Have a question about your personal investments? No matter how simple or complex, you can ask it here.
- Posts: 3
- Joined: Thu Aug 11, 2016 10:27 pm
I did try to research this forum and the web but couldn't find the exact information I need. Hope you can help. My situation:
- Non-Resident Alien in a country without Tax Treaty (Brazil)
- Already have a Schwab One International Account
- Around 20k USD in cash my Schwab account in US
- About 150k USD invested in my country of residence (not moving this abroad for now, citing to show the money in US is not my whole wealth)
I want to invest the 20k following bogleheads guidelines but got a few questions.
- As I'm a non-resident alien, I should use Irish ETFs for stocks due to taxation reasons. Schwab only seems to offer actively managed Irish Mutual Funds. Is that correct? did I miss something?
- For bonds, is there any difference between Irish domiciled ETFs and US-domiciled ones? Do I still pay the 30% tax on dividends for those funds? Or does it work differently for bonds somehow?
- If I open an account on Interactive brokers, I'd be paying 10 USD/month, which seems significant on top of only 20k USD. I pay zero commission on Schwab's ETFs right now. As I only have 20k USD for now (below the 60k USD exemption for estate taxes), seems worth staying in Schwab even if paying dividends tax. What am I missing in this analysis?
Some additional details:
- My horizon for this money in US is of 5-10 years, so I'm leaning to put most of it in bonds.
- I might move to US and become a resident in a few years. I worry that I plan around investing in Ireland just to have to un-do everything really quickly. This pushes me even harder to just use Schwab on US ETFs and be done with it. What am I missing?
Besides questions above, anything I'm forgetting to think about?