Search found 1057 matches

by galeno
Wed Apr 04, 2018 1:32 pm
Forum: Investing - Theory, News & General
Topic: Non-US based investor: Bond ETF or select a basket of bonds myself?
Replies: 9
Views: 742

Re: Non-US based investor: Bond ETF or select a basket of bonds myself?

I picked the 8 largest trading currencies. ZAR made the list.
by galeno
Fri Mar 30, 2018 6:49 pm
Forum: Investing - Theory, News & General
Topic: Non-US based investor: Bond ETF or select a basket of bonds myself?
Replies: 9
Views: 742

Re: Non-US based investor: Bond ETF or select a basket of bonds myself?

We live in Panama where the currency is the USD. Thus, we keep our 60% FI allocation denominated in the USD. I'm a big believer that one should keep the FI allocation in one of the 8 MAJOR currencies of where one lives. E.g. USD, Euro, JPY, GBP, CHF, CAD, AUD/NZD, and ZAR. Our 40% equity allocation ...
by galeno
Thu Mar 29, 2018 6:37 pm
Forum: Investing - Help with Personal Investments
Topic: Total return vs dividends
Replies: 54
Views: 4481

Re: Total return vs dividends

If one can cover their spending needs with an AWR of 2%. The heirs will be estatic. Me? I"d rather spend more and enjoy my life. A portfolio composed of 50% Intermediate term US treasuries + 50% FTSE all world equities generates a portfolio yield of 2.35%. An AWR (annual withdrawal rate) of 2.35%. A...
by galeno
Wed Mar 28, 2018 10:37 pm
Forum: Investing - Help with Personal Investments
Topic: Total return vs dividends
Replies: 54
Views: 4481

Re: Total return vs dividends

A portfolio composed of 50% Intermediate term US treasuries + 50% FTSE all world equities generates a portfolio yield of 2.35%. An AWR (annual withdrawal rate) of 2.35%. Assuming a term of 30 years most people want an AWR of 3 to 4%. A lot of income investors will try to get their portfolio's yield ...
by galeno
Wed Mar 28, 2018 8:02 pm
Forum: Investing - Help with Personal Investments
Topic: NON-US (Ireland) ETFs - Simplified Ultimate Buy and Hold Porfolio
Replies: 76
Views: 15423

Re: NON-US (Ireland) ETFs - Simplified Ultimate Buy and Hold Porfolio

Hey SavageBrother. Good to "see" you again! The Retire Early Board is now 2. Same people arguing about the same stuff. "P.S. Hello galeno. It's been a long time since I ran across you at the Motley Fool Retire Early board. Glad to see you still around. I finally pulled the trigger and retired last y...
by galeno
Tue Mar 20, 2018 1:19 pm
Forum: Investing - Theory, News & General
Topic: Global GDP Growth --> World Stock Returns, 1970-2017
Replies: 5
Views: 506

Re: Global GDP Growth --> World Stock Returns, 1970-2017

We use ONE FTSE all world equity ETF in an attempt to capture all this world economic growth.

Sometimes the USA runs ahead. Sometimes it's developed non-USA. And sometimes it's the EM economies and or stock markets.
by galeno
Mon Mar 19, 2018 5:45 pm
Forum: Investing - Help with Personal Investments
Topic: ONE managed bond fund / ETF for USA-NRA w/o USA Tax Treaty
Replies: 3
Views: 318

Re: ONE managed bond fund / ETF for USA-NRA w/o USA Tax Treaty

The one managed bond fund / ETF would replace this passive bond allocation:

36% intermed term US treasuries (VDTY) + 36% corp bonds (VDCP) + 28% TIPS (IDTP).
by galeno
Fri Mar 16, 2018 6:45 pm
Forum: Investing - Help with Personal Investments
Topic: Tax on bond ETFs: are they treated as bond or stock?
Replies: 9
Views: 533

Re: Tax on bond ETFs: are they treated as bond or stock?

We are USA-NRAs w/o a USA tax treaty. A bond ETF example. We buy a popular bond ETF from the NYSE (New York Stock Exchange) called AGG which is domiciled in the USA. We'd have to pay a 30% withholding tax on all the interest income before it even gets to our brokerage account. We buy the exact same ...
by galeno
Fri Mar 16, 2018 1:39 pm
Forum: Investing - Help with Personal Investments
Topic: ONE managed bond fund / ETF for USA-NRA w/o USA Tax Treaty
Replies: 3
Views: 318

ONE managed bond fund / ETF for USA-NRA w/o USA Tax Treaty

I'm trying to find ONE ("fire and forget") core-plus (multi-lite) managed bond fund I can buy on the LSE (Ireland domiciled) to pair with our 40% equity allocation. Any ideas?
by galeno
Wed Mar 14, 2018 2:20 pm
Forum: Investing - Help with Personal Investments
Topic: Alternatives to Vanguard Total World Stock ETF (VT) [Netherlands]
Replies: 3
Views: 461

Re: Alternatives to Vanguard Total World Stock ETF (VT) [Netherlands]

Our only equity ETF is VWRD which is the USD version of VWRL. Check out the non-USA section of vanguard.com and i-shares.com for ideas for Euro denominated bonds.
by galeno
Thu Mar 08, 2018 3:36 pm
Forum: Personal Finance (Not Investing)
Topic: Why (or why not) use an advisor
Replies: 42
Views: 2060

Re: Why (or why not) use an advisor

Two reasons we don't use an advisor: 1. Cost. Our total portfolio costs (ER, taxes, and misc.) = 0.4% of port. We use a GROSS AWR (annual withdrawal rate) = 4.0%. Subtract 0.4% from 4.0% allows us to live on 3.6% of port per year. An advisor will cost 0.5%. We're not willing to share 14% of our NET ...
by galeno
Wed Mar 07, 2018 8:17 pm
Forum: Investing - Theory, News & General
Topic: Investing for NRA (Non Resident Alien) WITH US Tax Treaty
Replies: 14
Views: 2086

Re: Investing for NRA (Non Resident Alien) WITH US Tax Treaty

In the Americas for NRA w/o tax treaty I believe Panama is best. This is why we (wife and I) just became Panamanian residents. The expenses on our 40/60 port: 0.19% ER + 0.10% taxes + 0.12% misc. (commissions, spreads, currency costs USD to CRC, wire transfer costs, etc) = 0.40%. Somebody else will ...
by galeno
Wed Mar 07, 2018 6:45 pm
Forum: Investing - Help with Personal Investments
Topic: [UK] Is it better to have stocks, bonds or dividend paying stocks in a tax shelter
Replies: 5
Views: 277

Re: [UK] Is it better to have stocks, bonds or dividend paying stocks in a tax shelter

All would be best. If you must prioritize:

1. Bonds
2. REITs
3. Dividend stocks
4. Regular stocks

My advice is to keep your portfolio as simple as possible.

E.g. X% VWRL (GBP) + Y% VGOV would be a GREAT portfolio for a UK person.
by galeno
Wed Mar 07, 2018 3:07 pm
Forum: Investing - Help with Personal Investments
Topic: Ok fellow bogleheads, was the correction scary or nothing?
Replies: 147
Views: 10465

Re: Ok fellow boggelheads, was the correction earlier this year scary?

With a conservative 40/60 port I didn't even notice it.
by galeno
Thu Jan 25, 2018 7:13 pm
Forum: Investing - Theory, News & General
Topic: Bond Portfolio for High Net Worth Individuals - Different Rules?
Replies: 67
Views: 7373

Re: Bond Portfolio for High Net Worth Individuals - Different Rules?

To be in the top 1% of the USA you need a net worth of $9M (wealth) and a before tax annual salary of $500K (income).

With $50M one is easily in the top 0.1%.
by galeno
Thu Jan 25, 2018 7:03 pm
Forum: Investing - Help with Personal Investments
Topic: [EU] Help needed with European Bonds ETFs
Replies: 20
Views: 1166

Re: [EU] Help needed with European Bonds ETFs

I agree that risk should be taken with stocks and bonds are best when used as ballast.

I followed this philosophy until we went from 60% equities to 40%.

With 60% stocks we'd use this: 60% VWRD + 35% VDTY + 5% CASH.

We have 40% stocks so we use: 40% VWRD + 20% VDTY + 20% VDCP + 15% IDTP + 5% CASH.
by galeno
Thu Jan 25, 2018 3:55 pm
Forum: Investing - Theory, News & General
Topic: Asset Allocation in Early Retirement--a different Perspective
Replies: 18
Views: 2913

Re: Asset Allocation in Early Retirement--a different Perspective

I can boil it down to: save as much as you can and keep your "age in bonds".
by galeno
Thu Jan 25, 2018 3:40 pm
Forum: Investing - Theory, News & General
Topic: Hedging against US geopolitical and economic mean reversion
Replies: 2
Views: 418

Re: Hedging against US geopolitical and economic mean reversion

Bogleheads recommend holding an AA (asset allocation) that allows you be comfortable in any situation.
by galeno
Thu Jan 25, 2018 2:56 pm
Forum: Investing - Theory, News & General
Topic: Portfolio size needed to reach each tax bracket in retirement
Replies: 19
Views: 2620

Re: Portfolio size needed to reach each tax bracket in retirement

Using the OP's numbers the TR (tax ratio) of a $2.6M portfolio generating an annual income of $101K = 0.35%.

If you add that TR to the ER of 0.08% (50% VT + 50% BND) you get a TER = 0.42%.

The effective tax rate on the $101K income = 8.8%.
by galeno
Thu Jan 25, 2018 2:19 pm
Forum: Investing - Help with Personal Investments
Topic: [EU] Help needed with European Bonds ETFs
Replies: 20
Views: 1166

Re: [EU] Help needed with European Bonds ETFs

I like this combo. Pick which corp bond ETF you like better between the first two and combine it with the third. 50% IE00B3F81R35 iShares Core € Corp Bond UCITS ETF EUR (Dist) (EUR) http://www.morningstar.es/es/etf/snapsh ... 0P0000M4I5 Category: Corp Bonds EUR Benchmark: BBgBarc Euro Agg Corps TR E...
by galeno
Fri Jan 19, 2018 6:54 pm
Forum: Forum Issues and Administration
Topic: [New forum request] International investing and US non-resident section
Replies: 36
Views: 3483

Re: [New forum request] International investing and US non-resident section

I usually start the title to my posts with "USA-NRA w/o Treaty". That tells uninterested readers to stay away. We USA-NRAs w/o Treaty have come a long way. Buy switching brokers to IB and using 3 Ireland Vanguard ETFs (80% of port), and 1 Ireland I-share ETF (15% of port) we were able to construct a...
by galeno
Fri Dec 15, 2017 7:08 pm
Forum: Investing - Help with Personal Investments
Topic: Non-US resident portfolio with an emerging market ETF
Replies: 10
Views: 1130

Re: Non-US resident portfolio with an emerging market ETF

USA domiciled bond funds and ETFs are subject to a 30% tax on the interest income.

Our Ireland domiciled bond ETFs pay 0% tax on the interest income.

Only our Ireland domiciled equity ETF pays a dividend tax. For VWRD the dividend tax is 11.7%.

The Vanguard bond combo is fantastic.
by galeno
Wed Dec 06, 2017 8:53 pm
Forum: Investing - Help with Personal Investments
Topic: Non-US resident portfolio with an emerging market ETF
Replies: 10
Views: 1130

Re: Non-US resident portfolio with an emerging market ETF

BNDX is a bad choice due to it's USA domicile and non-USD bond "di-worsification". 30% tax on the interest income. Unnecessary currency fluctuations in fixed income. You live in a region whose dominant currency is the USD. So hold SUAG instead. If you want to cut the 0.25% ER to 0.12% hold a combo o...
by galeno
Wed Nov 22, 2017 7:19 pm
Forum: Investing - Help with Personal Investments
Topic: FTIPX in tIRA, any concern about foreign tax?
Replies: 5
Views: 492

Re: FTIPX in tIRA, any concern about foreign tax?

This is something we USA-NRAs (USA non-resident aliens) deal with all the time. For us everything is a foreign investment and dividend taxes must be paid. A USA domiciled investor is not charged UP FRONT dividend taxes for USA domiciled equities. For non-USA domiciled equities the dividend tax is 9....
by galeno
Fri Nov 10, 2017 6:55 pm
Forum: Investing - Theory, News & General
Topic: The Next Bear Market, Ben Carlson
Replies: 13
Views: 2353

Re: The Next Bear Market, Ben Carlson

The AWR from our $40/$60 portfolio is 3.5%. If our stocks go down by 50% our bonds should go up by at least 5% ($20/$63) so our port should only lose 15%. Our AWR goes to 4.1%. I'll rebalance the port and keep taking our retirement withdrawals.
by galeno
Fri Nov 10, 2017 6:12 pm
Forum: Investing - Theory, News & General
Topic: The Next Bear Market, Ben Carlson
Replies: 13
Views: 2353

Re: The Next Bear Market, Ben Carlson

It's important to have a rebalancing strategy and to execute it religiously.

1. Pick an annual rebalancing date and only rebalance then.

2. Use the 5% rule meaning if any major asset (equities, bonds, or cash) is out of balance by 5% or more you rebalance.
by galeno
Tue Nov 07, 2017 8:01 pm
Forum: Investing - Help with Personal Investments
Topic: UK expat, a global portfolio attempt
Replies: 4
Views: 659

Re: UK expat, a global portfolio attempt

1. 75% VWRL + 25% VNDB

2. 75% VWRL + 25% VAF
by galeno
Wed Nov 01, 2017 7:11 pm
Forum: Investing - Help with Personal Investments
Topic: what % return do you use?
Replies: 62
Views: 4901

Re: what % return do you use?

I expect a nominal CAGR = 3.8% for our 40/60 portfolio.
by galeno
Fri Oct 20, 2017 1:35 pm
Forum: Investing - Theory, News & General
Topic: "Using Jack Bogle's own words against him when it comes to international investing"
Replies: 30
Views: 4309

Re: "Using Jack Bogle's own words against him when it comes to international investing"

For us (non-USA domiciled Bogleheads with no USA tax treaty using Ireland denominated ETFs) USA domiciled equities are more expensive because of the 15% dividend tax. Our dividend tax for non-USA developed country equities is 7.5% and for EM equities is 10.8%. For a USA domiciled investor it's the o...
by galeno
Fri Oct 20, 2017 1:18 pm
Forum: Investing - Theory, News & General
Topic: Is a crash coming soon?
Replies: 64
Views: 6459

Re: Is a crash coming soon?

We keep "our age in FI". Conservative allocation. 40/60. We can withstand a bad bear market and lose 15% of port. My problem is that I'll want to seriously over-rebalance to 60/40 if that happens. I'll resist the temptation.
by galeno
Wed Oct 11, 2017 2:00 pm
Forum: Investing - Help with Personal Investments
Topic: Are we taking too much risk with Bonds in our AA?
Replies: 25
Views: 2498

Re: Are we taking too much risk with Bonds in our AA?

From what I've read the stable value election in a 401K is usually the best choice for bonds.
by galeno
Fri Oct 06, 2017 2:17 pm
Forum: Investing - Theory, News & General
Topic: I'm thinking about cashing completely out of equites....
Replies: 75
Views: 9296

Re: I'm thinking about cashing completely out of equites....

I love the Rick Ferri AA for retirees. Currently we have 40% all world equity + 20% corp bonds + 20% US treasuries + 15% TIPS + 5% CASH. Both wife and I are 60 years old. Our plan is to reduce equity over the next 10 years so when we're 70 our port will look the same except when we are at 30% equiti...
by galeno
Fri Oct 06, 2017 2:04 pm
Forum: Investing - Help with Personal Investments
Topic: Return Assumptions over Next 15 years
Replies: 15
Views: 1602

Re: Return Assumptions over Next 15 years

We hold a 40/60 port. We expect 4% CAGR from our equities and 2% from our FI. So the expected CAGR for our port = 3.6%. We are retired and spend 3.5% of port per year. Inflation = 2.0%. ER = 0.18%. Taxes = 0.09%. Other port expenses = 0.01%. For our portfolio to just tread water we need a CAGR = 5.9...
by galeno
Fri Oct 06, 2017 1:53 pm
Forum: Investing - Theory, News & General
Topic: I'm thinking about cashing completely out of equites....
Replies: 75
Views: 9296

Re: I'm thinking about cashing completely out of equites....

If you are worried that stocks values are too high why don't you go to a conservative posture of 55/45 (your age in FI)? Then when the bottom falls out of the stock market you can buy additional stocks. And if these expensive equities keep climbing "the wall of worry" you'll participate in the upsid...
by galeno
Thu Sep 28, 2017 1:42 pm
Forum: Investing - Help with Personal Investments
Topic: 3 fund portfolio for non US citizen with no-commision TD ETFs
Replies: 21
Views: 1639

Re: 3 fund portfolio for non US citizen with no-commision TD ETFs

With ANY USA domiciled equity ETF you will pay a 15% USA-NRA tax on all interest and dividend income on ALL USA domiciled securities in the ETF. On any non-USA securities in the ETF you will pay 15% ON TOP OF any interest or dividend tax that the non-USA domicile will put on them. Do the math correc...
by galeno
Thu Sep 28, 2017 12:57 pm
Forum: Investing - Help with Personal Investments
Topic: Opening a Vanguard account as a foreigner with a U.S. address?
Replies: 9
Views: 1272

Re: Opening a Vanguard account as a foreigner with a U.S. address?

We are USA-NRAs. We bought and held USA domiciled ETFs for about 10 years. And paid the outrageous USA-NRA interest and dividend income tax of >30%.
by galeno
Wed Sep 27, 2017 6:27 pm
Forum: Investing - Help with Personal Investments
Topic: 3 fund portfolio for non US citizen with no-commision TD ETFs
Replies: 21
Views: 1639

Re: 3 fund portfolio for non US citizen with no-commision TD ETFs

Last year we paid approximately 10% taxes on VWRD's dividend income. Our bond interest income (3 different bond ETFs) came thru with 0% taxes.

Remember. The 15% dividend income tax is ONLY on the USA part of VWRD. The non-USA developed part charged us 7.5% and the EM part charged us 11.2%.
by galeno
Wed Sep 27, 2017 6:00 pm
Forum: Investing - Help with Personal Investments
Topic: Opening a Vanguard account as a foreigner with a U.S. address?
Replies: 9
Views: 1272

Re: Opening a Vanguard account as a foreigner with a U.S. address?

USA domiciled broker IB (Interactive Brokers) has branches in almost every country. You can use USA domiciled assets or assets domiciled in other countries in your portfolio.

IB is a blessing for USA-NRA Bogleheads.
by galeno
Wed Sep 27, 2017 3:07 pm
Forum: Investing - Help with Personal Investments
Topic: 3 fund portfolio for non US citizen with no-commision TD ETFs
Replies: 21
Views: 1639

Re: 3 fund portfolio for non US citizen with no-commision TD ETFs

I recommend holding bonds in the dominant regional currency. In the OP's case I'd recommend EUROs.
by galeno
Wed Sep 27, 2017 2:46 pm
Forum: Investing - Theory, News & General
Topic: REITs as "pseudo diversification"
Replies: 44
Views: 4424

Re: REITs as "pseudo diversification"

I don't use REITs but I agree with WCI. They can and do diversify against equities.
by galeno
Wed Sep 27, 2017 2:40 pm
Forum: Investing - Help with Personal Investments
Topic: 3 fund portfolio for non US citizen with no-commision TD ETFs
Replies: 21
Views: 1639

Re: 3 fund portfolio for non US citizen with no-commision TD ETFs

Talk to a local CPA or tax attorney. Once you get over the $60K threshold you should probably form some type of vehicle (IBC, LLC, trust, etc) to hold your USA domiciled ETFs. That way you get the benefit of cheaper USA domiciled assets and protection against the USA's very drastic inheritance laws ...
by galeno
Thu Sep 21, 2017 12:45 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard for non-resident aliens
Replies: 22
Views: 2465

Re: Vanguard for non-resident aliens

My first choice for you would be IB (Interactive Brokers). Second would be Schwab. Both will take you and don't really care about your residency status. If you're a USA person you'll be in their USA classification. If you're non-USA you'll be in their non-USA classification. I have an USAmerican fri...
by galeno
Wed Sep 20, 2017 2:35 pm
Forum: Investing - Theory, News & General
Topic: Got a Question for the Experts Panel at the Bogleheads Conference?
Replies: 37
Views: 10632

Re: Got a Question for the Experts Panel at the Bogleheads Conference?

1. Will Ireland Vanguard offer a bond ETF that's equivalent to USA Vanguard's BND anytime soon?

2. When will Ireland Vanguard's FTSE all world equity ETF (VWRD) add China "A" shares to the index?

3. When will Ireland Vanguard add a small cap equity ETF to its menu?
by galeno
Tue Sep 19, 2017 7:49 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard for non-resident aliens
Replies: 22
Views: 2465

Re: Vanguard for non-resident aliens

Best: Use IB (Interactive Brokers). They handle USA-NRAs as well as US persons. Second best: Schwab.
by galeno
Tue Sep 19, 2017 1:25 pm
Forum: Personal Consumer Issues
Topic: Interactive Brokers 2FA
Replies: 5
Views: 608

Re: Interactive Brokers 2FA

We got handed one card. Like I said. It's a pain but I'm in favor. I'm always paranoid that our account could be hacked. Hopefully this just makes it a bit more difficult for the hackers. Do you have multiple of the Digital Security Cards? Linked to one account? Have you ever needed to get one repla...