Search found 1569 matches

by galeno
Tue Oct 29, 2019 12:27 pm
Forum: Personal Investments
Topic: 529/son got accepted to medical school whahoooo!
Replies: 53
Views: 8328

Re: 529/son got accepted to medical school whahoooo!

What does medical school cost in the USA?
by galeno
Tue Oct 29, 2019 11:54 am
Forum: Personal Investments
Topic: Holding bonds vs 100% equities
Replies: 367
Views: 20840

Re: Holding bonds vs 100% equities

Between 80/20 and 20/80.

Personally we'd go 40/60 up to 60/40.

Currently at 40/60.
by galeno
Tue Oct 29, 2019 11:38 am
Forum: Personal Consumer Issues
Topic: Folks age between 65-70. What’s your exercise routine
Replies: 44
Views: 4461

Re: Folks age between 65-70. What’s your exercise routine

62 years old. Well controlled type 2 diabetic. Ideal weight. Good shape.

MWRF: 15 min weights + 10 min cardio + 10 min yoga

W&S: 60 min (or so) tennis.
by galeno
Wed Aug 28, 2019 8:20 pm
Forum: Non-US Investing
Topic: VWRD vs VWRA - Dividends Calculation
Replies: 22
Views: 1653

Re: VWRD vs VWRA - Dividends Calculation

TER (total expense ratio) = ER + TR (tax ratio) + Other (commissions + spreads + currency bid/ask + transfer fees). Our TER = 0.19% + 0.09% + 0.22% = 0.5%. If we withdraw NOTHING our AWR = 0.38%. If we withdraw 3.5% our gross AWR = 4.0%. I feel very comfortable using firecalc.com. Porfolio visualize...
by galeno
Wed Aug 28, 2019 6:02 pm
Forum: Non-US Investing
Topic: VWRD vs VWRA - Dividends Calculation
Replies: 22
Views: 1653

Re: VWRD vs VWRA - Dividends Calculation

"Hi, does it mean that the expenses is about 0.55% and that i have to deduct this from my SWR? For example if i decide on a 2.5% swr i can really only withdraw 1.95% of my portfolio balance per year?" I use firecalc.com. I include 50% our national pensions at today's exchange rate. Use 0.5% as the E...
by galeno
Fri Aug 23, 2019 5:25 pm
Forum: Personal Consumer Issues
Topic: Article on [US citizens] retiring Panama....
Replies: 8
Views: 1031

Re: Article on [US citizens] retiring Panama....

Spain would be great. If it weren't too far away.
by galeno
Fri Aug 23, 2019 5:18 pm
Forum: Non-US Investing
Topic: VWRD vs VWRA - Dividends Calculation
Replies: 22
Views: 1653

Re: VWRD vs VWRA - Dividends Calculation

What about for WSML? We've held that one for only 1 year now. It should be higher than VWRD.
by galeno
Fri Aug 23, 2019 5:15 pm
Forum: Non-US Investing
Topic: VWRD vs VWRA - Dividends Calculation
Replies: 22
Views: 1653

Re: VWRD vs VWRA - Dividends Calculation

10.3% is my average over the last 5 years. As USA domicled equities become a higher percentage of VWRD / VWRL the dividend tax rate will go up accordingly. But thank you for the latest data. I'll put 12.2% into my spreadsheet instead of 10.3%. Our dividend tax rate over the last several years for VW...
by galeno
Wed Aug 21, 2019 7:55 pm
Forum: Non-US Investing
Topic: VWRD vs VWRA - Dividends Calculation
Replies: 22
Views: 1653

Re: VWRD vs VWRA - Dividends Calculation

Our dividend tax rate over the last several years for VWRD is 10.3%.
by galeno
Wed Aug 21, 2019 7:32 pm
Forum: Non-US Investing
Topic: [Wiki] NEW explanatory page on Complex Portfolios for non-US investors
Replies: 3
Views: 334

Re: [Wiki] NEW explanatory page on Complex Portfolios for non-US investors

Nothing wrong with using: 40% VWRD + 55% SUAG + 5% CASH.
by galeno
Wed Aug 21, 2019 7:31 pm
Forum: Non-US Investing
Topic: [Wiki] NEW explanatory page on Complex Portfolios for non-US investors
Replies: 3
Views: 334

Re: [Wiki] NEW explanatory page on Complex Portfolios for non-US investors

We are USA-NRAs without a USA tax treaty. We count in USD. We use 5 Ireland domiciled ETFs. Three from Ireland Vanguard and two from Ireland I-shares. Our retirement port: Equities: 35% VWRD + 5% WSML (approximates 40% VT) Fixed Income: 20% VDCP + 20% VDTY + 15% IDTP + 5% CASH (Cheaper and more comp...
by galeno
Fri Aug 16, 2019 1:01 pm
Forum: Non-US Investing
Topic: Why should I buy anything outside of the US market?
Replies: 23
Views: 2041

Re: Why should I buy anything outside of the US market?

American investors (citizens and residents) benefit from lower costs (no hidden dividend taxes) by sticking with the SP500. Non-American investors (USA-NRAs without tax treaty with USA) have HIGHER costs by holding only USA domicled equities. Our investment costs go down when we hold non-USA domicil...
by galeno
Wed Aug 14, 2019 12:44 pm
Forum: Investing - Theory, News & General
Topic: Ray Dalio bullish on China (China market cap to overtake US in 2030?)
Replies: 58
Views: 5628

Re: Ray Dalio bullish on China (China market cap to overtake US in 2030?)

We're going to stick with our FTSE all world all cap equity index ETF which is VT. As the Chinese markets grow so should the portion of them in VT.

We'll let FTSE do the thinking regarding Chinese A shares for us. We like the caution.
by galeno
Wed Aug 14, 2019 12:38 pm
Forum: Personal Investments
Topic: Composition of Total World Stock Index
Replies: 8
Views: 869

Re: Composition of Total World Stock Index

"it reasonable to consider VT as being comprised of ~60% VTI and ~40% VXUS?"

Right now it's 55% VTI + 45% VXUS.

Why not just buy and hold VT?
by galeno
Wed Aug 14, 2019 12:32 pm
Forum: Personal Investments
Topic: Composition of Total World Stock Index
Replies: 8
Views: 869

Re: Composition of Total World Stock Index

As non-USA person investors we approximate VT by using 87.5% VWRD + 12.5% WSML.
by galeno
Wed Aug 14, 2019 12:27 pm
Forum: Non-US Investing
Topic: Schwab - U.S. ETFs and ETNs restrictions as of September 19
Replies: 36
Views: 3868

Re: Schwab - U.S. ETFs and ETNs restrictions as of September 19

Will Schwab International (for non-USA "persons") allow access to Ireland Vanguard and Ireland I-shares ETFs on the LSE?

If so it's about time.
by galeno
Tue Aug 13, 2019 12:22 pm
Forum: Personal Investments
Topic: How much TIPS
Replies: 22
Views: 1804

Re: How much TIPS

30% stocks
20% intermediate nominal bonds
1 year of residual expenses after SS in cash
1 year of residual expenses after SS in short-term TIPS
The rest in intermediate TIPS.

With 30% stocks I'd go

10% high yield bonds
20% corp bonds

20% interm US treasuries
15% interm TIPS
05% cash
by galeno
Fri Aug 09, 2019 5:15 pm
Forum: Personal Investments
Topic: A different view on withdrawal rates
Replies: 2
Views: 612

Re: A different view on withdrawal rates

Good read. Thanks Paul.
by galeno
Fri Aug 09, 2019 4:40 pm
Forum: Personal Investments
Topic: How much TIPS
Replies: 22
Views: 1804

Re: How much TIPS

Our retirement AA is 40/60. We keep 15% of port (25% of fixed income) in a TIPS ETF.
by galeno
Thu Aug 08, 2019 5:20 pm
Forum: Non-US Investing
Topic: [Wiki] Bond ETF Non US resident withholding tax
Replies: 28
Views: 2229

Re: [Wiki] Bond ETF Non US resident withholding tax

We never got any money back when we held SCHZ for a year. That's when we switched to a CD ladder using FDIC insured banks. Then we discovered Interactive Brokers and Ireland domicled ETFs sold on the LSE.
by galeno
Thu Aug 08, 2019 5:17 pm
Forum: Investing - Theory, News & General
Topic: Staying the AA course even in market extremes?
Replies: 22
Views: 1467

Re: Staying the AA course even in market extremes?

The purpose of rebalancing is to mitigate portfolio risk. There is no guarantee of a "rebalancing bonus". Sometimes there's a bonus. Sometimes there's a penalty.
by galeno
Wed Aug 07, 2019 5:28 pm
Forum: Investing - Theory, News & General
Topic: Staying the AA course even in market extremes?
Replies: 22
Views: 1467

Re: Staying the AA course even in market extremes?

If the stock market declines by 30% how do you KNOW it won't decline further? Or for more years? Like go down 3 years in a row which happened during the 2000-2002 bear market. We were at 80/20 at the time. Kept rebalancing to 80/20 for three years. -26% for 2000. +1% for 2001. -19% for 2001. Then in...
by galeno
Wed Aug 07, 2019 2:09 pm
Forum: Investing - Theory, News & General
Topic: Staying the AA course even in market extremes?
Replies: 22
Views: 1467

Re: Staying the AA course even in market extremes?

So stick with 85/15. If you're comfortable with it. Can you afford to lose 40-45% of your portfolio's value? Has this happened to you? Yet?
by galeno
Wed Aug 07, 2019 2:02 pm
Forum: Non-US Investing
Topic: [Wiki] Bond ETF Non US resident withholding tax
Replies: 28
Views: 2229

Re: [Wiki] Bond ETF Non US resident withholding tax

Our non-USA person (no USA tax treaty) 40/60 retirement portfolio consists of 3 Ireland Vanguard ETFs and 2 Ireland I-shares ETFs. Equity: 35% VWRD + 5% WSML Fixed Income: 20% VDCP + 20% VDTY + 15% IDTP + 5% CASH We get taxed 10.3% on our equity dividend income. We get taxed 0% on our fixed income i...
by galeno
Wed Aug 07, 2019 1:51 pm
Forum: Investing - Theory, News & General
Topic: Staying the AA course even in market extremes?
Replies: 22
Views: 1467

Re: Staying the AA course even in market extremes?

How old are you? Are you near retirement? Have you ever suffered a bear market (1987, 2000-2002, 2008)? What's your current AA?
by galeno
Tue Jul 02, 2019 1:40 pm
Forum: Non-US Investing
Topic: Non-US citizen with US Brokers: Estate Tax risk?
Replies: 103
Views: 35113

Re: Non-US citizen with US Brokers: Estate Tax risk?

Ireland ETFs bought and sold on the LE are pretty darn good these days. Ireland Vanguard ETFs (3 ETFs for 75% of port) are our main meal. We fill the gaps with Ireland iShares (2 ETFs 20% of port).
by galeno
Thu Jun 27, 2019 12:31 pm
Forum: Non-US Investing
Topic: Non-US citizen with US Brokers: Estate Tax risk?
Replies: 103
Views: 35113

Re: Non-US citizen with US Brokers: Estate Tax risk?

I'd love it if someone could explain the LOGIC behind the USA's policies and rules regarding non-USA person investors.
by galeno
Tue Jun 25, 2019 1:01 pm
Forum: Non-US Investing
Topic: Non-US citizen with US Brokers: Estate Tax risk?
Replies: 103
Views: 35113

Re: Non-US citizen with US Brokers: Estate Tax risk?

4. Single bonds (corporate or government) are not subjected to withholding or estate tax. Single USA treasury bonds are not subject to withholding or estate tax. I'm not sure about single corporate bonds. 5. Bond ETF domiciled in the US are not subjected to withholding tax on coupons dividend but ma...
by galeno
Fri Jun 21, 2019 2:11 pm
Forum: Non-US Investing
Topic: Non-US citizen with US Brokers: Estate Tax risk?
Replies: 103
Views: 35113

Re: Non-US citizen with US Brokers: Estate Tax risk?

We too wasted a lot of money on 30+% equity dividend taxes when we used Schwab International. For equity we used Schwab indexed ETFs. For bonds we either used USA FDIC insured CDs or we'd buy ONE 5 yr US treasury note. No 30% interest income taxes on these. So weird.
by galeno
Thu Jun 20, 2019 2:28 pm
Forum: Non-US Investing
Topic: Non-US citizen with US Brokers: Estate Tax risk?
Replies: 103
Views: 35113

Re: Non-US citizen with US Brokers: Estate Tax risk?

You are correct. We used to use Schwab International. Excellent broker but very limited selection on non-USA domiciled assets. We switched to IB about 4 years ago. Much better selection as they allow trading on the LSE (London Stock Exchange) on which we buy and sell Ireland Vanguard and I-shares st...
by galeno
Fri Jun 07, 2019 4:39 pm
Forum: Non-US Investing
Topic: non resident withholding tax refund
Replies: 3
Views: 383

Re: non resident withholding tax refund

Status: USA-NRAs with no USA tax treaty. We use 5 Ireland domiciled ETFs in our retirement portfolio. Our equity dividend income tax rate is 10.3%. We use 40% equities. 35% VWRD + 5% WSML ~ 40% VT The interest income tax rate from our 60% FI (55% bonds + 5% cash) allocation is 0%. So we pay a total ...
by galeno
Tue May 07, 2019 6:50 pm
Forum: Personal Consumer Issues
Topic: Which US city would you move to?
Replies: 74
Views: 7973

Re: Which US city would you move to?

I'm just throwing this out there: St George, UT.
by galeno
Tue May 07, 2019 6:46 pm
Forum: Personal Investments
Topic: Higher Return vs Higher Dividend
Replies: 6
Views: 826

Re: Higher Return vs Higher Dividend

A successful corporation has a NET PROFIT. Also called NET EARNINGS. The dividend is just a PART of those net earnings given back to the shareholder as CASH.

Personally I prefer share buybacks vs dividends.
by galeno
Tue Apr 30, 2019 1:51 pm
Forum: Investing - Theory, News & General
Topic: Back testing assets: best results with long term treasury yet common advice is aggregated bonds or global bonds. Why?
Replies: 41
Views: 2319

Re: Back testing assets: best results with long term treasury yet common advice is aggregated bonds or global bonds. Why

Long term treasuries are very volatile. Short term treasuries yield too little. Medium term treasuries are a "just right" compromise.
by galeno
Tue Apr 30, 2019 1:44 pm
Forum: Personal Finance (Not Investing)
Topic: Random piling on of a financial advisor
Replies: 14
Views: 2255

Re: Random piling on of a financial advisor

Our NOMINAL after tax return from Jan 2009 to YTD (year to date) is 8.3%.

From Jan 2009 thru Dec 2015 we held 60/40. Since then 40/60.

A 100% portfolio of VWINX (40/60) has a 10 yr return of 7.9%.

It's extremely difficult to "beat the market". That's why there are Bogleheads.
by galeno
Wed Apr 24, 2019 7:50 pm
Forum: Investing - Theory, News & General
Topic: Boglehead age adjusted asset plan?
Replies: 13
Views: 1563

Re: Boglehead age adjusted asset plan?

We use "age in bonds".
by galeno
Wed Apr 17, 2019 11:44 am
Forum: Investing - Theory, News & General
Topic: Junk bonds undervalued due to boglehead popularity?
Replies: 51
Views: 5092

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: 51
Views: 5092

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: 5552

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: 72
Views: 6209

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: 2117

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: 4640

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: 72
Views: 6209

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: 72
Views: 6209

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: 2117

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: 72
Views: 6209

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: 2117

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: 2117

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: 1469

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

Stop the automatic dividends. Let them ride. Consider TLH.