Search found 52 matches

by euroman
Tue Mar 24, 2020 11:42 am
Forum: Investing - Theory, News & General
Topic: Macroeconomics and the current market questions
Replies: 28
Views: 1560

Re: Macroeconomics and the current market questions

I'm certainly not arguing in favor of the Fed buying equities, I've just seen the discussion come up quite a bit recently, and I'm curious if it's within the realm of possibility. Here's a more recent article from FX Street from last week: https://www.fxstreet.com/analysis/markets-outlook-monetary-...
by euroman
Wed Mar 11, 2020 3:29 pm
Forum: Non-US Investing
Topic: Distributing vs Accumulating ETFs in Decumulation phase
Replies: 4
Views: 344

Re: Distributing vs Accumulating ETFs in Decumulation phase

Schlabba wrote: Wed Mar 11, 2020 1:54 pm
The bottom line is that after re-balancing all should be equal again.
yes, I now see this. Thank you.
by euroman
Wed Mar 11, 2020 1:00 pm
Forum: Non-US Investing
Topic: Distributing vs Accumulating ETFs in Decumulation phase
Replies: 4
Views: 344

Re: Distributing vs Accumulating ETFs in Decumulation phase

ok, maybe it's my lack of understanding. I tried to make a simple example: Let's assume a portfolio with value 50 savings and value 50 stock ETF Let's assume a 50% market crash (halving ETF value to 25) Let's assume dividend value 2 At the end of the year I want to take out 4 during rebalancing. Sce...
by euroman
Wed Mar 11, 2020 11:58 am
Forum: Non-US Investing
Topic: Is being in a world index fund true diversification?
Replies: 79
Views: 5067

Re: Is being in a world index fund true diversification?

Another example is currency. If a person was early retiring and decided to not own a home, and therefore needed more equities to last for many more years of liabilities, a person with a country is not the US with an all global portfolio they would face much more currency risk and they may want to o...
by euroman
Wed Mar 11, 2020 11:11 am
Forum: Non-US Investing
Topic: Distributing vs Accumulating ETFs in Decumulation phase
Replies: 4
Views: 344

Distributing vs Accumulating ETFs in Decumulation phase

Vanguard in the EU sells ETFs in both Distributing and Accumulating versions. I read this page that if understood correctly says it does not make any difference which to use in decumulation phase. https://www.bogleheads.org/wiki/Comparison_of_accumulating_ETFs_and_distributing_ETFs however, I doubt ...
by euroman
Mon Mar 07, 2016 12:15 pm
Forum: Personal Consumer Issues
Topic: Cities good for living abroad?
Replies: 113
Views: 18881

Re: Cities good for living abroad?

An idea: since you want to skip the European high season, set up base camp at a holiday destination, for example the Spanish island of Mallorca. Cheaper long term rentals should be relatively easy to find off season. Additional benefit: sun and moderate temperatures during winter season https://en.w...
by euroman
Mon Mar 07, 2016 11:38 am
Forum: Personal Consumer Issues
Topic: Cities good for living abroad?
Replies: 113
Views: 18881

Re: Cities good for living abroad?

Food, architecture, culture, music, wine ... Much of our enjoyment while traveling comes from just walking or wandering around and experiencing what happens. L. Every European country has many cities that fit these requirements. You can compare cost of living, crime, healthcare etc on http://www.nu...
by euroman
Wed Feb 17, 2016 9:19 am
Forum: Non-US Investing
Topic: why large difference yield US$ vs euro corporate bonds
Replies: 8
Views: 1112

Re: why large difference yield US$ vs euro corporate bonds

10 year sovereign bond yields from Saturday Jan 13, 2016 Financial Times: ... Considering spreads for corporate bonds over sovereigns and yield curves... I'd expect US corporates to be higher. Paul that explains it, thanks. Though the spread between risk free 10y Eurobonds (eg from Germany) and 10y...
by euroman
Wed Feb 17, 2016 6:17 am
Forum: Non-US Investing
Topic: why large difference yield US$ vs euro corporate bonds
Replies: 8
Views: 1112

why large difference yield US$ vs euro corporate bonds

I noticed a large difference in yield between US$ and euro corporate investment grade bonds: iShares Core Euro Corporate Bond UCITS ETF YTM 1.47% http://www.ishares.com/uk/individual/en/products/251726/ishares-euro-corporate-bond-ucits-etf (edit: correct link) iShares $ Corporate Bond UCITS ETF YTM ...
by euroman
Fri Jan 15, 2016 2:58 pm
Forum: Investing - Theory, News & General
Topic: why do investors prefer cash dividends
Replies: 372
Views: 42834

Re: why do investors prefer cash dividends

The companies could have used the cash to either buyback shares (driving prices up) or used the cash to grow earnings more in future. Paying dividends LOWERS the price of stocks by the amount of the dividend. It's really that simple. Larry Is it really that simple? You seem to imply a a high correl...
by euroman
Tue Jun 02, 2015 2:31 pm
Forum: Non-US Investing
Topic: Becoming Citizen of Portugal and getting Portuguese Medical Benefits
Replies: 4
Views: 1908

Re: Becoming Citizen of Portugal and getting Portuguese Medical Benefits

I would also investigate the option of becoming Non Habitual Resident in Portugal, as it offers potential tax advantages compared to taking up Portuguese nationality.
by euroman
Wed May 27, 2015 11:26 am
Forum: Investing - Theory, News & General
Topic: FTSE Emerging Markets Index adds China A shares
Replies: 17
Views: 5108

Re: FTSE Emerging Markets Index adds China A shares

But it comes down to judgments, and for example only pretty recently FTSE moved offshore incorporated (ie not HK or Mainland but Cayman's etc) Mainland controlled companies from 'HK' to 'China' category. This guide may help. http://www.etf.com/docs/022013_IU_GuideToChineseShare.pdf . Thank you for ...
by euroman
Wed May 27, 2015 10:59 am
Forum: Personal Consumer Issues
Topic: Tips for extended European Trip
Replies: 23
Views: 3526

Re: Tips for extended European Trip

open wifi networks are not safe, I would recommend to use Mobile data if you want secure internet (you can for example setup a local mobile wifi hotspot with your mobile, and than connect your tablet or notebook to your mobile). You can buy prepaid (data) sim cards from local mobile networks on all ...
by euroman
Wed May 27, 2015 10:03 am
Forum: Investing - Theory, News & General
Topic: FTSE Emerging Markets Index adds China A shares
Replies: 17
Views: 5108

Re: FTSE Emerging Markets Index adds China A shares

I am confused what exactly these A shares are. Are all shares listed at the Shanghai exchange A shares (therefore only for foreigners) or do they have two different kinds of shares listed at Shanghai exchange? (one for foreigners and one for residents)? I am also confused what stock exchanges are in...
by euroman
Tue May 26, 2015 1:40 pm
Forum: Investing - Theory, News & General
Topic: another look at dividend paying stocks and valuations
Replies: 64
Views: 8963

Re: another look at dividend paying stocks and valuations

some analysts seem to endorse dividend stocks in current high valuation environment: Mr. Kostin, Goldman Sachs Group Inc.’s chief U.S. stock strategist, last week forecast no price gain at all for the S&P 500 over the next 12 months, with the index’s only return coming from dividends. For the co...
by euroman
Sun May 24, 2015 8:40 am
Forum: Investing - Theory, News & General
Topic: another look at dividend paying stocks and valuations
Replies: 64
Views: 8963

Re: another look at dividend paying stocks and valuations

The reason that Standard Oil (ExxonMobil) beat IBM was that the price investors paid for IBM stock was just too high. IBM had an average P/E of 26.76 during that period and Standard Oil had an average P/E of 12.97. IBM had an average dividend yield of 2.18% versus 5.19% for Standard Oil. Is this th...
by euroman
Mon May 18, 2015 2:15 pm
Forum: Non-US Investing
Topic: Become Portugal tax resident ... pay no tax on US pension income for 10 years?
Replies: 25
Views: 12221

Re: Become Portugal tax resident ... pay no tax on US pension income for 10 years?

Is anyone familiar with Portugal's non-habitual resident (NHR) scheme, which gives big tax breaks to tax residents for 10 years? As far as I can tell, withdrawals from IRAs, 401(k)s, etc would be completely tax-free in both countries. Under the longstanding tax agreement between USA and Portugal, p...
by euroman
Mon May 18, 2015 2:03 pm
Forum: Non-US Investing
Topic: Become Portugal tax resident ... pay no tax on US pension income for 10 years?
Replies: 25
Views: 12221

Re: Become Portugal tax resident ... pay no tax on US pension income for 10 years?

111 wrote:Interesting. I'm living in Portugal right now and, though I'm moving this summer, it is definitely on the list of places I will consider retiring to in like 20years.
If you are or have been resident in Portugal, you are not allowed anymore to use the NHR scheme.
by euroman
Mon May 18, 2015 1:47 pm
Forum: Non-US Investing
Topic: Become Portugal tax resident ... pay no tax on US pension income for 10 years?
Replies: 25
Views: 12221

Re: Become Portugal tax resident ... pay no tax on US pension income for 10 years?

I did look into into it, as I am considering to take advantage of the NHR scheme myself. My understanding of the NHR scheme is that it works as follows (I write this from an EU perspective): all income categories that MAY be taxed by the source country according to the tax treaty Portugal has with t...
by euroman
Thu Apr 23, 2015 3:38 am
Forum: Investing - Theory, News & General
Topic: What rate of return do you use when planning for retirement?
Replies: 178
Views: 35898

Re: What rate of return do you use when planning for retirem

If you do not re-invest dividends, but take them as income, how much lower should the estimated average stock return to use be (assuming all published average return figures you find on the web are based upon re-investing dividends)?
by euroman
Wed Apr 22, 2015 4:37 am
Forum: Investing - Theory, News & General
Topic: does this withdrawal method make any sense?
Replies: 10
Views: 1865

Re: does this withdrawal method make any sense?

Thanks again for the replies. I only use low cost ETFs. @furwut: thank you, read the first one, it confirms my thinking to remain flexible with withdrawal rate. One thing I was not sure about with making my simple spreadsheet model: if you look at quoted long term returns for the stockmarket, they a...
by euroman
Tue Apr 21, 2015 6:40 am
Forum: Investing - Theory, News & General
Topic: does this withdrawal method make any sense?
Replies: 10
Views: 1865

Re: does this withdrawal method make any sense?

Thank you for the replies! @lack_ey You are correct that the model obviously disregards volatility, but I believe it can serve as a guidance (more below). @heyyou: I think you mean this article: http://www.targetpercentage.com/wp-content/uploads/2013/06/Zolt-JFP-Article-Jan-2013-Higher-Safe-WR1.pdf ...
by euroman
Mon Apr 20, 2015 10:06 am
Forum: Investing - Theory, News & General
Topic: does this withdrawal method make any sense?
Replies: 10
Views: 1865

does this withdrawal method make any sense?

I looked at the different withdrawel methods, but did not really like any of them, I therefore made my own withdrawal method, but I would appreciate feedback if it makes any sense: I started with making a simple spreadsheet model for a 25-30 year period, with as (in my view conservative) input varia...
by euroman
Tue Jan 06, 2015 3:18 pm
Forum: Non-US Investing
Topic: Investing from abroad (London, UK)
Replies: 7
Views: 1452

Re: Investing from abroad (London, UK)

If you are resident in the UK, go here for Vanguard ETFs (select UK, select ETFs from pull down menu). https://global.vanguard.com/portal/site/home do not buy Vanguard funds registered in the USA instead of EU registered ETFs unless you are sure about tax consequences for you. I recommend you find y...
by euroman
Tue Dec 30, 2014 9:13 am
Forum: Non-US Investing
Topic: NON-US Investor: Ireland ETFs to minimize US withholding tax
Replies: 51
Views: 16993

Re: NON-US Investor: Ireland ETFs to minimize US withholding

hi euroman, you are welcome. my strategy for small caps is a tilt and to not own the entire world of small caps but try to focus on value small caps. you probably cant go wrong with either choice.. happy new year! wishing you +10% annualized in yr-2015 :) Thank you, and best (investing) wishes for ...
by euroman
Tue Dec 30, 2014 9:10 am
Forum: Non-US Investing
Topic: NON-US Investor: Ireland ETFs to minimize US withholding tax
Replies: 51
Views: 16993

Re: NON-US Investor: Ireland ETFs to minimize US withholding

3.2 Does the 'Total return' under the graph section of this fund include TER? Or is that a tracking error and the TER is subtracted from the distribution? http://www.ishares.com/uk/individual/en/products/251565/ishares-euro-corporate-bond-large-cap-ucits-etf?siteEntryPassthrough=true Can somebody p...
by euroman
Sat Dec 27, 2014 9:29 am
Forum: Non-US Investing
Topic: NON-US Investor: Ireland ETFs to minimize US withholding tax
Replies: 51
Views: 16993

Re: NON-US Investor: Ireland ETFs to minimize US withholding

hi euroman, an interesting analysis on S&P 600 vs russell 2000. http://www.ifa.com/articles/Index_SpotlightSmall-Cap_Face-Off_Russell_2000_vs_SP_600 personally, i would go for S&P 600. Thank you for the article, YellowJoe. I looked at the SP600 last week, but there are two issues for me wit...
by euroman
Wed Dec 24, 2014 9:22 am
Forum: Non-US Investing
Topic: NON-US Investor: Ireland ETFs to minimize US withholding tax
Replies: 51
Views: 16993

Re: NON-US Investor: Ireland ETFs to minimize US withholding

I believe it is this way with distributing ETF's: US domiciled: Full dividend is paid out to the ETF, then what you receive in dividend with your broker depends on tax treaties and such. So for me as a Dutch investor that would be 15% in taxes which I can reclaim with my income taxes each year, so ...
by euroman
Wed Dec 24, 2014 8:50 am
Forum: Non-US Investing
Topic: NON-US Investor: Ireland ETFs to minimize US withholding tax
Replies: 51
Views: 16993

Re: NON-US Investor: Ireland ETFs to minimize US withholding

Also pt32, wherever you are in Europe not paying capital gains taxes (Liechtenstein? Monaco? Andorra?), I would double-check that you actually can invest in Vanguard ETFs as a private individual. I am in Germany and I cannot invest in Vanguard via my German broker who informed me that the Vanguard ...
by euroman
Tue Dec 23, 2014 9:00 am
Forum: Non-US Investing
Topic: NON-US Investor: Ireland ETFs to minimize US withholding tax
Replies: 51
Views: 16993

Re: NON-US Investor: Ireland ETFs to minimize US withholding

For small cap, i would stay away from International Small cap. International small cap has too much risk to make it worthwhile. Focus only on US Small cap. I would also not go with Russell 2000, i would focus more on better quality small caps. I recommend: ishares S&P 600 small cap UCITS ETF. T...
by euroman
Mon Dec 22, 2014 5:00 pm
Forum: Non-US Investing
Topic: NON-US Investor: Ireland ETFs to minimize US withholding tax
Replies: 51
Views: 16993

Re: NON-US Investor: Ireland ETFs to minimize US withholding

Regarding question 1: I choose to invest in those 3 Vanguard ETFs (+ the Developed Asia ex Japan to broaden exposure) instead of the All world fund as this gives me additional flexibility with selling for gains compared to a single fund, and the All World fund is skewed too much towards USA with a 5...
by euroman
Tue Dec 16, 2014 9:38 am
Forum: Non-US Investing
Topic: Is total return investing right for me? [European investor]
Replies: 5
Views: 880

Re: Is total return investing right for me? [European invest

Thanks for the replies. Tax is not so much an issue, as I use ETFs domiciled in Irleand, dividends will be taxed at source. US dividends will for example be taxed 15% due to tax treaty, and no further dividend tax in my country. I will read the vanguard report, thanks. Regarding the supposed risks o...
by euroman
Mon Dec 15, 2014 3:23 pm
Forum: Non-US Investing
Topic: Is total return investing right for me? [European investor]
Replies: 5
Views: 880

Is total return investing right for me? [European investor]

I am a European investor, moving my retirement money lump sum into the market this year, spread globally over ETFs, 50% shares, 50% fixed income. Starting next year, it should provide me with a reasonable income using the 4% rule, but with limited downside capacity. I know the conventional opinion o...
by euroman
Thu Apr 10, 2014 6:18 am
Forum: Personal Investments
Topic: Vanguard All world ETF or Vanguard region ETFs?
Replies: 17
Views: 2187

Re: Vanguard All world ETF or Vanguard region ETFs?

I did run some numbers for GDP. Based upon size of economy, instead of market cap, investment split over the 5 mentioned regional Vanguard ETFs should be: Developed Europe 27% USA (SP500) 26% Developed Asia 5% Emerging markets 34% (because of size Chinese economy) Japan 8% I think these 5 ETFs cover...
by euroman
Wed Apr 09, 2014 11:15 am
Forum: Personal Investments
Topic: Vanguard All world ETF or Vanguard region ETFs?
Replies: 17
Views: 2187

Re: Vanguard All world ETF or Vanguard region ETFs?

thanks to all for the input, very helpful for my thought process If, and as I said, only if , you have clear reasons for deviating from the market-cap weights should you use the multi-ETF model and choose percentages that do not match the total market. As Grabiner wrote, you may well have good reaso...
by euroman
Wed Apr 09, 2014 10:48 am
Forum: Personal Investments
Topic: Vanguard All world ETF or Vanguard region ETFs?
Replies: 17
Views: 2187

Re: Vanguard All world ETF or Vanguard region ETFs?

article about value investing that I coincidentally read today that seems relevant in this discussion: quote: ''A great example is Japan in the late ’80s. Japan was half the world’s market cap in the late ’80s. It was also, by far, the biggest bubble we’ve ever seen. They hit a CAPE of almost 100. I...
by euroman
Wed Apr 09, 2014 6:14 am
Forum: Personal Investments
Topic: Vanguard All world ETF or Vanguard region ETFs?
Replies: 17
Views: 2187

Re: Vanguard All world ETF or Vanguard region ETFs?

The country bias is not a scientific decision. Many studies have been conducted on this subject. I admit I have a home bias. European share of World stock indices seem to be around just 25% (compared to 50% for US), I find this low. But is market cap weight the only scientific acceptable method for...
by euroman
Wed Apr 09, 2014 6:05 am
Forum: Personal Investments
Topic: Vanguard All world ETF or Vanguard region ETFs?
Replies: 17
Views: 2187

Re: Vanguard All world ETF or Vanguard region ETFs?

thanks for the interesting replies, food for thought An All World ETF like VT will not do that kind of "rebalancing" for you. Since it is market cap-weighted, it will hold shares in proportion to their market cap. Therefore, it is indifferent to the price of stocks rising or falling. You w...
by euroman
Tue Apr 08, 2014 7:33 am
Forum: Personal Investments
Topic: Vanguard All world ETF or Vanguard region ETFs?
Replies: 17
Views: 2187

Re: Vanguard All world ETF or Vanguard region ETFs?

I have opted for a global equity ETF. The global ETF, like VT or ACWI will do the rebalancing for you without you having to sell and buy to rebalance and it does it more tax efficient. It is a no hassle investment. . Yes, I just thought about that after posting, that the All World ETF also rebalanc...
by euroman
Tue Apr 08, 2014 7:02 am
Forum: Personal Investments
Topic: Vanguard All world ETF or Vanguard region ETFs?
Replies: 17
Views: 2187

Vanguard All world ETF or Vanguard region ETFs?

I am in the process of investing a substantial lump sum in in ETF's (50%shares/50%fixed) for retirement income I am a European investor and will follow a total global market approach as much as possible. Vanguard has a limited amount of ETFs available for European investors. First I started to inves...
by euroman
Wed Apr 02, 2014 10:45 am
Forum: Personal Investments
Topic: International Diversification, Multiple or Single ETF's?
Replies: 12
Views: 2040

Re: International Diversification, Multiple or Single ETF's?

danclarkie wrote:So does anyone have a recommendation of an ETF that covers US/INTL Small Caps, that is domiciled in Europe/UK and denominated in USD? :wink:

.
SPDR® MSCI World Small Cap UCITS ETF
http://www.spdrseurope.com/product/fund ... =ZPRS%20GY
by euroman
Thu Mar 20, 2014 12:18 pm
Forum: Investing - Theory, News & General
Topic: Will upcoming rise in interest rates affect your AA?
Replies: 30
Views: 3287

Re: Will upcoming rise in interest rates affect your AA?

To make another point that should be obvious. Interest rates affect stock prices, too, and in the same direction , just not as reliably or predictably. And, for those who boost dividend stocks as an alternative to bonds, they affect high-dividend stocks more than others. . please correct me if I am...
by euroman
Mon Feb 24, 2014 7:16 am
Forum: Investing - Theory, News & General
Topic: understanding gross vs net dividend of ETFs
Replies: 1
Views: 1200

understanding gross vs net dividend of ETFs

I am trying to explain the difference between gross and net dividend of ETFs. This is the example I am using (I am a European based investor): ishares MSCI Europe ETF http://uk.ishares.com/en/rc/products/IMEU It states a distribution yield of 2.4%, which I assume is the net dividend The MSCI Europe ...
by euroman
Sat Feb 01, 2014 2:02 pm
Forum: Non-US Investing
Topic: value bond funds with interest rate not rising
Replies: 9
Views: 973

Re: value bond funds with interest rate not rising

Yes, this might well be the way to go, provided they are easy enough to access in times of need. Can you do early withdrawals? (if not, you have just as much interest rate risk as a bond and they'll be less useful for rebalancing). Also, is your government guarantee ironclad? no early withdrawals, ...
by euroman
Sat Feb 01, 2014 1:32 pm
Forum: Non-US Investing
Topic: Government bonds vs CDs with higer rate
Replies: 7
Views: 831

Re: Government bonds vs CDs with higer rate

euro breakup, causing flight to Dutch/German bonds, increasing their value, that you can capitalize on by rebalancing in stocks. But as this will be such a destructive scenario, anything can happen. You mean a breakup of the currency, not ecomomic union, right? Though perhaps they go together. I do...
by euroman
Sat Feb 01, 2014 1:02 pm
Forum: Non-US Investing
Topic: Asking advice for portfolio in the Netherlands
Replies: 17
Views: 2210

Re: Asking advice for portfolio in the Netherlands

1) both ETFs distribute dividends. This gives the extra hassle (and perhaps costs) of manually re-investing the dividends. (Tax-wise there does not seem be a disadvantage in the Netherlands.) Does anybody know of comparable ETFs that are available in Europe, also have a low TER, but reinvest? ishar...
by euroman
Sat Feb 01, 2014 12:49 pm
Forum: Non-US Investing
Topic: Government bonds vs CDs with higer rate
Replies: 7
Views: 831

Re: Government bonds vs CDs with higer rate

In the Netherlands, it is possible to buy 2-year CDSs with an interest rate of 2.35%. The CDSs are state-guaranteed (up to 100.000 euros). Yield to maturity on government euro bonds-funds is lower. For example, the Vanguard Euro Government Bond Index Fund has a YTM of 1.98% and a TER of 0.25%. The ...
by euroman
Fri Jan 31, 2014 1:21 pm
Forum: Non-US Investing
Topic: value bond funds with interest rate not rising
Replies: 9
Views: 973

Re: value bond funds with interest rate not rising

I would not invest in riskier bonds if I were you, that defeats the purpose of that part of the portfolio and you might as well have stocks instead. hm, or maybe count them as part of my stocks as suggested on this forum? if I am not going to do some higher yielding bonds, than maybe it's easier to...
by euroman
Fri Jan 31, 2014 9:43 am
Forum: Investing - Theory, News & General
Topic: Plummeting Bond fears and duration
Replies: 14
Views: 3666

Re: Plummeting Bond fears and duration

The plummeting bond fear is largely human behavioralism. 1)it ignores the gain you got from the interest rate going down. Your bonds went up 5 percent a couple years back with interest rate drop, yeah, they they will drop 5 percent when it reverse. 2) This is always true. Its true at 5 percent inte...
by euroman
Fri Jan 31, 2014 7:51 am
Forum: Non-US Investing
Topic: value bond funds with interest rate not rising
Replies: 9
Views: 973

Re: value bond funds with interest rate not rising

Thank you for taking the time to explain how to deal with inflation. However, I am not sure TIPS (as in inflation protected bonds) are even sold in Europe. Even if they do, they are definitely not as popular as in the US, looking at the number of times I see them mentioned on this forum. With nomina...