2152

Re: Keeping Vanguard account as Non resident Alien

Welcome. I hold VTSAX and will become a nonresident alien when I leave the US. I've heard that Vanguard will close the accounts of nonresidents. It's by no means certain that they will close it. They might do one of several things, it seems: Allow reasonable access, under non-resident alien terms (w...
by TedSwippet
Fri May 01, 2020 3:05 am
Forum: Non-US Investing
Topic: US/NO Dual Citizen Investments?
Replies: 53
Views: 2795

Re: US/NO Dual Citizen Investments?

You originally posted it was fear of the dread US harsh enforcement. Draconian US government enforcement. But as you later post, this is not solely a US decision. ... Now you acknowledge there are regulatory constraints from foreign jurisdictions. It's true. International agreements do prohibit ope...
by TedSwippet
Thu Apr 30, 2020 1:44 pm
Forum: Non-US Investing
Topic: US/NO Dual Citizen Investments?
Replies: 53
Views: 2795

Re: US/NO Dual Citizen Investments?

Offering shares of mutual funds to non-domestic clients could potentially violate the laws of any country in which an investor or prospective investor in a fund is resident or domiciled. ... Regulatory then, but for once maybe not particularly US regulatory. This article from American Citizens Abro...
by TedSwippet
Thu Apr 30, 2020 12:14 pm
Forum: Non-US Investing
Topic: list of countries that Singapore has a tax treaty with
Replies: 1
Views: 182

Re: list of countries that Singapore has a tax treaty with

are the countries listed here the countries that allows for Singapore residents to pay no withholding tax (ie similar to an irish domiciled etf)? am i also right that singapore residents don't have to pay witholding tax on dividends from shares and etfs domiciled in these countries? There is no sin...
by TedSwippet
Thu Apr 30, 2020 10:40 am
Forum: Non-US Investing
Topic: US/NO Dual Citizen Investments?
Replies: 53
Views: 2795

Re: US/NO Dual Citizen Investments?

No arguments with that either.... But you forgot to add it also prevents its OWN citizens from holding US mutual funds (though not ETFs) just because they reside abroad. Strictly, the US -- in the guise of rules, regulations, laws, taxes, and so on -- doesn't prevent US persons living abroad from h...
by TedSwippet
Thu Apr 30, 2020 5:34 am
Forum: Non-US Investing
Topic: US/NO Dual Citizen Investments?
Replies: 53
Views: 2795

Re: US/NO Dual Citizen Investments?

Basically US expats resident in the EU get screwed from all sides - can't invest in international funds/ETFs because of PFIC rules, can't invest in any US mutual funds at all because of US rules on funds and residency, can't invest in most US ETFs because of EU PRIIPs rules. It's ridiculous. It is ...
by TedSwippet
Thu Apr 30, 2020 2:45 am
Forum: Non-US Investing
Topic: US/NO Dual Citizen Investments?
Replies: 53
Views: 2795

Re: US/NO Dual Citizen Investments?

I'm not sure what that is about but guess i'll do it, have read through what i'm signing etc and everything seems alright there is also no mention of residency just mailing address in addition to being a US citizen. At some point, Vanguard will send you a W-9 form (or maybe some electronic equivale...
by TedSwippet
Wed Apr 29, 2020 3:34 am
Forum: Non-US Investing
Topic: money split between two similar funds: a bad thing?
Replies: 3
Views: 360

Re: money split between two similar funds: a bad thing?

I kind of like the Vanguard one and would like to keep it, although the bulk of my investment is on the iShares ETF. By keeping money divided between these two funds, do I diminish the returns that would be generated by interest compounding if I kept all the money in just one fund? If the two inves...
by TedSwippet
Tue Apr 28, 2020 8:46 am
Forum: Non-US Investing
Topic: Funding 401k to Roth IRA conversion taxes for a non-resident alien
Replies: 17
Views: 2979

Re: Funding 401k to Roth IRA conversion taxes for a non-resident alien

bhradbh wrote:
Tue Apr 28, 2020 5:54 am
Are you able to share how Vanguard reported the Roth Conversion, was it on a 1099-R or 1042S?
1099-R.
by TedSwippet
Tue Apr 28, 2020 4:57 am
Forum: Non-US Investing
Topic: UK Pension Vs ISA
Replies: 18
Views: 593

Re: UK Pension Vs ISA

I'm wondering if I'm over doing it and should be putting more in the isa. Thank you so far. On the face of it, you have an excellent employer scheme, so it's easy to see why it's tempting to fund it to the hilt. At their core, pensions are a tax play. As long as the tax you save now is more than th...
by TedSwippet
Mon Apr 27, 2020 11:45 am
Forum: Non-US Investing
Topic: UK Pension Vs ISA
Replies: 18
Views: 593

Re: UK Pension Vs ISA

Above 150 k and you run into AA taper which is a nightmare in DB schemes In April 2020 the govt increased the taper starting level, from £150k to £240k. At the same time, it reduced the minimum tapered allowance, from £10k down to just £4k for earnings above £312k. https://www.gov.uk/government/pub...
by TedSwippet
Mon Apr 27, 2020 9:00 am
Forum: Non-US Investing
Topic: Hong Kong - Investing Advice - Portfolio Management with Stocks
Replies: 10
Views: 476

Re: Hong Kong - Investing Advice - Portfolio Management with Stocks

I wasn't aware of that there were better yielding ETFs, however, they are in a different currency. USD is pegged to HKD, so I still think it makes more sense to hold VT and VOO. The currency (or currencies) in which an ETF is traded and/or denominated is immaterial to your investment results. You w...
by TedSwippet
Mon Apr 27, 2020 8:39 am
Forum: Non-US Investing
Topic: Which UK brokers to use for Ireland domiciled ETFS for African resident
Replies: 4
Views: 168

Re: Which UK brokers to use for Ireland domiciled ETFS for African resident

Welcome. However, I do not want to have to pay 15% WHT, in some cases 30% if I buy directly from a US company, therefore I am looking for a UK portfolio that is well suited for a non resident there. I am not so clued on what ETFs are available but I would want access to VWRL on a platform that is re...
by TedSwippet
Mon Apr 27, 2020 8:19 am
Forum: Non-US Investing
Topic: Hong Kong - Investing Advice - Portfolio Management with Stocks
Replies: 10
Views: 476

Re: Hong Kong - Investing Advice - Portfolio Management with Stocks

Welcome. I am currently 31 years old situated in Hong Kong. I've delegated my portfolio to something fairly simple. ... - 75% ETFS, 90/10 (VOO,VT/BNDW) I realise this isn't answering your main question at all , but ... can you say if you are , or are not , a US citizen (or green card holder)? If you...
by TedSwippet
Mon Apr 27, 2020 8:06 am
Forum: Non-US Investing
Topic: How Boglehead philosophy guides home bias equities for US vs non-US
Replies: 41
Views: 2774

Re: How Boglehead philosophy guides home bias equities for US vs non-US

Hi ted, so in general do you think us U.K. investors should have a home bias or not? Vanguard all world ETF vs vanguard life strategy fund? Neutral; no stance either way. It seems that historically it has neither benefited nor hindered, but no telling what the effect will be in future. I do however...
by TedSwippet
Sun Apr 26, 2020 6:12 pm
Forum: Non-US Investing
Topic: How Boglehead philosophy guides home bias equities for US vs non-US
Replies: 41
Views: 2774

Re: How Boglehead philosophy guides home bias equities for US vs non-US

I’m confused. A U.S. investor investing in U.S. equities pays under most (based on income) cases 15% on dividends and long term capital gains. A US investor pays the appropriate US rate. That might be 15%, or it might be less, or it might be more. See this wiki page: Qualified dividend - Bogleheads...
by TedSwippet
Sun Apr 26, 2020 10:23 am
Forum: Non-US Investing
Topic: Portfolio visualizer tool for US and non-US holdings
Replies: 7
Views: 389

Re: Portfolio visualizer tool for US and non-US holdings

I use Google Sheets. The GoogleFinance() function should I think return ETF prices for you for both US and UCITS ETFs, and you can also use it to obtain the current USD/EUR (or EUR/USD, or whatever) forex rate. With a bit of fiddling you should then be able to come up with something that handles you...
by TedSwippet
Sun Apr 26, 2020 10:17 am
Forum: Non-US Investing
Topic: Hong Kong: Where to invest?
Replies: 34
Views: 2004

Re: Hong Kong: Where to invest?

Welcome. I was thinking of opening a HSBC Expat account and put 50k GBP to quality for Premier across all HSBC offices. I would probably go 100% in a WORLD ETF tracker trading in Ireland to escape NRA US estate and dividend taxes. My main concern is the taxation like for a non UK/Irish citizen or re...
by TedSwippet
Fri Apr 24, 2020 5:10 pm
Forum: Non-US Investing
Topic: [AUT/EU/USA] Portfolio advice when straddling the Atlantic
Replies: 17
Views: 1009

Re: [AUT/EU/USA] Portfolio advice when straddling the Atlantic

With that in mind, it also seems like a good idea to then put the fund with the most dividends into the IRA, so that tax is paid to neither country. Does that make sense? I think so, but with the major caveat that I'm not a US citizen, and so am entirely unused to analysing things along these sorts...
by TedSwippet
Fri Apr 24, 2020 11:25 am
Forum: Non-US Investing
Topic: Tax Considerations for NRAs
Replies: 34
Views: 1739

Re: Tax Considerations for NRAs

imusorka wrote:
Fri Apr 24, 2020 7:51 am
... VOO with a cost of 0.03% ER + 0.30% tax drag ... What am I missing here?
What you are missing is that VOO's US tax drag is 30% of its annual dividend, currently around 2.27%. That's 0.68%/year, not 0.3%. galeno has provided the correct figures above.
by TedSwippet
Thu Apr 23, 2020 11:20 am
Forum: Non-US Investing
Topic: [Brazil] Choosing S&P500 ETFs
Replies: 13
Views: 543

Re: [Brazil] Choosing S&P500 ETFs

You mentioned Brazil is your “current” residence, where are you from originally? I’m asking because if you are from the USA you have to watch out when investing in foreign ETFs (These etfs track SP500 but they are considered foreign as they are formed in Brazil). This could cause you a tax nightmar...