Search found 1231 matches

by galeno
Tue Aug 14, 2018 7:26 pm
Forum: Personal Consumer Issues
Topic: As an American, where are some great places in the world to retire?
Replies: 85
Views: 6531

Re: As an American, where are some great places in the world to retire?

Yes.
Yellowjacket1 wrote:
Tue Aug 14, 2018 7:11 pm
Consider Spain and Portugal.
by galeno
Tue Aug 14, 2018 7:25 pm
Forum: Investing - Theory, News & General
Topic: Magic Formula Results
Replies: 20
Views: 1801

Re: Magic Formula Results

The backtest does not include real portfolio costs: commissions, bid/ask spreads, and taxes. Once you add these the strategy falls apart.
by galeno
Tue Aug 14, 2018 5:37 pm
Forum: Personal Consumer Issues
Topic: As an American, where are some great places in the world to retire?
Replies: 85
Views: 6531

Re: As an American, where are some great places in the world to retire?

Wife and I are Costa Rican citizens. Spanish is our mother tongue. We're home.
denovo wrote:
Tue Aug 14, 2018 5:20 pm
galeno wrote:
Tue Aug 14, 2018 5:14 pm
No place in the USA. I "need" to be retired in a place where I can live in shorts and sandals all year long. We already live there. Costa Rica.

Two other places. Panama and Mexico.
Are you fluent in Spanish?
by galeno
Tue Aug 14, 2018 5:14 pm
Forum: Personal Consumer Issues
Topic: As an American, where are some great places in the world to retire?
Replies: 85
Views: 6531

Re: As an American, where are some great places in the world to retire?

No place in the USA. I "need" to be retired in a place where I can live in shorts and sandals all year long. We already live there. Costa Rica.

Two other places. Panama and Mexico.
by galeno
Tue Aug 14, 2018 5:06 pm
Forum: Personal Finance (Not Investing)
Topic: Inheritance tax on UK assets owned by non-UK residents?
Replies: 11
Views: 495

Re: Inheritance tax on UK assets owned by non-UK residents?

Good idea. But do you think that the Brexit will have a negative impact on the way many of us non-USA domiciles invest? I.e. using a USA domicled broker to buy and hold Ireland domicled ETFs on the LSE? I believe we could buy them on another stock exchange if need be. @riskless, Even though there do...
by galeno
Tue Aug 14, 2018 2:45 pm
Forum: Personal Finance (Not Investing)
Topic: Inheritance tax on UK assets owned by non-UK residents?
Replies: 11
Views: 495

Re: Inheritance tax on UK assets owned by non-UK residents?

Our portfolio expenses are 0.46% of port as follows: ER = 0.19%. Dividend taxes = 0.09%. Maintain IBC = 0.08%. Bid/ask spread on local currency purchaces: 0.04% Wire transfer fees: 0.04% Commissions and bid/ask spreads = 0.02%. My wife and I debate discontinuing the IBC because we really don't need ...
by galeno
Tue Aug 14, 2018 10:54 am
Forum: Personal Finance (Not Investing)
Topic: Inheritance tax on UK assets owned by non-UK residents?
Replies: 11
Views: 495

Re: Inheritance tax on UK assets owned by non-UK residents?

We are non-USA domiciles w/o a USA tax treaty. We hold a retirement portfolio consisting of Ireland domicled ETFs bought on the LSE. I believe you're incorrect about the taxation. But in case you are correct. This is what WE did to mitigate against the USA's harsh inheritance law for people like us....
by galeno
Sun Aug 12, 2018 8:00 pm
Forum: Investing - Help with Personal Investments
Topic: “Safe” investment approaching retirement
Replies: 17
Views: 1656

Re: “Safe” investment approaching retirement

"Is there a way to build close equivalent of stable value fund within individual portfolio using various Bonds/Close funds?"

If you don't have access to a SVF you should follow the Boglehead advise for bonds: any short to intermediate term investment grade bond fund is OK.
by galeno
Sun Aug 12, 2018 11:01 am
Forum: Investing - Help with Personal Investments
Topic: “Safe” investment approaching retirement
Replies: 17
Views: 1656

Re: “Safe” investment approaching retirement

Be aware that higher risk bonds correlate to stocks. If you use higher risk bonds you should reduce your equities accordingly. Wife and I retired for 5 years. We are 61. 4% SWR. We divide our portfolio like this: 40% Risky: 40% FTSE all world equities 20% Semi-risky: 20% Corporate bonds 35% Safe: 20...
by galeno
Wed Aug 08, 2018 5:40 pm
Forum: Personal Finance (Not Investing)
Topic: [Calculating future Social Security benefits: How do I adjust the discount rate?]
Replies: 25
Views: 1050

Re: [Calculating future Social Security benefits: How do I adjust the discount rate?]

I used the calculator below:

https://www.bankrate.com/calculators/re ... lator.aspx

Term of 83-61=22 yr for me and 85-61=25 yr for my wife. Discount rate used is 0.92% and 2.97%. COLA of 2.0%. Retire at age 62. Monthly benefit $1000.

Got $258K and $207K respectively.
by galeno
Wed Aug 08, 2018 2:49 pm
Forum: Personal Finance (Not Investing)
Topic: [Calculating future Social Security benefits: How do I adjust the discount rate?]
Replies: 25
Views: 1050

Re: [Calculating future Social Security benefits: How do I adjust the discount rate?]

The yield on 20 yr TIPS is 0.92%.

So should we use 2.97% or 0.92% as the discount rate for a stream of SS monthly payments?

Also the term should be noted. 30 yr? 25 yr? 20 yr?
by galeno
Wed Aug 08, 2018 2:40 pm
Forum: Personal Finance (Not Investing)
Topic: [Calculating future Social Security benefits: How do I adjust the discount rate?]
Replies: 25
Views: 1050

Re: [Calculating future Social Security benefits: How do I adjust the discount rate?]

So????????????

What discount rate should we use?

When I learned finance in the 1990s we always used 6%. That WAS the yield of a 10 yr USA treasury bond.

Today's SEC Yield on the 10 yr USA treasury note is 2.97%.

Should we use 2.97% as the discount rate for the NPV calculation of SS benefits?
by galeno
Tue Aug 07, 2018 10:58 am
Forum: Investing - Theory, News & General
Topic: Non-USA Domicile: Thank You IB, Vanguard, and Ishares
Replies: 32
Views: 3532

Re: Non-USA Domicile: Thank You IB, Vanguard, and Ishares

Ted is correct.

Best I can do is find a country with a 10% dividend tax rate on the USA domiciled stocks in the ETF.

None of the countries with the 10% dividend tax treaty with the USA interest me either as an investor.
by galeno
Mon Aug 06, 2018 9:28 am
Forum: Investing - Help with Personal Investments
Topic: VWRL vs FTSE Global All Cap
Replies: 9
Views: 618

Re: VWRL vs FTSE Global All Cap

We cannot buy the fund. Only the ETF. We hold VWRD (in USD). VWRL should be hedged into Euros or GBP.
by galeno
Mon Aug 06, 2018 9:15 am
Forum: Investing - Theory, News & General
Topic: Non-USA Domicile: Thank You IB, Vanguard, and Ishares
Replies: 32
Views: 3532

Re: Non-USA Domicile: Thank You IB, Vanguard, and Ishares

You are incorrect. Assume a dividend of 2.0%. If I buy VT from a USA exchange my dividend taxes are: TWR for VT = (2.0% * 0.039) + ((2.0% * (1 - 0.039) - 0.17%) * 0.30) = 0.07794 + 0.52562 = 0.60%. If I buy VWRD from the LSE my dividend taxes are: TWR for VWRL = (2.0% * 0.103) + 0 (no L2 withholding...
by galeno
Sun Aug 05, 2018 5:35 pm
Forum: Investing - Theory, News & General
Topic: Non-USA Domicile: Thank You IB, Vanguard, and Ishares
Replies: 32
Views: 3532

Re: Non-USA Domicile: Thank You IB, Vanguard, and Ishares

We pay 10.3% dividend taxes on VWRD:LSE. Could we buy it on the Singapore or HK exchange and NOT pay ANY dividend taxes? We are USD based non-USA domiciled investors with NO USA tax treaty which is why we use Ireland domiciled ETFs bought on the LSE. Our portfolio's ER is 0.19%. The tax ratio (TR) i...
by galeno
Fri Aug 03, 2018 7:14 pm
Forum: Investing - Help with Personal Investments
Topic: Non-US citizen with SSN living abroad, where to invest?
Replies: 22
Views: 1142

Re: Non-US citizen with SSN living abroad, where to invest?

I love TedSwippet. Anyway.

My favorite Ireland domicled ETFs are from Vanguard. We use three and are watching one.

Second favorite Ireland domicled ETFs are from Ishares. We use one and are watching two.
by galeno
Fri Aug 03, 2018 2:42 pm
Forum: Investing - Help with Personal Investments
Topic: Non-US citizen with SSN living abroad, where to invest?
Replies: 22
Views: 1142

Re: Non-US citizen with SSN living abroad, where to invest?

We are non-USA domiciled Bogleheads. Our portfolio is very Boglehead. ETFs and MFs are essentially the same. Real Bogleheads do indeed use ETFs. In fact I PREFER the ETF structure over the MF structure. For most of us non-USA domiciled USD Bogleheads the easiest for us is to buy and sell Ireland dom...
by galeno
Fri Aug 03, 2018 11:27 am
Forum: Investing - Help with Personal Investments
Topic: Non-US citizen with SSN living abroad, where to invest?
Replies: 22
Views: 1142

Re: Non-US citizen with SSN living abroad, where to invest?

"Ideally you would want a non-US broker." Any suggestions? We use Interactive Brokers which is a USA domiciled broker. It does everything we need it to which is basically to give us access to the cheap Ireland domicled ETFs. I'd love to find a NON-USA domicled broker which is not outrageously expens...
by galeno
Thu Aug 02, 2018 7:01 pm
Forum: Investing - Help with Personal Investments
Topic: Non-US citizen with SSN living abroad, where to invest?
Replies: 22
Views: 1142

Re: Non-US citizen with SSN living abroad, where to invest?

E.g. our non-USA domicled CONSERVATIVE retirement portfolio: 40% VWRD + 20% VDCP + 20% VDTY + 15% ITPS + 5% CASH.
by galeno
Thu Aug 02, 2018 6:58 pm
Forum: Investing - Help with Personal Investments
Topic: Non-US citizen with SSN living abroad, where to invest?
Replies: 22
Views: 1142

Re: Non-US citizen with SSN living abroad, where to invest?

Use Interactive Brokers (IB).

Better than Schwab, Fidelity, and Vanguard because IB will let you buy Ireland domicled ETFs off the London Stock Exchange (LSE).
by galeno
Thu Aug 02, 2018 6:31 pm
Forum: Investing - Help with Personal Investments
Topic: Non-US citizen with SSN living abroad, where to invest?
Replies: 22
Views: 1142

Re: Non-US citizen with SSN living abroad, where to invest?

The main reason is the USA's horrible inheritance taxes for non-USA domicled persons.

And if your country does not have an investment treaty with the USA the 30% tax on interest and dividend income is bad news.

The Wikis TedSwippet posted are EXCELLENT.
by galeno
Wed Aug 01, 2018 5:47 pm
Forum: Investing - Theory, News & General
Topic: How Often to Adjust Target Asset Allocation
Replies: 10
Views: 794

Re: How Often to Adjust Target Asset Allocation

We start the year with 5% of port in CASH. Over the year we'll spend 80% of that. Our portfolio's yield is 2% leaving us with 3% of port in CASH at year's end. We then sell equities, bonds, or both to resupply CASH back to 5% of port. If equities and FI is out of balance by 5% or more we rebalance. ...
by galeno
Mon Jul 30, 2018 5:37 pm
Forum: Investing - Help with Personal Investments
Topic: Bond Diversification
Replies: 22
Views: 1588

Re: Bond Diversification

I have this disease too. It's called FOMO. That's why I ask questions here and on Morningstar. When I ask a question the "want" to tinker goes away. I am a firm believer in the old adage, “If it ain’t broke, don’t fix it.” I don’t understand why OP is tinkering with his portfolio. What problem needs...
by galeno
Mon Jul 30, 2018 12:40 pm
Forum: Investing - Help with Personal Investments
Topic: Which Risky Bond ETF?
Replies: 11
Views: 679

Re: Which Risky Bond ETF?

With 40% equity I feel two bond funds are needed. TBM and TIPS. I would take the risk with the stock side of your investment portfolio rather than the bond side. This is simplicity. Are you sure you thought about the reasons why you want to decrease your bond allocation. During the financial crisis ...
by galeno
Mon Jul 30, 2018 11:41 am
Forum: Investing - Help with Personal Investments
Topic: Which Risky Bond ETF?
Replies: 11
Views: 679

Re: Which Risky Bond ETF?

I'm tending toward the USD EM govt bond ETF also. Better diversification AWAY from all world equities AND the USA USD bonds. Maybe we'll just go 50/50 for 5% of port each? Then again. There's nothing wrong with keeping equities at 40%. I would definitely choose an EM bond fund over a standard junk b...
by galeno
Mon Jul 30, 2018 11:37 am
Forum: Investing - Help with Personal Investments
Topic: Which Risky Bond ETF?
Replies: 11
Views: 679

Re: Which Risky Bond ETF?

Yes. Our choices are limited to those two. My wife and I are not USA citizens or residents. But we are Bogleheads. Therefore we avoid USA stock exchanges and instead buy and sell our Ireland domiciled Vanguard and iShares ETFs from the London Stock Exchange (LSE). We non-USA domiciles have less choi...
by galeno
Sun Jul 29, 2018 7:31 pm
Forum: Investing - Help with Personal Investments
Topic: Which Risky Bond ETF?
Replies: 11
Views: 679

Which Risky Bond ETF?

We want to go from 40% to 30% equity over the next 10 years. We'd like to put that 10% into a non-investment grade (risky) bond ETF. Our choices: 1. USD Junk Bond ETF: YTM = 5.9% ER = 0.50%. Duration = 3.6 yr. Credit = BB- 2. USD EM Govt Bond ETF: YTM = 5.3%. ER = 0.25%. Duration = 6.2 yr. Credit = ...
by galeno
Sun Jul 29, 2018 4:22 pm
Forum: Personal Finance (Not Investing)
Topic: Firecalc "Your Portfolio" Tab to adjust for less stocks in future
Replies: 7
Views: 642

Re: Firecalc "Your Portfolio" Tab to adjust for less stocks in future

Rick Ferri, "A retiree should not invest even near his risk tolerance." We've been retired now for 5 years. We are 61. Retirees should look for risk-adjusted return. Pre-retirees should invest for terminal value. Up to his risk tolerance. We started 31 years ago with 80/20. After 22 years we went to...
by galeno
Sun Jul 29, 2018 1:32 pm
Forum: Personal Finance (Not Investing)
Topic: Firecalc "Your Portfolio" Tab to adjust for less stocks in future
Replies: 7
Views: 642

Re: Firecalc "Your Portfolio" Tab to adjust for less stocks in future

I have the "risk tolerance" to handle a 80/20 portfolio. Our retirement portfolio is 40/60. IMHO retirees should not invest even near their risk tolerance.
by galeno
Sun Jul 29, 2018 1:30 pm
Forum: Investing - Help with Personal Investments
Topic: Bond Diversification
Replies: 22
Views: 1588

Re: Bond Diversification

Include me in that group.
Munir wrote:
Sun Jul 29, 2018 1:07 pm
A number of Bogleheads- including Jack Bogle, are not so sure that international bonds are worth owning.
by galeno
Sun Jul 29, 2018 12:47 pm
Forum: Investing - Help with Personal Investments
Topic: Bond Diversification
Replies: 22
Views: 1588

Re: Bond Diversification

Non-USD bonds from non-USA developed and EM countries HEDGED back into USD have higher ERs and lower yields. Other than "diversification for diversification's sake" I see NO advantage to holding HEDGED non-USD bonds. If you use NON HEDGED non-USD bond funds you will experience a higher volatility in...
by galeno
Sun Jul 29, 2018 12:12 pm
Forum: Investing - Theory, News & General
Topic: Help Me Understand Bond Funds
Replies: 13
Views: 1246

Re: Help Me Understand Bond Funds

Bond funds are easy. Keep it simple. Rule 1. Always use intermediate term (3-7 yr) investment grade bonds (total bond funds, treasuries, and corporate bonds). Rule 2. Assume your return WILL BE the SEC Yield of the bond fund. If no SEC Yield then use YTM (yield to maturity) and subtract the ER (expe...
by galeno
Sun Jul 29, 2018 12:04 pm
Forum: Investing - Help with Personal Investments
Topic: Is the 4% rule/ index funds flawed?
Replies: 31
Views: 4413

Re: Is the 4% rule/ index funds flawed?

Many Bogleheads say you may treat your pension as a "bond". It does not matter if it is indexed to inflation or not. The inflation rate can be included in the discount rate to compensate. Without counting our pension our 95% SWR is 3.6%. Counting our pension it's over 4%. So that's what we use. 4%. ...
by galeno
Sun Jul 29, 2018 12:01 pm
Forum: Investing - Help with Personal Investments
Topic: Is the 4% rule/ index funds flawed?
Replies: 31
Views: 4413

Re: Is the 4% rule/ index funds flawed?

Many Bogleheads say you may treat your pension as a "bond". It does not matter if it is indexed to inflation or not. The inflation rate can be included in the discount rate to compensate. Without counting our pension our 95% SWR is 3.6%. Counting our pension it's over 4%. So that's what we use. 4%. ...
by galeno
Sat Jul 28, 2018 2:26 pm
Forum: Investing - Help with Personal Investments
Topic: Is the 4% rule/ index funds flawed?
Replies: 31
Views: 4413

Re: Is the 4% rule/ index funds flawed?

Without the pension a 95% SWR for us is 3.6%.
by galeno
Fri Jul 27, 2018 10:56 am
Forum: Investing - Help with Personal Investments
Topic: Adjusting allocation over time until retirement
Replies: 6
Views: 1089

Re: Adjusting allocation over time until retirement

We started investing at about age 30. We are now 61. We started with 80/20. When we were about 7 years from retirement we lowered equity to 60/40. When we retired 5 years ago we were still at 60/40. Two years ago we went to 40/60. An easy way to do it is to keep your "age in fixed income". Fixed inc...
by galeno
Fri Jul 27, 2018 10:46 am
Forum: Investing - Help with Personal Investments
Topic: Conservative asset management during retirement?
Replies: 15
Views: 1529

Re: Conservative asset management during retirement?

We hold a conservative retirement portfolio. 40% global equities + 60% investment grade bonds and cash.

Wife and I are 61. Term is 34 years. Our SWR is 4.0%.
by galeno
Fri Jul 27, 2018 10:43 am
Forum: Investing - Help with Personal Investments
Topic: Is the 4% rule/ index funds flawed?
Replies: 31
Views: 4413

Re: Is the 4% rule/ index funds flawed?

The 4% rule is a CONSERVATIVE guide post. Lots of people on this board like to think it won't work going forward. Our port is 40% global equities and 60% in USD denominated investment grade bonds and cash. Our term is 35 years. We will receive a state pension at age 65 (in four years). Our SWR is ex...
by galeno
Fri Jul 27, 2018 10:34 am
Forum: Personal Consumer Issues
Topic: Traveling to Cuba - currency exchange
Replies: 27
Views: 1576

Re: Traveling to Cuba - currency exchange

We're not US citizens. We have daily flights to Havana. Most of our family and friends go to Miami. We prefer Cuba.

Non-tourist Cuba is LOTS cheaper and far more enjoyable than tourist Cuba.
by galeno
Thu Jul 26, 2018 6:05 pm
Forum: Personal Consumer Issues
Topic: Traveling to Cuba - currency exchange
Replies: 27
Views: 1576

Re: Traveling to Cuba - currency exchange

I go to Nicaragua, Cuba, and Argentina fairly frequently. I take CASH in USD. One, five, and ten dollar bills are best. I try to pay EVERYTHING with them by approximating the price. The locals in all three countries will accept USD at a FAR better rate vs the banks or exchange houses.
by galeno
Thu Jul 19, 2018 5:37 pm
Forum: Investing - Theory, News & General
Topic: Why Take Risk on Equity Side?
Replies: 78
Views: 5466

Re: Why Take Risk on Equity Side?

I would use one HY bond ETF as a diversifier if we ever decided to go below 40% equities.

E.g. 40% FTSE all world equity ETF would become 30% FTSE all world equity ETF + 10% HY bond ETF.

The perfect retirement portfolio: 30% FTSE all world equity ETF + 10% HY bond ETF + 40% TBM + 15% TIPS = 5% CASH.
by galeno
Wed Jul 18, 2018 11:17 am
Forum: Investing - Theory, News & General
Topic: The joys of investing
Replies: 23
Views: 2871

Re: The joys of investing

I enjoy the back and forth of this board and also Morningstar's boards.
by galeno
Mon Jul 16, 2018 10:52 am
Forum: Personal Finance (Not Investing)
Topic: How to apply safe withdraw rule?
Replies: 5
Views: 761

Re: How to apply safe withdraw rule?

Do not count your home. It generates expenses.

Use the 4% rule. If you want to be conservative subtract your portfolio's ER from the 4%.
by galeno
Mon Jul 16, 2018 10:46 am
Forum: Investing - Theory, News & General
Topic: Any source for: "If markets fall X%, a X/X portfolio will fall X%?
Replies: 10
Views: 844

Re: Any source for: "If markets fall X%, a X/X portfolio will fall X%?

Yes. We expect a bond bounce from the 25% in TIPS and the 33% in Interm US treasuries. The 33% in corporate bonds and the 8% in CASH should stay flat. If the stock market falls by 50% we expect our 40/60 port to fall 15%. Expecting a bond bump in the event of a stock downturn? Maybe, but maybe not. ...
by galeno
Mon Jul 16, 2018 9:57 am
Forum: Investing - Theory, News & General
Topic: Any source for: "If markets fall X%, a X/X portfolio will fall X%?
Replies: 10
Views: 844

Re: Any source for: "If markets fall X%, a X/X portfolio will fall X%?

If the stock market falls by 50% we expect our 40/60 port to fall 15%.
by galeno
Mon Jul 16, 2018 9:52 am
Forum: Personal Finance (Not Investing)
Topic: FireCalc: How big a grain of salt?
Replies: 58
Views: 4696

Re: FireCalc: How big a grain of salt?

Yes. Convert your tax rate into a tax ratio. Add it to your portfolio's ER to get a TER. Does FireCalc take tax implications into account? For example, are the earnings scenarios pre-tax or post-tax? Assuming that the "Spending" calculation is in post-tax dollars, but it really doesn't say (or I mis...
by galeno
Mon Jul 16, 2018 9:44 am
Forum: Investing - Help with Personal Investments
Topic: Thoughts on using an ETF for TIPS investing
Replies: 22
Views: 1946

Re: Thoughts on using an ETF for TIPS investing

We are non-USA domiciles. We use ITPS which is the Ireland domiciled equivalent to iShares TIP. 15% of our 40/60 portfolio is in ONE TIPS ETF. We like it just fine. We use the TIPS ETF to protect 25% of our fixed income allocation from unexpected inflation. That's good to hear. Can I ask which ETF y...
by galeno
Mon Jul 16, 2018 9:39 am
Forum: Investing - Help with Personal Investments
Topic: Thoughts on using an ETF for TIPS investing
Replies: 22
Views: 1946

Re: Thoughts on using an ETF for TIPS investing

No. I'm 55% worried about inflation.
FIREchief wrote:
Mon Jul 16, 2018 1:25 am
galeno wrote:
Fri Jul 13, 2018 7:33 pm
15% of our 40/60 portfolio is in ONE TIPS ETF. We like it just fine.

We use the TIPS ETF to protect 25% of our fixed income allocation from unexpected inflation.
So you are only 25% concerned about inflation?? :confused