Search found 1344 matches

by galeno
Tue Oct 23, 2018 12:17 pm
Forum: Investing - Theory, News & General
Topic: What's Your Fixed Income Strategy?
Replies: 35
Views: 2359

Re: What's Your Fixed Income Strategy?

Retired 60% Fixed Income 40% Equities Fixed Income Allocation: 33% Int Term US Treas + 33% US Corp + 25% TIPS + 9% CASH Philosophy: Avoid currency risk and associated volatility by using only USD denominated USA bonds. Ignore duration risk by holding for more than the duration. Protect a bit against...
by galeno
Fri Oct 19, 2018 12:11 pm
Forum: Investing - Theory, News & General
Topic: Tilting One More Step Beyond USA vs non-USA
Replies: 14
Views: 1192

Re: Tilting One More Step Beyond USA vs non-USA

I do look at BRK from the bottom up. I tend to minimize the insurance aspect risk. I live in a country where EVERYTHING is more risky than BRK ever could be. The point I'm trying to make is once you take that first tilt why stop? You can always justify more. I'm extremely tempted to tilt pure EM for...
by galeno
Thu Oct 18, 2018 3:18 pm
Forum: Investing - Help with Personal Investments
Topic: More safe: Treasury ETF or Bank Account
Replies: 6
Views: 871

Re: More safe: Treasury ETF or Bank Account

I would THINK a FDIC USA bank account in USD.
by galeno
Thu Oct 18, 2018 2:28 pm
Forum: Investing - Theory, News & General
Topic: Tilting One More Step Beyond USA vs non-USA
Replies: 14
Views: 1192

Re: Tilting One More Step Beyond USA vs non-USA

I disagree with Jack Bogle. I think the benefit of non-USA equity diversification outweighs the increased costs for a US person. When the Bogleheads say "buy the entire stack" that means the entire stack. Period. For USA-NRAs non-USA equity diversification lowers portfolio costs and the stock portfo...
by galeno
Thu Oct 18, 2018 11:17 am
Forum: Investing - Theory, News & General
Topic: Tilting One More Step Beyond USA vs non-USA
Replies: 14
Views: 1192

Re: Tilting One More Step Beyond USA vs non-USA

IIRC if a non-USA domiciled stock wants to list on a major US exchange it needs to be put into "bag" called an ADR (American Depository Receipt). Try to buy "VWRD" on a US exchange. You can't. It's not available. But it is on LSE and many more non-USA stock exchanges. Thus, non-USA domicled. Regardi...
by galeno
Thu Oct 18, 2018 10:53 am
Forum: Investing - Theory, News & General
Topic: Tilting One More Step Beyond USA vs non-USA
Replies: 14
Views: 1192

Tilting One More Step Beyond USA vs non-USA

USA domiciled means bought from a USA stock exchange. Non-USA domiciled means bought on a non-USA stock exchange. I've read many posts regarding whether the equity allocation should be 100% USA domiciled vs diversified with some percentage of non-USA equities. My conclusion is if you are a USA perso...
by galeno
Wed Oct 17, 2018 4:03 pm
Forum: Investing - Theory, News & General
Topic: ETF for non resident alien
Replies: 5
Views: 304

Re: ETF for non resident alien

Does your mother's (stock) broker allow purchases on any non-USA exchanges?
by galeno
Wed Oct 17, 2018 2:12 pm
Forum: Personal Finance (Not Investing)
Topic: Kidnapping and Ransom in Bitcoins
Replies: 4
Views: 1045

Kidnapping and Ransom in Bitcoins

The husband of a niece's best friend got kidnapped. All I know is that she paid the ransom in Bitcoins. But the kidnappers have not returned the husband.

Apparently this is happening in other countries too.

How likely is it that the kidnappers can be caught?
by galeno
Wed Oct 17, 2018 1:51 pm
Forum: Investing - Theory, News & General
Topic: Dividend withholding makes actual ER of Total International 0.32%?
Replies: 7
Views: 1045

Re: Dividend withholding makes actual ER of Total International 0.32%?

USA persons pay dividend taxes on non-USA equities. Last time I looked it was 7.5% for developed non-USA and 10.6% for EM equities.
by galeno
Wed Oct 17, 2018 1:09 pm
Forum: Investing - Help with Personal Investments
Topic: Investing During Retirement
Replies: 20
Views: 2685

Re: Investing During Retirement

If you are willing to hold BND for its average duration then the interest rate changes are immaterial. Sure the NAV goes down. But the yield goes up. May I respectfully disagree (gasp!) with many of my fellow Bogleheads on selecting a bond fund or individual bonds at this particular juncture in the ...
by galeno
Wed Oct 17, 2018 12:49 pm
Forum: Investing - Help with Personal Investments
Topic: Need brokerage advice, US person living abroad
Replies: 8
Views: 707

Re: Need brokerage advice, US person living abroad

We (USA-NRAs) were with Schwab International for 18 years (1995-2014). No USA address. We used USA domiciled ETFs from Schwab for equities. We never attempted to buy any REGULAR mutual funds. For our FI allocation we used USA FDIC insured CD from US banks (no 30% USA-NRA taxes on interest income). W...
by galeno
Tue Oct 16, 2018 8:06 pm
Forum: Investing - Help with Personal Investments
Topic: Need brokerage advice, US person living abroad
Replies: 8
Views: 707

Re: Need brokerage advice, US person living abroad

I'm under the impression that Schwab International is for USA-NRAs.

I believe a US person would use regular USA Schwab. No?

We use to use Schwab International. Now we use Interactive Brokers.
by galeno
Tue Oct 16, 2018 8:01 pm
Forum: Investing - Help with Personal Investments
Topic: Hoping for clarification on bond fund questions
Replies: 6
Views: 626

Re: Hoping for clarification on bond fund questions

1. No

2. Yes

3. Lower credit (default) risk and better ballast (goes up when your stocks go down).
by galeno
Tue Oct 16, 2018 7:15 pm
Forum: Investing - Theory, News & General
Topic: "Why Jack Bogle Doesn't Own Non-U.S. Stocks"
Replies: 203
Views: 10790

Re: "Why Jack Bogle Doesn't Own Non-U.S. Stocks"

Being born and raised in the USA is not as strong an issue of US-centrism vs AGE. And WW2. My father and uncles were born and raised in Costa Rica. All of them (that were not communists) considered the USA as THE WORLD and everything made in or done by the USA as THE BEST. Relatives that were commun...
by galeno
Tue Oct 16, 2018 6:30 pm
Forum: Investing - Help with Personal Investments
Topic: On investing [non-US resident] Dad's money
Replies: 11
Views: 821

Re: On investing [non-US resident] Dad's money

No thanks. I've learned more than I'd ever want to know about US laws. By participating on US-based financial boards for 20+ years. Let me simplify my question. A USA person wants to pay me (non-USA person in country w/o US tax treaty) $1000 for services rendered. Would not the USA person send me $7...
by galeno
Tue Oct 16, 2018 3:04 pm
Forum: Investing - Theory, News & General
Topic: "Why Jack Bogle Doesn't Own Non-U.S. Stocks"
Replies: 203
Views: 10790

Re: "Why Jack Bogle Doesn't Own Non-U.S. Stocks"

For a lot of older people (WW2 generation) the USA is the world. My father (non-USA) believed the same.

For us it's 20-25% of the world in terms of GDP and 50-60% of the world in terms of market cap.
by galeno
Tue Oct 16, 2018 2:44 pm
Forum: Investing - Theory, News & General
Topic: "Why Jack Bogle Doesn't Own Non-U.S. Stocks"
Replies: 203
Views: 10790

Re: "Why Jack Bogle Doesn't Own Non-U.S. Stocks"

My father, if alive today, would be 104. HIS stock portfolio consisted of 10 dividend yielding USA domiciled blue chip stocks. There really was nothing else that was reasonable or accessible in "the old days". Heck. We didn't get access to cheaper Ireland domiciled ETFs on the LSE until 4 years ago....
by galeno
Tue Oct 16, 2018 2:32 pm
Forum: Investing - Theory, News & General
Topic: "Why Jack Bogle Doesn't Own Non-U.S. Stocks"
Replies: 203
Views: 10790

Re: "Why Jack Bogle Doesn't Own Non-U.S. Stocks"

As a non-US domicile I DISAGREE with Jack. For us, USA domicled stocks are more expensive in two ways. Higher dividend taxes. 15% for USA domiciled. 7.5% for non-USA developed. 10.6% for EM. Higher valuations as per prospective P/E ratios. 17.9 for USA domiciled. 13.5 for non-USA developed. 12.1 for...
by galeno
Tue Oct 16, 2018 2:21 pm
Forum: Investing - Help with Personal Investments
Topic: On investing [non-US resident] Dad's money
Replies: 11
Views: 821

Re: On investing [non-US resident] Dad's money

Let me simplify my question.

A USA person wants to pay me (non-USA person in country w/o US tax treaty) $1000 for services rendered.

Would not the USA person send me $700 and then send the US tax authorities $300 to be completely legal?
by galeno
Tue Oct 16, 2018 1:06 pm
Forum: Investing - Help with Personal Investments
Topic: On investing [non-US resident] Dad's money
Replies: 11
Views: 821

Re: On investing [non-US resident] Dad's money

If USA domicled money gets sent to a non-USA domicile does not 30% USA-NRA have to be withheld and given to the USA tax authorities?
by galeno
Tue Oct 16, 2018 12:41 pm
Forum: Investing - Help with Personal Investments
Topic: Productivity of the 60/40 Split in Current Times
Replies: 6
Views: 1320

Re: Productivity of the 60/40 Split in Current Times

Assume retirement at 60.

I like 80/20 until 50. 60/40 until 60. 40/60 thereafter.

30/70 is your best risk-adjusted return.
by galeno
Mon Oct 15, 2018 2:18 pm
Forum: Investing - Help with Personal Investments
Topic: Exchanging VT total world stock for VTI & VXUS
Replies: 14
Views: 810

Re: Exchanging VT total world stock for VTI & VXUS

I think you're making a mistake.

When you hold VT you never have to worry if you have the correct USA/non-USA/EM ratio. You always do. Big advantage.

You're asking if you should trade a big advantage for the possibility of some small advantages. I don't think so.
by galeno
Fri Oct 12, 2018 1:31 pm
Forum: Investing - Theory, News & General
Topic: Psychological vs. Real Risk
Replies: 21
Views: 1522

Re: Psychological vs. Real Risk

I prefer #3 but "lumpy". Assume retirement at age 60.

Start 80/20 until age 50. 60/40 until age 60. 40/60 after that.
by galeno
Fri Oct 12, 2018 1:24 pm
Forum: Investing - Theory, News & General
Topic: Bond Market Factors
Replies: 11
Views: 914

Re: Bond Market Factors

KISS.

A Boglehead takes risk and reward on the equity side and dampens both on the bond side according to risk tolerance / acceptance.

The best bonds to do this are intermediate term INVESTMENT GRADE bonds. US treasuries or a total bond market (TBM) fund or ETF will do the job.
by galeno
Fri Oct 12, 2018 12:53 pm
Forum: Investing - Theory, News & General
Topic: Who worries about a bear market in stocks?
Replies: 71
Views: 5705

Re: Who worries about a bear market in stocks?

Sooner or later it will happen. As retirees we hold a conservative "age in FI" portfolio. We've been thru 3 nasty bears so far. Looking forward to a fourth.
by galeno
Thu Oct 11, 2018 9:22 pm
Forum: Investing - Help with Personal Investments
Topic: Calculating amount needed for SS bridge
Replies: 50
Views: 2940

Re: Calculating amount needed for SS bridge

Use www.firecalc.com to find your 95% SWR (safe withdrawal rare) for your portfolio without counting SS. Then do it again counting social security. Use https://opensocialsecurity.com/ to find the net present value (NPV) of your optimal SS payments. Add that amount to your retirement portfolio and us...
by galeno
Thu Oct 11, 2018 3:21 pm
Forum: Investing - Help with Personal Investments
Topic: Foreign bonds
Replies: 14
Views: 746

Re: Foreign bonds

As long as the USD continues as the MAIN reserve currency the SCARED money will always run to USD and US treasury bills, notes, and bonds.
by galeno
Thu Oct 11, 2018 11:48 am
Forum: Investing - Help with Personal Investments
Topic: Calculating amount needed for SS bridge
Replies: 50
Views: 2940

Re: Calculating amount needed for SS bridge

We also over withdraw as a bridge to our pensions. W/o pension firecalc says our 95%SWR = 3.7%. With pensions it's 4.6%. Since we over withdraw by 0.9% over the next 10 years we maintain a conservative asset allocation. This is to mitigate a bad sequence of returns during this bridge period. We pull...
by galeno
Wed Oct 10, 2018 5:18 pm
Forum: Investing - Help with Personal Investments
Topic: Foreign bonds
Replies: 14
Views: 746

Re: Foreign bonds

USD bonds have higher yields, lower average durations, better credit quality. No currency risk (or hedging costs) compared to non-USD bonds from developed countries other than the USA.
by galeno
Wed Oct 10, 2018 5:14 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio advise (30 something) from NL
Replies: 48
Views: 1586

Re: Bond ETF from Europe (the Netherlands)?

Where I go on non-USA Vanguard (Americas: Caribbean and Offshore) it's VDTY for USD and VETY for Euros.
by galeno
Wed Oct 10, 2018 2:57 pm
Forum: Investing - Theory, News & General
Topic: Argument for taking social security before 70. Comments?
Replies: 134
Views: 10199

Re: Argument for taking social security before 70. Comments?

95% SWR = 4.46% taking SS at age 62. 95% SWR = 4.57% taking SS at age 66.5. 95% SWR = 4.56% taking SS at age 70. I believe the explanation can be had by playing with "age at death" using https://opensocialsecurity.com/. Check the "advanced" box. For me it advises me taking SS at age 70 if I die at a...
by galeno
Wed Oct 10, 2018 2:22 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio advise (30 something) from NL
Replies: 48
Views: 1586

Re: Bond ETF from Europe (the Netherlands)?

Sorry for the typo. It's VDTY. Not VTDY. We're NOT Eurozone investors. We're USD investors. When I go on the Vanguard non-USA site. First I click on "Americas" then click on "Caribbean and Offshore". Then I click on "ETFs". On the non-USA iShares site I click on "United Kingdom" I never click anywhe...
by galeno
Wed Oct 10, 2018 2:10 pm
Forum: Investing - Theory, News & General
Topic: 5 ways target-date funds let investors down
Replies: 38
Views: 3443

Re: 5 ways target-date funds let investors down

I did read the article. Disadvantages 1-5 were all about slice and dice and complicating what is supposed to be a SIMPLE one-stop-shop.

Our retirement port uses Vanguard Target Date 2015 as a model. All I do is add "seasoning". I love it.
by galeno
Wed Oct 10, 2018 2:02 pm
Forum: Investing - Help with Personal Investments
Topic: Emotions when switching from being long time stock picker over to a more Boglehead approach
Replies: 12
Views: 1063

Re: Emotions when switching from being long time stock picker over to a more Boglehead approach

From 1995-2005 (11 years) we used an 80/20 port. The 80% stock allocation started out each year with 16 individual stocks. Sometimes it would go to 12 stocks. It was a lot of stress. I paid constant attention to our stocks. In 2006 we converted to Bogleheadism. Started at 60/40. As we are retired we...
by galeno
Wed Oct 10, 2018 1:46 pm
Forum: Investing - Help with Personal Investments
Topic: Emotions when switching from being long time stock picker over to a more Boglehead approach
Replies: 12
Views: 1063

Re: Emotions when switching from being long time stock picker over to a more Boglehead approach

Go for the 2 fund portfolio: X% VT (world stock) + Y% VCIT (interm US treasuries) if you don't want to worry about how much USA vs non-USA domicled.
by galeno
Wed Oct 10, 2018 1:42 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio advise (30 something) from NL
Replies: 48
Views: 1586

Re: Portfolio advise (30 something) from NL

It was probably me who advised 50% VDTY + 50% VDCP. I count in USD. A TBM ETF in USD is SUAG.

If you count in Euros then you want 50% VETY + 50% VECP. A TBM ETF in Euros is IUAG.
by galeno
Tue Oct 09, 2018 7:36 pm
Forum: Investing - Theory, News & General
Topic: Does the Boglehead ever see a unique opportunity for investment?
Replies: 17
Views: 1760

Re: Does the Boglehead ever see a unique opportunity for investment?

A Boglehead friend of mine decided to put 5% of his port into BAC when it's stock price went below $1/share at the bottom of the 2008 financial crisis. I almost did too.

Price of BAC today = 29.98 a "thirty bagger".
by galeno
Tue Oct 09, 2018 7:23 pm
Forum: Investing - Help with Personal Investments
Topic: Calculating amount needed for SS bridge
Replies: 50
Views: 2940

Re: Calculating amount needed for SS bridge

It's cheaper and simpler for the OP to annuitize those 15 years by exchanging part of his portfolio a 20 yr TIP ETF. Or by using a 15 year ladder of individual TIPS. Unless the annuity is from Vanguard I wouldn't trust it. Too many legal ways for the insurance company to "cheat". My way is to use ww...
by galeno
Tue Oct 09, 2018 7:16 pm
Forum: Investing - Theory, News & General
Topic: The benefits of international diversification - NOT: Hulbert
Replies: 80
Views: 5227

Re: The benefits of international diversification - NOT: Hulbert

For me "buy the entire haystack" does not mean ONLY the USA haystack.

If you hold only an USA equity index you're slicing and dicing. If you hold only the NASDAQ index same thing.

Are they smart bets? Only you can answer that.
by galeno
Tue Oct 09, 2018 6:57 pm
Forum: Investing - Help with Personal Investments
Topic: Calculating amount needed for SS bridge
Replies: 50
Views: 2940

Re: Calculating amount needed for SS bridge

We have a bridge of 10 years until my wife and I receive our pensions. We compensate by counting the NPV of our pensions as fixed income (annuity) in our retirement portfolio and OVERWITHDRAWING for 10 years. Our port w/o pension: $40/$60/$0 = $100. 95%SWR for 30 years = 3.9% Our port w pension: $40...
by galeno
Tue Oct 09, 2018 6:30 pm
Forum: Investing - Theory, News & General
Topic: The benefits of international diversification - NOT: Hulbert
Replies: 80
Views: 5227

Re: The benefits of international diversification - NOT: Hulbert

I did not read the article.

Hulbert is probably talking about diversification OUTSIDE a main asset class. I.e. diversify stocks with bonds.

International equity diversification is diversification INSIDE the same asset class. Equities.
by galeno
Tue Oct 09, 2018 6:24 pm
Forum: Investing - Help with Personal Investments
Topic: Calculating amount needed for SS bridge
Replies: 50
Views: 2940

Re: Calculating amount needed for SS bridge

Use the SEC Yield of a 20 yr TIPS as your discount rate. Today it's 1.11%. Here's an article that explains why: https://obliviousinvestor.com/claiming-social-security-early-to-invest-it-what-rate-of-return-discount-rate-should-we-assume/ Are you going to exchange a portion of your portfolio for a TI...
by galeno
Tue Oct 09, 2018 5:56 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio advise (30 something) from NL
Replies: 48
Views: 1586

Re: Bond ETF from Europe (the Netherlands)?

I was stretching for the "no MBS" excuse. You're right. And I really don't mind them. But pure US treasuries and pure US corps LOOKS cleaner. It's simpler. If Ireland Vanguard had a TBM ETF like Ireland Ishares I'd go for it. I love simplicity. Regarding AGGH (my region's Total World Aggregate Bond ...
by galeno
Tue Oct 09, 2018 1:52 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio advise (30 something) from NL
Replies: 48
Views: 1586

Re: Bond ETF from Europe (the Netherlands)?

I sliced our TBM ETF for two bond ETFs.

100% SUAG (ER = 0.25%) for 50% VTDY + 50% VDCP (ER = 0.12%)

3 Benefits: Lower ER. Eliminated MBS. I prefer Vanguard vs iShares.
by galeno
Fri Oct 05, 2018 6:50 pm
Forum: Investing - Theory, News & General
Topic: Allan Roth doesn't like single premium annuities
Replies: 198
Views: 10483

Re: Alan Roth doesn't like single premium annuities

Is it not possible to buy an inflation-indexed SPIA (income annuity)? Of course it would cost more. Possibly lots more?
by galeno
Fri Oct 05, 2018 6:25 pm
Forum: Investing - Theory, News & General
Topic: 7 Investing Truths That Aren't
Replies: 53
Views: 5901

Re: 7 Investing Truths That Aren't

I agree 100%.
by galeno
Fri Oct 05, 2018 2:39 pm
Forum: Investing - Help with Personal Investments
Topic: Case for buying individual Stocks as 10% of portfolio
Replies: 43
Views: 3210

Re: Case for buying individual Stocks as 10% of portfolio

I get tempted to allocate 10% of port to individual stock picks. Then I talk myself out of it. I don't need or want to pay attention to the financial markets. I've developed a taste for conservatism in my old age. We cruise along retired with a simple 40/60 port. I've been accurately tracking our po...
by galeno
Fri Oct 05, 2018 9:54 am
Forum: Forum Issues and Administration
Topic: 10 years - thank you forum admins and posters
Replies: 4
Views: 638

Re: 10 years - thank you forum admins and posters

I agree. I have learned so much from this board. Over 10 years too. Thank you to all.
by galeno
Fri Oct 05, 2018 9:51 am
Forum: Investing - Help with Personal Investments
Topic: Best way to Invest 10 Million Portfolio at 40 without income
Replies: 56
Views: 8704

Re: Best way to Invest 10 Million Portfolio at 40 without income

IMHO you are the perfect candidate for "age in bonds". 60 % VT + 40% BND. KISS.