Search found 38 matches

by DXB
Mon Dec 29, 2014 2:43 pm
Forum: Non-US Investing
Topic: Feeling a bit lost...should we buy a house?
Replies: 17
Views: 3520

Re: Feeling a bit lost...should we buy a house?

Thanks ValueThinker...food for thought. In my home country, tenants rights are extremely strong. There's one city in particular that seems a safe bet...but as you say, let's see how the eurozone pans out. As an EU citizen, I'm not especially worried about a nightmare scenario and I don't know anyone...
by DXB
Mon Dec 29, 2014 3:15 am
Forum: Non-US Investing
Topic: Feeling a bit lost...should we buy a house?
Replies: 17
Views: 3520

Re: Feeling a bit lost...should we buy a house?

Err...back again. I just realized that I neglected to make one point in my OP. One of my worries is that for one reason or another, we will have to move back to our home country within 5-6 years. This is not a definite prospect...it's a purely theoretical concern. If it happened at a time that coinc...
by DXB
Sun Dec 28, 2014 2:47 am
Forum: Non-US Investing
Topic: Feeling a bit lost...should we buy a house?
Replies: 17
Views: 3520

Re: Feeling a bit lost...should we buy a house?

Great replies, everyone. Thanks for the input. We'll continue to invest in our ETFs and forget about a house for now.
by DXB
Fri Dec 26, 2014 6:19 am
Forum: Non-US Investing
Topic: Feeling a bit lost...should we buy a house?
Replies: 17
Views: 3520

Re: Feeling a bit lost...should we buy a house?

ValueThinker, I would never buy a house in Dubai or the Gulf. We work there, yes, but the question is whether we should buy a house remotely in our home country - which is a fully modern and paid up member of western civilization.
by DXB
Fri Dec 26, 2014 6:04 am
Forum: Personal Finance (Not Investing)
Topic: Increasing expenditure
Replies: 10
Views: 1364

Increasing expenditure

Just a general question about increasing expenditure as one's income increases. For example, in 2015 the income of my wife and I will increase by approximately 11k dollars. We will take this 11k dollars and invest the whole lot of it. We did the same last year. Our savings rate is thus increasing ma...
by DXB
Fri Dec 26, 2014 3:42 am
Forum: Non-US Investing
Topic: Feeling a bit lost...should we buy a house?
Replies: 17
Views: 3520

Feeling a bit lost...should we buy a house?

Hi everyone, I figure this is probably the right forum to ask this question. My wife and I are both 30 years old, married two years, still childless, and both living in the middle east. We really only started to make decent money in the past two years and have no debts. We are at the accumulation ph...
by DXB
Fri Dec 19, 2014 11:46 am
Forum: Investing - Theory, News & General
Topic: Question about reinvesting dividends
Replies: 4
Views: 1098

Question about reinvesting dividends

This might seem a silly question, but should I reinvest dividends from a bond ETF back into the bond ETF only, or is it okay to reinvest them into a stock ETF? Similarly, is it okay to reinvest dividends from a stock ETF into a bond ETF? Essentially, should dividends only be reinvested back into the...
by DXB
Sat Dec 13, 2014 2:50 pm
Forum: Investing - Theory, News & General
Topic: Investing more when the market is down.
Replies: 22
Views: 3063

Re: Investing more when the market is down.

I invest every month anyway in a self-directed fashion. If the market happens to fall by more than 10% during the month before my monthly purchase, I simply put more into the ETF that fell farthest.
by DXB
Sat Dec 13, 2014 2:09 pm
Forum: Investing - Theory, News & General
Topic: Investing more when the market is down.
Replies: 22
Views: 3063

Re: Investing more when the market is down.

But I can't see how this isn't "timing the market" and thus should be against Boglehead principles. To me, "timing" is thinking that you can preempt an upward or downward movement. Buying more when prices are down isn't an exercise in preemption; it's reacting to a de facto downward movement by buy...
by DXB
Fri Nov 28, 2014 2:01 pm
Forum: Non-US Investing
Topic: Help with portofolio for non-US person
Replies: 5
Views: 956

Re: Help with portofolio for non-US person

I'm a European too. I use VEUR (Vanguard MSCI Developed Europe) and VUSA (vanguard S&P 500) for my stocks (both trade in euro) and IE15 (iShares 1-5 year corporate bonds).
by DXB
Fri Nov 28, 2014 8:26 am
Forum: Investing - Theory, News & General
Topic: Oil / Energy ETFs
Replies: 58
Views: 6748

Oil / Energy ETFs

Many energy and oil ETFs are down significantly. What are the arguments against buying an oil ETF now, on the premise that it's currently cheap?
by DXB
Mon Nov 17, 2014 12:20 pm
Forum: Non-US Investing
Topic: Non-US citizen with US Brokers: Estate Tax risk?
Replies: 105
Views: 41190

Re: Non-US citizen with US Brokers: Estate Tax risk?

I am a not a US citizen and I don't live in the US, and never have. I recently opened a trading account with Interactive Brokers (IB). The account is domiciled in the US. I use it to buy ETFs from the London and Amsterdam stock exchanges. The ETFs are all domiciled in Ireland. My question is this: ...
by DXB
Sun Nov 16, 2014 7:03 am
Forum: Investing - Theory, News & General
Topic: What would happen if *everyone* bought index funds?
Replies: 7
Views: 2207

What would happen if *everyone* bought index funds?

So, imagine that from tomorrow, everyone decides they want to get out of individual stocks and buy ETFs and index funds. They transition out of individual stocks gradually over a few years to the point that 5 years from now, nobody owns any individual stocks. Instead, everyone owns index funds and E...
by DXB
Sun Nov 16, 2014 12:37 am
Forum: Non-US Investing
Topic: Non-US citizen with US Brokers: Estate Tax risk?
Replies: 105
Views: 41190

Re: Non-US citizen with US Brokers: Estate Tax risk?

@inchvbeam. In my opinion the bit you quoted is not relevant. The key question to ask is whether, after moving to IB UK, your IB account would be US-domicled or UK-domicled. If it's UK-domiciled, the U.S. estate tax issue goes away. On the downside, you would lose the $500k deposit guarantee and be ...
by DXB
Sat Nov 15, 2014 3:25 pm
Forum: Non-US Investing
Topic: Non-US citizen with US Brokers: Estate Tax risk?
Replies: 105
Views: 41190

Re: Non-US citizen with US Brokers: Estate Tax risk?

First. Listen to TedSwippet. He knows what he's talking about. We want our portfolio to look like this: 60% VWRD + 30% IUAG + 10% CASH. If we use USA domiciled IB we save 0.4% annually. If we use LOM Bermuda we save 0.2% annually. We chose LOM Bermuda. We think paying an extra 20 bps to stay out of...
by DXB
Sat Nov 15, 2014 3:14 pm
Forum: Non-US Investing
Topic: Non-US citizen with US Brokers: Estate Tax risk?
Replies: 105
Views: 41190

Re: Non-US citizen with US Brokers: Estate Tax risk?

Hi DXB, I'm a non-US citizen that's interested in using IB as well. But bearing in mind the risks highlighted by you, I will probably be staying away from IB. May I know what alternative brokers have you considered using? Thanks. Saxo Capital Markets - a Danish outfit. But much more expensive than ...
by DXB
Fri Nov 14, 2014 5:32 pm
Forum: Non-US Investing
Topic: Non-US citizen with US Brokers: Estate Tax risk?
Replies: 105
Views: 41190

Re: Non-US citizen with Interactive Brokers: Estate Tax risk

Others have asked how would IB or the IRS know if the account holder dies. Generally we do not enforce laws by making it impossible to break them. We expect people to follow the law and back that up by hunting down (some) people who break laws and punishing them after the fact. In this case not pay...
by DXB
Fri Nov 14, 2014 5:07 pm
Forum: Non-US Investing
Topic: Non-US citizen with US Brokers: Estate Tax risk?
Replies: 105
Views: 41190

Re: Non-US citizen with Interactive Brokers: Estate Tax risk

Thank you - my conclusion is the same as yours.
I agree - I find it amazing that foreign investors in America are treated so punitively. I would love to buy VTI for example, plus a host of other US-domiciled funds. But I daren't.
by DXB
Fri Nov 14, 2014 5:00 pm
Forum: Non-US Investing
Topic: Non-US citizen with US Brokers: Estate Tax risk?
Replies: 105
Views: 41190

Re: Non-US citizen with Interactive Brokers: Estate Tax risk

...yet further to the above, when I actually look at Article 2104, it says nothing about brokers. Rather it refers to debt. http://www.law.cornell.edu/uscode/text/26/2104
:confused
by DXB
Fri Nov 14, 2014 4:41 pm
Forum: Non-US Investing
Topic: Non-US citizen with US Brokers: Estate Tax risk?
Replies: 105
Views: 41190

Re: Non-US citizen with Interactive Brokers: Estate Tax risk

Wow, lots of misinformation and confusion in this thread. To answer OP's initial question, no. You are neither a US citizen nor US resident, so a bona fide 'non-resident alien'. As long as you avoid holding US stocks, US bonds, US domiciled ETFs (really just another type of US stock) and other 'US ...
by DXB
Fri Nov 14, 2014 3:52 pm
Forum: Non-US Investing
Topic: Non-US citizen with US Brokers: Estate Tax risk?
Replies: 105
Views: 41190

Re: Non-US citizen with Interactive Brokers: Estate Tax risk

@Trading Places.

Although I am non-US and have no US address or social security number, the trading account with Interactive Brokers might (or might not) be the vulnerability because it is US-domiciled. That is what I seek clarification on.
by DXB
Fri Nov 14, 2014 1:29 pm
Forum: Non-US Investing
Topic: Non-US citizen with US Brokers: Estate Tax risk?
Replies: 105
Views: 41190

Re: Non-US citizen with Interactive Brokers: Estate Tax risk

Yes, unless you buy individual bonds or stocks. The way to get around it is to form a company and buy through it. Companies never die Thanks for this. I have some follow-up questions, if you don't mind. - Do you have a link to legislation or some official source where it's clearly specified that tr...
by DXB
Fri Nov 14, 2014 12:59 pm
Forum: Non-US Investing
Topic: Non-US citizen with US Brokers: Estate Tax risk?
Replies: 105
Views: 41190

Non-US citizen with US Brokers: Estate Tax risk?

I am a not a US citizen and I don't live in the US, and never have. I recently opened a trading account with Interactive Brokers (IB). The account is domiciled in the US. I use it to buy ETFs from the London and Amsterdam stock exchanges. The ETFs are all domiciled in Ireland. My question is this: W...
by DXB
Fri Nov 14, 2014 8:05 am
Forum: Non-US Investing
Topic: Help with global ETfs from New Zealand
Replies: 23
Views: 3484

Re: Help with global ETfs from New Zealand

Could you open an account with Interactive Brokers and buy the Vanguard ETFs from the UK or Australian exchanges?
by DXB
Thu Nov 13, 2014 12:28 pm
Forum: Non-US Investing
Topic: Help me streamline my portfolio
Replies: 3
Views: 514

Re: Help me streamline my portfolio

Your total TER cannot be 0.51% since highest you listed was 0.15%. I think you want to show the weighted TER. This is probably news to me. I assumed that to get my portfolio's total TER, I would add up the TERs of all the constituents and bingo, that'd be it. Should I actually be using the average ...
by DXB
Thu Nov 13, 2014 11:59 am
Forum: Non-US Investing
Topic: Help me streamline my portfolio
Replies: 3
Views: 514

Help me streamline my portfolio

I've been investing for 3 months now using an e-brokerage account with Interactive Brokers. I'm a 32-year-old European living in Qatar. In addition, I'm not sure where I will retire, but I have decided to stay as an expat in the Middle East for as long as possible, with a view to gaining financial i...
by DXB
Thu Nov 13, 2014 1:41 am
Forum: Non-US Investing
Topic: Why would a European bother holding bonds in this climate?
Replies: 21
Views: 3028

Re: Why would a European bother holding bonds in this climat

Secondly, while I do get what you're saying to an extent, SYBC's stats tell me that if I had 10k in the fund on 1st January, it would now be worth 10,706 if I sold my shares right now - correct or incorrect? I mean, it says in black and white that the fund performance this year to date is 7.06%. Th...
by DXB
Wed Nov 12, 2014 2:21 pm
Forum: Non-US Investing
Topic: Why would a European bother holding bonds in this climate?
Replies: 21
Views: 3028

Re: Why would a European bother holding bonds in this climat

Very interesting replies, though I'm still a bit confused. Firstly, this is an ETF, so the contents of the ETF (especially the short-term components) are constantly being rolled over, so it's not like you'd be holding one coupon and be stuck with it, is it? Secondly, while I do get what you're sayin...
by DXB
Wed Nov 12, 2014 11:57 am
Forum: Non-US Investing
Topic: Why would a European bother holding bonds in this climate?
Replies: 21
Views: 3028

Re: Why would a European bother holding bonds in this climat

At alwaysonit: look at the Spider ETF SYBC - https://www.spdrseurope.com/product/fund.seam;jsessionid=nJc8JvSDVQdJqcqG9tJbwggSnyVSQNJFqG9FhmyLLqkB8GCM5dbP!128159825?ticker=SYBC+GY. The dividends alone are returning 3% where the TER is only 0.2%. But the Yield to Maturity is only 1.09%, and isn't th...
by DXB
Tue Nov 11, 2014 8:44 am
Forum: Non-US Investing
Topic: Why would a European bother holding bonds in this climate?
Replies: 21
Views: 3028

Re: Why would a European bother holding bonds in this climat

I am also grappling with this issue. I suppose the key points for bonds are that: * Maintaining your target allocation in bonds will build up a massive war chest in the event of a stock crash. * In addition (according to Andrew Hallam) short-term bonds would leapfrog in terms of results if/when inte...
by DXB
Thu Nov 06, 2014 12:17 pm
Forum: Investing - Theory, News & General
Topic: Why are people so down on bonds?
Replies: 39
Views: 8040

Why are people so down on bonds?

If I tell people that: I keep bonds for rebalancing purposes and diversification and have no problem with the low returns right now. I get responses like this: I don't think this is a valid reason for holding short term bonds. You could just leave the money in your cash fund and then use it to inves...
by DXB
Mon Nov 03, 2014 12:20 pm
Forum: Personal Investments
Topic: Help with portfolio for 30-year-old
Replies: 2
Views: 666

Re: Help with portfolio for 30-year-old

Few thoughts 1. $28K in cash doesn't sound excessive as an emergency fund. 2. Where are you going to find a short term bond fund that yields considerably more than 0.3%? You should be able to find a savings account that yields close to 1%, so I would explore that rather than a bond fund. 3. You are...
by DXB
Mon Nov 03, 2014 11:22 am
Forum: Personal Investments
Topic: Help with portfolio for 30-year-old
Replies: 2
Views: 666

Help with portfolio for 30-year-old

Hi everyone, I have a few questions and was hoping you folks could help. The first thing to say is that I'm not an American and I don't live in the US. I live as an expat in a Gulf country where I earn a decent tax-free salary, but there is no social insurance or pension scheme, so I have to figure ...
by DXB
Wed Oct 29, 2014 10:03 am
Forum: Investing - Theory, News & General
Topic: A Challenge for Bogleheads - the market has changed
Replies: 53
Views: 8939

Re: A Challenge for Bogleheads - the market has changed

Ok, thanks for the replies so far. To Barnaclebob - who said he's tempted to sign up to the other board to challenge the original poster - please do :happy I'd like to explain why I may seem un-Bogleish to some of you. Basically, I'm not an American (European here) and I live in the Middle East as a...
by DXB
Wed Oct 29, 2014 7:13 am
Forum: Investing - Theory, News & General
Topic: A Challenge for Bogleheads - the market has changed
Replies: 53
Views: 8939

Re: A Challenge for Bogleheads - the market has changed

Are you asking whether it is a good idea to completely avoid stocks? Not at all - in fact I've identified two stock ETFs that I want: VUSD (S&P 500) VEUR (FTSE Developed Europe) ..and the Bond ETF. My target allocation is 30:35:35, Bonds:VEUR:VUSD. Since I started, I've been buying the ETF that's b...
by DXB
Wed Oct 29, 2014 6:53 am
Forum: Investing - Theory, News & General
Topic: A Challenge for Bogleheads - the market has changed
Replies: 53
Views: 8939

Re: A Challenge for Bogleheads - the market has changed

The primary message of the post I quoted at the start is that it would be almost foolish for new investors to buy the S&P 500 and other high-price stocks today , even if the new investor planned on following the Boglehead philosophy. Far better, the post argues, to keep your money in cash until the ...
by DXB
Wed Oct 29, 2014 5:35 am
Forum: Investing - Theory, News & General
Topic: A Challenge for Bogleheads - the market has changed
Replies: 53
Views: 8939

A Challenge for Bogleheads - the market has changed

First, I'm a Boglehead. But I came across http://www.boards.ie/vbulletin/showpost.php?p=92801735&postcount=18 on another forum which states that the Boglehead philosophy cannot work successfully for the contemporary investor due to cyclicals. So what we're seeing here is two very different investmen...
by DXB
Thu Oct 16, 2014 6:45 am
Forum: Personal Investments
Topic: Relatively new here. What did you do in 2008/09
Replies: 130
Views: 14238

Re: Relatively new here. What did you do in 2008/09

Thank you to all the contributors so far. I've been an investor and a buyer of Vanguard ETFs for a whole two months now. I've experienced nothing but losses since doing so and am down around 5% in five weeks. I know the theory - falling markets are a good thing for long-term investors - but I bet I'...