Search found 27 matches

by DoctorE
Sat Aug 04, 2018 2:05 am
Forum: Investing - Theory, News & General
Topic: 3 Levels of Wealth
Replies: 125
Views: 12678

Re: 3 Levels of Wealth

Here is a good detailed analysis from a really smart guy: http://www.collaborativefund.com/blog/the-spectrum-of-financial-dependence-and-independence/ Level 14: Your assets cover above-basic living expenses with assets and their reasonable return expectations. You can define “above-basic” however yo...
by DoctorE
Fri Jun 01, 2018 3:40 pm
Forum: Personal Finance (Not Investing)
Topic: Have $3m at 33, "approach to career" advice needed
Replies: 153
Views: 35099

Re: Have $3m at 33, "approach to career" advice needed

You would be surprised just how many successful under-40 entrepreneurs are in a similar situation. The group I network with all made their money through some sort of one-time opportunity where having the skills, being in the right place at the right time and working hard for a decade led to 7 and 8 ...
by DoctorE
Fri May 25, 2018 2:47 pm
Forum: Non-US Investing
Topic: Non-USA Domicle Question Re Interest Income Withholding Taxes
Replies: 22
Views: 2433

Re: Non-USA Domicle Question Re Interest Income Withholding Taxes

Thanks DoctorE. That is my understanding also. An ETF composed of 100% USA investment grade bonds e.g. LSE:SUAG withholds ZERO taxes on the interest income. USA Bogleheads talk about the 4-ETF portfolio: VTI + VXUS + BND + BNDX (non-USA bonds hedged to USD). Since the USD is the major currency of t...
by DoctorE
Fri May 25, 2018 11:52 am
Forum: Non-US Investing
Topic: Non-USA Domicle Question Re Interest Income Withholding Taxes
Replies: 22
Views: 2433

Re: Non-USA Domicle Question Re Interest Income Withholding Taxes

A bond ETF such as BND or AGG bought on a USA stock exchange will have a withholding tax of 30% on the interest income. USA bank accounts, CDs, and individual USA treasury bonds do not. I've known that for years. What about the interest income from a bond ETF bought on the LSE? E.g. SUAG. SUAG main...
by DoctorE
Fri May 25, 2018 3:15 am
Forum: Non-US Investing
Topic: Non-USA Domicle Question Re Interest Income Withholding Taxes
Replies: 22
Views: 2433

Re: Non-USA Domicle Question Re Interest Income Withholding Taxes

As far as I know, Irish domiciled bond funds listed on the LSE will not have withholding tax on the distributions. Bonds as part of ETFs listed on the US-exchanged will have withholding tax on the coupons issued as distributions from the ETF. Individual US treasury, portfolio interest or US corporat...
by DoctorE
Mon Apr 23, 2018 10:44 am
Forum: Non-US Investing
Topic: USD/EUR Investment and Tax Optimization
Replies: 11
Views: 2358

Re: USD/EUR Investment and Tax Optimization

The ECB still has negative interest rates on the EURO. Thread carefully if purchasing any EUR denominated bond fund right now. The bond fund you suggest has a negative yield and costs you money to hold every year.
by DoctorE
Sun Mar 04, 2018 5:09 am
Forum: Personal Consumer Issues
Topic: Kitchen features
Replies: 108
Views: 11734

Re: Kitchen features

I have built > 50 kitchens over the past few decades, from inexpensive ones that I bought 10 at a time for rental units to deluxe, hand-built cabinetry. I have finally concluded that the absolute best solution is to go Ikea and get one of their nominated delivery/assembler sub contractors to instal...
by DoctorE
Thu Feb 15, 2018 3:26 am
Forum: Personal Investments
Topic: 4% rule and early retirement?
Replies: 69
Views: 11993

Re: 4% rule and early retirement?

I think many people here tend to avoid the other side of the equation. I'm pondering retiring at 53 in a few months. I do believe that a 4%+ inflation withdrawal gives me a historical 95% success rate for a 30 year time period. But I'm going to go with 3.3 for a while, just in case The other side o...
by DoctorE
Tue Feb 13, 2018 4:25 pm
Forum: Investing - Theory, News & General
Topic: Morningstar's SWR study
Replies: 44
Views: 4524

Morningstar's SWR study

I recently stumbled upon a couple studies from MorningStar about different Safe Withdrawal Rates for different retirement periods in different countries. Strange enough, there is not one for the US but the ones for Canada and UK are very interesting. https://video.morningstar.com/ca/Safe_WithdrawalR...
by DoctorE
Mon Aug 28, 2017 9:29 am
Forum: Personal Finance (Not Investing)
Topic: "I'm Bill Bengen, and I first proposed the 4% safe withdrawal rate in 1994. Ask me anything!"
Replies: 119
Views: 19021

Re: "I'm Bill Bengen, and I first proposed the 4% safe withdrawal rate in 1994. Ask me anything!"

Seems foolish to pick out a few asset classes that over-performed in a limited period of time (ie small cap value) and extrapolate that into a successful long term asset allocation and withdrawal strategy. Let's not forget the AMA is on /r/financialindependence, which is about retiring early. The pe...
by DoctorE
Wed Aug 23, 2017 11:42 pm
Forum: Personal Finance (Not Investing)
Topic: "I'm Bill Bengen, and I first proposed the 4% safe withdrawal rate in 1994. Ask me anything!"
Replies: 119
Views: 19021

Re: "I'm Bill Bengen, and I first proposed the 4% safe withdrawal rate in 1994. Ask me anything!"

It seems to me that DoctorE's post with cfiresim results (assuming all data entry was correct) shows all you need to see about whether Mr Bengen's claims hold up under actual market history. I have no idea what data cifresim uses for 'stocks' but I would imagine since it's since the late 1800s, it ...
by DoctorE
Wed Aug 23, 2017 9:38 am
Forum: Personal Finance (Not Investing)
Topic: "I'm Bill Bengen, and I first proposed the 4% safe withdrawal rate in 1994. Ask me anything!"
Replies: 119
Views: 19021

Re: "I'm Bill Bengen, and I first proposed the 4% safe withdrawal rate in 1994. Ask me anything!"

CFireSim shows quite a few negative end results on a 40-45-50 year time-frames using 50% stocks 50% bonds with 4% withdrawals indexed to inflation.

Here is a 40 year time-frame 50% stocks 50% bonds with 4% withdrawals indexed to inflation.
Image
by DoctorE
Wed Aug 02, 2017 5:20 pm
Forum: Personal Consumer Issues
Topic: Suggestions for Month in the South Pacific?
Replies: 8
Views: 1766

Re: Suggestions for Month in the South Pacific?

French Polynesia. The Four Seasons in Bora Bora is spectacular and worth every cent. A week per island is more than sufficient.
by DoctorE
Sun Jul 16, 2017 4:16 am
Forum: Personal Investments
Topic: Roll call Warren Buffet 90/10 portfolio
Replies: 96
Views: 24394

Re: Roll call Warren Buffet 90/10 portfolio

The 10% would last Buffet's spouse several dozen lifetimes, no matter what the 90% did.
by DoctorE
Sat May 13, 2017 7:36 am
Forum: Investing - Theory, News & General
Topic: Withholding tax on bonds
Replies: 9
Views: 3489

Re: Withholding tax on bonds

Individual bonds issues are exempt.
Distributions from bond ETFs are subject to withholding tax at the double treaty rate, usually 15% if a treaty is in place.
by DoctorE
Thu Apr 27, 2017 4:26 am
Forum: Personal Investments
Topic: Retirement income for 50+ years?
Replies: 167
Views: 20206

Re: Retirement income for 50+ years?

Have you tried Firecalc yet? Enter $300,000 for the spending rate, $11,000,000 for the (initial) portfolio, and 60 years, and see what you get. Note that the resulting graph is in current dollars. I get a final worst-case balance (in today's dollars!) of what looks like about $40,000,000, give or t...
by DoctorE
Thu Apr 27, 2017 4:11 am
Forum: Personal Investments
Topic: Retirement income for 50+ years?
Replies: 167
Views: 20206

Re: Retirement income for 50+ years?

I would like to have $300k/yr after-tax (in today's dollars) for life. Think I can achieve that without taking much risk? Here's what happened to the US equity side the last 35 odd years... http://www.skloff.com/wp-content/uploads/2017/01/sp500-intra-year-declines-vs-calendar-year-returns-1980-2016...
by DoctorE
Thu Apr 27, 2017 3:56 am
Forum: Personal Investments
Topic: Retirement income for 50+ years?
Replies: 167
Views: 20206

Re: Retirement income for 50+ years?

What I don't understand is why would anyone pick a certain withdrawal amount in 2017 and keep that same amount adjusted by CPI, blind to any portfolio performance, for the next 50 years. I don't know if many people actually do that. The problem, though, is determining exactly how much belt-tighteni...
by DoctorE
Wed Apr 26, 2017 7:24 pm
Forum: Personal Investments
Topic: Retirement income for 50+ years?
Replies: 167
Views: 20206

Re: Retirement income for 50+ years?

What I don't understand is why would anyone pick a certain withdrawal amount in 2017 and keep that same amount adjusted by CPI, blind to any portfolio performance, for the next 50 years. For an eight figure portfolio, it seems a lot more sensible to treat withdrawals like an endowment or foundation ...
by DoctorE
Sat Jan 17, 2015 7:31 am
Forum: Non-US Investing
Topic: NON-US Investor: Ireland ETFs to minimize US withholding tax
Replies: 51
Views: 16614

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

Found an interesting PDF from the LSE itself about the ETFs trading on the exchange. The part about the spreads is quite shocking ! Spreads on the NYSE are around 0.01% for most liquid ETFs whereas in London they are 0.05-0.2%! http://www.lseg.com/sites/default/files/content/documents/London%20Stock...
by DoctorE
Sun Jan 11, 2015 2:39 pm
Forum: Non-US Investing
Topic: NON-US Investor: Ireland ETFs to minimize US withholding tax
Replies: 51
Views: 16614

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

The London and Frankfurt listed Irish/Luxembourg ETFs I have personally found to be too low volume for real live usage. Some of the most frequently traded UK listed ETFs in USD have daily trading volumes from 2-15M USD/day. You never want to be trading more than 5% of daily trading volume. If you a...
by DoctorE
Sun Jan 11, 2015 2:35 pm
Forum: Non-US Investing
Topic: NON-US Investor: Ireland ETFs to minimize US withholding tax
Replies: 51
Views: 16614

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

The volumes of ETFs like VUSA, VUSD, VEUR, VDEM etc are very low, but that doesn't matter because the underlying businesses they track are highly liquid. Good point, if the underlying assets are frequently traded, the bid-ask spread should be quite small. Especially with larger amounts the bid-ask ...
by DoctorE
Sun Jan 11, 2015 12:17 pm
Forum: Non-US Investing
Topic: NON-US Investor: Ireland ETFs to minimize US withholding tax
Replies: 51
Views: 16614

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

I've been living in a country that does not tax income or capital gains for a while and have gone through a similar dilemma. My experience has been that with the exception of iShares and Vanguard, the db trackers and other european ETFs are synthetic. This means you do not actually own the underlyin...
by DoctorE
Mon Feb 17, 2014 3:48 am
Forum: Personal Investments
Topic: Please Help a 36 Yr Old With $7m+ Portfolio
Replies: 83
Views: 16304

Re: Please Help a 36 Yr Old With $7m+ Portfolio

I'd spend some time (and money) to understand the effect of taxes and fees on your net performance. Gaining efficiency there (including within your business) might provide the most tailwind to growing your NW while still funding lifestyle costs. Very good point. Tax efficiency is important and a ne...
by DoctorE
Fri Feb 14, 2014 1:10 pm
Forum: Investing - Theory, News & General
Topic: Charts that plot total return including dividends
Replies: 5
Views: 1456

Re: Charts that plot total return including dividends

InvestorNewb wrote:I think Google and Yahoo's charts both include dividends reinvested.
I strongly believe the opposite ! They display the dividends when they happen but the chart is not total return.
by DoctorE
Fri Feb 14, 2014 1:04 pm
Forum: Investing - Theory, News & General
Topic: Charts that plot total return including dividends
Replies: 5
Views: 1456

Charts that plot total return including dividends

Besides StockChart's perfchart, does anyone know other charts or services that provide a total return chart to compare multiple tickers? I know that Yahoo and Google Finance's charts are unadjusted despite Yahoo providing historically adjusted closing prices. Thank you in advance.
by DoctorE
Fri Feb 14, 2014 5:37 am
Forum: Personal Investments
Topic: Please Help a 36 Yr Old With $7m+ Portfolio
Replies: 83
Views: 16304

Re: Please Help a 36 Yr Old With $7m+ Portfolio

@TheodoreMonit @Tarkus Long time lurker, first time poster here. I’d like to chime in as this thread his a chord. Being an entrepreneur myself, I started a very successful Internet business after dropping out of College. What I would do if I were you based on my experience: Life - Continue working,...