newbie from taiwan

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Topic Author
nabula
Posts: 3
Joined: Fri Jun 08, 2018 1:05 am

newbie from taiwan

Post by nabula »

hello everyone

i am a newbie investor from taiwan. Sorry for my poor english.

i am too late to know this place.

i started my investments around 50k usd in feb this year

vti 60%
vgt 20%
vht 20%

and i will put about 20k usd every year for about 25years

any good suggestion ?? thanks everyone
User avatar
BeBH65
Posts: 1763
Joined: Sat Jul 04, 2015 7:28 am

Re: newbie from taiwan

Post by BeBH65 »

Hello Nabula,

Welcome to the forum.

Maybe you can spell out the tickers; not all readers have memorised all the tickets; especially not the members which are also non-us like you.

edit:spelling
Last edited by BeBH65 on Mon Jul 23, 2018 3:49 pm, edited 1 time in total.
BeBH65. (only an investment enthusiast, not a financial adviser, perform your due diligence). | Have a look at https://www.bogleheads.org/wiki/Outline_of_Non-US_domiciles
TedSwippet
Posts: 5181
Joined: Mon Jun 04, 2007 4:19 pm
Location: UK

Re: newbie from taiwan

Post by TedSwippet »

Welcome.
nabula wrote: Mon Jul 23, 2018 12:33 ami am a newbie investor from taiwan. ... i started my investments around 50k usd in feb this year vti 60% vgt 20% vht 20%
Taiwan has no tax treaties with the US. This means that holding US domiciled ETFs, as you do, you will pay 30% in tax to the US on all the dividends paid out by these ETFs. In comparison, if you instead held Vanguard's Ireland domiciled ETFs you would only suffer 15% tax loss to the US, and only on US stocks held by the ETFs (so no US tax loss at all on non-US stocks held by an ETF). You also risk up to 40% US estate tax on anything you hold in US domiciled ETFs above $60k.

More in these wiki pages. Please read them and see if the suggestions will both improve your own investing position and lower your risk of confiscatory yet entirely avoidable US estate taxes.

Nonresident alien taxation - Bogleheads
Nonresident alien with no US tax treaty & Irish ETFs - Bogleheads
Non-US investor's guide to navigating US tax traps - Bogleheads
User avatar
dratkinson
Posts: 6116
Joined: Thu Jul 26, 2007 6:23 pm
Location: Centennial CO

Re: newbie from taiwan

Post by dratkinson »

Recall a few years back that some forum members established a Bogleheads chapter in Taiwan. They should have already figured out most of the answers you want to know. Send a PM (private message) to the members who identify themselves with this chapter and plan to attend one of their meetings.

See Taiwan Bogleheads: https://diehards.org/forum/viewtopic.php?p=2380980


To send PM:
--Click on member name to get to their profile.
--Send PM from link in member profile.



Welcome.



Edit. Forgot to include instructions to send PM. My bad.
Last edited by dratkinson on Mon Jul 23, 2018 8:20 pm, edited 1 time in total.
d.r.a., not dr.a. | I'm a novice investor; you are forewarned.
Topic Author
nabula
Posts: 3
Joined: Fri Jun 08, 2018 1:05 am

Re: newbie from taiwan

Post by nabula »

VGT = Vanguard Information Technology ETF

VTI = Vanguard Total Stock Market ETF

VHT = Vanguard Health Care ETF


thanks TedSwippet

i am reading the wiki now
imperia
Posts: 224
Joined: Tue Feb 21, 2017 5:31 am

Re: newbie from taiwan

Post by imperia »

Use www.justetf.com to find ETFs domicile on Europe.
I suggest Ireland domicile, and accumulations not distributions.
User avatar
BeBH65
Posts: 1763
Joined: Sat Jul 04, 2015 7:28 am

Re: newbie from taiwan

Post by BeBH65 »

nabula wrote: Mon Jul 23, 2018 8:08 pm VGT = Vanguard Information Technology ETF

VTI = Vanguard Total Stock Market ETF

VHT = Vanguard Health Care ETF
1- these funds seem to invest in the US. What about the other 50% of the world?
2- Health care and IT are already included in Total Stock market. Why buy them double? There is not consistency in sector outperformance (Callan table of sector returns)
3- you have already received some info on the advantages of NOT investing through us-domiciled funds
BeBH65. (only an investment enthusiast, not a financial adviser, perform your due diligence). | Have a look at https://www.bogleheads.org/wiki/Outline_of_Non-US_domiciles
Topic Author
nabula
Posts: 3
Joined: Fri Jun 08, 2018 1:05 am

Re: newbie from taiwan

Post by nabula »

BeBH65 wrote: Tue Jul 24, 2018 1:30 am
nabula wrote: Mon Jul 23, 2018 8:08 pm VGT = Vanguard Information Technology ETF

VTI = Vanguard Total Stock Market ETF

VHT = Vanguard Health Care ETF
1- these funds seem to invest in the US. What about the other 50% of the world?
2- Health care and IT are already included in Total Stock market. Why buy them double? There is not consistency in sector outperformance (Callan table of sector returns)
3- you have already received some info on the advantages of NOT investing through us-domiciled funds
thanks BeBH65

i will do more study

thank you
heyyou
Posts: 4461
Joined: Tue Feb 20, 2007 3:58 pm

Re: newbie from taiwan

Post by heyyou »

Welcome to the forum.
You are already being a good Boglehead by saving and investing in Vanguard funds.
We are glad you found us.
User avatar
BeBH65
Posts: 1763
Joined: Sat Jul 04, 2015 7:28 am

Re: newbie from taiwan

Post by BeBH65 »

nabula wrote: Tue Jul 31, 2018 12:49 am thanks BeBH65

i will do more study

thank you
Please do not hesitate to come back with questions.
Our wiki has a lot of info.
The investment start-up kit is a good starting point. The selection of the actual funds is only one of the last steps.
BeBH65. (only an investment enthusiast, not a financial adviser, perform your due diligence). | Have a look at https://www.bogleheads.org/wiki/Outline_of_Non-US_domiciles
marcopoloTW
Posts: 3
Joined: Sat Aug 04, 2018 4:37 am

Re: newbie from taiwan

Post by marcopoloTW »

TedSwippet wrote: Mon Jul 23, 2018 3:06 pm
Taiwan has no tax treaties with the US. This means that holding US domiciled ETFs, as you do, you will pay 30% in tax to the US on all the dividends paid out by these ETFs. In comparison, if you instead held Vanguard's Ireland domiciled ETFs you would only suffer 15% tax loss to the US, and only on US stocks held by the ETFs (so no US tax loss at all on non-US stocks held by an ETF). You also risk up to 40% US estate tax on anything you hold in US domiciled ETFs above $60k.

More in these wiki pages. Please read them and see if the suggestions will both improve your own investing position and lower your risk of confiscatory yet entirely avoidable US estate taxes.

Nonresident alien taxation - Bogleheads
Nonresident alien with no US tax treaty & Irish ETFs - Bogleheads
Non-US investor's guide to navigating US tax traps - Bogleheads
I have 2 questions regarding profit made from the Ireland domiciled ETFs:

1/ In which category falls the profit made from the Ireland ETF (or any oversea stocks) when we fill tax ?
- Income Tax on Dividend?
- Alternative Minimum Tax (AMT) ?
- Dividends Witholding Tax ?
- Something else ?
I'm lost :confused


2/ There is no treaty between Taiwan and Ireland. 15% are directly between US and Ireland. Let's assume the tax category will apply 20% (just made up this number) on "profit coming from overseas with no tax treaty". Does that mean an additional 20% on the profit will be taken on top of it? So a total of 32%?

Thank you if anyone can clarify here!
baboboi
Posts: 9
Joined: Sun Mar 08, 2015 8:37 am

Re: newbie from taiwan

Post by baboboi »

All profits (capital gain tax and dividends) will be qualified as Overseas income. And those will fall under AMT.

I hope this answers both questions. I understand this post is very old so I'm not sure I should be answering but maybe other people will find this useful.
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