Search found 1544 matches

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: 31222

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: 31222

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: 31222

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: 31222

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: 31222

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: 326

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: 7293

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: 787

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: 2085

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: 2106

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: 1463

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: 4796

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: 4796

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: 5182

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: 5341

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: 1873

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: 4320

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: 5341

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: 5341

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: 1873

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: 5341

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: 1873

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: 1873

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: 1415

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: 3927

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: 628

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: 979

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: 4256

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: 2544

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: 11335

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: 1768

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: 1228

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: 2469

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: 12582

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: 1519

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: 4596

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: 4596

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: 415

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: 415

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: 4596

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: 4596

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: 3301

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: 4596

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: 1021

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: 2013

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: 482

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: 3301

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.