Search found 1533 matches

by galeno
Wed Apr 17, 2019 11:44 am
Forum: Investing - Theory, News & General
Topic: Junk bonds undervalued due to boglehead popularity?
Replies: 43
Views: 3654

Re: Junk bonds undervalued due to boglehead popularity?

If I wanted diversification into HY bonds I'd probably choose hedged (to USD) EM bonds vs USD junk bonds.
by galeno
Fri Apr 12, 2019 12:45 pm
Forum: Investing - Theory, News & General
Topic: Junk bonds undervalued due to boglehead popularity?
Replies: 43
Views: 3654

Re: Junk bonds undervalued due to boglehead popularity?

Classic Bogleheads take their risk on the equity side and use investment grade bonds as ballast.

OTOH, using an asset class such as junk bonds helps by using the free lunch of diversification.
by galeno
Fri Apr 05, 2019 6:31 pm
Forum: Personal Finance (Not Investing)
Topic: The high cost of sound financial advice
Replies: 45
Views: 4829

Re: The high cost of sound financial advice

You could also. Hold a simple portfolio. Put your "age in bonds". And use the 4% rule.
by galeno
Fri Apr 05, 2019 6:15 pm
Forum: Investing - Theory, News & General
Topic: Diversification Can Improve Retirement Outcomes (SWR) [Very Long Post]
Replies: 64
Views: 3856

Re: Diversification Can Improve Retirement Outcomes (SWR) [Very Long Post]

It's the old question of which is better? A simple port or a complex port? I'm a simple port advocate. The OP's idea of diversification is to use more asset classes in a non-cap weighed fashion. Bernstein advocates this approach in his older books. So do many money managers and now money managing BO...
by galeno
Tue Apr 02, 2019 5:38 pm
Forum: Non-US Investing
Topic: Non-US Bogleheads who overweight US?
Replies: 23
Views: 1684

Re: Non-US Bogleheads who overweight US?

We simply hold the "all world all cap" equity index. The whole world "haystack".
by galeno
Fri Mar 29, 2019 8:01 pm
Forum: Investing - Theory, News & General
Topic: Does the 4% rule work for a 'world' portfolio?
Replies: 60
Views: 4209

Re: Does the 4% rule work for a 'world' portfolio?

In short. YES.

The 4% rule will work for a global portfolio (55% USA right now). Especially if you use SAFEMAX guiderails.

The 4% rule is CONSERVATIVE.
by galeno
Fri Mar 29, 2019 6:40 pm
Forum: Investing - Theory, News & General
Topic: Diversification Can Improve Retirement Outcomes (SWR) [Very Long Post]
Replies: 64
Views: 3856

Re: Diversification Can Improve Retirement Outcomes (SWR) [Very Long Post]

BTW. The above definition of diversification is an academic definition from my advanced investing class which I took as an advanced elective finance class back in the 1990s when I got my MBA from "the Harvard" of Central America: INCAE. It hasn't changed AFAIK. It would nice if I could get the pic o...
by galeno
Fri Mar 29, 2019 6:34 pm
Forum: Investing - Theory, News & General
Topic: Diversification Can Improve Retirement Outcomes (SWR) [Very Long Post]
Replies: 64
Views: 3856

Re: Diversification Can Improve Retirement Outcomes (SWR) [Very Long Post]

You and I have a different idea of diversification. Here's mine: 5 individual stocks reduces your non-systemic risk by 50%. 12 individual stocks reduces it by 70%. 30 individual stocks reduces it by 80%. 50 individual stocks will reduces it by 85%. After 50 individual stocks you are fully diversifie...
by galeno
Fri Mar 29, 2019 5:48 pm
Forum: Non-US Investing
Topic: Non-US Bogleheads who overweight US?
Replies: 23
Views: 1684

Re: Non-US Bogleheads who overweight US?

Our 40/60 retirement port: 40% VWRD + 5% WSML + 20% VDCP + 20% VDTY + 15% IDTP + 5% CASH
Fclevz wrote:
Fri Mar 29, 2019 1:59 pm
galeno wrote:
Fri Mar 29, 2019 1:30 pm
We use 5 ETFs in our port.
VWRD and WSML are 2.
Just out of curiosity, what are the other 3?
by galeno
Fri Mar 29, 2019 1:42 pm
Forum: Investing - Theory, News & General
Topic: Diversification Can Improve Retirement Outcomes (SWR) [Very Long Post]
Replies: 64
Views: 3856

Re: Diversification Can Improve Retirement Outcomes (SWR) [Very Long Post]

A USA Boglehead can get a completely diversified stock and bond portfolio using two ETFs: 50% VT + 50% BNDW.
by galeno
Fri Mar 29, 2019 1:30 pm
Forum: Non-US Investing
Topic: Non-US Bogleheads who overweight US?
Replies: 23
Views: 1684

Re: Non-US Bogleheads who overweight US?

A non-USA Boglehead is an investor who does not have USA citizenship or residency. Real Bogleheads have no problem with a 2 fund portfolio. We use 5 ETFs in our port. What counts as a "Non-US" Boglehead? I'm an Australian resident, but U.S. citizen. I'm sure there are some U.S. resident, but non-U.S...
by galeno
Fri Mar 29, 2019 1:24 pm
Forum: Non-US Investing
Topic: Non-US Bogleheads who overweight US?
Replies: 23
Views: 1684

Re: Non-US Bogleheads who overweight US?

We hold 87.5% VWRD + 12.5% WSML in an attempt to simulate VT. We hold a global equity portfolio (FTSE all world all cap equity index). For non-USA investors USA-domicled stocks are valued higher than non-USA stocks. You will pay higher dividend taxes for USA-domicled stocks vs non-USA stocks. Bogleh...
by galeno
Fri Mar 29, 2019 1:17 pm
Forum: Personal Investments
Topic: Is this a novel concept or a stupid one?
Replies: 18
Views: 1365

Re: Is this a novel concept or a stupid one?

Stop the automatic dividends. Let them ride. Consider TLH.
by galeno
Fri Mar 29, 2019 1:13 pm
Forum: Personal Investments
Topic: Age in Bonds?
Replies: 38
Views: 3785

Re: Age in Bonds?

We use "age in bonds". We like it.
by galeno
Wed Mar 20, 2019 1:50 pm
Forum: Personal Investments
Topic: Treasury Bill ETFs
Replies: 4
Views: 595

Re: Treasury Bill ETFs

This is how I look at it. I hope I'm correct.

A mutual fund or an ETF is simply a bag/envelope/box that holds assets. The finance company may go broke. But the contents of the bag/envelope/box are still there. They'd probably get put into another bag/envelope/box from another finance company.
by galeno
Wed Mar 13, 2019 5:28 pm
Forum: Personal Investments
Topic: Finding the risk tolerance for AA
Replies: 18
Views: 925

Re: Finding the risk tolerance for AA

I used to be a risk junky. Then I discovered "age in bonds". At first I didn't like it. It's an acquired taste. It took me about two or three years. Now I love it. Use a 2 fund port: 50% VT + 50% VGIT. Or split the FI into 50% VGIT + 50% TIP if you're worred about unexpected inflation hurting your F...
by galeno
Wed Mar 13, 2019 12:55 pm
Forum: Non-US Investing
Topic: Help to build a three fund portfolio with non-US ETF
Replies: 21
Views: 3943

Re: Help to build a three fund portfolio with non-US ETF

I like distributing funds. We are retired. We like to keep about 5% of port in CASH. That's how we start the year.

We use the 4% rule. 2.6% comes from dividend and interest income. The other 1.4% comes from selling shares.
by galeno
Thu Mar 07, 2019 2:22 pm
Forum: Personal Consumer Issues
Topic: Medical and Living in Germany
Replies: 32
Views: 2450

Re: Medical and Living in Germany

Watching and learning. Germany supposedly has one of the best health care systems in the world. If you are a legal resident or citizen you should be able to participate.
by galeno
Tue Mar 05, 2019 2:04 pm
Forum: Personal Investments
Topic: How Much of Bond Allocation in TIPs?
Replies: 53
Views: 11257

Re: How Much of Bond Allocation in TIPs?

We keep 25% of our FI allocation (15% of port) in a TIPS ETF.
by galeno
Tue Mar 05, 2019 1:59 pm
Forum: Non-US Investing
Topic: Does the US vs non-US market cap make sense?
Replies: 26
Views: 1659

Re: Does the US vs non-US market cap make sense?

I put my trust in FTSE and the US Aggregate Bond Index.
by galeno
Tue Mar 05, 2019 1:38 pm
Forum: Personal Finance (Not Investing)
Topic: SWR As An After Tax Function
Replies: 21
Views: 1160

Re: SWR As An After Tax Function

Our annual portfolio costs = 0.4%.

ER = 0.2%. TR (tax ratio) = 0.1%. Other (commissions and spreads) = 0.1%.
by galeno
Tue Mar 05, 2019 1:29 pm
Forum: Personal Investments
Topic: Bond Diversification
Replies: 24
Views: 2374

Re: Bond Diversification

I've done a bit more research and my mind is more open to holding hedged non-USD bonds. Not there yet. But there's a lot to be said about holding a completely globalized 2 ETF port: X% VT + Y% BNDW.
by galeno
Fri Mar 01, 2019 8:06 am
Forum: Investing - Theory, News & General
Topic: International Stock Diversification — A New Look
Replies: 66
Views: 12449

Re: International Stock Diversification — A New Look

I've been saying this for years.
Rick Ferri wrote:
Mon Nov 10, 2014 10:02 am
A simple way to avoid all the confusion is the buy VT, the Vanguard Total World Stock ETF.

Rick Ferri
by galeno
Fri Mar 01, 2019 8:01 am
Forum: Personal Investments
Topic: Comparing indexed funds to managed funds
Replies: 17
Views: 1482

Re: Comparing indexed funds to managed funds

Managed funds also have a higher turnover vs index funds. That generates lots of taxible events.
by galeno
Fri Mar 01, 2019 7:54 am
Forum: Non-US Investing
Topic: EU investor: any way to avoid punitive US estate tax on death?
Replies: 59
Views: 4358

Re: EU investor: any way to avoid punitive US estate tax on death?

If a non-USA person buys and holds DIRECT (no fund or ETF) US treasuries and FDIC insured bank account CDs the US govt does not apply the 30% USA-NRA interest income tax. Does that mean that direct US treasuries and FDIC insured CD still count as US assets and thus vulnerable to USA inheritance taxe...
by galeno
Thu Feb 28, 2019 6:12 pm
Forum: Non-US Investing
Topic: EU investor: any way to avoid punitive US estate tax on death?
Replies: 59
Views: 4358

Re: EU investor: any way to avoid punitive US estate tax on death?

Sorry. Lady Geek.

The recent story and this thread prompted me to look up the issue of US citizenship. First it said it couldn't be taken away. From a natural born citizen. Digging deeper I found many circumstances how it could be.

Now I'm interested about my own home country's citizenship issues.
by galeno
Thu Feb 28, 2019 1:09 pm
Forum: Personal Investments
Topic: Want New Views On Investing Premises
Replies: 5
Views: 401

Re: Want New Views On Investing Premises

Yes! I recommend the global 2 fund port: VT + BNDW. Or the USA-Centric: VTI + BND. While you are busy chasing your tail looking for patterns to act on, risk in the complex adaptive system you live in will jump up seemingly out of nowhere and destroy any plans made on the pathological search for prec...
by galeno
Thu Feb 28, 2019 10:49 am
Forum: Personal Investments
Topic: Want New Views On Investing Premises
Replies: 5
Views: 401

Re: Want New Views On Investing Premises

Ditto what Jack FFR1846 said. My only (tiny) suggestion would be for you to invest all your IRA money into non-USA equities.
by galeno
Thu Feb 28, 2019 9:21 am
Forum: Non-US Investing
Topic: EU investor: any way to avoid punitive US estate tax on death?
Replies: 59
Views: 4358

Re: EU investor: any way to avoid punitive US estate tax on death?

You guys are making my head spin! Ahhhhhh! All I care about is that we (USA-NRAs) are able to hold Ireland domiciled ETFs bought on the LSE thru our stock brokers. Regarding US citizenship. [OT comment removed by admin LadyGeek] I found this on Google: "Natural-born U.S. citizens may not have their ...
by galeno
Fri Feb 15, 2019 3:19 pm
Forum: Non-US Investing
Topic: EU investor: any way to avoid punitive US estate tax on death?
Replies: 59
Views: 4358

Re: EU investor: any way to avoid punitive US estate tax on death?

Before we went with IB we used Schwab International. Schwab International is for non-USA persons. Schwab International is just like Schwab USA except it allows one a limited access to Ireland domiciled FUNDS. All those funds are actively managed and all with outrageous ERs. So for us it was cheaper ...
by galeno
Fri Feb 15, 2019 2:26 pm
Forum: Personal Consumer Issues
Topic: Travel to Cuba
Replies: 42
Views: 3196

Re: Travel to Cuba

I feel that too. The change for the worse. Since I've been there many times and I'm Costa Rican (good relations with Cuba) I'm able to avoid the tourist places. Cubans accept my USD without any protest. Do you think they'd prefer EUR? When that will happen Cuba of today will be irremediably destroye...
by galeno
Wed Feb 13, 2019 3:00 pm
Forum: Non-US Investing
Topic: EU investor: any way to avoid punitive US estate tax on death?
Replies: 59
Views: 4358

Re: EU investor: any way to avoid punitive US estate tax on death?

One of the benefits of using IB is that you can buy stocks and bonds from many different exchanges. You could start with USA domiciled ETFs or MFs. Then you can sell them and buy, e.g. Ireland domicled ETFs from non-USA exchanges.
by galeno
Wed Feb 13, 2019 2:09 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Confusion VT/BNDW
Replies: 12
Views: 770

Re: Vanguard Confusion VT/BNDW

I'm only familiar with Schwab's ETFs. So.

VT ~ 50% SCHB + 40% SCHF + 10% SCHE

Forget hedged non-USD non-USA bonds for now.

BND = SCHZ
by galeno
Wed Feb 13, 2019 8:02 am
Forum: United Arab Emirates
Topic: Saxo vs IB
Replies: 20
Views: 1486

Re: Saxo vs IB

TedSwippet almost always beats me to the punch.

If you are NOT a USA person you should avoid USA domicled financial assets. They cost a lot (30% tax on all interest and dividend income) and they are subject to draconian USA inheritance laws.
by galeno
Wed Feb 13, 2019 7:54 am
Forum: Non-US Investing
Topic: Investing in ETFs from Colombia [with US or Canada ETFs]
Replies: 6
Views: 441

Re: Investing in ETFs from Colombia [with US or Canada ETFs]

Wife and I are Costa Rican Bogleheads. We use IB as our broker and use Ireland Vanguard and Ireland iShares ETFs. 100% agreement with everything TedSwippet said. Look for your local branch of IB (Interactive Brokers). Or if none use the USA's IB. Start here: https://brokerchooser.com/best-brokers/be...
by galeno
Tue Feb 12, 2019 8:26 pm
Forum: Personal Consumer Issues
Topic: Travel to Cuba
Replies: 42
Views: 3196

Re: Travel to Cuba

I"ve been to Cuba many times. We have cheap daily flights to Havana. I take USD in small denominations. 1s and 5s. Readily accepted as long as you avoid the government sponsored turist traps.
by galeno
Sat Feb 09, 2019 11:42 pm
Forum: Personal Consumer Issues
Topic: Recommendation for home gym (limited space)
Replies: 63
Views: 4372

Re: Recommendation for home gym (limited space)

A pull-up bar you can hang on your door and a jump rope.

Resistance is pullups, pushups, bodyweight squats, and planks.

Cardio is jumping rope.

Flexibility can be any cool stretching that does the job. I do hatha yoga.

You really don't need anything else.
by galeno
Sat Feb 09, 2019 11:36 pm
Forum: Investing - Theory, News & General
Topic: International bonds
Replies: 60
Views: 4818

Re: International bonds

johnsmithsf. I'm liking what you're saying.
by galeno
Fri Feb 08, 2019 8:52 pm
Forum: Personal Finance (Not Investing)
Topic: 4% rule [Withdrawal rate - pretax or post-tax?]
Replies: 8
Views: 672

Re: 4% rule [Withdrawal rate - pretax or post-tax?]

4% rule is pre-tax. I subtract the ER (expense ratio = 0.19%) and the TR (tax ratio = 0.21%). Both together = 0.4%

So we withdraw 4.0% but get to spend 3.6%. We get 90% of our gross retirement income. Wall street and different governments get 10% of our gross retirement income.
by galeno
Fri Feb 08, 2019 8:40 pm
Forum: Investing - Theory, News & General
Topic: International bonds
Replies: 60
Views: 4818

Re: International bonds

"Vanguard has a paper about why I am wrong, and holding foreign bonds (USD hedged) can improve the diversification of the US investor's portfolio. I think it's marginal but it's worth having a read of that paper." The reason my mind is open to non-US/non-USD bonds hedged to USD is because of that Va...
by galeno
Thu Feb 07, 2019 3:17 pm
Forum: Personal Investments
Topic: What do you use for your bond exposure?
Replies: 47
Views: 3161

Re: What do you use for your bond exposure?

I'd go 50/50 INTERMEDIATE term US treasuries and TIPS. Long term US treasuries are pretty volatile.

"The biggest threat to bonds is inflation and rate changes. Would it be unreasonable to allocate my bond position 50/50 long term treasuries and TIPS?"
by galeno
Wed Feb 06, 2019 7:37 pm
Forum: Investing - Theory, News & General
Topic: International bonds
Replies: 60
Views: 4818

Re: International bonds

"I will refer to that as the Boglehead Conundrum." I agree.
by galeno
Tue Feb 05, 2019 4:24 pm
Forum: Personal Consumer Issues
Topic: Is General Practitioner [billing Medicare correctly?]
Replies: 88
Views: 3631

Re: Is General Practitioner Scamming Medicare

Medicare and private health care insurance companies WANT doctors to do this and bill for it. It supposedly promotes primary care. The concept has a fancy name (IIRC it's MACRA) but essentially it indicates that the doctor is "COMPLETE". It drives my older USA physician colleagues crazy. They don't ...
by galeno
Tue Feb 05, 2019 4:15 pm
Forum: Non-US Investing
Topic: [Europe] Tax withholding on US bonds on funds with Luxembourg domicile
Replies: 4
Views: 282

Re: [Europe] Tax withholding on US bonds on funds with Luxembourg domicile

We hold 3 ETFs from Ireland Vanguard and 2 ETFs from Ireland iShares. All bought from the LSE. Our equity dividend income is taxed 10.2%. Our bond interest income has 0% tax.
by galeno
Sun Feb 03, 2019 5:56 pm
Forum: Investing - Theory, News & General
Topic: International bonds
Replies: 60
Views: 4818

Re: International bonds

I'd like to know also. Yes on hedged non-USD bonds? Or no?
by galeno
Fri Feb 01, 2019 5:07 pm
Forum: Investing - Theory, News & General
Topic: International bonds
Replies: 60
Views: 4818

Re: International bonds

I keep an open mind regarding hedged non-USD bonds.

However. USD bonds yield more and have a better credit rating. So we have zero non-USD bonds in our FI allocation.
by galeno
Fri Feb 01, 2019 5:03 pm
Forum: Non-US Investing
Topic: Interactive Broker Tax on dividends concerns for NRA and Ireland domicile ETFs
Replies: 35
Views: 2063

Re: Interactive Broker Tax on dividends concerns for NRA and Ireland domicile ETFs

I've never tried to buy an individual 5 yr US Treasury via IB. I'm content with the bond ETFs we own.

But I did buy and sell 5 yr US Treasuries thru Schwab when our account was there. It was easy. Also brokered CDs.